Posera-HDX Announces Financial Results for Fiscal 2012

TORONTO, March 28, 2013 /CNW/ - Posera-HDX Ltd. (TSX:HDX) (the Company) announced today its financial results for the three-months and year ending December 31st, 2012. HDX is listed on the TSX under the symbol "HDX".

Paul Howell, Chief Executive Officer, reports:

In 2012 Posera-HDX focused heavily on further developing our software as a service ("SaaS") products to increase our base of recurring revenue. Resources of time and capital were allocated to certification and build-out of our payment switch division, while merger and acquisition negotiations with prospective organizations were carried on.

Sales and service revenues for the three-months and year ending December 31, 2012 were $4,537,528 and $16,446,106 respectively. This represents a quarterly decrease of 5.7% from $4,812,109 and an annual decrease of 7.1% from $17,699,771 for the quarter and year ending December 31, 2011.

Excluding one-time expenditures related to acquisitions in both 2011 and 2012 relating to the various acquisitions during 2011, an office move, legal expenses, US tax penalties and interest, out of period expenditures and the 2011 corporate reorganization, the Company achieved Normalized EBITDA (loss) profit for the year-ended December 31, 2012 of $(525,935), compared to $1,206,023 for the year-ended December 31, 2011, a decrease of $1,731,958.

Excluding the one-time expenditures discussed above, the Company achieved Normalized EBITDA (loss) profit for the three-months ended December 31, 2012 of $(172,373), compared to $286,415 for the three-months ended December 31, 2011, a decrease of $458,788.

The Company continues to pursue acquisitions within the point of sale and payments industries although none are specifically named at this time.

Annual Financial Highlights

  • Normalized EBITDA (loss) profit for the year-ended December 31, 2012 was $(525,935), a decrease of $1,731,958 from $1,206,023 for the year- ended December 31, 2011;
  • Total revenue was $16,446,106 for the year-ended December 31, 2012, down $1,253,665 (7.1%) from $17,699,771 for the year-ended December 31, 2011;
  • Gross profit was $6,006,696 for the year-ended December 31, 2012, down $1,555,331 (20.6%) from $7,562,027 for the year-ended December 31, 2011;
  • Operating expenses were $11,007,678 for the year-ended December 31, 2012, up $2,996,581 (37.4%) from $8,011,097 for the year-ended December 31, 2011;
  • Operating expenses excluding the impairment of assets were $8,587,814 for the year-ended December 31, 2012, up $576,717 (7.2%) from $8,011,097 for the year-ended December 31, 2011; and
  • Net income (loss) for the year-ended December 31, 2012 was a loss of $(4,793,224), a decrease of $(6,279,120) from income of $1,485,896 for the year-ended December 31, 2011.  Included in net income (loss) was amortization of $1,458,753 for intangible assets and property plant and equipment, non-cash stock-based compensation of $242,982 and the write down of intangible assets and goodwill of $2,248,885 and $170,979 respectively.

Non-GAAP Reporting Measures:  Management reports on certain non-GAAP measures to evaluate performance of the Company. EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. While EBITDA has been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, investors are cautioned that EBITDA as reported by Posera-HDX may not be comparable in all instances to EBITDA as reported by other companies.  For definitions of Non-GAAP measures, refer to the Company's annual management discussion and analysis for the fourth quarter and fiscal 2012.

Additional information on HDX fourth quarter 2012 financial results will be available in the financial reports filed by the Company with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website at www.dexit.com.

About the Company

Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.

Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

Posera-HDX Ltd. develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages.  The Company sells and services its clients directly, as well as through a network of approximately 103 value added reseller partners in 25 countries with approximately 600 representatives selling, supporting & installing its software.  Posera-HDX employs approximately 137 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.

Forward-Looking Statements 

This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates.  Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management.  The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events.  These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 28th 2013 with the regulatory authorities.  HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. 

SOURCE: Posera-HDX

For further information:

Paul Howell
Chief Executive Officer
Posera-HDX Ltd. (HDX)
350 Bay Street, Suite 700
Toronto, Ontario M5H 2S6
(416) 703-6462 ext. 2263

Organization Profile

Posera-HDX

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