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Xenos Reports Fiscal 2006 Financial Results
TORONTO, Ontario, December 14, 2006 -- Xenos Group Inc. (TSX:XNS), a leading provider of solutions that capture, transform, transport and present data and electronic documents, today reported financial results for the fourth quarter and year ended September 30, 2006.
For the fiscal fourth quarter ended September 30, 2006, Xenos reported revenues of $3,327,000 compared to revenues of $3,231,000 for the same quarter last year. Xenos reported negative EBITDA of $622,000, compared to positive EBITDA of $17,000, for the same period last year.
On the basis that revenues for the past two years have not met Management’s expectations, and after reviewing the Company’s historical performance, the Company determined that it was appropriate to write off the goodwill associated with two acquisitions in previous years. The write down of goodwill was $6,375,000 and resulted in a fourth quarter net loss of $7,934,000 or ($0.79) per share, compared with a net loss of $341,000 or ($0.04) per share, for the fourth quarter of fiscal 2005.
For the 2006 fiscal year, Xenos reported revenues of $13,841,000 and a net loss of $11,969,000 or ($1.20) per share after the goodwill write down. This compares to revenues of $14,470,000 and a net loss of $1,763,000, or ($0.18) per share, for fiscal 2005.
During the year the US dollar depreciated approximately 7% against the Canadian dollar. Xenos estimates that its top line revenue would have grown by approximately 3% had exchange rates remained constant.
In October, Xenos announced senior management changes to support its refocused strategic direction, enhance operating efficiency, reduce or eliminate its cash burn in the current fiscal quarter. New investment in marketing has been reduced significantly and aligned with validated market opportunities qualified during 2006. Operating efficiencies have been gained by centralizing management of the corporation at the Company’s head office in Richmond Hill, Ontario.
At September 30, 2006, Xenos held cash of $7.3 million, or $0.74 per common share and no long-term debt.
Printable Version with Financial Highlights (PDF: 49 KB)
Conference Call
A conference call for shareholders, analysts and other members of the investment community has been scheduled for December 15 at 10:00am (Eastern Time). Stuart Butts, Chairman, CEO and President and George Kypreos, CFO, will discuss the financial results and provide updates on operations. To participate, please dial +1-416-644-3424, or +1-800-731-6941 approximately 10 minutes before the conference call.
The conference can also be heard over the Internet at www.xenos.com. A recording of the conference call will be available through December 22. Please dial +1-877-289-8525 and enter the reservation number 21212674# 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 (TSX: XNS) is a leading global provider of high-performance software solutions for real-time information capture, transform, transport and presentment that automate the processing and delivery of data and documents. Xenos solutions enable organizations to reduce costs and increase organizational efficiency, agility and accountability by streamlining and simplifying the transformation and repurposing of data and documents into actionable business information, without reengineering legacy applications.
Xenos solutions are embraced worldwide across a wide variety of industries including financial services, insurance, healthcare, telecommunications, manufacturing, logistics, transportation, retail and government sectors.
A majority of Xenos' customers are among the Fortune 500 or Global 2000 leaders. Xenos has offices in Canada, the United States, the United Kingdom and France and sells and supports its solutions through a global network of resellers and partners. Xenos trades on the Toronto Stock Exchange under the trading symbol 'XNS.'
For more information, www.xenos.com.
For more information, please contact:
George Kypreos
Chief Financial Officer
Tel: +1 (905) 709-1020
Fax: +1 (905) 709-1023
E-mail: gkypreos@xenos.com
Investor Relations Contact:
Cory Pala
Xenos Group, Inc.
+1-416-657-2400
cpala@xenos.com
Printable Version (PDF: 49 KB)
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 uses financial measures including, but not limited to, "EBITDA" to supplement its consolidated financial statements, which are presented in accordance with 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.
Cash per share is a non-GAAP measure and is calculated by dividing the cash and short term investments by the number of common shares outstanding.
For further information, visit www.xenos.com
