News & Events Info
Xenos Reports 5¢ per Share Profit in First Quarter
TORONTO, Ontario, February 12, 2008 —Xenos Group Inc. (TSX:XNS), today reported net income of $528,000 or 5 cents per share for the first quarter of its fiscal 2008 year, compared to net income of $15,800 for the same period last year.
Xenos revenues for the period ended December 31, 2007 rose to $4,149,000 as compared to revenues of $3,931,000 for the same quarter last year.
Xenos reported a significantly improved EBITDA of $724,000 for its first quarter, up 220% from EBITDA of $226,000 for the first quarter ended December 31, 2006.
The first quarter of 2008 represents the sixth consecutive quarter of year-over-year revenue growth and the seventh consecutive quarterly improvement in EBITDA. This in part reflects the corporate right sizing undertaken in the second quarter of last year that was designed to put Xenos on a solid footing for profitable growth.
Total expenses were reduced by 13% to $2,847,000, from $3,258,000 in the first quarter of fiscal 2007. Year over year sales and marketing expenses were reduced by 23% to $1,192,000 from $1,542,000 as a result of the completion of a significant marketing campaign last year.
The company achieved revenue of $200,000 per employee on an annualized basis, compared to revenue of $172,000 per employee achieved for fiscal 2007.
“Demand for Xenos products and services remains buoyant,” said Stuart Butts, Chairman and CEO of Xenos. “During the quarter we re-signed our largest customer to a new three year contract that represents a 30% annual revenue increase to Xenos commencing in the second quarter.” License and services revenues both grew during the first quarter.
Development of the “Xenos Enterprise Information Server™” is on target for completion this fiscal year, and is expected to make a significant contribution to results in fiscal 2009.
At December 31, 2007, Xenos reported no significant long-term debt and held cash and cash equivalents of $7,314,000, or $0.73 per common share.
Financial Highlights - Printable Version (PDF: 65 KB)
See discussion of non-GAAP financial measures below.
Annual General Meeting Notice
Xenos will hold its Annual General Meeting of shareholders at 10:00 a.m. Eastern Time on February 15th, 2008 at the Toronto Stock Exchange Media Centre. Shareholders and prospective investors are encouraged to attend to discuss the first quarter financial results, and meet with management and members of the Board of Directors. A review of fiscal 2007 and the outlook for 2008 will be presented at the meeting. An audio recording of the meeting will be available through the Company’s website at www.xenos.com.
Conference Call Notice
A conference call for shareholders, analysts and other members of the investment community has been scheduled for February 13 at 10:00 a.m. Eastern Time. Stuart Butts, Chairman, President and Chief Executive Officer, and George Kypreos, Chief Financial Officer, will discuss the financial results and provide updates on operations. To participate, please dial 416-644-3422, or 1-800-594-3790 approximately 10 minutes before the conference call.
The conference can also be heard over the Internet at the company’s website. www.xenos.com
A recording of the conference call will be available through February 20. Please dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21262889, followed by the number sign, to listen to the rebroadcast. The call will also be archived for 30 days on the Xenos website.
About Xenos
Xenos (TSX:XNS) high-performance software solutions streamline enterprise information supply chains. We enable our customers to process, transform, repurpose, personalize and deliver their data and documents when they need it, where they need it and how they need it. Xenos extends the value of existing IT investments, enabling organizations to increase efficiency, agility and accountability.
By streamlining, standardizing and automating the handling of information on demand, our customers reduce costs while increasing a powerful competitive advantage—adaptability. Xenos has customers worldwide in financial services, insurance, healthcare, telecommunications, manufacturing, logistics, transportation, retail and government sectors. Xenos sells and supports its solutions directly from offices in Canada, the United States, the United Kingdom and France and through a global partner network.
Xenos trades on the Toronto Stock Exchange under the trading symbol 'XNS.'
For more information, visit
www.xenos.com
Editorial Contacts:
George Kypreos
Chief Financial Officer
Tel: +1 (905) 709-1020
Fax: +1 (905) 709-1023
gkypreos@xenos.com
Investor Relations Contact:
Cory Pala
Xenos Group, Inc.
+1-416-657-2400
cpala@xenos.com
Printable Version (PDF: 65 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
® 2008 Xenos Group Inc. All rights reserved.
