EDMONTON, Oct. 30 /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 and six month periods
ended August 31, 2007.
Revenue during the second quarter ended August 31, 2007 was $4,083,352,
an increase of $1,985,646 or 94.7% from revenue of $2,097,706 recorded in same
quarter of last year. Net income for the quarter was $1,025,021, up 263% from
net income in the comparable period last year of $282,102. Earnings per share
were $0.07 (basic and fully diluted) this quarter, versus $0.024 (basic and
fully diluted) for the quarter ended August 31, 2006.
The record quarter for Serenic, with respect to revenue and net income,
was due in part to the completion of the Company's first seven figure
transaction, as previously announced in July 2007. Other six figure
transactions from both the direct and partner sales channels also contributed
to these impressive results. Software maintenance revenue increased over last
year due to a higher number of contracts and an increase in the average
initial license fees on those contracts while client services revenue for the
quarter was on par with that of last year. The higher overall revenues
generated a higher gross margin, which was partially offset by operating cost
increases and in particular, salaries and employee benefits, as the Company
continues to grow its employee base in order to generate more revenue growth.
Revenue for the six month period ended August 31, 2007 was $5,908,931, an
increase of $2,227,512 or 60.5% from revenue of $3,681,419 recorded in the six
months ended August 31, 2006. Net income rose by $503,104 or 221.6% to
$730,167 in the current six month period from $227,063 recorded in the same
period last year. Earnings per share were $0.06 (basic) and $0.05 (fully
diluted), this six month period, versus $0.02 (basic and fully diluted) for
the six months ended August 31, 2006.
During the six month period ended August 31, 2007, higher revenues were
generated from the sale of software licences and maintenance contracts. The
overall higher sales had a very positive effect on gross margin which rose by
$1,031,864 or 32.8% from $3,141,720 in the six months ended August 31, 2006 to
$4,173,584 in the current six month period. Operating expenses increased by
$618,569 from $3,010,009 last year to $3,628,578 for the six month period this
year. The increase is primarily due to additional salaries and employee
benefits expense as the Company continues to ramp-up its employees base for
future revenue growth. Higher marketing expenses were incurred as the Company
revised its programs of sales lead generation and print advertisements. As the
gross margin increase superseded the expense increase, this created the
significant increase in net income as noted above.
During the quarter, the Company finalized two private placement
financings, which in total resulted in an infusion of new cash of
$1.6 million. The Company also announced it had signed Tanzania-based Techno
Brain, as its African distributor. Techno Brain, with more than 300 employees,
is Microsoft's premiere partner for African markets.
In July 2007, Serenic received 3 honours of distinction from Microsoft -
being named to Microsoft's President's Club for sales achievements; being
named to the Inner Circle Club, which consists of the top 1% of Microsoft's
partners world-wide (67 in total); and being named as Microsoft's Top Dynamics
Independent Software Vendor ("ISV") for 2007, selected from more than 8,000
Dynamics partners world-wide.
Subsequent to the quarter end, the Company also engaged the Calgary-based
Howard Group to commence an investor relations program designed to increase
awareness of the Company and its opportunities for followers, analysts and
In Q2, the Company has demonstrated that it can team with world-class
partners to win business against large software competitors supplying the
Not-for-Profit industry. We intend to continue our strategy of accelerating
sales in North America and selected international markets through direct,
distributor and partner channels, and by collaborating with Microsoft and its
reseller partner network.
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
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"
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 (firstname.lastname@example.org), or
Paul Johnston, CFO (email@example.com), Phone: 1-877-426-5385 x 509;
Investor Relations: The Howard Group Inc., Dave Burwell, Grant Howard, Toll
free: (888) 221-0915, Email: firstname.lastname@example.org, www.howardgroupinc.com