Press Release: MondoIn [May 15, 2008]

ISACSOFT announces first quarter 2008 results

Copyright (c) 2008 MondoIn

SummaryISACSOFT announced its un-audited interim consolidated financial results for the quarter ended March 31, 2008. First quarter 2008 financial results: EBITDA of $115,260, compared to $113,326 for first quarter 2007; Net income of $156,364 compared to $202,599 for first quarter 2007; Revenues at $2.068,745 compared to $2,455,017 for first quarter 2007.

MONTREAL, May 15 - ISACSOFT (TSX: ISF - News) announced its un-audited interim consolidated financial results for the quarter ended March 31, 2008. The Company also announced that it has filed its un-audited interim financial statements and notes for the quarter ending March 31, 2008 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 2008 first quarter report will be mailed to shareholders during the second week of June 2008.

First quarter 2008 financial results:

"Although I am disappointed that revenues are declining due to the maturity of one of our library software products, we remain focused on adjusting our cost base and fully developing our business around our newer products" said Ronald Brisebois, Chairman, President and CEO of ISACSOFT INC.

Overall Performance

First quarter net income from continuing operations closed at $164,234 compared to $206,955 for the first quarter of 2007, despite a reduction in revenues of $386,272. Revenues were down because of the reduction in the number of users which reduces maintenance revenues and because of lower licensing revenues.

Working capital was $2,554,381 as at March 31, 2008, ahead by $127,272 of the position of $2,427,109 reported as at December 31, 2007. Working capital levels remained fairly stable during the quarter despite an increase in cash and cash equivalents which were partially offset by an increase in deferred revenues.

The Company closed the quarter ended March 31, 2008 with cash and cash equivalents (including restricted cash) of $2,934,962, an increase of $673,446 over the amount of $2,261,516 reported as at December 31, 2007. The increase is attributable to the profitability year-to-date, combined with the reduction in working capital items.

Potential Privatization

On February 12 2008, it was announced that discussions were under way with Ronald Brisebois, Isacsoft's Founder, Chairman and CEO in respect of a potential privatization of Isacsoft by an entity controlled by Ronald Brisebois. Mr. Brisebois has informed the independent committee that he has entered into a lock-up agreement with shareholders (including Desjardins Venture Capital) to the extent of 25% of participation, in support of such privatization at a price of $0.33 per share. The Special Committee is pursuing its discussions with Ronald Brisebois to come to an agreement on the terms of the proposed privatization and will keep the market aware of any further development.

Financial Results:

Quarter ending March 31
20082007
REVENUES2,068,7452,455,017
Expenses
Operations 1,145,0671,333,674
Research and development costs324,417361,426
Selling, general and administrative expenses490,887
542,562
1,960,3712,237,662
Income before the following items108,374217,355
Foreign exchange loss (gain)(75,161)6,231
Interest net(14,438)(45,118)
Amortization of property and equipment29,27940,074
Impairment of goodwill--
Write-down of property and equipment-
-
Net income (loss) before income taxes168,694216,168
Income taxes4,460
9,213
Net income (loss) from continuing operations164,234206,955
Discontinued operations(7,870)(4,356)
Net income (loss) and comprehensive income/(loss)$ 156,364$ 202,599
Financial Position:
UnauditedAudited
March 31,December 31,
2008
2007
ASSETS
Current assets
Cash and cash equivalents $ 2,222,497$ 1,611,516
Accounts receivable2,694,4322,520,073
Work in process85,153332,638
Inventory--
Prepaid expenses278,767
302,458
5,280,8494,766,685
Restricted cash 712,465650,000
Property and equipment316,279339,771
Goodwill1,101,894
1,101,894
$ 7,411,487

$ 6,858,350

LIABILITIES
Current liabilities
Bank indebtedness $ - $-
Accounts payable and accrued liabilities1,264,9561,400,006
Deferred revenues1,273,247753,143
Deferred credits --
Instalments on long-term debt188,265
186,427
2,726,4682,339,576
Long-term debt182,619
200,619
2,909,087
2,540,195
SHAREHOLDERS' EQUITY
Capital stock55,346,97955,346,979
Contributed surplus1,253,7511,225,870
Deficit(52,098,330)
(52,254,694)
4,502,400
4,318,155
$ 7,411,487

$ 6,858,350

ABOUT ISACSOFT

ISACSOFT is a provider of software business solutions 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.

Publication Year:2008
Type of Material:Press Release
LanguageEnglish
Issue:May 15, 2008
Publisher:MondoIn
Company: MondoIn
Permalink: http://www.librarytechnology.org/ltg-displaytext.pl?RC=13273
Record Number:13273
Last Update:2012-12-29 14:06:47
Date Created:2008-05-18 19:31:25