Serenic announces financial results for the fiscal year ended February 29, 2008



    EDMONTON, June 26 /CNW/ - Serenic Corporation (the "Company" or
"Serenic") (TSX-V:SER), an international software developer specializing in
integrated financial management and HCM solutions for Non-Profit
organizations, government agencies, and Microsoft Dynamics NAV users, is
pleased to announce its financial results for the three months and year ended
February 29, 2008.

    
    Financial results are summarized as follows:

    -------------------------------------------------------------------------
    Statement of       (Unaudited)                         Audited
     Operations    Three months ended                    Year ended
     Information
    -------------------------------------------------------------------------
                    Feb 29,    Feb 28,              Feb 29,    Feb 28,
                      2008       2007        %        2008       2007      %
    -------------------------------------------------------------------------
                   $          $                    $          $
    -------------------------------------------------------------------------
    Revenue      2,055,214  2,414,567     85.1%  9,838,946  7,923,722  124.2%
    -------------------------------------------------------------------------
    Income
     (loss) for
     the period   (643,113)    41,796 (1,538.7)%  (235,927)  (237,889)  99.2%
    -------------------------------------------------------------------------
    Basic income
     (loss) per
     share(1)        (0.04)     0.003 (1,333.3)%     (0.02)     (0.02) 100.0%
    -------------------------------------------------------------------------
    EBITDA(2)         (417)       226                  463        295
    -------------------------------------------------------------------------
    EBITDA as a
     % of sales      (20.3)%      9.4%                 4.7%       3.7%
    -------------------------------------------------------------------------
    Weighted
     average
     common
     shares
     outstand-      No.        No.                  No.        No.
     ing        15,050,370 11,632,470           14,234,588 11,632,470
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Diluted earnings per share not presented as it is not materially
        different than basic.
    (2) EBITDA represents earnings before interest, taxes, depreciation,
        amortization, and stock based compensation as an adjustment to
        earnings in this measure. Please review the Serenic Management
        Discussion and Analysis for the fiscal year ended February 29, 2008
        for more information.

    Fiscal 2008 Financial Highlights

    -   Revenue and net loss for the year ended February 29, 2008 was
        $9.8 million and ($235,927), as compared to $7.9 million and
        ($237,889) in the prior year. Results exceeded initial expectations
        for Fiscal 2008 and are consistent with the planned strategy to
        re-invest available resources to maximize top line revenues while
        still delivering positive cash flow and EBITDA(2).
    -   Although overall revenues grew in Fiscal 2008 by 24.2%, new software
        licence sales increased by 41.2%, which is indicative that Serenic is
        emerging as a new leader in certain sectors of the fast growing
        Not-for-Profit (NFP) marketplace. Several of these new clients are
        high-profile leaders in their respective micro-markets, including
        Techno-Brain, Microsoft's largest partner for Africa; MedAir, a
        Geneva-based international humanitarian agency; Orlando and Green Bay
        Catholic Diocese organizations, two of the largest such groups in
        North America; Joyce Meyer Ministries, a global leader of televised
        evangelical organizations; KickStart International, a global leader
        whose mission is to eradicate poverty through provision of low cost
        technologies to budding entrepreneurs in third world countries; and
        CARE International, one of the largest international humanitarian
        agencies world-wide. The CARE contract not only represented the
        largest transaction ever conducted by Serenic; it is also one of the
        largest of such transactions that have occurred in the NFP industry
        to date.
    -   Consulting revenue decreased 13.8% on a year over year basis
        reflecting the increasing percentage of business conducted by
        partners versus direct sales. Increased sales coverage along with
        additional consulting resources will allow this area to return to a
        pattern of growth.
    -   Revenue from software maintenance contracts, training and other
        sources grew by 34.3%, reflective of the growth of the Company's
        customer base and the high propensity of our customers to renew their
        annual software maintenance contracts.
    -   During the fiscal year, the product development group delivered
        releases of major new products - MinistryView, Navigator 5.0,
        AwardVision, and Community Care, as well as Certified for Dynamics
        status, in accordance with Microsoft's new standards for product
        excellence. These releases essentially marked the shift in focus from
        a "development" to a "marketing and sales" organization, and spurred
        the commencement of amortization costs related to the new products
        released to market.
    -   Expenses increased during the year as funds were reinvested in
        support of the business plan. Salaries expense increased by 17.8% as
        a result of hiring additional employees, improving employee benefits
        packages, and stock compensation plans.
    -   Also contributing to the increase in expenses were costs relating to
        a significantly more active investor relations program designed to
        raise awareness and interest among analysts, brokers, and investors.
        As a result, share trading volume has increased significantly, from
        approximately one quarter million shares in each of the two previous
        fiscal years, to more than 7 million shares traded during Fiscal
        2008.
    -   Due to the increased expenses committed to fund the revenue growth,
        Serenic remained in a small loss position. However, EBITDA(2), a
        measure favoured by certain analysts, increased during the year to
        $463,000 from $295,000 in the year prior and from 3.7% of sales to
        4.7% of sales.

    Fourth Quarter Highlights

    -   In the quarter ended February 29, 2008, revenue and net loss was
        $2,055,214 and ($643,114), a change from the revenue of $2,414,567
        and net income of $41,796 earned in the fourth quarter ended
        February 28, 2007.
    -   Software licence sales were $855,000 for the quarter as compared with
        $1,328,000 for the same quarter in the prior year. This was due to
        timing of deals closed, and because the Company's first large
        international deal was recorded in Q4 of the prior year.
    -   Although revenues from consulting services were also lower than the
        previous year's quarter, maintenance and other revenue increased
        significantly by 69%.
    -   Expenses increased during the current quarter, which included
        compensation costs for personnel and directors, recruitment costs
        related to newly hired employees, marketing costs, and investor
        relations costs. Amortization increased as new products that were
        previously under development were released to market, thus marking
        the change in recording amortization rather than capitalized
        development costs.
    -   As a result of the above factors, EBITDA(2) declined from the same
        quarter in the prior year.
    

    Please refer to the full financial reports and Management Discussion and
Analysis filed at www.sedar.com for more detailed information.

    Summary and Outlook

    We are very pleased with the progress made during Fiscal 2008 and remain
most optimistic regarding future successes. As at February 29, 2008, the
Company has maintained its strong financial position with cash on hand of
$3.1 million (versus $1.6 million on February 28, 2007), and the Company was
debt-free. The Company is well regarded as an industry leader, due in part to
the numerous accolades received from industry experts during the year,
including several top awards from Microsoft. The Corporation was appointed to
Microsoft's Inner Circle, comprised of the top 1% of Microsoft Dynamics
partners world-wide; Microsoft's President's Club, for exemplary sales
performance; and was named Microsoft's Top ISV of the Year, having been chosen
from more than 8,000 of their global partners. Additionally, the Corporation
was ranked 20th in the Top 100 Growth Companies by Profit Magazine, and was
honoured as one of the Top 10 Technology Companies in the 2008 TSX Venture
emerging public companies list.
    The Company's objectives for the foreseeable future are to remain highly
focused on capturing new business in the domestic NFP space while enhancing
its presence in the international NGO markets. Given that the total sales
potential within the markets that Serenic serves is estimated to exceed
$3.5 billion with a fractured competitive landscape, we believe there is
significant potential for Serenic to become a prevalent brand in this space.
Our strategy for Fiscal 2009 is to reinvest available resources that
contribute to increasing market share and growth of top line revenues, while
still maintaining positive EBITDA(2)and cash flow.

    About Serenic Corporation

    Serenic Corporation publishes mission-critical software products for
not-for-profits (NFP), educational institutions and governments. The Company's
products are based on leading application and technology platforms from
Microsoft, including Dynamics NAV, SQL Server, and .NET, and are distributed
in North America and internationally through value-added resellers and a
direct sales organization. Serenic Corporation is the exclusive developer of
human resource management and payroll products for Microsoft Dynamics NAV ERP
users in North America. Serenic was named the "ISV (Industry Solutions Vendor)
Partner of the Year" by Microsoft for 2007 and is a member of Microsoft's
President Club and Inner Circle, the latter being an elite group of
sixty-seven members representing the top 1% of Microsoft partners world-wide.
Serenic has offices in Edmonton, Alberta and Denver, Colorado and staff
located throughout the USA.

    ON BEHALF OF THE BOARD OF DIRECTORS

    By: "Dwayne Kushniruk"
    Chairman
    SERENIC CORPORATION


    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.

    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) or
Paul Johnston, CFO, (pjohnston@serenic.com), Phone: 1-877-426-5385 x 509;
Investor Relations, The Dollarton Group Inc., Nick Waddell or Kit Spence,
(ir@serenic.com), Phone: (877) 737-3642 x144

Organization Profile

SERENIC CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890