Mediagrif Reports Q1 FY2009 Financial Results



    
    - Revenues of $12.0 million compared to $11.3 million in the
      previous year
    - Net earnings of $0.3 million compared to $0.8 million in the
      previous year
    - EPS of $0.02 compared to $0.05 in the previous year
    

    Note: Unaudited financial statements, accompanying notes and MD&A are
    available on www.mediagrif.com and have been filed with SEDAR. All dollar
    figures are in Canadian dollars, unless otherwise specified.

    LONGUEUIL, QC, Aug. 5 /CNW Telbec/ - Mediagrif Interactive Technologies
Inc. (TSX: MDF), a world-leading developer of e-business networks and provider
of complete e-business solutions, today announced its financial results for
the first quarter of fiscal year 2009, ended June 30, 2008.
    Revenues for the first quarter amounted to $12.0 million, as compared to
$11.3 million in the corresponding quarter of the previous year. Again this
quarter, most of Mediagrif's e-business networks experienced better organic
growth, especially MERX, Carrus and Global Wine & Spirits. Such growth was
partially offset by a decrease in the revenues of The Broker Forum and Power
Source On-Line, and foreign exchange variations, which again negatively
impacted quarterly revenues by $0.6 million. Revenues also benefited from a
full quarter of the two acquisitions made in Q2 of the previous year.
    Operating expenses increased to $8.6 million during the first quarter
from $7.7 million in the corresponding quarter of the previous year mainly due
to the impact of acquisitions. However, as a result of the reorganization
announced last March, the operating expenses, excluding non-recurring
expenses, decreased by $0.5 million, as compared to the previous quarter.
    As a result of such increase in operating expenses, earnings from
operations amounted to $0.5 million as compared to $1.3 million for the
corresponding period of the previous year. Net earnings and basic earnings per
share for the first quarter amounted to $0.3 million or $0.02 per share, as
compared to $0.8 million or $0.05 per share for the corresponding quarter of
the previous year.
    "As announced in the last quarter, the reorganization that took place in
March 2008 resulted in a reduction of expenses in this first quarter of fiscal
2009. Full impact of the reorganization will be higher in the following
quarters as the operating expenses increased gradually in all quarters during
fiscal 2008. We are continuing to review all of our development initiatives to
better adjust to challenges and provide better short term profitability,"
commented Denis Gadbois, President and Chief Executive Officer of Mediagrif.
    "On the operational side, the ePublishing networks kept performing well
both on growth and profitability levels. The company has high expectations of
its MERX's private tendering initiative. The End User networks are performing
well mainly due to Global Wine & Spirits which continues to have good growth
in membership and development projects. However, Polygon's international
activities still have a negative impact on the overall profit of the End User
networks and we are looking at alternatives to reduce the related costs. The
Parts Exchange networks continue to face challenges in terms of market
conditions and operations. On a quarter to quarter basis, Power Source On-Line
has stabilized and should experience growth over the year. But the changes in
the economic and competitive environments at The Broker Forum started to
impact the short term membership growth potential. However, the company is
addressing those challenges by reviewing its operational processes. Finally,
Carrus has resumed growth and expects to start to benefit from a favorable
competitive environment for the last two quarters of the year. Management
remains focused on controlling expenses and maximizing its investments to
increase profitability. We are confident that the various alternatives
undertaken in the past quarters will positively impact our overall
performance," concluded Denis Gadbois.

    KEY FINANCIAL HIGHLIGHTS OF Q1 FY2009:

    Revenues for the quarter reached $12.0 million, as compared to
$11.3 million in the corresponding quarter of the previous year. The foreign
exchange fluctuation negatively impacted the quarterly revenues by
$0.6 million. Most of Mediagrif's e-business networks experienced good organic
growth, especially MERX, Carrus and Global Wine & Spirits. Such growth was
offset by a decrease in The Broker Forum due to lower membership as well as a
decrease in Power Source On-Line, caused by net additional members generating
lower average revenue. During the quarter, the acquisitions of Market Velocity
("MVI") and epipeline ("EPI") also contributed to total revenues for
approximately $1.1 million. Excluding the acquisitions, revenues increased by
$0.2 million on a constant currency basis.
    For the quarter ended June 30, 2008, total operating expenses amounted to
$8.6 million as compared to $7.7 million for the previous year. General and
administrative expenses increased from $2.8 million to $3.1 million mainly due
to the impact of the acquisitions, which are contributing to an increase of
$0.4 million. Sales and marketing expenses increased from $2.5 million last
year to $2.6 million mainly due to the acquisitions, which are causing an
increase of $0.3 million. Technology expenses increased from $2.1 million to
$2.2 million mainly due to the acquisitions and lower New Economy and R&D
credits
    As a result, earnings from operations during the quarter amounted to
$0.5 million, as compared to $1.3 million in the corresponding quarter of the
previous year. This decrease is mainly due to higher operating expenses and
the negative impact of foreign exchange variations. Diluted earnings per
share, for the current year, were $0.02 as compared to $0.05 for the same
periods last year.
    As of June 30, 2008, our cash and cash equivalents, including cash held
for benefits of others, reached $26.5 million, a decrease from $28.3 million
as of March 31, 2008. As of June 30 and March 31, 2008, we had no short-term
investments. Free cash flow, defined as cash flow from operating activities
less capital expenditures, was negative $1.2 million during the current
quarter, as compared to negative $1.4 million for the corresponding quarter of
the previous year.
    On March 3, 2008, the Company announced the renewal of a normal course
issuer bid whereby it is authorized to purchase for cancellation for the
twelve-month period starting March 5, 2008 up to 598,465 common shares. As of
June 30, 2008, 208,874 common shares have been repurchased for cancellation.

    ADDITIONAL INFORMATION:

    A live Web cast of Mediagrif's first quarter of fiscal 2009 financial
results conference call can be heard at 10:00 am EST Wednesday, August 6, at
the following link:
    http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2350700

    Please note that the Webcast will be available until September 5, 2008 at
the above link.

    To participate to the conference call:

    Local call-in number: (514) 861-1681
    Toll-free call-in number: 1 877 667-7735

    The conference call will also be available for listening until August 12,
2008 at the following number: 1 800 408-3053, access code
3266776#.

    About Mediagrif Interactive Technologies Inc.

    Mediagrif Interactive Technologies Inc. (TSX: MDF) is a world-leading
operator of e-business networks and provider of complete e-business solutions.
Mediagrif's e-business networks allow buyers and sellers within specific
industries to source, purchase or sell products and to exchange documents more
efficiently using the Internet. Mediagrif operates 15 networks, including
industry leaders www.brokerforum.com, www.powersourceonline.com,
www.telecomfinders.com, www.globalwinespirits.com and www.polygon.net.
Mediagrif also owns MERX, www.merx.com, the exclusive provider of e-publishing
services to the Government of Canada, and is a leading provider of government
bid aggregation services and e-procurement services in the U.S. Headquartered
in Longueuil, Mediagrif has various offices in North America, Asia and the
Middle East. For more information, please visit us at www.mediagrif.com or
call 1 877 677-9088.

    This press release contains certain forward-looking statements with
respect to the Company. These forward-looking statements, by their nature,
necessarily involve risks and uncertainties that could cause actual results to
differ materially from those contemplated by these forward-looking statements.
We consider the assumptions on which these forward-looking statements are
based to be reasonable, but caution the reader that these assumptions
regarding future events, many of which are beyond our control, may ultimately
prove to be incorrect since they are subject to risks and uncertainties that
affect us. We disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable securities legislation.
All amounts are in Canadian dollars.




For further information:

For further information: Mediagrif Interactive Technologies Inc.:
Catherine Allard, Chief Financial Officer, (450) 677-8797 ext. 2133,
callard@mediagrif.com; Kathy Roberge, Director, Communications, (450) 677-8797
ext. 3014, kroberge@mediagrif.com


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