News & Events Info

Xenos Reports Fiscal 2005 Second Quarter Results

TORONTO, Ontario, May 10, 2005 -Xenos Group Inc. (TSX:XNS), the data to e-content companyT, today reported financial results for the second quarter and six-month period ended March 31, 2005.

For the fiscal second quarter ended March 31, 2005, Xenos reported revenues of $3,206,000 compared to revenues of $3,806,000 for the same quarter last year. The Company reported negative EBITDA of $643,000, compared to negative EBITDA of $116,000 for the same period last year and a second quarter net loss of $997,000, or ($0.10) per share, compared with a net loss of $334,000, or ($0.03) per share for the second quarter of fiscal 2004. Xenos maintains a strong balance sheet, with a cash position of $11.8 million, or $1.19 per common share and no long-term debt.

"This has been a financially disappointing quarter and first half," stated Stuart Butts, CEO of Xenos. "However, we are continuing to build our team and execute against our growth plan. Shareholders can expect to see better results going forward."

For the first six months of fiscal 2005, Xenos reported revenues of $6,731,000 and a net loss of $1,505,000, or ($0.15) per share. This compares to revenues of $8,269,000 and net earnings of $159,000, or $0.02 per share, for the same period last year.

"We are committed to growing the company's top line and returning to profitability by continuing to deliver industry-leading technologies to our traditional markets as well as capturing new markets for Xenos solutions," said Mr. Butts.

Printable Version with Financial Highlights (PDF: 80 KB)

Conference Call - Tuesday, May 10 - at 4:45pm ET

A conference call for shareholders, analysts and other members of the investment community has been scheduled at 4:45pm (Eastern Time) on Tuesday, May 10, 2005. Stuart Butts, Chairman and CEO, Jim Farmer, President and Rob Kunihiro, Chief Financial Officer will discuss the financial results and provide updates on operations. To participate, please dial 1-800-814-3911, or locally 416-640-4127, approximately 10 minutes before the conference call.

The conference call can also be heard over the Internet at www.xenos.com. A recording of the conference call will be available from 6:00 pm ET, Tuesday, May 10, until 11:59 pm ET Tuesday, May 17. Please dial 1-877-289-8525 and enter the reservation number 21124018# to listen to the rebroadcast. The call will also be archived for 30 days on the Xenos web site at www.xenos.com

About Xenos

Xenos has provided data and document management solutions for over 20 years. Its solutions are embraced worldwide, across a wide variety of industries, including healthcare, financial services and government. Xenos improves the efficiency of information and data management while preserving investments in existing IT infrastructure, systems, applications and procedures. Its solutions provide the capture, composition, transformation, enhancement, repurposing, storage, retrieval and distribution of documents across the enterprise. Xenos' data solutions are used to integrate incompatible applications, business processes, enterprise systems, partners, structured data, databases and Web services. Its product offering includes Xenos d2e, Xenos infoWEB and Xenos GoXML. Xenos has offices in Canada, the United States, the United Kingdom and France. Xenos trades on the Toronto Stock Exchange under the trading symbol "XNS." For more information visit www.xenos.com.

Contact:
Robert Kunihiro
Chief Financial Officer
Xenos Group, Inc.
(905) 709-1020
rkunihiro@xenos.com

Investor Relations Contact:
Cory Pala
Xenos Group, Inc.
416-657-2400
cpala@xenos.com

Certain statements made in this press release are forward-looking within the meaning of certain securities laws. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or developments in the Company's business or its industry to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. The Company urges you not to place undue reliance on these estimates, opinions and projections. The Company assumes no obligation to update forward-looking statements if assumptions or these plans, estimates, opinions or projections should change.

The Company's external auditors, Grant Thornton LLP, have not performed a review of these interim consolidated financial statements. These statements have been prepared by management and include the selection of appropriate accounting principles, judgments and estimates necessary to prepare these financial statements in accordance with Canadian generally accepted accounting principles

The Company uses financial measures including, but not limited to, "EBITDA" to supplement its consolidated financial statements, which are presented in accordance with Canadian Generally Accepted Accounting Principles (GAAP). EBITDA is not a recognized measure under GAAP and should not be construed as an alternative to net income (loss). Xenos' method of calculating EBITDA may differ from other companies and accordingly may not be comparable to measures used by other companies.

© 2005 Xenos Group Inc. All rights reserved.

Printable Version (PDF: 80 KB)