Serenic reports fiscal 2009 year end and Q4 results



    EDMONTON, June 25 /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 28, 2009.
    Financial results are summarized as follows:

    
    -------------------------------------------------------------------------
    Statement of      (Unaudited)
    Operations       Three months     Increase        Audited       Increase
    Information        ended 30      (decrease)     Year ended     (decrease)
    -------------------------------------------------------------------------
                  Feb 28,     Feb 29,            Feb 28,     Feb 29,
                   2009        2008       %       2009        2008       %
                     $           $                  $           $
    -------------------------------------------------------------------------
    Revenue     2,674,994   2,055,214  30.2%   9,325,524   9,838,946   (5.2)%
    -------------------------------------------------------------------------
    Loss for
     the period  (174,996)   (643,114) 72.8%  (1,191,681)   (235,927)  405.1%
    -------------------------------------------------------------------------
    Basic and
     diluted
     loss per
     share          (0.01)      (0.04) 75.0%       (0.08)      (0.02)  300.0%
    -------------------------------------------------------------------------
    EBITDA(1)     (16,760)   (416,655) 96.0%    (577,374)    463,262 (224.6)%
    -------------------------------------------------------------------------
    EBITDA as
     a % of
     sales          (0.6%)    (20.3)%  97.0%      (6.2)%        4.7% (231.9)%
    -------------------------------------------------------------------------
    Weighted
     average
     common
     shares
     outstand-
     ing       15,185,458  15,050,370         15,183,553  14,234,588
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) EBITDA represents earnings before interest, taxes, depreciation,
        amortization, and stock based compensation. Please review the Serenic
        Management Discussion and Analysis for the fiscal year ended
        February 28, 2009 for more information.
    

    Fiscal 2009 Highlights

    The Company embarked upon its Fiscal 2009 business plan in a relatively
stable global economy that deteriorated significantly during the second half
of the year. In accordance with the original business plan, management
increased operating and certain other expenses during the first half of Fiscal
2009, anticipating that revenue would continue its historical growth rates.
However, when the global economic melt-down negatively affected revenues
commencing September 2008, management responded by suspending certain growth
initiatives as a cautionary move to conserve cash and condition the Company to
weather the recession. Financial highlights for the year are as follows:

    
    -   Revenue was $9.3 million in Fiscal 2009, as compared to $9.8 million
        in the prior year. Considering the economic instability faced during
        the year, management is generally pleased with Fiscal 2009 revenue
        results. Although revenue decreased marginally by 5.2% from the
        previous year, the Company continued to win new customers, increase
        credibility and market share, and release new versions of its
        products.

    -   Revenue from client services and consulting sales increased 40.7% to
        $2,673,514 from the prior year's figure of $1,900,223. Serenic hired
        additional consultants in Fiscal 2009 and increased productivity in
        the department. Serenic also engaged reseller partners based outside
        of North America, thereby extending its capacity to service
        international clients whose needs were best met through local service
        specialists.

    -   Software maintenance contracts and classroom training revenue
        increased 9.0% to $2,860,961 over prior year's revenue of $2,623,988.
        Maintenance revenue from new customers, a high software maintenance
        renewal rate with existing customers, and higher training revenues
        were responsible for the increase.

    -   Software license sales decreased to $3,791,049 in Fiscal 2009, down
        $1,523,686 from the prior year which included a single large low 7
        figure sale which skewed normalized comparison. License revenue was
        negatively impacted in Fiscal 2009 as many NFP customers postponed IT
        purchases and/or implementations due to funding uncertainty generated
        by the economic recession. New direct license sales were mostly made
        to larger customers, which included several large Roman Catholic
        diocese and international aid and research organizations. The reduced
        sales activity was most pronounced between September 2008 and mid-
        January 2009, after which it began to stabilize.

    -   Gross profit in Fiscal 2009 was $7,031,656, slightly higher than
        $7,014,861 recorded in Fiscal 2008, due to the higher consulting and
        software maintenance contract revenues recorded this year.

    -   A net loss of $1,191,681 was recorded in Fiscal 2009, higher than the
        net loss of $235,927 recorded in the previous year. Expenses in
        Fiscal 2009 totalled $8,574,261, up from $7,340,761 in Fiscal 2008.
        The Company implemented aggressive plans to increase revenue in the
        early part of Fiscal 2009, including the hiring of additional staff,
        increasing its marketing programs, and improving internal
        infrastructure. As the economic recession began to negatively impact
        revenues, spending was immediately reduced, but larger losses were
        incurred as a result of not having achieved the necessary offsetting
        revenue.

    -   Serenic was again recognized during Fiscal 2009 for several
        outstanding corporate achievements:

        -  Serenic ranked 20th in Profit 100's announcement of Canada's
           fastest growing companies;
        -  Serenic was ranked 9th in the Technology/Life Sciences category of
           the 2008 TSX Venture 50 list, which celebrates Canada's top
           emerging companies;
        -  In September 2008, Serenic was ranked 31st in Deloitte's
           Technology Fast 50, a list of Canada's fastest growing technology
           companies; and,
        -  In November 2008, Serenic was ranked 300th in Deloitte's 2008
           Technology Fast 500 list of fastest growing technology companies
           in North America.

    Fourth Quarter Highlights

    -   Revenue was $2,674,994, an increase of 30.2% over $2,055,214 recorded
        in Q4 last year. Direct and partner software license sales totalled
        $1,141,000, an increase of $286,000 or 33.5% over the Q4 2008 figure
        of $855,000. Revenue from client services was $812,563, up 106.8%
        from $393,000 in the prior year, as a result of more consultants
        providing more services. Revenue from maintenance and other sources
        was $721,431 in Q4 this year, down from $807,697 recorded in Q4 last
        year.

    -   Due to the increase in revenue, gross margin increased by $391,662 or
        25.2% over Q4 of the prior year, while the gross margin percentage as
        a function of revenue declined marginally to 72.9%, from 75.8% in the
        prior year.

    -   Expenses were $2,217,785, up by $188,235 from $2,029,550 recorded in
        Q4 of the prior year. A foreign exchange rate 20% higher than
        occurred in Q4 of last year caused expenses, many of which were
        transacted in U.S. dollars, to increase. Salaries and benefits
        expense increased by $213,217 as a result of higher wages and
        benefits, partially offset by lower stock compensation expense and
        lower variable incentive costs. Sales and marketing expenses
        decreased by $26,539 as discretionary spending was reduced in Q4
        2009. General and administrative expenses increased nominally by
        $10,337, and amortization expense decreased by $8,782 from Q4 in the
        prior year.

    -   Interest income declined to $7,445 from $25,338 in Q4 of the prior
        year, due to lower interest rates paid by the financial institutions.
        A foreign exchange gain of $55,539 was recorded in Q4 this year, as
        compared to the foreign exchange loss of $232,821 recorded in same
        period last year, because of the changed foreign exchange rates.

    -   The higher sales and gross margin recorded in Q4 this year, partially
        offset by increased expenses and augmented by favourable foreign
        exchange gains, caused the net loss of $643,114 recorded in Q4 last
        year to decline to $174,996 in Q4 this year.

    -   EBITDA improved significantly quarter over quarter during Fiscal
        2009, as a result of the actions taken to reduce committed and
        discretionary expenditures. In Q4 of Fiscal 2009, EBITDA was nearly
        breakeven at $(16,760), as compared to a loss of $(416,655) in Q4 of
        the prior year.
    

    Please refer to the full financial reports and Management Discussion and
Analysis for the year ended February 29, 2008 filed at www.sedar.com for more
detailed information.

    Summary and Outlook

    Serenic has developed a rich suite of software products that provide a
functionally comprehensive set of productivity and reporting applications for
the markets it serves.
    In Fiscal 2009, the Company's development efforts were primarily focused
on enriching the functionality within its products. Consequently, in March
2009, the Company released version 5.00.02 of Serenic Navigator, which
appreciably enhanced the feature sets of the software including a redesigned
version of the Company's DonorVision product, dramatically enhancing both its
functionality and performance. The upgraded version of Navigator was made
available without charge to all clients who subscribe to the Company's
software maintenance program, and is marketed to all new clients. Serenic
plans to continue bringing to market next generation versions of its products,
following Microsoft's planned release of their enhanced version of the
Dynamics NAV platform later in this year.
    In Fiscal 2009, Serenic hired its first international employee, a sales
manager based in Europe, to better respond to new opportunities outside of
North America. Company personnel also initiated training classes for its
products in Switzerland, Africa, and Australia and continued to provide
support to the implementation in Afghanistan. Serenic intends to continue
expanding its North American markets while aggressively enhancing its growing
presence in the international community.
    Given the struggling global economy, the next fiscal year is not expected
to be without challenges. Funding from individuals, governments and
philanthropic organizations that Serenic's customers depend upon are
anticipated to remain at decreased levels from historical norms, which may
result in the delay of certain sales opportunities. The Company has factored
this expectation into its Fiscal 2010 business and operational plans, and has
reduced its committed expenditures by optimizing its staffing, reducing
employee benefits costs, and reducing marketing, corporate, and other
discretionary expenses wherever possible. Despite these cut-backs, the Company
will aggressively pursue strategies to secure new customers and take great
care of its existing clientele. Management remains confident that Serenic will
successfully navigate through the current economic recession well intact, and
emerge as a stronger contender within the global NFP marketplace.

    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

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SERENIC CORPORATION

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