Serenic announces financial results for third quarter ended November 30, 2008



    EDMONTON, Jan. 29 /CNW/ - Serenic Corporation ("Serenic" or 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 third
quarter ended November 30, 2008.

    
    -------------------------------------------------------------------------
    Statement of          (Unaudited)                   (Unaudited)
    Operations         Three months ended:           Nine months ended:
    Information
    -------------------------------------------------------------------------
                   Nov 30,   Nov 30,             Nov 30,   Nov 30,
                    2008      2007         %      2008      2007        %
    -------------------------------------------------------------------------
                      $         $                   $         $
    -------------------------------------------------------------------------
    Revenue        2,278,695 1,874,805   121.5%  6,650,532 7,783,734   85.4%
    -------------------------------------------------------------------------
    Income (loss)
     for the
     period         (385,817) (322,979)  119.5% (1,016,685)  407,189 (249.7%)
    -------------------------------------------------------------------------
    Basic income
     (loss) per
     share             (0.03)    (0.02)  150.0%      (0.07)     0.03 (233.3%)
    -------------------------------------------------------------------------
    EBITDA(1)       (221,736) (168,341) (131.7)%  (560,616)  879,998 (163.7%)
    -------------------------------------------------------------------------
    EBITDA as a %
     of revenue        (9.7%)    (9.0%)              (8.4%)    11.3%
    -------------------------------------------------------------------------
    Weighted average
     common shares
     outstanding      No.         No.               No.         No.
     (basic)      15,185,758  15,050,370        15,182,819  13,955,297
    -------------------------------------------------------------------------
    

    Revenue for Q3 was $2,278,695, up $403,890 or 21.5% from the comparable
period in the previous year. Gross margin was $1,778,598 for the current
quarter, up 38.5% over the comparable period last year. Higher ratios of
consulting and recurring maintenance revenues in the overall sales mix,
coupled with software license sales on par with last year caused the gains.
Year to date revenue was $6,650,532, as compared with $7,783,734 in the
previous year. Because the Company recorded a multi-million dollar single sale
in the previous year that did not repeat this year, this year represented a
14.6% decrease from the previous year.
    The Company embarked upon its business plan for the current fiscal year
by investing in additional employees and resources to grow the business, with
expectations that revenue would increase year over year. As a result of the
additional expenses, coupled with the lower than projected revenues due to the
economic meltdown, the Company recorded a net loss of $385,817 for the
quarter, an increase from the loss of $322,979 recorded for the comparable
period last year. The YTD net loss was $1,016,685, as compared to net earnings
of $407,189 recorded for the same period last year.
    Serenic continues to demonstrate solid success in growing its market
share, reseller channels, and client base, despite the lagging sales of new
NFP licenses in the quarter. Sales of payroll and human resource management
software, client services and consulting, and recurring software maintenance
all increased over the comparable period of the previous year. Please review
the Company's financial statements, MD&A and other filings on-line at
www.sedar.com for more detailed information.
    In response to the uncertainties of the current economic turndown
management has chosen to postpone certain growth initiatives that have caused
the negative results in the short term. Management believes that the more
cautionary stance to preserve resources is prudent given the current economic
situation, and expects that the Company will be well-positioned to realize on
its opportunities once a more stable economy prevails.

    Highlights

    During Q3 the Company announced sales to several high profile
not-for-profit clients, including those made to an international humanitarian
agency that fosters rural business growth in 30 developing countries, a large
religious governance organization, the Carnegie Institution for Science, and
the Danish Red Cross. The Company also received two more accolades for growth
performance: Serenic was ranked 31st in the Deloitte Technology Fast 50, a
list of the 50 fastest growing companies in Canada, for posting a 522% revenue
growth between 2003 and 2007; and 300th in Deloitte's 2008 Technology Fast
500, a list of the 500 fastest growing technology companies in North America.

    Outlook

    The Company remains committed to increase market share, its customer
base, and top line revenues as long term objectives. Because of the recent
onset of the global economic crises, management has taken cautionary actions
to position the Company to best weather this crises, even if such actions
might delay the long term objectives. The Company embarked upon its business
plan for the current fiscal year by investing in additional employees,
resources, and initiatives with the expectation that revenue could be
increased year over year; however management has since chosen to curtail
certain growth initiatives in favor of a more prudent stance that is more
applicable to the current economy. While the current economic conditions are
not expected to remain negative over the longer term for the NFP and public
sector industries, some short term negative impact is anticipated. Management
has become more selective and cautious in pursuing planned initiatives, while
still positioning the Company for growth. In this regard, the Company has
proceeded to establish a presence in Europe, and will continue to evolve its
position as a preferred supplier within niche segments of the NFP and public
sector markets both in North America and globally. With cash on hand and no
debt, management is confident that by taking responsive action as necessary to
address the current volatility of the economic situation, the Company will
remain well-positioned to take advantage of future growth opportunities.

    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

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SERENIC CORPORATION

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