QUEBEC CITY - At this morning's annual general meeting, INO CEO Jean-Yves Roy painted a positive picture of the organization's activities in 2008-2009.

"Despite the rather difficult economic period and the fact that decreased business spending on R&D contracts-caused notably by the financial crisis and economic downturn-has had a ripple effect on our earnings, INO has maintained a stable level of activity for fiscal 2008-2009. INO stood out this year for its intellectual property efforts, strategic alliances, and the expansion of its services across Canada." These were the words of INO CEO Jean-Yves Roy as he looked back at INO's performance over the past year at the annual general meeting.

Outside earnings for the year just ended were at a level comparable to those of the previous year ($13.9 million compared to $14 million in 2007-2008). Of INO's outside earnings, $8.2 million came from R&D contracts, $5 million from prototype sales and transfer considerations, and $730,000 from other sources.

These amounts were supplemented by an $18.1 million investment in INO's Inhouse Research Program, for a total of $32 million in overall income at the end of this fiscal year, compared to $32.3 million last year.

Of INO's outside earnings, 27% came from companies and corporations active in defense and public security, 25% in transportation, 25% in aerospace, 15% in optics/photonics, 5% in industrial processes, and 3% in other industrial fields.

The geographic distribution of these earnings was as follows: 67% from Canada (which is in line with previous fiscal years), 12% from Europe, 10% from the United States, and 11% from other regions.

Small and medium-sized enterprises are still INO's main client group and accounted for 44% of our income. Big business provided 26% of our income, while government corporations and universities accounted for 29% and 1%, respectively.

There was also a substantial bump in the percentage of earnings from industrial transportation clients. This increase is notably attributable to strong growth in the demand for our road inspection systems. Similarly, INO's involvement in major projects with Defence Research and Development Canada (DRDC), including a number from Valcartier, and with the Canadian and Argentine space agencies boosted earnings from government corporations.

INCREASE IN PROMISING PATENTS AND TECHNOLOGY TRANSFERS

In terms of intellectual property, INO bolstered its patent portfolio by adding ten new patents this year. INO is now the assignee of some 108 patents protecting a variety of technological innovations developed by its scientific and technical personnel. In addition, over 90 other patent applications have been submitted and are awaiting approval.

Fiscal 2008-2009 was also successful in terms of technology transfers and strategic alliances. This year, the transfer of INO image analysis technology led to the creation of a new spinoff company, Realtraffic Technologies. INO also signed a worldwide licensing agreement with the Ottawa-area company Searidge Technologies.

This agreement gives the company full use of technologies developed by INO in the field of intelligent video detection systems, which INO and Searidge jointly hold the rights to. These technologies will improve the performance of IntelliDAR,(TM) an innovative imaging technology that belongs to Searidge Technologies and is designed for air traffic control and airport operations.

"What is more, we signed a partnership agreement with the Quebec City firm ABB Bomem regarding INO's infrared microbolometric technology. Our two companies will combine their respective expertise and know-how to fabricate and commercialize infrared microbolometric sensors and instruments equipped with this technology for use in space missions. Among other things, these devices can be used in infrared radiometric imaging systems aboard meteorological satellites," Jean-Yves Roy noted.

INO also signed a cooperation agreement with the Bavarian Laser Center GmbH (BLZ), a research center in Erlangen, Germany, specialized notably in photonic microsystem research, development, and production. The agreement involves the field of photonic micro- and nanotechnology. It will pave the way for various forms of cooperation and joint research and innovation activities. The first cooperation project involved INO's work with the Bavarian research consortium FORPHOTON to help develop chemical sensors to optimize industrial procedures. These sensors use INO's microstructured optical fiber technology and photonic crystal geometries.

INO STRENGTHENS ITS PRESENCE AND THE SERVICES IT OFFERS ACROSS CANADA

Part of INO's mission is to foster economic growth, contribute to the development of Canadian businesses, and help them become more competitive. As such, fiscal 2008-2009 has been an opportunity to strengthen INO's presence and the services it offers across the country. INO will now benefit from a Calgary-based liaison to handle our ventures in Western Canada. We have also transferred two high level technical/commercial employees from our main office to our existing Ontario business office. These initiatives are directly in line with INO's client-centered strategy and culture of flexibility in marketable innovation.

Outside of Canada, INO's approach hinges on networks of expert agents who will stress the services we offer in high-potential industrial and technological niches. We have already signed representation agreements with two firms: Summit Photonics in Seattle, Washington, and Fiber Network Engineering, which is headquartered in Silicon Valley.

20 YEARS OF SUCCESS AND INNOVATION

In other news, fiscal 2008-2009 was also the chance to celebrate the institute's 20th anniversary. An event was organized last fall to acknowledge the role played by various key figures who made exceptional contributions to INO's development at specific times in our history.

To honor these individuals, INO held an official ceremony, which was attended by some 100 clients and partners, as well as business and government representatives.

The day after the event, INO organized a major technology meeting with prestigious speakers from Quebec, Alberta, and the United States. Over 100 entrepreneurs, financiers, and technology builders active in the new economy took part in this highly appreciated event.

For INO, the meeting was an opportunity to consolidate not only our ties with our clients, partners, and collaborators of the last 20 years, but also our position as Canada's leader and authority in the development of optics/photonics for industrial applications.