Posera-HDX Announces 3rd Consecutive Quarterly EBITDA Profit

TORONTO, Aug. 15, 2011 /CNW/ - Posera-HDX Inc. (TSX:HDX) (the Company) announced today its financial results for the three and six-months ending June 30th, 2011. HDX is listed on the TSX under the symbol "HDX".

Paul Howell, Chief Executive Officer, reports:

The Company has performed well in spite of the difficult economic conditions world-wide, achieving an EBITDA profit of $19,272 for the three-months ended June 30, 2011, and sales and service revenues of $4,215,178, representing an increase of 16.4% from $3,620,892 from the three-months ended June 30, 2010.

Excluding one-time expenditures related to legal costs, a tax judgement in the State of California and a reassessment of the Company's investment tax credits receivable by the relevant income tax authorities, the Company achieved normalized EBITDA profit for the three-months ended June 30, 2011 of $233,513, compared to a normalized EBITDA profit of $102,923 for the three-months ended June 30, 2010. This represents an increase in the Company's normalized EBITDA for the three-months ended June 30, 2011 of $130,590 (126.9%) compared to the three-months ended June 30, 2010.

The company continues to pursue acquisitions within the point of sale and payments industries although none are specifically named at this time.

Quarterly Highlights and Summary

EBITDA profit for the three-months ended June 30, 2011, was a profit of $19,272, an increase of $124,071 from a loss of $104,799 for the three-months ended June 30, 2010, and a decrease of $251,425 from a profit of $270,697 for the three-months ended March 31, 2011;
Normalized EBITDA for the three-months ended June 30, 2011 was a profit of $233,513, an increase of $125,469 from a profit of $108,044 for the three-months ended June 30, 2010, and a decrease of $68,168 from a profit of $301,681 for the three-months ended March 31, 2011;
Total revenue was $4,215,178 for the three-months ending June 30, 2011, up $594,286 (16.4%) from $3,620,892 for the three-months ending June 30, 2010 and up $84,030 (2.0%) from $4,131,148 for the three-months ending March 31, 2011;
Gross margin was $3,262,346 for the three-months ended June 30, 2011, up $704,248 (27.5%) from $2,558,098 for the three-months ended June 30, 2010, and up $1,528 (0.1%) from $3,260,818 for the three-months ended March 31, 2011;
Operating expenses were $3,576,208 for the three-months ended June 30, 2011, up $370,362 (11.6%) from $3,205,846 for the three-months ended June 30, 2010, and up $221,964 (6.6%) from $3,354,244 for the three-months ended March 31, 2011;
Included in the operating expenses for the three-months ended June 30, 2011, June 30, 2010 and March 31, 2011 were certain one-time non-recurring expenditures and non-cash stock-based compensation expense totaling $214,241, $250,415 and $30,984 respectively;
Posera-HDX's working capital totaled $1,224,963 as at June 30, 2011, an increase of $146,651 (13.6%) from $1,078,312 as at June 30, 2010, and an increase of $87,676 (7.7%) from $1,137,287 as at March 31, 2011; and
Net loss attributable to owners of the parent (under IFRS net income or loss is required to be allocated to the parent and minority shareholders, if any). As the Company does not have any minority shareholders, 100% of the net loss has been attributed to the parent's shareholders for the three-months ended June 30, 2011 was a loss of $95,394, a decrease of the loss by $488,737 from a loss of $584,131 for the three-months ended June 30, 2010, and an decrease of $20,307 from a loss of $115,701 for the three-months ended March 31, 2011;

Non-GAAP Reporting Measures: Management reports on certain Non-IFRS ("International Financial Reporting Standards") measures to evaluate performance of the Company. Non-IFRS measures are also used to determine compliance with debt covenants and manage the capital structure. Because non-IFRS measures do not generally have a standardized meaning, securities regulations require that non-IFRS measures be clearly defined and qualified, and reconciled with their nearest IFRS measure. The Canadian Institute of Chartered Accountants (CICA) Canadian Performance Reporting Board has issued guidelines that define standardized earnings before interest, taxes, depreciation and amortization (EBITDA). For definitions of Non-GAAP measures, refer to the Company's quarterly management discussion and analysis for the three-months ended June 30, 2011.

Additional information on Posera-HDX's second quarter 2011 financial results will be available in the financial reports filed by the Company with Sedar at [ www.sedar.com ] and posted to the Investor Relations section of the Company's website at [ www.dexit.com ].

About the Company

Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.

Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

Posera-HDX Inc. develops, deploys, and supports a restaurant point-of-sale software known as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages. The Company sells and services its clients directly, as well as through a network of approximately 112 value added reseller partners in 25 countries with approximately 1,100 representatives selling, supporting & installing its software. Posera-HDX employs approximately 130 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.

Forward-Looking Statements

This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 24th, 2011 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

N@N

Posera-HDX Announces 3rd Consecutive Quarterly EBITDA Profit