Xenos Reports Preliminary F09 Q4 and Year End Results

TORONTO, Dec. 8 /CNW/ - Xenos Group Inc. (TSX: XNS) today reported preliminary unaudited financial results for the 2009 fiscal fourth quarter and year ended September 30, 2009.

For the three months ended September 30, 2009, Xenos reports revenues increased 19% to approximately $4,521,000 as compared to revenues of $3,803,000 for the same period in 2008. The fourth quarter of fiscal 2009 represents more than three straight years of consistent year-over-year quarterly revenue growth. Gross margin in the fourth quarter increased to approximately 86% as compared to 80% in the same quarter of fiscal 2008.

For the twelve months ended September 30, 2009, Xenos generated revenues of approximately $17,247,000, and expects to report income from operations of $1,581,000, as compared to revenues of $15,908,000, and income from operations of $1,092,000 for fiscal 2008. Gross margins increased to approximately 83% for the year, from 79% in F2008.

For the year, revenues from North American operations increased to approximately 66% of total revenues, as compared to 59% in F2008. International revenues made up approximately 34% of total revenues in F2009, as compared to 41% in F2008.

At September 30, 2009, Xenos held cash of $9,311,000 or $0.93 per common share, and does not hold significant long-term debt. This compares to $8,115,000, or $0.81 per common share, at September 30, 2008. Total assets at year end increased by $2,006,000, to $17,514,000.

    
    Financial Highlights:
    -------------------------------------------------------------------------

    Period Ended September 30,                              FY2009    FY2008
    (in CDN$000s)
    Sales                                                   17,247    15,908

    Cost of sales                                            2,848     3,419
    Sales and marketing                                      5,829     4,895
    Research and development                                 3,836     3,202
    Administration and general                               2,181     2,177
    Amortization                                               823       945
    Stock based compensation                                   104        97
    Interest and bank charges                                   45        81

    Operating expenses                                      15,666    14,816

    Income from operations                                   1,581     1,092
    (% of total sales)                                          9%        7%
    -------------------------------------------------------------------------

    Revenue by Geography
    North America                                           11,360     9,364
    International                                            5,887     6,544
                                                        ---------------------
                                                            17,247    15,908
                                                        ---------------------

    -------------------------------------------------------------------------

    (in CDN$000s except per share amounts)                  FY2009    FY2008

    Cash                                                     9,311     8,115
    Trade receivables                                        2,877     2,472
    Intangibles                                              2,083     1,999
    Other assets                                             3,243     2,922
                                                        ---------------------
    Total Assets                                            17,514    15,508
                                                        ---------------------

    Payables and accruals                                    2,647     2,483
    Capital lease obligations                                    3        64
    Deferred revenue                                         3,716     3,114
    Shareholders' equity                                    11,148     9,847
                                                        ---------------------
    Total Liabilities & Shareholders' Equity                17,514    15,508
                                                        ---------------------

    Cash per Share                                           $0.93     $0.81
    Common Shares Outstanding                               10,005    10,005
    -------------------------------------------------------------------------
    

See discussion of non-GAAP financial measures below.

The financial information set out above has not been approved by Xenos' Board of Directors and is not yet final and should be treated as preliminary. Detailed financial results will be released before the opening of trading on Friday, December 18, 2009.

About Xenos Group Inc.

Xenos (TSX:XNS) is the market-leading provider of high-performance software solutions that deliver a superior Return on Information(TM) by Streamlining Enterprise Information Supply Chains(TM). The company's solutions, based on the scalable Xenos Enterprise Server(TM) and its components, process, extract, transform, repurpose and personalize high volumes of data and documents for storage, real-time access, ePresentment, printing and delivery in numerous formats across multiple channels. By readily repurposing, integrating with and extending the business value of existing technology, infrastructure and business applications, Xenos solutions empower organizations to adapt to changing market demands. They also improve operational efficiency, enhance business processes, reduce risk for compliance management and increase employee productivity with lowered total cost of ownership both for the enterprise and for its customers. Xenos supports Green IT initiatives by empowering organizations to "Reduce Reuse Recycle" information resources.

Xenos customers are among the largest organizations worldwide, spanning numerous industries including financial services and insurance. Xenos has offices in Canada, the United States, the United Kingdom and France and a global partner network. For more information, visit www.xenos.com.

Certain statements made in this press release are forward-looking within the meaning of certain securities laws. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or developments in the Company's business or its industry to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. The Company urges you not to place undue reliance on these estimates, opinions and projections. The Company assumes no obligation to update forward-looking statements if assumptions or these plans, estimates, opinions or projections should change.

Cash per share is a non-GAAP measure and is calculated by dividing the cash and cash equivalents by the number of common shares outstanding.

(C)2009 All rights reserved. Xenos, the Xenos logo, Xenos Enterprise Server, Xenos ES, Xenos Integrated Document Solution, Xenos IDS, Xenos Loader, Xenos DSR, Xenos OnLine, Xenos ePresentment, Streamlining Enterprise Information Supply Chains, and Return on Information are either registered Trademarks or Trademarks of Xenos Group Inc. All other trademarks and trade names are the property of their respective owners.

%SEDAR: 00012375E

SOURCE XENOS GROUP INC.

For further information: For further information: Contacts: George Kypreos, Chief Financial Officer, Xenos Group Inc., (905) 709-1020, gkypreos@xenos.com; Cory Pala, Investor Relations, Xenos Group Inc., (416) 657-2400, cpala@xenos.com

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XENOS GROUP INC.

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