Sonomax loses $5.91-million in 2011

2012-04-30 17:53 ET - News Release

Mr. Michael Blank reports

SONOMAX REPORTS 2011 RESULTS

Sonomax Technologies Inc. has disclosed its results for the year ended Dec. 31, 2011.

In order to get SonoFitA adopted by OEMs, Sonomax needed to accomplish three important milestones in 2011. First, we needed to complete the product development for eersA and SonoFitA . Second, establish low cost offshore manufacturing for both eersA and SonoFitA . Finally, the company had to demonstrate that sales could be made for eersA and that returns would be below 5%. We are happy to report that we achieved all 3 milestones and the result is the Altec Lansing agreement (http://www.businesswire.ca/news/ca-en/20120418005833/en/Sonomax%C2%AE-Signs-Material-OEM-Agreement-Leading-Audio) which promises to be the first in a series of OEM agreements to be announced over the next 12 months in the various vertical markets of Consumer Electronics, Industrial, Military and Health. The result of this development was a loss of $5,191,081 compared to $4,167,792 in 2010. Gross loss was $230,090 in 2011 compared to gross profit of $31,637 in 2010. Management is happy to report that the bulk of this work is now behind us.

In 2011, we also continued to sell our V3 ProFit hearing protection inventory to many of the Fortune 500 around the world with particular focus on mining companies such as Rio Tinto. It is our expectation that these companies will be embracing the newly designed and improved V5 self-fit hearing protection devices in the fall. The result of these activities was an increase in net revenue to $656,574 in 2011 from $642,766 in 2010. Over the next 12 months, the new V5 will start selling in more important volumes now that reliance on a technician will no longer be required.

The commercialization of the new PCS 150 and PCS 250 introduced at CES 2012 is now in starting to gain traction in select retailers in North America. The next stage of growth will be introducing eers to Europe in June of this year. In order to support the growth of eers and other OEMs, Sonomax announces the hiring of Craig Stein, as Director of Sales & Marketing. Mr. Stein comes to Sonomax with a wealth of experience in sales and marketing. Mr. Stein, along with the entire team from Levin Consulting, will be responsible for the execution of the current 2012 sales and marketing plan. While there are still many technologies to be developed by Sonomax, such as Talk Through the Ear (TTE), Bluetooth (BT) and Bionic Ear (BE), the company has now started to refocus some of its resources from product development and R&D to sales and marketing. As such, Sonomax announces that there will be a few more additions to the sales team in the coming months to support eers and SonoFit. Full financial statements can be found at: www.sedar.com

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