TORONTO, May 17 /CNW/ - Hosted Data Transaction Solutions Inc. ("HDX") announced today its financial results for the three-month period ending March 31, 2010. HDX is listed on the TSX under the symbol "HDX".
Paul Howell, CEO states, "HDX achieved solid financial performance during the 1st quarter of 2010, while we also focused on completing both a $5 million private placement financing and the acquisition of Posera Inc.; both of which represent important Company milestones."
Revenue was $1,930,702 for the three months ended March 31, 2010, compared to $2,077,200 for the three months ended March 31, 2009. During the three months ended March 31, 2010 the Company experienced approximately $193,000 system installation delays due to customer scheduling requirements which delayed the recognition of the revenue for these customers until the second quarter of 2010. Additionally, due to the seasonal nature of the restaurant and hospitality industry, the first quarter is typically the slowest quarter of the year.
Recurring contract revenue, represented as deferred revenue, was $1,222,479 compared to $1,018,066 for the three months ended March 31, 2009. Recurring contract revenue grows at a rate commensurate with the number of systems installed and the number of service and support contracts invoiced.
Highlights and Summary for the Quarter
- Revenue was $1,930,702 for the three months ended March 31, 2010,
compared to $2,077,200 for the three months ended March 31, 2009.
- Deferred revenue, which represents annual recurring revenues that
have not yet been recognized as revenue, was $1,222,479 compared
to $1,018,066 for the three months ended March 31, 2009;
- Gross margin was $1,183,007 for the three months ended March 31,
2009, compared to $1,281,713 for the three months ended March 31,
- EBITDA loss (Earnings before interest taxes depreciation and
amortization) for the three months ended March 31, 2010, was
$189,577 compared to $539,406 for the three months ended March 31,
- HDX's cash, cash equivalents and short term investments totaled
$603,054 as at March 31, 2010 prior to the closing of the $5
million private placement on April 28, 2010 and the Posera closing
cash payment of approximately $3.5 million on May 5, 2010; and
- Net income (loss) which includes non-cash expenses such as
amortization and stock-based compensation charges of $82,217 was
$277,859 for the three months ended March 31, 2010, compared to a
$639,140 for the three months ended March 31, 2009.
- During the three months ended March 31, 2010, the Company incurred
costs of approximately $80,000 in legal fees and other one-time
expenses related to fund raising activities and the acquisition of
Posera Inc. There were no comparable expenses incurred in the
three months ended March 31, 2009.
Additional information on HDX first quarter 2009 financial results will be available in the financial reports filed by the Company with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website at www.dexit.com.
About the Company
HDX is in the business of managing merchant transactions with consumers and facilitating payment. HDX develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.
HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.
As previously announced, on May 5th, 2010 the company completed the acquisition of Posera Inc., of Seattle Washington. Posera Inc. develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages. Posera sells and services its clients directly, as well as through a network of approximately 140 value added reseller partners in 25 countries with approximately 1,100 representatives selling, supporting & installing its software. The Posera transaction provides HDX with technology, relationships, and revenue that is designed to facilitate further growth through acquisition. Posera employs approximately 70 people in offices in Seattle, Montreal, Glasgow (U.K.) and Paris (France).
On a pro-forma basis, assuming HDX and Posera had merged already, based on each of their most recently completed fiscal year-ends, the combined entity would have had revenue of approximately $17.6 million and breakeven EBITDA.
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 31st 2010 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
SOURCE HOSTED DATA TRANSACTION SOLUTIONS INC.
For further information: For further information: Paul Howell, CEO, Hosted Data Transaction Solutions Inc. (HDX), 350 Bay Street, Suite 700, Toronto, Ontario, M5H 2S6, (416) 703-6462 ext. 2263