Serenic announces financial results for second quarter ended August 31, 2008



    EDMONTON, Oct. 29 /CNW/ - Serenic Corporation (the "Company")
(TSX-V:SER), an international software developer and marketer providing
financial software solutions to not-for-profit ("NFP"), educational and
government organizations, announces its financial results for the second
quarter ended August 31, 2008.
    Revenue for the three month period ended August 31, 2008 ("Q2") was
$2,398,524, generating a loss of $80,025, or 3.3% of revenue. Although these
figures represent a significant difference from the comparable quarter in the
previous year wherein the Company having recorded a multi-million dollar
single sale, Serenic continues to demonstrate solid success and adherence to
its strategy to continue maximized re-investment of resources to grow market
share, top line revenues, and reseller channels. Excluding that single large
sale, new license sales for Q2 were $1,108,454, an increase of 39.6% over Q2
license sales of the previous year.
    For the six month period in this fiscal year, sales were $4,371,837, down
from $5,908,931 recorded in the comparable period in the previous year.
Disregarding the large single sale recorded in the previous year, year to date
license sales, consulting revenue, and maintenance and other revenue in the
current year increased by 32.9%, 3.7%, and 18.8%, respectively. Gross margin
was $3,303,965 in the current six month year to date period, as compared to
$4,173,584, with gross margin percentage increasing from 70.6% (previous year)
to 75.6% in the current period. Expenses increased by $449,718, as a result of
management's continued strategy to invest resources in order to maximize
growth of top line revenues.

    
    -------------------------------------------------------------------------
    Statement of
     Operations           (Unaudited)                   (Unaudited)
     Information      Three months ended:             Six months ended:
    -------------------------------------------------------------------------
                   Aug 31,     Aug 31,             Aug 31,     Aug 31,
                     2008        2007    %           2008        2007    %
    -------------------------------------------------------------------------
                    $           $                   $           $
    -------------------------------------------------------------------------
    Revenue     2,398,524   4,083,352  (41.3)   4,371,837   5,908,931  (26.0)
    -------------------------------------------------------------------------
    Income
     (loss) for
     the period   (80,025)  1,025,021 (108.7)    (630,868)    730,167 (187.6)
    -------------------------------------------------------------------------
    Basic income
     (loss) per
     share          (0.01)       0.07 (114.3)       (0.04)       0.06 (166.7)
    -------------------------------------------------------------------------
    EBITDA(1)      69,667   1,183,584  (94.1)    (338,870)  1,048,494 (132.3)
    -------------------------------------------------------------------------
    EBITDA as
     a % of
     revenue         2.9%       29.0%              (7.7)%       17.7%
    -------------------------------------------------------------------------
    Diluted
     income
    (loss) per
     share          (0.01)       0.07               (0.04)       0.05
    -------------------------------------------------------------------------
    Weighted
     average
     common
     shares
     outstanding   No.         No.                             No.
     (basic)   15,185,458  14,828,599          15,181,349  13,331,812
    -------------------------------------------------------------------------
    

    Highlights

    New sales included those made to TechnoServe, an international
humanitarian agency that fosters rural business growth in 30 developing
countries. Other direct deals included sales to different departments of the
U.S. government, a zoo, an NFP organization dedicated to scholarships and
improved teaching methods, as well as licenses for portal software to existing
customers. Reseller partners contributed strongly by selling Navigator to a
city in Puerto Rico, a government in Southern Africa, several school districts
in the U.S.A. and several NFP agencies. Sales of payroll software and related
services were also steady during the quarter.
    During Q2, the Company was profiled in an announcement by Microsoft
regarding the sale of Navigator to a large Catholic Diocese organization in
the USA. Serenic also received three awards of distinction in Q2, including
having been ranked in 20th place in the annual PROFIT Magazine's list of
fastest growing Canadian companies; 9th place in the Technology/Life Sciences
category on the 2008 TSX Venture 50, celebrating Canada's top emerging
companies; and 31st in the Deloitte Fast 50 list of fastest growing technology
companies in Canada, having generated revenue growth of 522% between 2003 and
2007.

    Outlook

    The Company continues to evolve as a preferred supplier within niche
segments of the NFP and public sector markets, and is becoming a major
contender within these niche markets for both North American and global
organizations. With $2.5 million cash on hand and no debt, the Company is
continuing to execute upon its growth strategy to increase market share and
revenues within these markets. Expectations are to continue the re-investment
of resources in the current fiscal year so as to generate double digit organic
revenue growth, while pursuing positive cash flow.

    Forward Looking Statements

    Certain statements contained in this press release, including statements
which may contain words such as "could", "should", "expect", "anticipate",
"believe", "will", and similar expressions and statements relating to matters
that are not historical facts, are forward looking statements. Such forward
looking statements involve known and unknown risks and uncertainties which may
cause the actual results, performances or achievements of Serenic Corporation
to be materially different from any future results, performances or
achievements expressed or implied by such forward looking statements. Such
factors include, but are not limited to, software industry risks, general
business risks, foreign currency risks, economic dependence risks, and credit
risks.

    
    (1) Non-GAAP Measure
        EBITDA is term not specifically defined in the CICA Handbook and does
        not have any standardized meaning prescribed by GAAP. This non-GAAP
        measurement may not be comparable to similar measures presented by
        other companies.
        EBITDA, as used by Serenic, represents earnings before interest,
        taxes, depreciation, amortization and stock compensation expense.
    

    About Serenic Corporation

    Serenic Corporation is an industry-leading publisher of mission-critical
software products that satisfy the unique and sophisticated functionality
requirements of not for profit organizations, educational institutions, and
government agencies. Built on Microsoft Dynamics NAV, Serenic's products
deliver fully integrated solutions that can, in many organizations, eliminate
the need for multiple third-party business applications.
    A Microsoft Gold-certified Industry Solutions Vendor, the Corporation's
products include the highly acclaimed Serenic Navigator(*), Serenic DonorVision,
and Serenic MinistryView. In addition, the Corporation is the exclusive
developer of the human resources and payroll products for Microsoft Dynamics
NAV users for North America.
    Serenic Corporation is a public company with offices in Edmonton, Alberta
and Lakewood, Colorado. It trades under the symbol "SER" on the TSX Venture
Exchange in Canada. Additional information about the Company is available at
www.serenic.com.

    
    ON BEHALF OF THE BOARD OF DIRECTORS

    By: "Dwayne Kushniruk"
    Chairman
    SERENIC CORPORATION

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    




For further information:

For further information: Dwayne Kushniruk, dkushniruk@serenic.com,
Phone: 1-877-426-5385 x 509

Organization Profile

SERENIC CORPORATION

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