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Xenos Reports Second Quarter Results
TORONTO, Ontario, May 10, 2007 —Xenos Group Inc. (TSX:XNS), today reported an 18.9% year over year revenue gain in the second quarter and an overall revenue gain for the first six months of fiscal 2007 of 13.4%.Xenos revenues for the second quarter ended March 31, 2007 rose to $3,720,000 compared to revenues of $3,128,000 for the same quarter last year. Revenues for the six months ended March 31, 2007 were $7,651,000 as compared to $6,747,000 for the first six months of fiscal 2006. Xenos reported a substantial improvement in EBITDA from a loss of $1,316,000 for the quarter ended March 31, 2006 to a positive EBITDA of $234,000.
The Company reported a reduced second quarter net loss of $340,000, or ($0.03) per share, compared with a net loss of $1,734,000, or ($0.18) per share, for the second quarter of fiscal 2006. The loss for the current quarter included a reorganization charge of $206,000 and a foreign exchange loss of $98,000.
During the second quarter the company conducted a corporate reorganization designed to put Xenos on a solid footing for profitable growth. The full effect of these activities will be recognized in the third and subsequent quarters.
Total expenses in the second quarter decreased 21% to $3,272,000, including the reorganization costs, from $4,158,000 in the second quarter of fiscal 2006. Sales and marketing expenses were reduced to $1,387,000 from $2,377,000. “Our broad-based marketing investment in 2006 is being leveraged this year as we grow our revenues, but over a lower cost base,” said Mr. Stuart Butts, CEO and President of Xenos. “We are targeting a profitable year in fiscal 2007 as we expect to benefit from near-term business opportunities that were seeded during our global marketing efforts.”
At March 31, 2007, Xenos reported no significant long-term debt and held cash of $7,533,000, or $0.76 per common share, an increase from $6,555,000, or $0.66 per common share at December 31, 2006.
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Conference Call
A conference call for shareholders, analysts and other members of the investment community has been scheduled for May 10 at 11:00am (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 416-915-5649 or 1-866-250-4909 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 May 17. Please dial 1-877-289-8525 and enter the reservation number 21231631# 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) high-performance data and document management solutions provide organizations with a powerful competitive advantage—adaptability. Xenos powers information supply chains—without re-engineering—by transforming and repurposing both static and transactional information.
Xenos solutions increase the efficiency, agility and accountability of organizations worldwide across a wide variety of industries including financial services, insurance, healthcare, telecommunications, manufacturing, logistics, transportation, retail and government sectors. Xenos has offices in Canada, the United States, the United Kingdom and France and sells and supports its solutions directly and through a global network of resellers and partners.
Xenos trades on the Toronto Stock Exchange under the trading symbol 'XNS.'
For more information, visit www.xenos.com
For more information, please contact:
| Cory Pala Investor Relations Tel: +1 (416) 657-2400 Fax: +1 (416) 657-2300 E-mail: cpala@xenos.com |
George Kypreos Chief Financial Officer Tel: +1 (905) 709-1020 Fax: +1 (905) 709-1023 E-mail: gkypreos@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 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
© 2007 Xenos Group Inc. All rights reserved.
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