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Isacsoft Inc. announces 2007 year end results

Press Release: [March 4, 2008]

Copyright (c) 2008 MondoIn

Abstract: Isacsoft 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.


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.

Overall Performance

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

20072006
REVENUES
10,052,42111,862,922
Expenses
Operations5,195,8185,953,423
Research and development costs1,316,2621,730,076
Selling, general and administrative expenses2,562,214
3,094,604
9,074,29410,778,103
Income before the following items 978,1271,084,819
Foreign exchange loss40,72519,342
Interest net(78,318)3,435
Amortization of property and equipment195,281264,666
Impairment of goodwill-10,335,853
Write-down of property and equipment110,536
134,949
Net income (loss) before income taxes709,903 (9,673,426
Income taxes42,984
-
Net income (loss) from continuing operations666,919(9,673,426)
Discontinued operations324,183
(468,041)
Net income (loss)$ 991,102
($ 10,141,467)
Financial Position:
2007
2006
ASSETS
Current assets

Cash and cash equivalents$ 1,611,516$ 58,303
Accounts receivable2,520,073 4,244,553
Work in process332,638388,075
Inventory-5,559
Prepaid expenses302,458
271,336
4,766,6854,967,826
Restricted cash650,000717,820

Property and equipment 339,771 850,948
Goodwill 1,101,894
1,101,894
$ 6,858,350

$ 7,638,488

LIABILITIES
Current liabilities
Bank indebtedness$ - $ -
Accounts payable and accrued liabilities1,400,0062,294,247
Deferred revenues753,1431,625,594
Deferred credits - 32,706
Instalments on long-term debt186,427
89,105
2,339,5764,041,652
Long-term debt 200,619
380,890
2,540,195
4,422,542
SHAREHOLDERS' EQUITY
Capital stock55,346,97955,346,979
Contributed surplus1,225,8701,114,763
Deficit(52,254,694)
(53,245,796)
4,318,155
3,215,946
$ 6,858,350

$ 7,638,488

About ISACSOFT

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.

%SEDAR: 00015181EF

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Publication Year:2008
Type of Material:Press Release
Language English
Issue:March 4, 2008
Publisher:MondoIn
Company: MondoIn
Record Number:13108
Last Update:2012-12-29 14:06:47
Date Created:2008-03-07 13:14:49