MONTREAL, Nov. 9 ISACSOFT (TSX: ISF) announced its un-audited interim consolidated financial results for the quarter ended September 30, 2007. The Company also announced that it has filed its un-audited interim financial statements and notes for the quarter ending September 30, 2007 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 2007 third quarter report will be mailed to shareholders during the fourth week of November 2007.
Third quarter 2007 financial results:
- EBITDA(1) of $485,320:
- Ahead of both first and second quarters of 2007
- Ahead of third quarter 2006 by $623,775
- Net income of $325,010 compared to a loss of $384,965 for third quarter 2006
- Revenues at $3,071,797 compared to $3,266,711 for third quarter 2006
"While we are building new products and new business relationships, ISACSOFT continues to pursue growth opportunities in all segments of its businesses. Third quarter results show that our focus on the business includes providing a better return to shareholders by streamlining our costs and developing new strategic product sets" said Ronald Brisebois, Chairman, President and CEO of ISACSOFT INC.
Third quarter net income closed at $325,010 compared to a loss of $384,965 for the third quarter of 2006. Lower sales volumes in professional services were offset by cost compressions to generate better results. Working capital was $2,509,229 as at September 30, 2007, ahead by $865,235 of the position of $1,643,994 reported as at December 31, 2006 and is mainly due to the year-to-date profitability, the decrease in the value of accounts payables and accrued liabilities and deferred revenues.
The Company closed the quarter ended September 30, 2007 with cash and cash equivalents (including restricted cash) of $2,284,894, an increase of $1,508,771 over the amount of $776,123 reported as at December 31, 2006. The increase is attributable to the profitability year-to-date, combined with the proceeds of disposition of assets of $210,511 and tax credits receipts of $494,820.
|Quarter ending September 30|
|Research and development costs||272,419||336,169|
|Selling, general and administrative expenses||714,190||863,424|
|Income before the following items||402,731||(258,058)|
|Amortization of property and equipment||78,623||102,454|
|Impairment of goodwill||-||-|
|Write-down of property and equipment|| -|| -|
|Net income (loss) before income taxes||332,242||(384,965)|
|Net income (loss)|
|$ 325,010||($ 384,965)|
|September 30,||December 31,|
|Cash and cash equivalents||$ 1,634,894||$ 58,303|
|Work in process||110,871||388,075|
|Property and equipment||758,466||850,948|
|$ 7,146,803||$ 7,638,488|
|Bank indebtedness||$ -||$ -|
|Accounts payable and accrued|
|Instalments on long-term debt||89,181||89,105|
|$ 7,146,803||$ 7,638,488|