Northcore reports Q4 and year-end 2007 results



    Revenue grows 24 percent quarter over quarter; 9 percent year over year

    (TSX: NTI; OTCBB: NTLNF)

    TORONTO, March 19 /CNW/ - Northcore Technologies Inc. (TSX: NTI;
OTCBB:NTLNF), a provider of asset management technology solutions, announced
today its financial results for the fourth quarter and fiscal year ended
December 31, 2007. All figures are in Canadian dollars.
    Northcore reported revenues of $309,000 for the quarter, an increase of
24 percent over the $250,000 generated in the third quarter of 2007. In the
same period of 2006, Northcore generated revenue of $309,000. For the year
ended December 31, 2007, Northcore reported revenues of $1.17 million, a
growth of nine percent over the $1.07 million generated in 2006.
    Northcore derives its revenues from application hosting activities
provided to customers, royalty fees from its business partners, the sale of
software licenses, and the delivery of technology services, such as
application development and software customization.
    "Following the senior management reorganization and successful completion
of our rights offering in Q3, we devoted considerable attention in the fourth
quarter on customer-facing and revenue generating activities," said Duncan
Copeland, CEO of Northcore Technologies. "These efforts produced a quarter
over quarter revenue increase of 24 percent even as the Canadian dollar
continued to strengthen. This result, coupled with some recent trends,
suggests that we are now back on track towards realizing our long-term
objectives."
    Northcore reported a net loss for the fourth quarter of $536,000 or
$0.01 per share, basic and diluted. This compares to a net loss of $636,000 or
$0.01 per share, basic and diluted in the third quarter of 2007. In the same
period of 2006, Northcore reported a net loss of $571,000 or $0.01 per share
basic and diluted.
    Northcore's net loss for the year ended December 31, 2007 was
$2.31 million. In 2006, Northcore reported a net loss of $648,000 or $0.01 per
share, a total that included income from discontinued operations of
$2.12 million resulting from the sale of the company's Norway business unit.
    Northcore also reported an EBITDA loss for the fourth quarter of
$372,000. This compares to an EBITDA loss of $416,000 in the third quarter of
2007 and an EBITDA loss of $374,000 for the fourth quarter of 2006.
    For the fiscal year ended December 31, 2007, Northcore recorded an EBITDA
loss of $1.58 million. This compares to a combined EBITDA loss of
$1.76 million for the year ended 2006.
    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, 2007, Northcore held cash and cash equivalents of
$478,000 and accounts receivable of approximately $120,000.
    Northcore also announced that it has received commitment to a funding
arrangement and is currently finalizing terms. The company will provide
details upon closing of the arrangement.

    
    Operating highlights

    In addition to its financial results, Northcore experienced a number of
operating achievements in the period, notably:

    -   The company signed a service agreement with the Brick, one of
        Canada's largest volume retailers of household furniture, mattresses,
        appliances and home electronics. Northcore provides infrastructure
        support services for the Brick's online presence, www.thebrick.com.
    -   Northcore extended the terms of existing service agreements with the
        Newfoundland and Labrador Housing Corporation, the School Board of
        Broward County (Florida) and the State of Tennessee. The organization
        will use Northcore's technology and services to manage their
        maintenance activities.
    -   The company introduced new enhancements to Asset Tracker, the web-
        based equipment tracking application of its joint venture with GE.
        The enhancements enable customers to simplify the search for assets
        and equipment.
    -   GE Asset Manager, LLC, the company's joint venture with GE,
        successfully provided online sales capabilities to Arthur Machinery,
        an international distributor of precision machining equipment.
    -   The company refinanced the Series H subordinated notes with a
        principal balance of $170,000 and accrued interest of $60,000.
        Northcore entered into an agreement to repay the principal and
        interest over a two-year term at 11 percent.
    

    Northcore will hold a conference call at 10:00 (Eastern) on Thursday,
March 20 to discus its financial results and review operational activities.
Investors and followers of the Northcore can listen to a live webcast of the
call from the investor relations section of the company's website,
www.northcore.com.

    About Northcore Technologies Inc.
    ---------------------------------
    Northcore Technologies provides web-based solutions and custom
applications 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 tables follow)


                         Northcore Technologies Inc.
                         Consolidated Balance Sheets
                 (expressed in thousands of Canadian dollars)
                           (Canadian GAAP, Audited)
    -------------------------------------------------------------------------


                                      December 31   December 31   December 31
                                    -----------------------------------------
                                          2007          2007          2006
                                    -----------------------------------------
                                       (audited)     (audited)     (audited)
                                        (in $C)       (in $US)      (in $C)

                                                     translated
                                                    into $US at
                                                    Cdn$ 0.9881
                                                        for
                                                    convenience

    Cash                             $       478   $       484   $       475
    Other current assets                     157           159           217
    Other assets                              52            52           121
                                    -----------------------------------------
      Total assets                   $       687   $       695   $       813
                                    -----------------------------------------
                                    -----------------------------------------

    Accounts payable and
     accrued liabilities             $       577   $       584   $     1,074
    Deferred revenue                          52            52            68
    Current portion of
     long term debts                         378           383         1,682
    Non-current porttion of
     long term debts                       1,280         1,295           244
    Total shareholders' deficiency        (1,600)       (1,619)       (2,255)
                                    -----------------------------------------
      Total liabilities and
       shareholders' deficiency      $       687   $       695   $       813
                                    -----------------------------------------
                                    -----------------------------------------


                         Northcore Technologies Inc.
       Consolidated Statements of Operations and Comprehensive Income
    (expressed in thousands of Canadian dollars, except per share amounts)
                           (Canadian GAAP, Audited)

                        -------------------------- --------------------------
                            Three Months Ended            Year Ended
                        -------------------------- --------------------------
                               December 31                December 31
                        -------------------------- --------------------------
                          2007     2007     2006     2007     2007     2006
                          ($C)     ($US)    ($C)     ($C)     ($US)    ($C)
                        -------------------------- --------------------------

                                translated                 translated
                                into US$ at                into US$ at
                                Cdn$ 0.9881                Cdn$ 0.9881
                                    for                        for
                                convenience                convenience

    Revenue              $  309   $  313   $  309   $1,166   $1,180   $1,073
                        -------------------------- --------------------------

    Operating expenses
      General and
       administrative       413      418      439    1,703    1,724    1,790
      Customer service
       and technology       207      209      189      762      771      664
      Sales and marketing
       costs                 61       62       55      276      279      377
      Employee stock
       options               16       16       23       94       95      137
      Depreciation  and
       amortization          10       10       24       39       39       92
                        -------------------------- --------------------------
        Total operating
         expenses           707      715      730    2,874    2,908    3,060
                        -------------------------- --------------------------

    Loss from operations   (398)    (402)    (421)  (1,708)  (1,728)  (1,987)
                        -------------------------- --------------------------

    Interest expense
      Cash interest
       expense               68       69       67      272      275      345
      Accretion of
       secured
       subordinated
       notes                 70       71       87      333      337      454
    Interest income           -        -       (5)      (1)      (1)     (16)
                        -------------------------- --------------------------
                            138      140      149      604      611      783
                        -------------------------- --------------------------

    Loss from continuing
     operations          $ (536)  $ (542)  $ (570) $(2,312) $(2,339) $(2,770)
    Income (loss) from
     discontinued
     operations               -        -       (1)       -        -    2,122
                        -------------------------- --------------------------
    Net loss for the
     period                (536)    (542)    (571)  (2,312)  (2,339)    (648)
                        -------------------------- --------------------------
                        -------------------------- --------------------------

    Other comprehensive
     income, net of tax:
      Foreign currency
       translation
       adjustment             -        -        -        -        -      (90)
                        -------------------------- --------------------------
    Comprehensive loss   $ (536)  $ (542)  $ (571) $(2,312) $(2,339)  $ (738)
                        -------------------------- --------------------------
                        -------------------------- --------------------------

    Loss per share:
      From continuing
       operations, basic
       and diluted       $(0.01)  $(0.01)  $(0.01)  $(0.02)  $(0.03)  $(0.03)
      Net loss per
       share, basic and
       diluted           $(0.01)  $(0.01)  $(0.01)  $(0.02)  $(0.03)  $(0.01)
                        -------------------------- --------------------------
                        -------------------------- --------------------------

    Weighted average
     number of shares
     outstanding
     basic and diluted  108,207  108,207   83,616   93,094   93,094   79,933
                        -------------------------- --------------------------
    

    %SEDAR: 00019461E




For further information:

For further information: At Northcore Technologies Inc., Joe Racanelli,
Chief Marketing Officer, 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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