Press Release: MondoIn [November 9, 2007]

ISACSOFT announces strong third quarter - Net income ahead of 2006

Copyright (c) 2007 MondoIn

SummaryISACSOFT announced its un-audited interim consolidated financial results for the quarter ended September 30, 2007. 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.

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:

"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.

Overall Performance

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.

Financial Results:

Quarter ending September 30
20072006
REVENUES
3,071,7973,266,711
Expenses
Operations 1,682,4572,325,176
Research and development costs272,419336,169
Selling, general and administrative expenses714,190
863,424
2,669,0663,524,769
Income before the following items402,731(258,058)
Interest net (8,134)24,453
Amortization of property and equipment78,623102,454
Impairment of goodwill- -
Write-down of property and equipment -
-
Net income (loss) before income taxes332,242(384,965)
Income taxes 7,232
-
Net income (loss)
$ 325,010
($ 384,965)
Financial Position:
UnauditedAudited
September 30,December 31,
2007
2006
ASSETS
Current assets
Cash and cash equivalents$ 1,634,894$ 58,303
Restricted cash650,000717,820
Accounts receivable2,552,6524,244,553
Work in process110,871388,075
Inventory3,1095,559
Prepaid expenses334,917
271,336
5,286,4435,685,646
Property and equipment758,466850,948
Investments- -
Goodwill1,101,894
1,101,894
$ 7,146,803

$ 7,638,488

LIABILITIES
Current liabilities
Bank indebtedness$ -$ -
Accounts payable and accrued
liabilities1,508,0582,294,247
Deferred revenues1,179,9751,625,594
Deferred credits-32,706
Instalments on long-term debt89,181
89,105
2,777,214<4,041,652
Long-term debt218,959
380,890
2,996,173
4,422,542
SHAREHOLDERS' EQUITY
Capital stock55,346,97955,346,979
Contributed surplus1,198,0281,114,763
Deficit(52,394,377)
(53,245,796)
4,150,630
3,215,946
$ 7,146,803
$ 7,638,488
Publication Year:2007
Type of Material:Press Release
LanguageEnglish
Issue:November 9, 2007
Publisher:MondoIn
Company: MondoIn
Permalink: http://www.librarytechnology.org/ltg-displaytext.pl?RC=12845
Record Number:12845
Last Update:2012-12-29 14:06:47
Date Created:2007-11-11 07:44:07