Nstein Technologies announces its 2009 Q1 results



    MONTREAL, May 14 /CNW Telbec/ - Nstein Technologies inc. www.nstein.com
(TSX-V: EIN), today announced its results for the first quarter of 2009.
    Nstein revenues for the first quarter of 2009 were $5.4 million, down 11%
compared to $6.03 million a year earlier. The Company posted a loss before
financial expenses, exchange losses, income tax, depreciation, amortization
and restructuring fees (EBITDA) of $752,970 compared to a negative EBITDA of
$467,026 for the first quarter of 2008. Restructuring fees of $304,380 were
incurred during the quarter from the elimination of certain positions within
the Company. The net loss was $1,236,375 or $0.024 per share, compared to a
net loss of $891,890 or $0.019 per share for the same period last year.
    "Although these results are somewhat disappointing, they are in line with
our expectations given the difficult economic environment. The company's
target clientele, publishers of newspapers and magazines, have seen their
advertising revenues plummet during the first quarter as advertisers
substantially reduced their spending in this recession. Obviously, this
situation delays their decisions to invest in solutions like those we offer.
We nevertheless remain convinced of the value of our offering, given that we
were able to sign $1.5 million worth of new contracts during the period with
existing customers and a leading publisher in the United Kingdom. We intend to
manage the company prudently during this period of uncertainty while
positioning ourselves advantageously for the future recovery," said Luc
Filiatreault, President and CEO of Nstein Technologies.
    On March 31, 2009, the Company had cash of $6.7 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 March 31  As at December 31
                                                     2009               2008
                                                        $                  $
                                               (unaudited)
    -------------------------------------------------------------------------
    Assets

    Current assets
    Cash and cash equivalents                   6,678,892          7,405,217
    Term deposits                                 164,600            214,600
    Accounts receivable                         6,335,740          6,864,825
    Refundable tax credits                      1,189,168            984,478
    Income taxes receivable                       342,102            335,656
    Work in progress                              643,064            680,639
    Prepaid expenses                              243,650            207,389
    -------------------------------------------------------------------------
                                               15,597,216         16,692,804

    Property, plant and equipment                 681,801            736,506
    Intangible assets                           3,160,478          3,364,257
    Goodwill                                   10,496,905         10,496,905
    -------------------------------------------------------------------------
                                               29,936,400         31,290,472
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities    4,070,941          4,442,361
    Deferred revenues                           3,469,979          3,236,640
    Future income tax liabilities                 150,315            150,315
    Current portion of long-term debt             340,416            330,503
    -------------------------------------------------------------------------
                                                8,031,651          8,159,819

    Long-term debt                                404,727            520,799
    Future income tax liabilities                 533,490            571,071
    -------------------------------------------------------------------------
                                                8,969,868          9,251,689
    -------------------------------------------------------------------------

    Shareholders' Equity

    Share capital                              54,086,087         54,028,128
    Other equity components                     2,768,745          2,695,998
    Contributed surplus                         1,839,135          1,805,717
    Deficit                                   (37,727,435)       (36,491,060)
    -------------------------------------------------------------------------
                                               20,966,532         22,038,783
    -------------------------------------------------------------------------
                                               29,936,400         31,290,472
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Statements of Earnings and     Three months ending March 31
     Deficit                                         2009               2008
                                                        $                  $
                                               (unaudited)        (unaudited)
    ------------------------------------------------------------------------
    Revenues                                    5,385,332          6,029,231
    Cost of sales, net of tax credits           2,823,400          2,524,414
    ------------------------------------------------------------------------
                                                2,561,932          3,504,817
    ------------------------------------------------------------------------

    Expenses
    Selling and administrative                  2,636,168          3,027,673
    Research and development, net of tax
     credits                                      678,734            944,170
    Depreciation of property, plant and
     equipment                                     76,864             75,379
    Amortization of intangible assets             211,350            178,737
    Exchange gain                                (101,818)          (164,120)
    Financial (revenues) expenses                  30,207            (65,499)
    Restructuring fees                            304,380            419,156
    ------------------------------------------------------------------------
                                                3,835,885          4,415,496
    ------------------------------------------------------------------------
    Loss before income tax                      1,273,953            910,679

    Recovery of income tax
      Future income tax                           (37,578)           (18,789)
      ----------------------------------------------------------------------
                                                  (37,578)           (18,789)

    ------------------------------------------------------------------------
    Net loss and comprehensive loss for
     the period                                 1,236,375            891,890

    Deficit - Beginning of period              36,491,060         34,341,674
    ------------------------------------------------------------------------

    Deficit - End of period                    37,727,435         35,233,564
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------

    Basic and diluted net loss share                0.024              0.019

    Basic and diluted weighted average
     number of shares outstanding              51,716,920         46,382,730
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Statements of Cash Flows       Three months ending March 31
                                                     2009               2008
                                                        $                  $
                                               (unaudited)        (unaudited)
    ------------------------------------------------------------------------
    Cash flows from operating activities
    Loss for the period                        (1,236,375)          (891,890)
    Items not affecting cash and cash
     equivalents
      Interest capitalized on long-term debt        3,762              8,270
      Unrealized exchange loss                        105             70,300
      Depreciation of property, plant and
       equipment                                   76,864             75,379
      Amortization of intangible assets           211,350            178,737
      Stock-based compensation costs              106,165            146,985
      Compensation costs related to the
       deferred share unit plan for directors     (93,860)            30,750
      Costs related to the employee stock
       purchase plan                               28,979             17,672
      Recovery of income tax                      (37,578)           (18,789)
    ------------------------------------------------------------------------
                                                 (940,588)          (382 586)
    ------------------------------------------------------------------------

    Change in non-cash operating working
     capital items
      Accounts receivable                         529,085           (619,851)
      Refundable tax credits                     (204,690)           626,671
      Income tax receivable                        (6,446)                 -
      Work in progress                             37,575           (456,400)
      Prepaid expenses                            (36,261)           (26,800)
      Accounts payable and accrued liabilities   (176,048)           211,081
      Deferred revenues                           233,339          1,414,461
    ------------------------------------------------------------------------
                                                  376,554          1,149,162
    ------------------------------------------------------------------------
                                                 (564,034)           766,576
    ------------------------------------------------------------------------

    Cash flows from financing activities
    Variation in bank loans                             -           (452,742)
    Payments on long-term debt                   (119,139)          (153,595)
    Issuance of common shares, net of issue
     expenses                                      28,979            (17,279)
    ------------------------------------------------------------------------
                                                  (90,160)          (623,616)
    ------------------------------------------------------------------------

    Cash flows from investing activities
    Variation in term deposits                     50,000             20,786
    Business acquisitions, net of cash and
     cash equivalents                            (101,512)        (2,361,359)
    Additions to property, plant and equipment    (13,049)           (28,410)
    Additions to intangible assets                 (7,570)            (2,267)
    ------------------------------------------------------------------------
                                                  (72,131)        (2,371,250)
    ------------------------------------------------------------------------

    Decrease in cash and cash equivalents        (726,325)        (2,228,290)

    Cash and cash equivalents - Beginning
     of period                                  7,405,217         11,730,855
    ------------------------------------------------------------------------

     Cash and cash equivalents - End of period  6,678,892          9,502,565
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
    
    %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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