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Nstein Technologies announces improved 2009 Q2 results

^{Published on 2009-08-13 16:10:39, Last Modified on 2009-08-13 16:10:47 - Market Wire}
 

 MONTREAL, Aug. 13 /CNW Telbec/ - Nstein Technologies inc. [ www.nstein.com ] (TSX-V: EIN), today announced its results for the second quarter of 2009 ending on June 30, 2009. Nstein 2009 Q2 revenues were $6.2 million, up 3% compared to $6 million a year earlier. The Company posted earnings before financial charges, income tax, depreciation, amortization, exchange loss and restructuring charges (EBITDA) of $335,182 compared to a negative EBITDA of $1,176,642 for the second quarter of 2008. The net loss amounted to $258,841 or $0.005 per share, compared to a net loss of $1,551,727 or $0.03 per share for the same period the previous year. "These results demonstrate the positive impact of the cost-cutting measures introduced by the company over the last twelve months. Because of the uncertain economic climate, the cost structure was reduced significantly, thereby making it possible to post a positive EBIDTA in the second quarter. This earnings level meets our expectations and again confirms the appeal of Nstein solutions to content publishers seeking avant-garde tools to drive their digital strategy. Our current and potential clients are still affected by the sharp decline in their advertising revenues during this recessionary period but signs of improvement encourage us to approach the second half of the year with cautious optimism. The financial situation of the company is sound, and we will be in a good position to profit from the coming recovery," said Luc Filiatreault, President and CEO of Nstein Technologies. At June 30, 2009, the company had cash of $6 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 June 30 As at December 31 2009 2008 $ $ (unaudited) ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents 5,993,704 7,405,217 Term deposits 164,600 214,600 Accounts receivable 6,408,194 6,864,825 Refundable tax credits 1,633,477 984,478 Income taxes receivable - 335,656 Work in progress 856,604 680,639 Prepaid expenses 206,057 207,389 ------------------------------------------------------------------------- 15,262,636 16,692,804 Property, plant and equipment 645,201 736,506 Intangible assets 2,972,814 3,364,257 Goodwill 10,496,905 10,496,905 ------------------------------------------------------------------------- 29,377,556 31,290,472 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 3,695,092 4,442,361 Deferred revenues 3,475,146 3,236,640 Future income tax liabilities 150,315 150,315 Current portion of long-term debt 300,555 330,503 ------------------------------------------------------------------------- 7,621,108 8,159,819 Long-term debt 359,195 520,799 Future income tax liabilities 499,308 571,071 ------------------------------------------------------------------------- 8,479,611 9,251,689 ------------------------------------------------------------------------- Shareholders' Equity Share capital 54,152,340 54,028,128 Other equity components 2,684,514 2,695,998 Contributed surplus 2,047,367 1,805,717 Deficit (37,986,276) (36,491,060) ------------------------------------------------------------------------- 20,897,945 22,038,783 ------------------------------------------------------------------------- 29,377,556 31,290,472 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Statements Three months ending Six months ending of Earnings and Deficit June 30 June 30 2009 2008 2009 2008 $ $ $ $ (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------------------------------------------- Revenues 6,188,031 6,008,624 11,573,363 12,037,855 Cost of sales, net of tax credits 2,659,015 2,861,739 5,482,415 5,386,153 ------------------------------------------------------------------------- 3,529,016 3,146,885 6,090,948 6,651,702 ------------------------------------------------------------------------- Expenses Selling and administrative 2,614,923 3,357,316 5,251,091 6,384,989 Research and development, net of tax credits 573,529 966,211 1,252,263 1,910,381 Depreciation of property, plant and equipment 53,547 69,797 130,411 145,176 Amortization of intangible assets 199,414 248,279 410,764 427,016 Loss on disposal of property, plant and equipment 5,382 - 5,382 - Exchange (gain) loss 191,016 83,826 89,198 (80,294) Financial (revenues) expenses 9,781 10,761 39,988 (54,738) Restructuring fees 174,446 - 478,826 419,156 ------------------------------------------------------------------------- 3,822,038 4,736,190 7,657,923 9,151,686 ------------------------------------------------------------------------- Loss before income tax 293,022 1,589,305 1,566,975 2,499,984 Recovery of income tax Future income tax (34,181) (37,578) (71,759) (56,367) ----------------------------------------------------------------------- (34,181) (37,578) (71,759) (56,367) ------------------------------------------------------------------------- Net loss and comprehensive loss for the period 258,841 1,551,727 1,495,216 2,443,617 Deficit - Beginning of period 37,727,435 35,233,564 36,491,060 34,341,674 ------------------------------------------------------------------------- Deficit - End of period 37,986,276 36,785,291 37,986,276 36,785,291 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net loss share 0.005 0.030 0.029 0.050 Basic and diluted weighted average number of shares outstanding 51,837,875 51,053,643 51,802,721 48,797,518 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Statements Three months ending Six months ending of Cash Flows June 30 June 30 2009 2008 2009 2008 $ $ $ $ (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------------------------------------------- Cash flows from operating activities Loss for the period (258,841) (1,551,727) (1,495,216) (2,443,617) Items not affecting cash and cash equivalents Interest capitalized on long-term debt 3,400 6,351 7,162 14,621 Unrealized exchange loss (gain) 661 (396) 766 69,904 Depreciation of property, plant and equipment 53,547 69,797 130,411 145,176 Amortization of intangible assets 199,414 248,279 410,764 427,016 Loss on disposal of property, plant and equipment 5,382 - 5,382 - Stock-based compensation costs 124,001 119,172 230,166 266,157 Compensation costs related to the deferred share unit plan for directors (12,609) 44,750 (106,469) 75,500 Costs related to the employee stock purchase plan 33,127 17,124 62,106 34,796 Future income tax (34,181) (37,578) (71,759) (56,367) ------------------------------------------------------------------------- 113,901 (1,084,228) (826,687) (1,466,814) ------------------------------------------------------------------------- Change in non-cash operating working capital items Accounts receivable (72,454) 2,337,292 456,631 1,717,441 Refundable tax credits (444,309) (368,710) (648,999) 257,961 Income tax receivable 342,102 - 335,656 - Work in progress (213,540) (107,378) (175,965) (563,778) Prepaid expenses 37,593 (91,291) 1,332 (118,091) Accounts payable and accrued liabilities (247,016) (395,151) (423,064) (184,070) Deferred revenues 5,167 (551,714) 238,506 862,747 ------------------------------------------------------------------------- (592,457) 823,048 (215,903) 1,972,210 ------------------------------------------------------------------------- (478,556) (261,180) (1,042,590) 505,396 ------------------------------------------------------------------------- Cash flows from financing activities Variation in bank loans - - - (452,742) Payments on long-term debt (89,451) (35,371) (208,590) (188,966) Payment on Balance of purchase price of a subsidiary - (1,080,591) - (1,080,591) Issuance of common shares, net of issue expenses 33,127 (20,815) 62,106 (38,094) ------------------------------------------------------------------------- (56,324) (1,136,777) (146,484) (1,760,393) ------------------------------------------------------------------------- Cash flows from investing activities Variation in term deposits - - 50,000 20,786 Business acquisitions, net of cash and cash equivalents (116,228) (287,335) (217,740) (2,648,694) Additions to property, plant and equipment (45,107) (66,728) (58,156) (95,138) Additions to intangible assets (13,100) (25,959) (20,670) (28,226) Proceeds from the sale of property, plant and equipment 24,127 - 24,127 - ------------------------------------------------------------------------- (150,308) (380,022) (222,439) (2,751,272) ------------------------------------------------------------------------- Decrease in cash and cash equivalents (685,188) (1,777,979) (1,411,513) (4,006,269) Cash and cash equivalents - Beginning of period 6,678,892 9,502,565 7,405,217 11,730,855 ------------------------------------------------------------------------- Cash and cash equivalents - End of period 5,993,704 7,724,586 5,993,704 7,724,586 ------------------------------------------------------------------------- ------------------------------------------------------------------------- %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 ]