Monexa Technologies Corp. Reports Q3 2011 Results

VANCOUVER, Nov. 29, 2011 /CNW/ - Monexa Technologies Corp. (TSX-Venture: MXA) today announced its quarterly results for the nine month period ended September 30, 2011. The financial statements were prepared in accordance with International Financial Reporting Standards.

For the three months ended September 30, 2011, revenue totaled $809K, a 1% decrease from $817K in the corresponding quarter in 2010 as a result of a decline in ISP revenue of $80K, or 13%, offset by a $72K, or 39%, increase in SaaS revenue.  The net loss for the quarter was $314K, a 19% improvement from the $390K loss incurred in Q2 2010.  Adjusted EBITDA loss for the quarter ($193K) was down from the ($287K) loss in the corresponding quarter in 2010.

John Jacobson, President and CEO said "Through the third quarter, we continued working toward an infusion of growth capital, but progress has been challenging with the ongoing turmoil in financial markets around the world.  In spite of the challenges we've been able to continue to improve the margin performance and invest in our technology and markets."

Garth Albright, CFO said "Monexa continues to successfully roll out its business model with increased SaaS sales and product wide overall gross margin improvement.  The company has also reinvested in its future growth with a 50% increase is the size of our development group in Q3 and a further two developers were hired in Q4.

Milestones in Q3 2011: 

  • SaaS higher margin recurring revenue increased by $72K, or 39% as compared to Q3 2010, while ISP traditional revenue declined by $79K or 13% as compared to the prior year comparable quarter.  Overall revenue declined quarter over quarter by $8K.

  • Direct cost of sales dropped by $80k to $297K for Q3 2011 as compared to $377K for the prior year's comparable quarter.

  • Gross margin percentage increased to 63% in Q3 2011 vs. 54% in Q3 2010 as the higher margin SaaS revenue increased quarter over prior year quarter.

  • Operating expenses decreased by $16K or 2% to $730K in the third quarter of 2011, as compared to $746K in 2010.  This decrease reflects the streamlining of the operations.

  • Net loss of $314K for the quarter represents a 19% reduction from the net loss of $390K incurred in the third quarter in 2010.

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.

Monexa Technologies Corp. confirms that the Company has terminated their June 27, 2011 agreements with MPartners Inc and Versant Partners Inc to raise funding for the Company.

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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