LAVAL, Que. – Furniture and design software company 20-20 Technologies Inc. boosted its revenues by more than seven per cent to almost US$18 million, helped by positive exchange rates and international sales.
“Without the positive impact of exchange rates, revenues would have increased by 5.4 per cent,” chief executive Jean-Francois Grou said in a news release on Thursday.
Revenues were up 7.3 per cent to $17.9 million, the highest level reached since the fourth quarter of 2008, the company said.
20-20 Technologies (TSX:TWT) said international markets posted growth of about 41 per cent in the quarter and were 8.7 per cent of total revenues in the quarter.
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“It should be noted that revenues are more diversified geographically as North America for the first time in the company’s history fell below the 50 per cent level and international revenues are gradually approaching the 10 per cent level,” Grou said.
The Quebec-based company reported lower fourth-quarter net earnings of $300,000 or two cents per share, compared with $700,000 or four cents per share in the same period last year.
A valuation allowance of $300,000 was recorded during the quarter for future income taxes related to the company’s French subsidiary, resulting in a tax rate of 67 per cent for the quarter compared with a negative tax rate last year, the company said.
Grou said he views 2012 as a positive year for his company.
“Recently, we noticed in the U.S. and Europe that mid-size customers are slowly coming back and we view this as a positive development. The strong performance of the manufacturing sector in the U.S. during the fourth quarter is indicative of this early recovery in a traditionally important customer segment for 20-20.”
For fiscal 2011, revenues were $68.7 million, up 5.3 per cent. Net earnings for the full year were $1.3 million or seven cents a share, compared with $2.3 million or 12 cents a share for fiscal 2010.
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