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:
- EBITDA(1) 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
"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.
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.
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 $0.33 per share. The Special Committee is pursuing its discussions with Ronald Brisebois to come to an agreement on the terms of the proposed privatization and will keep the market aware of any further development.
| Quarter ending March 31|
|Research and development costs||324,417||361,426|
|Selling, general and administrative expenses||490,887||542,562|
|Income before the following items||108,374||217,355|
|Foreign exchange loss (gain)||(75,161)||6,231|
|Amortization of property and equipment||29,279||40,074|
|Impairment of goodwill||-||-|
|Write-down of property and equipment||-||-|
|Net income (loss) before income taxes||168,694||216,168|
|Net income (loss) from continuing operations||164,234||206,955|
|Net income (loss) and comprehensive income/(loss)||$ 156,364||$ 202,599|
|March 31,||December 31,|
|Cash and cash equivalents||$ 2,222,497||$ 1,611,516|
|Work in process||85,153||332,638|
|Property and equipment||316,279||339,771|
|$ 7,411,487||$ 6,858,350|
|Bank indebtedness||$ - $||-|
|Accounts payable and accrued liabilities||1,264,956||1,400,006|
|Instalments on long-term debt||188,265||186,427|
|$ 7,411,487||$ 6,858,350|
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.