Homeserve Reports Second Quarter Results



    TORONTO, Oct. 22 /CNW/ - Homeserve Technologies Inc. today reported a net
loss of $0.1 million ($0.16 per common share, after preferred share dividends)
on revenues of $2.8 million for the second quarter ended August 31, 2008,
compared to net income of $32 thousand ($0.14 per common share, after
preferred share dividends) on revenues of $2.6 million for the same period of
the last fiscal year. The $0.1 million quarter-over-quarter decrease was
primarily attributed to a decrease in investment income as result of a change
in the Company's investment strategy.

    

                                         Three Months Ended  Six Months Ended
    ($ thousands, except per share             August 31         August 31
     amounts)                                2008     2007     2008     2007
    -------------------------------------------------------------------------

    Revenue                                 2,784    2,591    8,581    8,239
    Cost of sales                             138       61      206       68
    -------------------------------------------------------------------------
    Gross profit                            2,646    2,530    8,375    8,171
    Operating costs                         1,341    1,343    2,734    3,195
    -------------------------------------------------------------------------
    Contribution margin                     1,305    1,187    5,641    4,976
    Investment income                         102      360      223      736
    Amortization                           (1,539)  (1,515)  (3,107)  (3,021)
    -------------------------------------------------------------------------
    Net income (loss) for the period         (132)      32    2,757    2,691
    -------------------------------------------------------------------------
    Basic and diluted earnings (loss)
     available to common shareholders      (1,124)    (962)     773      703

    Basic and diluted earnings (loss)
     per common share                     $ (0.16) $ (0.14) $  0.11  $  0.10



    Calculation of Earnings per share

                                         Three Months Ended  Six Months Ended
                                               August 31         August 31
    ($ thousands)                            2008     2007     2008     2007
    -------------------------------------------------------------------------

    Net income (loss)                        (132)      32    2,757    2,691
    Dividends paid on preferred shares       (992)    (994)  (1,984)  (1,988)
    -------------------------------------------------------------------------

    Basic earnings available to common
     shareholders                          (1,124)    (962)     773      703
    -------------------------------------------------------------------------
    Basic and diluted net income
     available to common shareholders      (1,124)    (962)     773      703
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Basic and diluted earnings (loss)
     per common share                     $ (0.16) $ (0.14) $  0.11  $  0.10
    -------------------------------------------------------------------------
    


    Outlook

    Homeserve is well positioned to be a leading technology and marketing
services company in the home and move sector by leveraging its technology
assets, and relationships with related Brookfield companies in the Centract
Residential Real Estate portfolio and through a strategic focus on marketing
services in relevant sectors. In addition to Aeromove(TM), we will look at
leveraging the move services platform by developing partnerships with other
loyalty programs which seek to reach the Canadian moving population with a
one-stop move services program.
    While markets for software remain uncertain, we are optimistic that the
sustainable stable cash flows from the ICON acquisition combined with
licensing opportunities from the Company's CRM software and move services
program model, will position the Company well for the future growth.

    Additional Information

    Detailed financial information and Management's Discussion and Analysis
of Results and Financial Condition as at and for the quarter ended May 31,
2008 is posted on Homeserve's website (under Investor Relations, Financial
Information) at www.homeserve.ca and should be read in conjunction with this
press release and is also available on SEDAR's website at www.sedar.com.

    About Homeserve

    Homeserve is a Canadian based software development and services company
focused on home-related services for the real estate, relocation and banking
industries. Homeserve provides a one-stop shopping service for home buyers and
sellers, offering real-estate related products and services throughout the
customer's purchasing and selling cycle, coordinated by a proprietary CRM
software system and contact centre.

    Forward - Looking Statements

    This press release contains forward-looking information, including
"forward-looking statements". The words "will", "intends", "expected" and
other expressions which are predictions of or indicate future events and
trends and which do not relate to historical matters identify forward looking
statements. Reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties and other factors,
which may cause Homeserve's performance to differ materially from the
description of the investment expressed or implied by such forward-looking
statements. Although Homeserve believes that the anticipated future results,
performance or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on forward-looking
statements and information because they involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to differ materially from
anticipated future results, performance or achievement expressed or implied by
such forward-looking statements and information. Factors that could cause
actual results to differ materially from those contemplated or implied by
forward-looking statements include general economic conditions; interest rate
changes; availability of equity and debt financing; and other risks and
factors described from time to time in the documents filed by the Company with
the securities regulators in Canada including in the Annual Information Form
under the heading "Risk Factors." The Company undertakes no obligation to
publicly update or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise.

    %SEDAR: 00004370E




For further information:

For further information: Hugh Mansfield, Mansfield Communications Inc.,
(416) 599-0024 or Hugh@mcipr.com

Organization Profile

HOMESERVE TECHNOLOGIES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890