ISACSOFT announces strong third quarter - Net income ahead of 2006



    MONTREAL, Nov. 9 /CNW Telbec/ - ISACSOFT (TSX: ISF) announced its
un-audited interim consolidated financial results for the quarter ended
September 30, 2007. The Company also announced that it has filed its
un-audited interim financial statements and notes for the quarter ending
September 30, 2007 and its related management's discussion and analysis with
Canadian securities regulators. The information is available electronically to
interested parties at www.sedar.com and on the Company's web site at
www.ISACSOFT.com. ISACSOFT's 2007 third quarter report will be mailed to
shareholders during the fourth week of November 2007.

    
    Third quarter 2007 financial results:

    - EBITDA(1) of $485,320:
      - Ahead of both first and second quarters of 2007
      - Ahead of third quarter 2006 by $623,775
    - Net income of $325,010 compared to a loss of $384,965 for third
      quarter 2006
    - Revenues at $3,071,797 compared to $3,266,711 for third quarter 2006

    "While we are building new products and new business relationships,
ISACSOFT continues to pursue growth opportunities in all segments of its
businesses. Third quarter results show that our focus on the business includes
providing a better return to shareholders by streamlining our costs and
developing new strategic product sets" said Ronald Brisebois, Chairman,
President and CEO of ISACSOFT INC.

    Overall Performance

    Third quarter net income closed at $325,010 compared to a loss of $384,965
for the third quarter of 2006. Lower sales volumes in professional services
were offset by cost compressions to generate better results.
    Working capital was $2,509,229 as at September 30, 2007, ahead by $865,235
of the position of $1,643,994 reported as at December 31, 2006 and is mainly
due to the year-to-date profitability, the decrease in the value of accounts
payables and accrued liabilities and deferred revenues.
    The Company closed the quarter ended September 30, 2007 with cash and cash
equivalents (including restricted cash) of $2,284,894, an increase of
$1,508,771 over the amount of $776,123 reported as at December 31, 2006. The
increase is attributable to the profitability year-to-date, combined with the
proceeds of disposition of assets of $210,511 and tax credits receipts of
$494,820.

    ----------------------------------
    (1) EBITDA is defined earnings before stock based compensation,
        depreciation, amortization of intangible assets, provision for
        impairment of goodwill and other intangible assets, interest, gains
        or losses on sale of assets, gain or loss on foreign exchange, other
        income or expenses, provisions for re-structuring costs and income
        taxes. This measure is considered a non-GAAP measure.


    Financial Results:
                                                 Quarter ending September 30
                                                -----------------------------
                                                         2007           2006
    REVENUES

                                                    3,071,797      3,266,711

    Expenses
      Operations                                    1,682,457      2,325,176
      Research and development costs                  272,419        336,169
      Selling, general and administrative
       expenses                                       714,190        863,424
                                                -------------- --------------
                                                    2,669,066      3,524,769

    Income before the following items                 402,731       (258,058)

    Interest net                                       (8,134)        24,453
    Amortization of property and equipment             78,623        102,454
    Impairment of goodwill                                  -              -
    Write-down of property and equipment                    -              -
                                                -------------- --------------

    Net income (loss) before income taxes             332,242       (384,965)

    Income taxes                                        7,232              -

                                                -------------- --------------
    Net income (loss)
                                                $     325,010  ($    384,965)
                                                -------------- --------------


    Financial Position:

                                                    Unaudited        Audited
                                                 September 30,   December 31,
                                                         2007           2006
                                                -------------- --------------


    ASSETS
      Current assets
        Cash and cash equivalents               $   1,634,894   $     58,303
        Restricted cash                               650,000        717,820
        Accounts receivable                         2,552,652      4,244,553
        Work in process                               110,871        388,075
        Inventory                                       3,109          5,559
        Prepaid expenses                              334,917        271,336
                                                -------------- --------------

                                                    5,286,443      5,685,646
      Property and equipment                          758,466        850,948
      Investments                                           -              -
      Goodwill                                      1,101,894      1,101,894
                                                -------------- --------------

                                                $   7,146,803   $  7,638,488
                                                -------------- --------------
                                                -------------- --------------
    LIABILITIES
      Current liabilities
        Bank indebtedness                       $           -   $          -
        Accounts payable and accrued
         liabilities                                1,508,058      2,294,247
        Deferred revenues                           1,179,975      1,625,594
        Deferred credits                                    -         32,706
        Instalments on long-term debt                  89,181         89,105
                                                -------------- --------------
                                                    2,777,214      4,041,652

      Long-term debt                                  218,959        380,890
                                                -------------- --------------
                                                    2,996,173      4,422,542
                                                -------------- --------------

    SHAREHOLDERS' EQUITY
      Capital stock                                55,346,979     55,346,979
      Contributed surplus                           1,198,028      1,114,763
      Deficit                                     (52,394,377)   (53,245,796)
                                                -------------- --------------
                                                    4,150,630      3,215,946
                                                -------------- --------------
                                                $   7,146,803  $   7,638,488
                                                -------------- --------------
                                                -------------- --------------
    


    ABOUT ISACSOFT

    ISACSOFT is a provider of software business solutions, information
technology-training and systems integration consulting to its national and
international customers. The revenue model is based on software licences,
recurring maintenance revenues and strategic IT projects targeting key
customers and training. ISACSOFT is headquartered in Montréal, Canada with
offices in Québec City, Paris, London, Cologne and The Hague.

    FORWARD-LOOKING STATEMENTS

    Certain statements made in this news release are forward-looking and are
subject to important risks, uncertainties and assumptions. The results or
events predicted in these forward-looking statements may differ materially
from actual results or events. These statements do not reflect the potential
impact of any non-recurring items or of any dispositions, monetization,
mergers, acquisitions, other business combinations or other transactions that
may be announced or that may occur after the date hereof. Other factors that
could cause results or events to differ materially from current expectations
include, among other things: general economic factors, adoption rate of our
solutions by clients, signing contracts, response to industry's rapid rate of
change, competition, pricing, operating results, acquisitions, material change
in our strategic relationships, exposure under contract indemnities, defects
in software, security and privacy breaches, loss of key personnel, our ability
to protect intellectual property, infringement claims on our intellectual
property, and industry and government regulation. For additional information
with respect to certain of these and other factors, refer to ISACSOFT Inc.'s
Annual Report (Management's Discussion and Analysis) filed with the Canadian
securities commissions.

    THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE REPRESENT
THE EXPECTATIONS OF ISACSOFT AND ITS SUBSIDIARIES AS AT NOVEMBER 9, 2007 AND,
ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, ISACSOFT AND ITS
SUBSIDIARIES DISCLAIM ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    The information is available electronically to interested parties at
www.sedar.com and on the Company's web site at www.ISACSOFT.com.
    %SEDAR: 00015181EF




For further information:

For further information: Claude Gobeil, VP, Finance and Chief Financial
Officer, (514) 282-7073, ext. 299, claude.gobeil@isacsoft.com

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ISACSOFT INC.

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