Monexa Technologies Corp Reports 2010 Operating Results

VANCOUVER, April 29 /CNW/ - Monexa Technologies Corp. (TSXV: MXA) today announced its quarterly and annual financial results for the year ended December 31, 2010.

For the year ended December 31, 2010 revenue was $3.2M, a 23% decrease compared to $4.2M for the year ended December 31, 2009 and the net loss decreased to ($1.6M) from ($1.8M) for 2009. EBITDA loss was $1,363K, down from $1,586K loss for 2009.

For the quarter ended December 31, 2010 revenue was $720K as compared to $903K in the corresponding period in 2009. The net loss for the quarter was ($418K) as compared to a ($628K) net loss in the prior comparable quarter in 2009. EBITDA loss was ($402K), down from ($542K) loss in the corresponding quarter in 2009.

John Jacobson, President and CEO said, "Demand for Monexa's SaaS Billing broadened from other SaaS and Cloud-based businesses to more traditional bricks-and-mortar companies. We've been particularly successful with larger enterprise clients, whose demanding requirements are amply met by our mature application. Through the year we refined our pricing model and focused on product features to suit this discerning audience."

Garth Albright, CFO said, "2010 has been a demanding but rewarding year as the company has right sized its operations while growing the new SaaS high margin business. We are also pleased with the stabilization of our traditional business revenue which was declining at a 23% rate year over year over the past 4 years but has now leveled off with a more modest revenue churn. The traditional business is composed of a solid stable of customers and is generating a consistent 43% gross margin. The ramping of our SaaS business coupled with the reduction of our operating costs has set Monexa in a firm position for success in 2011."

Achievements in 2010:

  • Monexa expanded our SaaS product offering and continues to expand this offering as our R&D group roll out new and expanded functionality.
  • In Q1 2010, closed a non-brokered private placement of 8.9M shares for total gross proceeds of $445.5K to fund new customer acquisition.
  • Achieved Level 1 certification SaS70 compliance and is completing SaS70 level II certification in Q2 2011.
  • Signed three Fortune 500 company SaaS contracts in 2010. Implemented one in 2010, a second in February 2011 and the third is scheduled for implementation at the end of April 2011.
  • SaaS pipeline has grown significantly during 2010 primarily with Enterprise customers and large potential customers and is currently $2.4M.
  • Gross margin has increased to 52.8% for 2010, an increase of 7.1% as compared to 45.7% for the 2009 year.

Non-GAAP measures

EBITDA is a key measure used by management to evaluate the Company's performance. Management believes that EBITDA is useful as it provides an indication of the results generated by the Company's business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and other non-cash expenditures. EBITDA is not a recognized measure under Canadian GAAP, and accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with GAAP as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. EBITDA may not be comparable to similar measures presented by other issuers. The schedule below details how IP Applications reconciles its net loss per GAAP to EBITDA for the most recent four quarters. Note: for the quarter ended December 31, the impact of realized and unrealized foreign exchange gains and loss are excluded.

      December 31     September 30         June 30         March 31
(000's)              2010     2010         2010         2010
                                 
Operating Loss            $(418)     $(399)         $(393)         $(433)
                                 
Amortization and depreciation              4     11         11         11
                                 
Interest - net               12     92         78         60
                                 
Tax                   -     -         -         -
EBITDA           $(402)     $(296)         $(304)         $(362)

Additional details on the quarterly and year end results, including the audited Consolidated Financial Statements and Management Discussion and Analysis, are available at www.sedar.com under Monexa Technologies Corp.

About Monexa Technologies Corp

Monexa pioneered the on-demand subscription billing space and over the past 12 years has worked with hundreds of businesses to help monetize their services. Monexa's monetization platform removes the barriers imposed by traditional systems and plugs directly into a client's finance, marketing and operations, enabling them to run their subscription business their way. Monexa operates out of Vancouver, B.C. and serves customers including AOL Canada, Sprint, Amway and Bell Mobility among others. For more information visit www.monexa.com.

Forward-Looking Statements

This press release may contain forward-looking statements. The Company cautions users of this forward-looking information that actual results or events may vary materially either favorably or unfavorably from those described due to a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to: the inability of the Company to accurately forecast  the revenue from new and existing customers; the inability of the Company's customers to accurately forecast their own demand for the Company's products and service; changes in the relative value of the US and Canadian dollars; the possibility that one or more customers or suppliers might experience financial difficulties that could affect the Company's ability to deliver and get paid for its products and services; and changes in the growth rate of technology and telecommunications concerns. Refer to the Company's management's discussion and analysis ("MD&A") for further discussion of these and other risks and uncertainties in relation to such forward-looking information.

Forward-looking information is based on management's current expectations, estimates and opinions. Please refer to the MD&A for a discussion of the events and circumstances which occur that cause, or are likely to cause, actual results to differ materially from such forward-looking information.

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

SOURCE Monexa Technologies Corp.

For further information:

Garth Albright CFO
D 604.630.5657
ir@monexa.com

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