Monexa Technologies Corp. Reports Q1 2011 Results

VANCOUVER, May 20, 2011 /CNW/ - Monexa Technologies Corp. (TSXV: MXA) today announced its quarterly results for the three-month period ended March 31, 2011. The financial statements were prepared in accordance with International Financial Reporting Standards.

For the three months ended March 31, 2011, revenue totaled $828K, a 6% decrease from $886K in the corresponding quarter in 2010 but when compared to Q4 2010 revenue, Q1 2011 revenue increased by 13% or by $109K ($828K vs. $719K). The net loss for the quarter was ($278K), a 36% improvement from the ($433K) loss incurred in Q1 2010.  As compared to Q4 2010 the Q1 2011 net loss dropped by $140K or 33% ($278K vs. $418K). EBITDA loss for the quarter was ($127K) down from ($362K) loss in the corresponding quarter in 2010. As compared to EBITDA Q4 2010 the Q1 EBITDA loss was lower by $275K ($127K vs. $362K).

John Jacobson, President and CEO, said, "The Monexa team has made considerable progress in the first quarter. Financially we're stronger now, and we made some great progress with both new and existing clients. We expanded our Pitney Bowes relationship and we launched a new bricks-and-mortar retail system in conjunction with a major reseller. The retail system has rolled out faster than we originally expected, and by end of April 2011, more than 4,000 retail stores across the USA are using our cloud billing system. These and other new clients are and will be delivering significant new SaaS billing revenue growth through the rest of 2011."

Garth Albright, CFO, said, "In Q1 2011 we were successful in closing both a private placement and a debt financing that has improved our working capital position. On the operations side the increase in revenue as compared to Q4 2010 quarter coupled with operational efficiencies implemented over the past 12 months has reduced our operating loss by over 30%. We are now focused on growth and our sales pipeline continues to grow."

Achievements in Q1 2011: 

  • In Q1 2010, Monexa closed a non-brokered private placement of 8.9M shares for total gross proceeds of $445.5K. The Company also closed a promissory note of $600K, as at March 31, 2011 we have drawn it down by $350K.
  • Recertified as PCI compliant at the highest vendor level.
  • Revenue increased to $829K for the quarter up by $109K from Q4 2010 revenue of $719K.
  • Implemented our SaaS billing system for a Fortune 500 client in February 2011 and rolled out 4,000 stores by end of April 2011.
  • SaaS pipeline has increased in first five months of 2011 by 184% primarily with Enterprise and large customers.
  • Gross margin has increased to 60% for Q1 2011, an increase of 2.1% from 57.9% for Q1 2010 year. Q1 2010 had a one-time credit to cost of sale of $84K, therefore after adjusting for this one-time credit the gross margin increased by 11.6% (60% vs. 48.4%) when you compare quarter to quarter.
  • Operating costs dropped between comparable quarters by 24.8% or $229,597.

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 Monexa 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.

          March 31       December 31       September 30           June 30
(000's)                              2011       2010       2010           2010
                                       
Operating Loss                      $(277)                 $(418)       $(399)           $(393)
Amortization and depreciation          7                      4               11           11
Interest - net               152                    12                92           78
Tax                  (9)                     -                    -           -
EBITDA                               $(127)                 $(402)       $(296)           $(304)

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 offers a flexible on-demand subscription billing solution that provides a scalable environment for expediting the launch of products, services and applications online. This accelerates our customers' time to market and revenue return.

Monexa pioneered the on-demand subscription billing space and has worked with hundreds of businesses to help monetize their services. Having the most capable and open subscription billing solution in the cloud, combined with proven billing industry expertise, sets Monexa apart from other service providers. Monexa's customers range in size from high growth SaaS and Cloud Infrastructure companies like Untangle and ActiveState to large household name companies like Pitney Bowes Business Insight, AOL Canada, Sprint, Amway and Bell Mobility. For more information visit http://www.monexa.com.

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Monexa Technologies Corp.

For further information:

Investor Contact: 
Garth Albright CFO     D: 604.630.5657
E: ir@monexa.com

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Monexa Technologies Corp.

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