Serenic Corporation (the "Company" or "Serenic") (TSX VENTURE: SER), an international software developer specializing in integrated financial management and HCM solutions for Non-Profit organizations, government agencies, and Microsoft Dynamics NAV users, is pleased to announce its financial results for the three months ended May 31, 2010.
Financial results are summarized as follows: ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (Unaudited) Increase Three months ended May 31 (decrease) ---------------------------------------------------------------------------- 2010 2009 % ---------------------------------------------------------------------------- $ $ ---------------------------------------------------------------------------- Revenue 2,703,218 2,746,377 (1.6) ---------------------------------------------------------------------------- Income (loss) for the period 12,024 (114,701) 110.5 ---------------------------------------------------------------------------- Basic and diluted loss per share - (0.01) 100.0 ---------------------------------------------------------------------------- EBITDA (1) 133,219 37,712 253.3 ---------------------------------------------------------------------------- EBITDA as a % of sales 4.9% 1.4% 3.5 ---------------------------------------------------------------------------- Weighted average common shares outstanding 15,190,241 15,185,458 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 1. EBITDA represents earnings before interest, taxes, depreciation, amortization, and stock based compensation. Please review the Serenic Management Discussion and Analysis for the three months ended May 31, 2010 for more information.
Quarter Highlights
The first quarter represents a good start to Fiscal 2011 for Serenic. Although revenue in Q1 was slightly below that of Q1 last year, the Company reported a profit of $12,024 this quarter, as compared to a loss of $114,701 in Q1 last year. Accordingly, EBITDA increased by 253% in Q1 this year over last, to $133,219 as compared to $37,712 recorded last year.
The Company continued to grow its customer base during Q1, having increased license sales by 25% over Q1 last year. International license sales comprised a significant portion (32 of the total license sale revenue for the quarter, with sales to new and existing customers having been made in Switzerland, Afghanistan, and several African countries.
The Company's cash position remained strong, with $3.3 million cash on hand at quarter end (versus $3.4 million as at February 28, 2010), and the Company remains free of long term debt.
Subsequent to the quarter end, Microsoft (for the fourth year) named Serenic to both its Inner Circle and President's Clubs, in recognition of Serenic's success in extending the Microsoft Dynamics platform to drive business advantages in organizations worldwide. Inner Circle is an elite group comprised of the most outstanding partners whose sales achievement ranks them in the top 1% of the Microsoft global network of partners. President's Club is a prestigious club of worldwide partners who achieve a high level of sales and business performance while maintaining a constant dedication to customer satisfaction and innovation.
Please refer to the full financial reports and Management Discussion and Analysis for the quarter ended May 31, 2010 filed at www.sedar.com (http://www.sedar.com) for full details regarding Q1 operations.
Outlook
We continue to be mindful of the slow recoveries of the North American and international economies, and the possibility of a "double dip" recession predicted by some pundits. Although attention to tight fiscal controls has been successful over the last year, certain challenges in this regard are expected to persist for the foreseeable future.
Management remains confident that the component of business strategy that focuses on organic growth continues to be a good strategy to embrace at this juncture of the Company's development. We continue to find pockets of opportunity within our niche markets and our products continue to be accepted by our current and prospective customers, as evidenced by the key customer wins that we continue to enjoy in our highly competitive environment. The international market has provided us with some very good opportunities and we now have several large clients who are in the initial phases of their Navigator implementations, and who we anticipate will require incremental licenses as our software propagates to additional users within their organizations. The new version of Serenic Navigator with its many new features and functionality is being well received in the marketplace, and Serenic will continue to capitalize on its close working relationship with Microsoft, both in terms of harnessing Microsoft's global marketing and distribution networks, as well as collaborating with their software developers.
Management is confident that we have the capacity to execute our current business plan, given the efforts of our dedicated employees, our competitively strong products and our sound financial position. From the corporate perspective, we continue to explore M&A alternatives pursuant to the PWCC project announced and commenced in February 2010, in order to maximize value for shareholders. We look forward to reporting continued progress and positive results.
About Serenic Corporation
Serenic Corporation publishes mission-critical software products for not-for-profits (NFP), educational institutions and governments. The Company's products are based on leading application and technology platforms from Microsoft, including Dynamics NAV, SQL Server, and .NET, and are distributed in North America and internationally through value-added resellers and a direct sales organization. Serenic Corporation is the exclusive developer of human resource management and payroll products for Microsoft Dynamics NAV ERP users in North America. Serenic has offices in Edmonton, Alberta and Denver, Colorado and staff located throughout the USA.
ON BEHALF OF THE BOARD OF DIRECTORS
By: "Dwayne Kushniruk"
Chairman
SERENIC CORPORATION
Forward Looking Statements
Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Serenic Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, software industry risks, general business risks, foreign currency risks, economic dependence risks, and credit risks.
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