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Smartcool Systems reported that revenue grew by 300% on a quarter by quarter basis.

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Smartcool, a provider of equipment to reduce energy consumption, reported revenue of $262,000 for the three months ended June 30, 2017, an increase of 975% over the $27,000 reported in the 2nd quarter in 2016.

Additional Information:

Company: Smartcool Systems
Website: http://www.smartcool.net
Stock Symbol: TSXV: SSC
Date Published: Aug 29, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Smartcool Systems reported that revenue grew by 300% on a quarter by quarter basis.

Smartcool, a provider of equipment to reduce energy consumption, reported revenue of $262,000 for the three months ended June 30, 2017, an increase of 975% over the $27,000 reported in the 2nd quarter in 2016.

Revenue for the six-month period was $348,000, an increase of 205% over the $169,000 reported in the comparable period in 2016.

The operating loss for the six-month period ended June 30, 2017 was ($556,000) a significant decrease from the loss of ($741,000) reported for the comparable six-month period in 2016.

Ted Konyi, CEO, stated: “(We) attribute these results to the initiation of a direct sales model in North America and the addition of five sales agents. The overall demand for energy efficiency as a function of increasing utility rates and continued concern over global climate change is growing steadily and we are seeing this reflected in our efforts to grow Smartcool's sales. Rising utility rates emphasize how Smartcool's suite of products can be financially beneficial by effectively reducing pay back periods and increasing ROI (Return on Investment) for our customers."

Smartcool focuses on reducing the electricity used by refrigeration, air conditioning and heat pumps (HVAC).

The company distributes its products directly to major clients, providing them with superior project management and service as they roll out Smartcool products to their facilities.

For direct sales, Smartcool targets specific industries such as food retailers, telecommunications, commercial real estate and hospitality, where HVAC energy usage tends to represent a very high percentage of a client’s operating budget.

For industries, such as supermarkets, these systems consume well over 50% of their total energy usage.

The ability to save energy with Smartcool’s energy efficiency technology represents a major opportunity to cut operating
expenses for any customer, typically giving them a return on their investment averaging 18 to 36 months.

Smartcool is already well established in the commercial retrofit market, especially with food retail customers, where management envisions an $18 billion global market opportunity.

Smartcool’s ECO3™ and ESM™ are retrofit products, meaning that they are installed by wiring in between the existing thermostat and the compressor in the HVAC system, rather than replacing any expensive equipment.

Once installed, the products immediately begin monitoring the cooling cycle of the compressor to identify inefficiencies and opportunities for saving energy.

Final testing is underway to deliver Smartcool’s software to the refrigerated transportation sector, where initial testing has resulted in a greater than 20% savings in compressor run time.

The shares are trading at $0.09 and with 178 million shares outstanding, the company is capitalized at $16 million.

For more information, please visit the company’s website at www.smartcool.net, contact Mike Kordysz, Vice President, Investor Relations, at 604-904-8632, or by email at mike.kordysz@smartcool.net.

I’m Samantha Deutscher for Investmentpitch Media