Active Control Technology Inc. (TSX-V:ACT), a leading provider in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries, today announced its financial results for the second quarter of fiscal 2011 ending January 31, 2011.

The Corporation generated revenues of $783,024 during the quarter ended January 31, 2011, as compared to $1,620,010 in the quarter ended January 31, 2010. Revenues dropped as a consequence of no new ActiveMine™ installations begun during the quarter, whereas there were 3 new installations begun in the corresponding period ended January 31, 2010.

For the six month period ended January 31, 2011, the Corporation generated revenues of $1,559,352, as compared to $2,963,419 in the corresponding period ended January 31, 2010. Revenues dropped as a consequence of no new ActiveMine™ installations begun during the period, whereas there were 6 new installations begun in the corresponding period ended January 31, 2010.

The Corporation generated gross profit of $301,285 during the quarter ended January 31, 2011, as compared to a gross profit of $279,980 in the quarter ended January 31, 2010. Gross profit per cent improved from 17.3% to 38.5%, primarily due to the implementation of product cost reduction initiatives.

For the six month period ended January 31, 2011, the Corporation generated gross profit of $544,063 as compared to $571,370 in the corresponding period ended January 31, 2010. Gross profit per cent improved from 19.3% to 34.5%.

The Corporation incurred a net loss of $293,392 or $(0.00) per share during the quarter ended January 31, 2011, as compared to a net loss of $913,360 or ($0.00) per share for the quarter ended January 31, 2010. This improvement was as a result of increased gross profit combined with a reduction in total expenses.

For the six month period ended January 31, 2011, the Corporation incurred a net loss of $758,877, as compared to a net loss of $1,962,720 for the corresponding period ended January 31, 2010.

Free cash flow usage during the quarter ended January 31, 2011, defined as cash used in operating activities plus investing activities, was $252,120, as compared to $1,717,713 during the quarter ended January 31, 2010. For the first six months, free cash flow usage was $479,279, as compared to $2,540,669 during the corresponding period ended January 31, 2010.