ISACSOFT INC. (TSX:ISF) today announced its unaudited financial results for the three-month period ended March 31, 2005. The Company also announced that it has filed its unaudited financial statements and notes as at and for the quarter ended March 31, 2005 and its related management's discussion and analysis with Canadian securities regulators. The information is available electronically to interested parties at www.sedar.com and on the Company's web site at www.isacsoft.com. ISACSOFT's 2005 first quarter report will be mailed to shareholders during the second week of May.
The Company closed the quarter ended March 31, 2005 with cash and cash equivalents of $822,710, an increase of $58,038 over the amount of $764,672 reported as at December 31, 2004. Working capital at $280,716 as at March 31, 2005 showed an improvement of $885,596 over the position as at December 31, 2004.
During the quarter ended March 31, 2005, the Company generated revenues of $5,507,669, a substantial increase over the amount of $1,162,585 reported during the same quarter of the previous year. This increase is the result of the impact of the acquisitions acquired during the later part of 2004 and the inclusion of the revenues associated from the acquisition of ISAC Technologies from January 6, 2005 the date the transaction was approved by the shareholders of the Company. Included in the revenue for this first quarter of 2005 is a total amount of $794,661 relating to businesses disposed during the quarter.
EBITDA defined as “Loss before the following items” on the Consolidated Earnings statements was a loss of $129,026 for the current quarter, an improvement of $85,490 over the loss of $214,516 reported during the same quarter of the previous year. The EBITDA loss for the current quarter did not however reflect the full impact of the initiatives of the integration plan introduced by the Company late in 2004 as the staffing reductions were completed at different times during the quarter. It is estimated that the EBITDA for the current quarter would have benefited from an additional positive contribution of approximately $280,000 had all of the restructuring initiatives been completed at the beginning of the quarter.
Net loss for the quarter was $349,345 compared to a loss of $301,045 reported during the quarter ended March 31, 2004. This worst performance is the direct result of a larger non-cash amortization expense relating to the larger volume of property and equipment owned by the Company during the quarter as a result of the numerous acquisitions completed subsequent to the first quarter of 2004.
“During the quarter, we made real progress in the implementation of our announced integration and re-focus plan through a reduction of in excess of 40% of our labor force and through the sale of certain non-core businesses” said Ronald Brisebois, President and CEO ISACSOFT INC.
Mr. Brisebois added, “with the substantial completion of our integration plan and the re-focus of the Company on a profitable revenue model, we anticipate year-over-year improvement in EBITDA despite the impact of the disposition of those non-core businesses”
ISACSOFT is a provider of content-based software solutions, business process outsourcing, information technology and systems integration consulting to its national and international customers. The revenue model is based on software licences, copyrighted content development, recurring revenues and services around strategic and key customer relationships. The solutions of ISACSOFT include municipalities and library management («e-city »), knowledge management (e-learning) and real estate management. ISACSOFT is headquartered in Montreal, Canada and supports operations in Quebec City, New York, Paris, London, Cologne and The Hague.