VANCOUVER, British Columbia, Jan. 19, 2006 (PRIMEZONE) -- Braintech, Inc. (OTCBB:BRHI), a leading provider of vision-guided robotic, ("VGR") software solutions, announced today that it is scheduled to release its 2005 operating and financial results on March 24, 2006. Those results are expected to report approximately US$1,200,000 of revenue for the fiscal year ended December 31, 2005. Braintech also announced that management believes that it will achieve an operating profit for the fiscal period ended December 31, 2006.
Braintech also announced today that it had completed a private placement of approximately US$500,000. For full details of private placement please refer to 8K filings at the SEC's Edgar electronic filing site www.EDGAR.com.
Ted White, Braintech CFO, says, "At the beginning of 2005 we established several strategic operating priorities for fiscal 2005. Our first and major priority was to significantly grow our revenue, thereby reducing our reliance on equity financing to fund operations. 2005 revenues represent a 60% increase over the 2004 reported revenues, $750,000 for 2004 versus $1,200,000 for 2005. We achieved this revenue growth by assisting ABB with their TrueView(tm) marketing and sales program and by expanding the product line of eVF application solutions for ABB's automotive customers. Our major strategic operating priority for fiscal 2006 is to achieve an operating profit for the fiscal year ended December 31, 2006. We believe that we can achieve this priority by continuing to expand our relationship with ABB. For example, in January 2006 we will deliver 10 systems to ABB; eight systems per month being the cash flow break-even point. These orders are for software runtime licenses only with no further performance items remaining for Braintech. This is the business model that Braintech has been striving for: high profit margin Independent Software Vendor.
"Our current cash and other liquid resources are sufficient to take us well into 2006 and we expect that future funds from operations will bring us to cash flow positive toward the latter half of 2006."
Owen Jones, Braintech CEO, states, "The year 2005 can be described as our break-out year. 2005 saw our 100th installation of eVF(tm) which is now in many North American and Japanese Automaker's plants. These initial installations are proving successful and give automakers solid evidence that Vision Guide Robotic ("VGR") automation and more specifically VGR systems built with eVF improve manufacturing efficiency and reliability while providing significant capital and operating savings.
"As Ted mentioned, our first priority for 2006 is to achieve profitability. A number of factors support this goal. The first is our 2005 achievements, which are igniting customer pull-thru and demand, secondly ABB is re-emerging as a dominant, global leader of robotic automation and thirdly, our recent commercialization efforts are starting to pay dividends.
"We enter 2006 with our strategic partner, ABB in great financial shape. Also, ABB has recently restructured its organization with robotics as a distinct division with new executive managers taking charge. As a key supplier for ABB's award-winning TrueView vision-guided robotic systems, we are working closely with this new management to grow the market for VGR.
"In September 2005, we introduced eVF 4.0 as a commercially available product. Since then we have been developing a channel partner group that spans the globe with interested parties from North America, Asia and Europe. We have on-going business development in new sectors including aerospace, consumer electronics, food packaging, US Federal Agencies including the D.O.D and D.O.E. These channel partners included major systems integrators, robot manufacturers and automation engineering firms.
"2006 will be a very busy year for us, with so many opportunities in front of us, it will be a challenge to balance the demands that the market and our channel partners will put to us. However, our investment over the last five years to build a software platform for VGR clearly shows signs of being the right choice. With customer demand increasing, it is the inherent scalability of our software coupled with our strong channel partners that will provide the means to meet and therefore enjoy a surge in orders."
About Braintech (OTCBB:BRHI) -- For more information, visit www.braintech.com
The Braintech, Inc. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=2174
About ABB (NYSE:ABB) -- ABB's Robotic, Automotive and Manufacturing group is a leading supplier of robots, robotic systems and automation systems to the automotive, manufacturing and consumer industries. With more than 130,000 robots installed worldwide and more than 5,000 employees, ABB is a global leader in flexible factory automation.
This group is part of ABB Ltd., a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 102,000 people. The company's U.S. operations employ about 9,000 in manufacturing and other facilities in 40 states.
For more information, visit www.abb.com
eVF is a trademark of Braintech Inc. and its subsidiaries.
TrueView is a trademark of ABB, Inc.
Statements in this document that are not purely historical are forward-looking statements and reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions. Forward-looking statements in this news release include references to expected 2005 revenues, achieving an operating profit for the fiscal year ended December 31, 2006, and achieving cash flow positive in the latter half of 2006. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technical difficulties in developing the products; competition from other suppliers of similar products; pricing that may not be acceptable to potential markets; and many other known and unknown factors. Readers should also refer to the risk disclosures outlined in the Company's 10-KSB and 10-QSB Forms filed from time to time with the SEC.