Nstein Technologies announces improved 2009 Q2 results



    MONTREAL, Aug. 13 /CNW Telbec/ - Nstein Technologies inc. www.nstein.com
(TSX-V: EIN), today announced its results for the second quarter of 2009
ending on June 30, 2009.
    Nstein 2009 Q2 revenues were $6.2 million, up 3% compared to $6 million a
year earlier. The Company posted earnings before financial charges, income
tax, depreciation, amortization, exchange loss and restructuring charges
(EBITDA) of $335,182 compared to a negative EBITDA of $1,176,642 for the
second quarter of 2008. The net loss amounted to $258,841 or $0.005 per share,
compared to a net loss of $1,551,727 or $0.03 per share for the same period
the previous year.
    "These results demonstrate the positive impact of the cost-cutting
measures introduced by the company over the last twelve months. Because of the
uncertain economic climate, the cost structure was reduced significantly,
thereby making it possible to post a positive EBIDTA in the second quarter.
This earnings level meets our expectations and again confirms the appeal of
Nstein solutions to content publishers seeking avant-garde tools to drive
their digital strategy. Our current and potential clients are still affected
by the sharp decline in their advertising revenues during this recessionary
period but signs of improvement encourage us to approach the second half of
the year with cautious optimism. The financial situation of the company is
sound, and we will be in a good position to profit from the coming recovery,"
said Luc Filiatreault, President and CEO of Nstein Technologies.
    At June 30, 2009, the company had cash of $6 million, working capital of
$7.6 million and long-term debt of $0.4 million.

    About Nstein Technologies Inc.

    Nstein Technologies (TSX-V: EIN) develops and markets multilingual
solutions that power digital publishing for the most prestigious newspapers,
magazines, and content-driven organizations. Nstein's solutions generate new
revenue opportunities and reduce operational costs by enabling the
centralization, management and automated indexing of digital assets. Nstein
partners with clients to design a complete digital strategy for success using
publishing industry best practices for the implementation of its Web Content
Management, Digital Asset Management, Text Mining Engine and Picture
Management Desk products. www.nstein.com

    
    - The TSX Venture Exchange does not accept responsibility for the
      adequacy or accuracy of this release.
    - Any statement that appears prospective shall not be interpreted as
      such.


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Balance Sheets             As at June 30  As at December 31
                                                     2009               2008
                                                        $                  $
                                               (unaudited)
    -------------------------------------------------------------------------
    Assets

    Current assets
    Cash and cash equivalents                   5,993,704          7,405,217
    Term deposits                                 164,600            214,600
    Accounts receivable                         6,408,194          6,864,825
    Refundable tax credits                      1,633,477            984,478
    Income taxes receivable                             -            335,656
    Work in progress                              856,604            680,639
    Prepaid expenses                              206,057            207,389
    -------------------------------------------------------------------------
                                               15,262,636         16,692,804

    Property, plant and equipment                 645,201            736,506
    Intangible assets                           2,972,814          3,364,257
    Goodwill                                   10,496,905         10,496,905
    -------------------------------------------------------------------------
                                               29,377,556         31,290,472
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities    3,695,092          4,442,361
    Deferred revenues                           3,475,146          3,236,640
    Future income tax liabilities                 150,315            150,315
    Current portion of long-term debt             300,555            330,503
    -------------------------------------------------------------------------
                                                7,621,108          8,159,819

    Long-term debt                                359,195            520,799
    Future income tax liabilities                 499,308            571,071
    -------------------------------------------------------------------------
                                                8,479,611          9,251,689
    -------------------------------------------------------------------------

    Shareholders' Equity

    Share capital                              54,152,340         54,028,128
    Other equity components                     2,684,514          2,695,998
    Contributed surplus                         2,047,367          1,805,717
    Deficit                                   (37,986,276)       (36,491,060)
    -------------------------------------------------------------------------
                                               20,897,945         22,038,783
    -------------------------------------------------------------------------
                                               29,377,556         31,290,472
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Statements      Three months ending       Six months ending
     of Earnings and Deficit                 June 30                 June 30
                                    2009        2008        2009        2008
                                       $           $           $           $
                              (unaudited) (unaudited) (unaudited) (unaudited)
    -------------------------------------------------------------------------
    Revenues                   6,188,031   6,008,624  11,573,363  12,037,855
    Cost of sales, net of
     tax credits               2,659,015   2,861,739   5,482,415   5,386,153
    -------------------------------------------------------------------------
                               3,529,016   3,146,885   6,090,948   6,651,702
    -------------------------------------------------------------------------

    Expenses
    Selling and
     administrative            2,614,923   3,357,316   5,251,091   6,384,989
    Research and
     development,
     net of tax credits          573,529     966,211   1,252,263   1,910,381
    Depreciation of
     property, plant
     and equipment                53,547      69,797     130,411     145,176
    Amortization of
     intangible assets           199,414     248,279     410,764     427,016
    Loss on disposal of
     property, plant and
     equipment                     5,382           -       5,382           -
    Exchange (gain) loss         191,016      83,826      89,198     (80,294)
    Financial (revenues)
     expenses                      9,781      10,761      39,988     (54,738)
    Restructuring fees           174,446           -     478,826     419,156
    -------------------------------------------------------------------------
                               3,822,038   4,736,190   7,657,923   9,151,686
    -------------------------------------------------------------------------
    Loss before income tax       293,022   1,589,305   1,566,975   2,499,984

    Recovery of income tax
      Future income tax          (34,181)    (37,578)    (71,759)    (56,367)
      -----------------------------------------------------------------------
                                 (34,181)    (37,578)    (71,759)    (56,367)

    -------------------------------------------------------------------------
    Net loss and
     comprehensive loss
     for the period              258,841   1,551,727   1,495,216   2,443,617

    Deficit - Beginning
     of period                37,727,435  35,233,564  36,491,060  34,341,674
    -------------------------------------------------------------------------

    Deficit - End of
     period                   37,986,276  36,785,291  37,986,276  36,785,291
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted net
     loss share                    0.005       0.030       0.029       0.050

    Basic and diluted
     weighted average
     number of shares
     outstanding              51,837,875  51,053,643  51,802,721  48,797,518

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


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Statements      Three months ending       Six months ending
     of Cash Flows                           June 30                 June 30
                                    2009        2008        2009        2008
                                       $           $           $           $
                              (unaudited) (unaudited) (unaudited) (unaudited)
    -------------------------------------------------------------------------
    Cash flows from
     operating activities
    Loss for the period         (258,841) (1,551,727) (1,495,216) (2,443,617)
    Items not affecting
     cash and cash
     equivalents
      Interest capitalized
       on long-term debt           3,400       6,351       7,162      14,621
      Unrealized exchange
       loss (gain)                   661        (396)        766      69,904
      Depreciation of
       property, plant
       and equipment              53,547      69,797     130,411     145,176
      Amortization of
       intangible assets         199,414     248,279     410,764     427,016
      Loss on disposal of
       property, plant and
       equipment                   5,382           -       5,382           -
      Stock-based
       compensation costs        124,001     119,172     230,166     266,157
      Compensation costs
       related to the
       deferred share unit
       plan for directors        (12,609)     44,750    (106,469)     75,500
      Costs related to the
       employee stock
       purchase plan              33,127      17,124      62,106      34,796
      Future income tax          (34,181)    (37,578)    (71,759)    (56,367)
    -------------------------------------------------------------------------
                                 113,901  (1,084,228)   (826,687) (1,466,814)
    -------------------------------------------------------------------------

    Change in non-cash
     operating working
     capital items
      Accounts receivable        (72,454)  2,337,292     456,631   1,717,441
      Refundable tax credits    (444,309)   (368,710)   (648,999)    257,961
      Income tax receivable      342,102           -     335,656           -
      Work in progress          (213,540)   (107,378)   (175,965)   (563,778)
      Prepaid expenses            37,593     (91,291)      1,332    (118,091)
      Accounts payable and
       accrued liabilities      (247,016)   (395,151)   (423,064)   (184,070)
      Deferred revenues            5,167    (551,714)    238,506     862,747
    -------------------------------------------------------------------------
                                (592,457)    823,048    (215,903)  1,972,210
    -------------------------------------------------------------------------
                                (478,556)   (261,180) (1,042,590)    505,396
    -------------------------------------------------------------------------

    Cash flows from
     financing activities
    Variation in bank loans            -           -           -    (452,742)
    Payments on long-term
     debt                        (89,451)    (35,371)   (208,590)   (188,966)
    Payment on Balance of
     purchase price of a
     subsidiary                        -  (1,080,591)          -  (1,080,591)
    Issuance of common
     shares, net of issue
     expenses                     33,127     (20,815)     62,106     (38,094)
    -------------------------------------------------------------------------
                                 (56,324) (1,136,777)   (146,484) (1,760,393)
    -------------------------------------------------------------------------

    Cash flows from
     investing activities
    Variation in term
     deposits                          -           -      50,000      20,786
    Business acquisitions,
     net of cash and cash
     equivalents                (116,228)   (287,335)   (217,740) (2,648,694)
    Additions to property,
     plant and equipment         (45,107)    (66,728)    (58,156)    (95,138)
    Additions to intangible
     assets                      (13,100)    (25,959)    (20,670)    (28,226)
    Proceeds from the sale
     of property, plant
     and equipment                24,127           -      24,127           -
    -------------------------------------------------------------------------
                                (150,308)   (380,022)   (222,439) (2,751,272)
    -------------------------------------------------------------------------

    Decrease in cash and
     cash equivalents           (685,188) (1,777,979) (1,411,513) (4,006,269)

    Cash and cash
     equivalents -
     Beginning of period       6,678,892   9,502,565   7,405,217  11,730,855
    -------------------------------------------------------------------------

    Cash and cash
     equivalents -
     End of period             5,993,704   7,724,586   5,993,704   7,724,586
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00014563EF




For further information:

For further information: Nstein Technologies inc.: Investor Relations:
Bruno Martel, Chief Financial Officer, (514) 908-5406,
bruno.martel@nstein.com; Media: David Crouy, Marketing Director, (514)
908-5406, david.crouy@nstein.com

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NSTEIN TECHNOLOGIES INC.

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