MONTREAL, March 4 /CNW Telbec/ - Isacsoft Inc. (TSX: ISF) announced its audited consolidated financial results for the year ended December 31, 2007. The Company also announced that it has filed its audited financial statements and notes for the year ended December 31, 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 annual report will be mailed to shareholders during the third week of March 2008.
2007 Financial Highlights:
- Net income of $991,102 compared to $194,386 (before impairment) for the year ended December 31 2006
- Revenues of $10,052,421 compared to $11,862,922 for the year ended December 31 2006
- EBITDA(1) of $1,089,234 compared to $1,218,329 for the year ended December 31, 2006.
"Despite the additional costs associated with the review of strategic alternatives and the reduction of revenue streams, I am pleased to present a net income before impairment that is superior to 2006. This shows our commitment to deliver profits to shareholders even in periods of declining revenues." indicated Mr. Brisebois, President and CEO of ISACSOFT.
Isacsoft reported net and comprehensive income of $991,102, compared to a net loss of $10,141,467 for the year ended December 31 2006. These figures include net income relating to discontinued operations of $324,183 for the year ended December 31 2007 and a net loss of $468,041 for the year ended December 31 2006.
These results were obtained despite significant reductions in revenues, specifically in software and maintenance, relating to lower sales of licenses from our library data management segment. In order to offset these declines, all possible venues of reduction in costs were examined and actions were undertaken to reduce these, as seen in the reduction of expenses. The move of our head office and programming facilities also provided for a review of fair value of certain of its assets, which resulted in a non cash write-down of $110,536.
Cash and cash equivalents increased by over $1,553,213 for the year ended December 31 2007, mainly because of higher levels of cash from operating activities and the disposal of equipment and the sale of its training segment
|Research and development costs||1,316,262||1,730,076|
|Selling, general and administrative expenses||2,562,214|| 3,094,604|
|Income before the following items||978,127||1,084,819|
|Foreign exchange loss||40,725||19,342|
|Amortization of property and equipment||195,281||264,666|
|Impairment of goodwill||-||10,335,853|
|Write-down of property and equipment||110,536||134,949|
|Net income (loss) before income taxes||709,903||(9,673,426|
|Income taxes||42,984|| -|
|Net income (loss) from continuing operations||666,919||(9,673,426)|
|Net income (loss)||$ 991,102||($ 10,141,467)|
|Cash and cash equivalents||$ 1,611,516||$ 58,303|
|Work in process||332,638||388,075|
|Property and equipment||339,771||850,948|
| $ 6,858,350||$ 7,638,488|
|Bank indebtedness||$ - $||-|
|Accounts payable and accrued liabilities||1,400,006||2,294,247|
|Instalments on long-term debt||186,427||89,105|
|$ 6,858,350||$ 7,638,488|
ISACSOFT is a provider of software business solutions, information technology- training and systems integration consulting to its national and international customers. The revenue model is based on software licences, recurring maintenance revenues and strategic IT projects targeting key customers. ISACSOFT is headquartered in Montréal, Canada with offices in Paris, London, Cologne and The Hague.
(1) EBITDA is defined as earnings before stock based compensation expense, gain or loss on foreign exchange, depreciation, amortization of intangible assets, provision for impairment of goodwill and other intangible assets, interest, gains or losses on sale of assets, other income or expenses, provisions for re-structuring costs, and income taxes. This is considered a non-GAAP measure.