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Nstein Technologies announces its 2009 Q1 results

^{Published on 2009-05-14 08:09:52, Last Modified on 2009-05-14 08:12:12 - Market Wire}
 

 MONTREAL, May 14 /CNW Telbec/ - Nstein Technologies inc. [ www.nstein.com ] (TSX-V: EIN), today announced its results for the first quarter of 2009. Nstein revenues for the first quarter of 2009 were $5.4 million, down 11% compared to $6.03 million a year earlier. The Company posted a loss before financial expenses, exchange losses, income tax, depreciation, amortization and restructuring fees (EBITDA) of $752,970 compared to a negative EBITDA of $467,026 for the first quarter of 2008. Restructuring fees of $304,380 were incurred during the quarter from the elimination of certain positions within the Company. The net loss was $1,236,375 or $0.024 per share, compared to a net loss of $891,890 or $0.019 per share for the same period last year. "Although these results are somewhat disappointing, they are in line with our expectations given the difficult economic environment. The company's target clientele, publishers of newspapers and magazines, have seen their advertising revenues plummet during the first quarter as advertisers substantially reduced their spending in this recession. Obviously, this situation delays their decisions to invest in solutions like those we offer. We nevertheless remain convinced of the value of our offering, given that we were able to sign $1.5 million worth of new contracts during the period with existing customers and a leading publisher in the United Kingdom. We intend to manage the company prudently during this period of uncertainty while positioning ourselves advantageously for the future recovery," said Luc Filiatreault, President and CEO of Nstein Technologies. On March 31, 2009, the Company had cash of $6.7 million, working capital of $7.6 million and long-term debt of $0.4 million. About Nstein Technologies Inc. Nstein Technologies (TSX-V: EIN) develops and markets multilingual solutions that power digital publishing for the most prestigious newspapers, magazines, and content-driven organizations. Nstein's solutions generate new revenue opportunities and reduce operational costs by enabling the centralization, management and automated indexing of digital assets. Nstein partners with clients to design a complete digital strategy for success using publishing industry best practices for the implementation of its Web Content Management, Digital Asset Management, Text Mining Engine and Picture Management Desk products. [ www.nstein.com ] - The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. - Any statement that appears prospective shall not be interpreted as such. NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Balance Sheets As at March 31 As at December 31 2009 2008 $ $ (unaudited) ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents 6,678,892 7,405,217 Term deposits 164,600 214,600 Accounts receivable 6,335,740 6,864,825 Refundable tax credits 1,189,168 984,478 Income taxes receivable 342,102 335,656 Work in progress 643,064 680,639 Prepaid expenses 243,650 207,389 ------------------------------------------------------------------------- 15,597,216 16,692,804 Property, plant and equipment 681,801 736,506 Intangible assets 3,160,478 3,364,257 Goodwill 10,496,905 10,496,905 ------------------------------------------------------------------------- 29,936,400 31,290,472 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 4,070,941 4,442,361 Deferred revenues 3,469,979 3,236,640 Future income tax liabilities 150,315 150,315 Current portion of long-term debt 340,416 330,503 ------------------------------------------------------------------------- 8,031,651 8,159,819 Long-term debt 404,727 520,799 Future income tax liabilities 533,490 571,071 ------------------------------------------------------------------------- 8,969,868 9,251,689 ------------------------------------------------------------------------- Shareholders' Equity Share capital 54,086,087 54,028,128 Other equity components 2,768,745 2,695,998 Contributed surplus 1,839,135 1,805,717 Deficit (37,727,435) (36,491,060) ------------------------------------------------------------------------- 20,966,532 22,038,783 ------------------------------------------------------------------------- 29,936,400 31,290,472 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Statements of Earnings and Three months ending March 31 Deficit 2009 2008 $ $ (unaudited) (unaudited) ------------------------------------------------------------------------ Revenues 5,385,332 6,029,231 Cost of sales, net of tax credits 2,823,400 2,524,414 ------------------------------------------------------------------------ 2,561,932 3,504,817 ------------------------------------------------------------------------ Expenses Selling and administrative 2,636,168 3,027,673 Research and development, net of tax credits 678,734 944,170 Depreciation of property, plant and equipment 76,864 75,379 Amortization of intangible assets 211,350 178,737 Exchange gain (101,818) (164,120) Financial (revenues) expenses 30,207 (65,499) Restructuring fees 304,380 419,156 ------------------------------------------------------------------------ 3,835,885 4,415,496 ------------------------------------------------------------------------ Loss before income tax 1,273,953 910,679 Recovery of income tax Future income tax (37,578) (18,789) ---------------------------------------------------------------------- (37,578) (18,789) ------------------------------------------------------------------------ Net loss and comprehensive loss for the period 1,236,375 891,890 Deficit - Beginning of period 36,491,060 34,341,674 ------------------------------------------------------------------------ Deficit - End of period 37,727,435 35,233,564 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Basic and diluted net loss share 0.024 0.019 Basic and diluted weighted average number of shares outstanding 51,716,920 46,382,730 ------------------------------------------------------------------------ ------------------------------------------------------------------------ NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Statements of Cash Flows Three months ending March 31 2009 2008 $ $ (unaudited) (unaudited) ------------------------------------------------------------------------ Cash flows from operating activities Loss for the period (1,236,375) (891,890) Items not affecting cash and cash equivalents Interest capitalized on long-term debt 3,762 8,270 Unrealized exchange loss 105 70,300 Depreciation of property, plant and equipment 76,864 75,379 Amortization of intangible assets 211,350 178,737 Stock-based compensation costs 106,165 146,985 Compensation costs related to the deferred share unit plan for directors (93,860) 30,750 Costs related to the employee stock purchase plan 28,979 17,672 Recovery of income tax (37,578) (18,789) ------------------------------------------------------------------------ (940,588) (382 586) ------------------------------------------------------------------------ Change in non-cash operating working capital items Accounts receivable 529,085 (619,851) Refundable tax credits (204,690) 626,671 Income tax receivable (6,446) - Work in progress 37,575 (456,400) Prepaid expenses (36,261) (26,800) Accounts payable and accrued liabilities (176,048) 211,081 Deferred revenues 233,339 1,414,461 ------------------------------------------------------------------------ 376,554 1,149,162 ------------------------------------------------------------------------ (564,034) 766,576 ------------------------------------------------------------------------ Cash flows from financing activities Variation in bank loans - (452,742) Payments on long-term debt (119,139) (153,595) Issuance of common shares, net of issue expenses 28,979 (17,279) ------------------------------------------------------------------------ (90,160) (623,616) ------------------------------------------------------------------------ Cash flows from investing activities Variation in term deposits 50,000 20,786 Business acquisitions, net of cash and cash equivalents (101,512) (2,361,359) Additions to property, plant and equipment (13,049) (28,410) Additions to intangible assets (7,570) (2,267) ------------------------------------------------------------------------ (72,131) (2,371,250) ------------------------------------------------------------------------ Decrease in cash and cash equivalents (726,325) (2,228,290) Cash and cash equivalents - Beginning of period 7,405,217 11,730,855 ------------------------------------------------------------------------ Cash and cash equivalents - End of period 6,678,892 9,502,565 ------------------------------------------------------------------------ ------------------------------------------------------------------------ %SEDAR: 00014563EF 

For further information: Nstein Technologies inc.: Investor Relations: Bruno Martel, Chief Financial Officer, (514) 908-5406, [ bruno.martel@nstein.com ]; Media: David Crouy, Marketing Director, (514) 908-5406, [ david.crouy@nstein.com ]