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New Deals; Sales Growth Offset By Foreign Exchange Volatility Highlight Angoss Second Quarter Results

^{Published on 2010-07-20 14:35:42 - Market Wire}
 

 Second quarter highlights included: - Expanded risk analytics software deployments at leading financial services customers, including Bank of America, SunTrust, Wells Fargo and eBay PayPal; - Signing a multi-year subscription agreement for FundGUARD(TM) with a major new US fund distribution client, further expanding the Company's leadership position in the mutual fund and wealth management marketing and sales analytics space; - The successful completion of a proof of concept for the Company's ClaimGUARD(TM) fraud detection system with a leading Blue Cross Blue Shields benefits provider; - The continued development of Intellimaxx Version 6, the Company's integrated marketing solutions platform, planned for release in 1H 2011. 

 Financial Results ANGOSS Software Corporation Income Statement Information (unaudited, stated in Canadian dollars) For the period ended Three months ending Six months ending ----------------------- ----------------------- May 31, May 31, May 31, May 31, 2010 2009 2010 2009 Revenues $2,067,845 $2,244,549 $4,081,111 $4,265,516 ----------------------- ----------------------- Operating Expenses General and administration 441,233 409,894 865,104 817,944 Sales and marketing 1,048,469 1,100,344 2,168,333 2,340,616 Research and development, net 483,058 388,406 833,179 660,713 ----------------------- ----------------------- 1,972,760 1,898,644 3,866,616 3,819,273 ----------------------- ----------------------- Income before the following 95,085 345,905 214,495 446,243 Amortization of capital assets (151,596) (99,187) (308,616) (181,843) Amortization of intangible assets (36,252) (50,000) (72,504) (100,000) Interest expense (70,885) (37,005) (152,115) (75,771) Foreign exchange gain (loss) 13,800 (255,062) 33,946 (198,837) Stock based compensation 3,673 (24,086) 925 (26,336) ----------------------- ----------------------- Net (loss) and comprehensive (loss) for the period $(146,175) $(119,435) $(283,869) $(136,544) ----------------------- ----------------------- ----------------------- ----------------------- Basic and diluted (loss) earnings per share $(0.02) $(0.02) $(0.04) $(0.02) ----------------------- ----------------------- ----------------------- ----------------------- Weighted average number of shares outstanding Basic 7,256,612 7,256,612 7,256,612 7,256,612 Diluted 7,256,612 7,256,612 7,256,612 7,256,612 Selected Balance Sheet Information May 31, November 30, (unaudited, stated 2010 2009 in Canadian dollars) Cash and cash equivalents $2,035,109 $1,523,663 Restricted investments 359,000 391,000 Accounts receivable 1,067,982 1,860,796 Prepaid expenses and other assets 347,059 425,179 ----------------------- Total current assets 3,809,150 4,200,638 Acquired Software, net 788,002 898,000 Capital assets, net 805,130 978,438 Intangible assets, net 684,496 757,000 ----------------------- Total assets $6,086,778 $6,834,076 ----------------------- Accounts payable and accrued liabilities $ 682,060 $ 719,642 Current portion of deferred revenue 3,511,924 3,627,590 Current portion of capital leases 150,412 166,228 Current portion of term debt 214,286 214,286 Current portion of long-term debt 113,148 113,148 Other 41,819 38,071 ----------------------- Total current liabilities 4,713,649 4,878,965 ----------------------- Long-term debt 1,923,805 1,980,379 Deferred revenue 90,895 128,963 Capital leases 94,558 165,459 Term debt 160,714 267,857 Lease inducement 32,380 56,882 ----------------------- Total liabilities 7,016,001 7,478,505 ----------------------- Total shareholders' equity (929,223) (644,429) ----------------------- Liabilities and shareholders' equity $6,086,778 $6,834,076 ----------------------- Selected Cash Flow Information (unaudited, stated in Canadian dollars) For the period ended Three months ending Six months ending ----------------------- ----------------------- May 31, May 31, May 31, May 31, 2010 2009 2010 2009 Cash provided by operating activities $307,100 $(277,796) $804,089 $137,166 Cash used in investing activities (12,791) (22,057) (25,310) (2,184,734) Cash provided (used) by financing activities (120,641) (135,844) (250,434) 1,694,099 Effect of foreign exchange rate fluctuations on cash and cash equivalents 2,906 (113,147) (16,899) (101,934) ----------------------- ----------------------- Net increase (decrease) in cash during the period 176,574 (548,844) 511,446 (455,403) ----------------------- -----------------------