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Nstein Technologies announces its 2009 Q3 results

^{Published on 2009-11-12 14:32:20 - Market Wire}
 

 - 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 As at September 30 December 31 2009 2008 $ $ (unaudited) ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents 5,708,780 7,405,217 Term deposits 164,600 214,600 Accounts receivable 4,045,889 6,864,825 Refundable tax credits 1,859,236 984,478 Income taxes receivable - 335,656 Work in progress 765,080 680,639 Prepaid expenses 240,739 207,389 ------------------------------------------------------------------------- 12,784,324 16,692,804 Property, plant and equipment 591,706 736,506 Intangible assets 2,779,632 3,364,257 Goodwill 10,496,905 10,496,905 ------------------------------------------------------------------------- 26,652,567 31,290,472 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 3,173,088 4,442,361 Deferred revenues 2,526,162 3,236,640 Future income tax liabilities 150,315 150,315 Current portion of long-term debt 257,034 330,503 ------------------------------------------------------------------------- 6,106,599 8,159,819 Long-term debt 311,090 520,799 Future income tax liabilities 463,994 571,071 ------------------------------------------------------------------------- 6,881,683 9,251,689 ------------------------------------------------------------------------- Shareholders' Equity Share capital 54,216,982 54,028,128 Other equity components 2,771,627 2,695,998 Contributed surplus 2,066,696 1,805,717 Deficit (39,284,421) (36,491,060) ------------------------------------------------------------------------- 19,770,884 22,038,783 ------------------------------------------------------------------------- 26,652,567 31,290,472 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Statements Three months ending Nine months ending of Earnings and September 30 September 30 Deficit 2009 2008 2009 2008 $ $ $ $ (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------------------------------------------- Revenues 4,632,715 5,600,516 16,206,078 17,638,371 Cost of sales, net of tax credits 2,221,832 2,663,933 7,704,247 8,050,086 ------------------------------------------------------------------------- 2,410,883 2,936,583 8,501,831 9,588,285 ------------------------------------------------------------------------- Expenses Selling and administrative 2,553,672 3,029,453 7,804,763 9,414,442 Research and development, net of tax credits 679,921 725,332 1,932,184 2,635,713 Depreciation of property, plant and equipment 49,248 81,255 179,659 226,431 Amortization of intangible assets 193,148 246,127 603,912 673,143 Loss on disposal of property, plant and equipment 1,205 - 6,587 - Exchange loss (gain) 257,051 (2,729) 346,249 (83,023) Financial (revenues) expenses 10,096 (49,204) 50,084 (103,942) Restructuring fees - - 478,826 419,156 ------------------------------------------------------------------------- 3,744,341 4,030,234 11,402,264 13,181,920 ------------------------------------------------------------------------- Loss before income tax 1,333,458 1,093,651 2,900,433 3,593,635 ------------------------------------------------------------------------- Recovery of income tax Future income tax (35,313) (37,578) (107,072) (93,945) ----------------------------------------------------------------------- (35,313) (37,578) (107,072) (93,945) ------------------------------------------------------------------------- Net loss and comprehensive loss for the period 1,298,145 1,056,073 2,793,361 3,499,690 ------------------------------------------------------------------------- Deficit - Beginning of period 37,986,276 36,785,291 36,491,060 34,341,674 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit - End of period 39,284,421 37,841,364 39,284,421 37,841,364 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net loss share 0.025 0.021 0.054 0,071 Basic and diluted weighted average number of shares outstanding 52,098,939 51,340,575 51,902,453 49,609,672 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NSTEIN TECHNOLOGIES INC. ------------------------------------------------------------------------- Consolidated Statements Three months ending Nine months ending of Cash Flows September 30 September 30 2009 2008 2009 2008 $ $ $ $ (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------------------------------------------- Cash flows from operating activities Loss for the period (1,298,145) (1,056,073) (2,793,361) (3,499,690) Items not affecting cash and cash equivalents Interest capitalized on long-term debt 1,473 3,633 8,635 18,254 Unrealized exchange loss (gain) (2,722) (28,987) (1,956) 40,917 Depreciation of property, plant and equipment 49,248 81,255 179,659 226,431 Amortization of intangible assets 193,148 246,127 603,912 673,143 Loss disposal of property, plant and equipment 1,205 - 6,587 - Stock-based compensation costs 107,192 116,326 337,358 382,483 Compensation costs related to the deferred share unit plan for directors 6,765 - (99,704) 75,500 Costs related to the employee stock purchase plan 31,362 22,332 93,468 57,128 Recovery of income tax (35,313) (37,578) (107,072) (93,945) ------------------------------------------------------------------------- (945,787) (652,965) (1,772,474) (2,119,779) ------------------------------------------------------------------------- Change in non-cash operating working capital items Accounts receivable 2,362,305 954,342 2,818,936 2,671,783 Refundable tax credits (225,759) (321,144) (874,758) (63,183) Income tax receivable - - 335,656 - Work in progress 91,524 (125,281) (84,441) (689,059) Prepaid expenses (34,682) 74,721 (33,350) (43,370) Accounts payable and accrued liabilities (496,184) (18,386) (919,248) (202,456) Deferred revenues (948,984) (521,737) (710,478) 341,010 ------------------------------------------------------------------------- 748,220 42,515 532,317 2,014,725 ------------------------------------------------------------------------- (197,567) (610,450) (1,240,157) (105,054) ------------------------------------------------------------------------- Cash flows from financing activities Variation in bank loans - - - (452,742) Payments on long-term debt (90,377) (83,878) (298,967) (272,844) Payment on Balance of purchase price of a subsidiary - (533,210) - (1,613,801) Issuance of common shares, net of issue expenses 32,529 17,332 94,635 (20,762) ------------------------------------------------------------------------- (57,848) (599,756) (204,332) (2,360,149) ------------------------------------------------------------------------- Cash flows from investing activities Variation in term deposits - (50,000) 50,000 (29,214) Business acquisitions, net of cash and cash equivalents (32,585) (73,475) (250,325) (2,722,169) Additions to property, plant and equipment (11,000) (79,037) (69,156) (174,175) Additions to intangible assets - (6,787) (20,670) (35,013) Proceeds from the sale of property, plant and equipment 14,076 - 38,203 - ------------------------------------------------------------------------- (29,509) (209,299) (251,948) (2,960,571) ------------------------------------------------------------------------- Decrease in cash and cash equivalents (284,924) (1,419,505) (1,696,437) (5,425,774) Cash and cash equivalents - Beginning of period 5,993,704 7,724,586 7,405,217 11,730,855 ------------------------------------------------------------------------- Cash and cash equivalents - End of period 5,708,780 6,305,081 5,708,780 6,305,081 ------------------------------------------------------------------------- -------------------------------------------------------------------------