Northcore Reports Q4 and Year-End 2006 Financial Results



    Quarter over quarter revenue growth of 39 percent

    (TSX: NTI; OTCBB: NTLNF)

    TORONTO, March 28 /CNW/ - Northcore Technologies Inc. (TSX: NTI;
OTCBB: NTLNF), a global provider of core asset solutions, announced today its
financial results for the fourth quarter and fiscal year ended December 31,
2006. All figures are in Canadian dollars.
    Northcore reported revenues of $309,000 for the quarter, an increase of
39 percent over the $222,000 generated in the third quarter of 2006. In the
same period of 2005, Northcore, operating at the time as ADB Systems
International Inc., reported revenues for its North America and Ireland
business units of $510,000. For the year ended December 31, 2006, Northcore
reported revenues of $1.07 million. The company's total revenues for 2005 were
$1.29 million after excluding discontinued operations.
    Comparisons of Northcore's fourth quarter results to periods when the
company operated as ADB Systems may not be meaningful given the changes to the
company's operational focus and customer activities. As has been reported
previously, the company sold its Norway business unit for $2.69 million in
cash and debt settlement effective June 30, 2006. As a result of the sale of
its Norway business unit, Northcore has adjusted its historical financial
results to comply with generally accepted accounting principles (GAAP)
applicable to discontinued operations.
    "Consistent with our guidance, revenues in Q4 grew by almost 40 percent
when compared to third quarter results," said Jeff Lymburner, CEO of Northcore
Technologies. "The revenue growth was attributable to a number of factors,
including an increasing demand for our application development and technology
customization services, and a steady revenue stream from the royalty
arrangement we entered into with ADB Systemer."
    Northcore reported a net loss for the fourth quarter of $571,000 or $0.01
per share, basic and diluted. This compares to a net loss of $640,000 or $0.01
per share, basic and diluted, in the third quarter of 2006. The company
reported a net loss of $786,000 in the fourth quarter of 2005.
    Northcore's net loss for the year ended December 31, 2006 was $648,000 or
$0.01 per share, which included a one-time gain of $2.12 million resulting
from the sale of discontinued operations in Norway. The company's total net
loss for 2005 was $3.5 million.
    "The sale of our Norwegian business unit reduced the costs and
complexities involved in running international operations," Mr. Lymburner
said. "This strategic change will result in greater operational and financial
focus."
    Northcore also reported an EBITDA loss for Q4 of $374,000. This compares
to an EBITDA loss of $404,000 in the third quarter of 2006 and an EBITDA loss
of $254,000 in the fourth quarter of 2005. For the year ended December 31,
2006, Northcore recorded an EDITDA loss of $1.76 million. Northcore recorded
an EBITDA loss of $2.62 million for the fiscal year 2005.
    EBITDA loss is defined as losses before interest, taxes, depreciation,
amortization, employee stock options, and discontinued operations. Northcore
considers EBITDA to be a meaningful performance measure as it provides an
approximation of operating cash flows.
    As at December 31, Northcore held cash and cash equivalents $475,000.

    
    Operating highlights
    In addition to its financial performance, Northcore realized a number of
operating achievements in the fourth quarter, notably:
    -   Northcore's joint venture with GE began providing asset disposition
        services to the Fastenal Company, an international distributor of
        industrial and construction supplies.
    -   Northcore's joint venture with GE signed an agreement with the Toro
        Company to provide a branded, online marketing and sales platform to
        remarket off-lease and pre-owned equipment to a range of prospective
        buyers. The sales platform has since become operational and is
        accessible via www.toroused.com.
    -   Northcore entered into a technology services agreement with The
        Brick, one of Canada's largest volume retailers of household
        furniture, mattresses, appliances and home electronics.
    

    "Based on the timelines of our technology services projects and the
pipeline of our sales opportunities, we anticipate modest sequential revenue
growth in Q1 of 2007 and a healthy double-digit increase in Q2," Mr. Lymburner
said. "We expect this growth trajectory to continue throughout 2007."

    Northcore will hold a conference call at 10:00 a.m. (Eastern time) on
Thursday, March 29 to discuss its financial results and review operational
activities. Investors and followers of Northcore can listen to a live
broadcast of the call from the investor relations section of the company's
website, www.northcore.com.

    About Northcore Technologies Inc.
    ---------------------------------
    Northcore Technologies provides core asset solutions that help
organizations source, manage and sell their capital equipment. Northcore works
with a growing number of customers and partners in a variety of sectors
including oil and gas, government, and financial services.
    Current customers include GE Commercial Finance, Paramount Resources and
Trilogy Energy Trust.
    Northcore owns a 50 percent interest in GE Asset Manager, a joint
business venture with GE.

    This news release may include comments that do not refer strictly to
historical results or actions and may be deemed to be forward-looking within
the meaning of the Safe Harbor provisions of the U.S. federal securities laws.
These include, among others, statements about expectations of future revenues,
cash flows, and cash requirements. Forward-looking statements are subject to
risks and uncertainties that may cause Northcore's ("the Company") results to
differ materially from expectations. These risks include the Company's ability
to raise additional funding, develop its business-to-business sales and
operations, develop appropriate strategic alliances and successful development
and implementation of technology, acceptance of the Company's products and
services, competitive factors, new products and technological changes, and
other such risks as the Company may identify and discuss from time to time,
including those risks disclosed in the Company's Form 20-F filed with the
Securities and Exchange Commission. Accordingly, there is no certainty that
the Company's plans will be achieved.

    
                         (financial results follow)


    Northcore Technologies Inc. (formerly ADB Systems International Ltd.)
                         Consolidated Balance Sheets
                     (expressed in thousands of dollars)
                         (Canadian GAAP, Unaudited)

    -------------------------------------------------------------------------

                                     December 31   December 31   December 31
                                    -----------------------------------------
                                         2006          2006          2005
                                    -----------------------------------------
                                     (unaudited)   (unaudited)     (audited)
                                       (in $C)       (in $US)       (in $C)


                                                    translated
                                                    into $US at
                                                    Cdn$ 1.1652
                                                        for
                                                    convenience

    Cash                                 $   475       $   408       $    60
    Marketable securities                      -             -            13
    Other current assets                     217           186           399
    Other assets                             121           104           201
    Assets from discontinued
     operations                                -             -         1,170
                                    -----------------------------------------
    Total assets                         $   813       $   698       $ 1,843
                                    -----------------------------------------
                                    -----------------------------------------

    Accounts payable and accrued
     liabilities                         $ 1,074       $    922      $ 1,285
    Due to related parties                     -              -          137
    Deferred revenue                          68             58           91
    Current portion of secured
     subordintated notes                   1,682          1,444          343
    Current assets from discontinued
     operations                                -              -          894
    Non-current portion of secured
     subordinated notes                      244            209        1,800
    Minority interest                          -              -            3
    Total shareholders' deficiency        (2,255)        (1,935)      (2,710)
                                    -----------------------------------------
    Total liabilities and
     shareholders' equity
     (deficiency)                        $   813       $    698      $ 1,843
                                    -----------------------------------------
                                    -----------------------------------------



    Northcore Technologies Inc. (formerly ADB Systems International Ltd.)
                    Consolidated Statements of Operations
        (expressed in thousands of dollars, except per share amounts)
                         (Canadian GAAP, Unaudited)

                        -------------------------- --------------------------
                            Three Months Ended            Year Ended
                        -------------------------- --------------------------
                               December 31                December 31
                        -------------------------- --------------------------
                          2006     2006     2005     2006     2006     2005
                          ($C)     ($US)    ($C)     ($C)     ($US)    ($C)
                        -------------------------- --------------------------

                                translated                 translated
                                into US$ at                into US$ at
                                Cdn$ 1.1151                Cdn$ 1.1151
                                    for                        for
                                convenience                convenience

    Revenue              $  309   $  265   $  510   $1,073   $  921   $1,285
                        -------------------------- --------------------------

    Operating expenses
      General and
       administrative       439      377      419    1,790    1,536    2,559
      Customer service
       and technology       189      162      219      664      570      839
      Sales and
       marketing costs       55       47      126      377      323      505
      Employee stock
       options               23       20       59      137      118      105
      Depreciation and
       amortization          24       21       27       92       79       95
      Other (income)
       loss                   -        -        2        -        -      (42)
                        -------------------------- --------------------------
        Total operating
         expenses           730      627      852    3,060    2,626    4,061
                        -------------------------- --------------------------

    Loss from
     operations            (421)    (362)    (342)  (1,987)  (1,705)  (2,776)
                        -------------------------- --------------------------

    Interest expense
      Cash interest
       expense               67       57       98      345      296      312
      Accretion of
       secured
       subordinated
       notes                 87       75      128      454      390      405
    Interest income          (5)      (4)       -      (16)     (14)       -
                        -------------------------- --------------------------
                            149      128      226      783      672      717
                        -------------------------- --------------------------

    Loss from continuing
     operations          $ (570)  $ (490)  $ (568) $(2,770) $(2,377) $(3,493)
    Income (loss) from
     discontinued
     operations              (1)      (1)    (218)   2,122    1,821       (8)
                        -------------------------- --------------------------
    Net loss for the
     period                (571)    (491)    (786)    (648)    (556)  (3,501)
                        -------------------------- --------------------------
                        -------------------------- --------------------------

    Loss per share:
      From continuing
       operations, basic
       and diluted       $(0.01)  $(0.01)  $(0.01)  $(0.03)  $(0.03)  $(0.05)
      Net loss per
       share, basic and
       diluted           $(0.01)  $(0.01)  $(0.01)  $(0.01)  $(0.01)  $(0.05)
                        -------------------------- --------------------------
                        -------------------------- --------------------------

    Weighted average
     common shares       83,616   83,616   74,120   79,933   79,933   72,904
                        -------------------------- --------------------------
    

    %SEDAR: 00019461E




For further information:

For further information: At Northcore Technologies Inc., Joe Racanelli,
Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412, E-mail:
jracanelli@northcore.com

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NORTHCORE TECHNOLOGIES INC.

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