VANCOUVER (CP) - Stock in Cantronic Systems Inc. (TSXV:CTS) soared 24 per cent Tuesday after the surveillance technology company announced it was in the black in the fourth quarter with much improved revenues.
At midday, Cantronic shares were up five cents or 24.39 per cent at 25.5 cents with more than 2.9 million having changed hands.
Vancouver-based Cantronic said earnings attributable to shareholders amounted to $653,000 in fourth quarter, or less than a penny per share, compared with a loss of $17,000 or nil per share in same quarter last year.
Revenue from continuing operations was $6.5 million, compared with $3.9 million in the year-earlier period.
The results from continuing operations exclude numbers generated from the sale of its thermal imaging business, which was sold before the end of the fiscal year.
During the year, the company was awarded a $3.9-million contract to provide surveillance systems in Haicheng City in China.
The company also bought dome camera maker Actiontop Electronics Co., Ltd. for $1.2 million in cash and shares valued at $2.2 million. It also boosted its ownership in video management software provider AVINFO to 67.6 per cent.
"With two years operating history in China, Cantronic is now able to seek bank financing for larger installation contracts which have higher margin than hardware sales," said president and CEO James Zahn.
"We continue to see major opportunities in China for increased sales of both video surveillance cameras and software as well as networked video surveillance solutions and turn-key projects."
Cantronic Systems Inc. makes and distributes video surveillance technology software and cameras.