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WellPoint Systems reports results for the first quarter ended March 31, 2010

^{Published on 2010-05-27 17:20:21 - Market Wire}
 

 ------------------------------------------------------------------------- March 31 Three Months Ended $ Change In Thousands (CDN$) 2010 2009 2009-2010 ------------------------------------------------------------------------- Revenue 6,248 10,384 (4,136) Gross Profit(1) 3,521 7,060 (3,539) Adjusted EBITDA(2) (569) 2,588 (3,157) Net Income (2,137) (529) (1,608) Adjusted EBITDA per share ($0.01) $0.06 ($0.07) Net Income per share ($0.04) ($0.01) ($0.03) ------------------------------------------------------------------------- 

 - Strengthened the senior management team with the addition of a new Chief Financial Officer, Senior Vice President Marketing, Vice President Global Services, Vice President Sales - USA, and Vice President of Partner Channels; - Achieved Code Completion for the Revenue Distribution module for the WellPoint Energy Suite (Dynamics AX), designed to specifically target U.S. markets; - Rebranded WellPoint's Enterprise Asset Management (EAM) to DAXEAM (Dynamics AX EAM) to leverage its appeal and expand its reach into other non-energy industry verticals; - Enhanced reporting capability for Energy Financial Management (EFM) for North Sea markets; - Recognized as one of the fastest growing companies in Canada for the third straight year, achieving a ranking of 100 on the Branham 300 list of the 250 fastest growing technology companies in Canada. 

 (1) "EBITDA" is a financial measure that does not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to similar measures presented by other companies. EBITDA is a measure of the Company's operating profitability. EBITDA provides an indication of the results generated by the Company's principal business activities prior to how these activities are financed, assets are amortized or how results are taxed in various jurisdictions. Adjusted EBITDA is Standardized EBITDA(1), excluding foreign exchange gains primarily related to the US dollar denominated debt of the Company and can vary significantly depending on exchange rate fluctuations, which are beyond the control of the Company, and write downs of deferred development and intangible costs, goodwill impairment, financing costs, stock based compensation, fees and expenses on settlement of debt and losses on extinguishment of debt and after deducting the annual amount invested in respect of deferred development costs. (2) "Gross Profit" is a financial measure that does not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies. Gross profit is provided to assist investors in determining WellPoint's ability to generate earnings from the sales of its products and services. Gross profit is calculated by subtracting direct expenses from revenue. 

 WELLPOINT SYSTEMS INC. Consolidated Balance Sheets (Unaudited)(in thousands of dollars) ------------------------------------------------------------------------- March 31 December 31 2010 2009 ------------------------------------------------------------------------- Assets Current assets: Cash $ - $ 505 Accounts receivable 2,930 3,188 Prepaid expenses 605 333 ----------------------------------------------------------------------- 3,535 4,026 Property and equipment 884 920 Deferred development costs 1,210 1,386 Intangible assets 10,048 10,999 Goodwill 20,384 21,091 Future income taxes 1,409 1,132 ------------------------------------------------------------------------- $ 37,470 $ 39,554 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Line of Credit $ 431 $ - Accounts payable and accrued liabilities 3,307 3,273 Current income tax liability 54 83 Deferred revenue 2,686 2,062 Other deferred credits 55 55 Note payable 5,294 5,471 Current portion of capital lease obligations 61 61 Convertible debentures 9,121 8,880 ----------------------------------------------------------------------- 21,009 19,885 Long term notes payable - - Capital lease obligations 81 63 Other deferred credits 9 23 Convertible debentures 17,504 17,658 ------------------------------------------------------------------------- 38,603 37,629 Shareholders' equity: Share capital 14,621 14,621 Contributed surplus 2,057 2,009 Convertible debentures 8,661 8,664 Accumulated other comprehensive income (1,653) (888) Deficit (24,818) (22,681) ------------------------------------------------------------------------- (26,471) (23,569) ------------------------------------------------------------------------- Total shareholders' equity (1,132) 1,925 ------------------------------------------------------------------------- $ 37,470 $ 39,554 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying notes to consolidated financial statements. WELLPOINT SYSTEMS INC. Consolidated Statements of Operations and Deficit (Unaudited) (in thousands of dollars) For the three months ended March 31 ------------------------------------------------------------------------- 2010 2009 ------------------------------------------------------------------------- Revenue : License $ 1,778 $ 3,402 Maintenance 2,535 3,121 Professional services 1,935 3,861 ------------------------------------------------------------------------- 6,248 10,384 Direct costs 2,727 3,324 ------------------------------------------------------------------------- Gross margin 3,521 7,060 Expenses: Sales, general and administrative 2,545 2,639 Research and development 1,268 1,476 Interest 1,512 1,449 Depreciation and amortization 819 885 Foreign exchange (gain) loss (675) 807 Facilities 325 376 Financing and amortization of debt and note payable issue costs 46 81 Fees and expenses on settlement of long term note payable - - ----------------------------------------------------------------------- 5,840 7,713 ------------------------------------------------------------------------- Loss before income taxes (2,319) (654) ------------------------------------------------------------------------- Income taxes Future expense (reduction) (182) (125) ------------------------------------------------------------------------- Net loss (2,137) (529) Deficit, beginning of year (22,681) (25,869) ------------------------------------------------------------------------- Deficit, end of year $ (24,818) $ (26,398) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Loss per share, basic and diluted $ (0.04) $ (0.01) ------------------------------------------------------------------------- -------------------------------------------------------------------------