TORONTO, March 31 /CNW/ - Hosted Data Transaction Solutions Inc. ("HDX") announced today its financial results for the fiscal year and three-month period ending December 31, 2009. HDX is listed on the TSX under the symbol "HDX".
Paul Howell, President and CEO reports:
The HDX team achieved record sales during the year ended December 31, 2009 growing revenue to $9,518,681. This represents an 18.8% increase of $1,508,575 from revenue of $8,010,106 for the previous year.
By increasing software revenue and recurring professional services revenue, HDX achieved a gross margin of $5,878,246 (61.7%) for the year representing an increase of $1,045,482 from a gross margin of $4,832,764 (60.3%) for the year ended December 31, 2008.
During 2009, HDX continued its aggressive growth strategy by identifying strategic acquisitions. In 2010 the Company expects to complete the announced acquisitions of Posera Inc. of Seattle, WA and A&A Point of Sale Solutions Inc. of Ottawa, ON. The combined historical annual proforma revenue of the three companies is approximately $18 million.
Through disciplined management and consistent effort in a very difficult economy, HDX achieved positive cash flow of $7,938 from operations for the year ended December 31, 2009, versus $4,669 in 2008.
On December 31, 2009, the Company had cash, cash equivalents and short term investments of $1,105,685. In 2009 cash was used strictly for financing and investing activities and was not required for company operations.
For the year ended December 31, 2009, amortization of previously acquired intangible assets and amortization of property plant and equipment totalled $334,438, stock based compensation was $49,183, and lease subsidies for the previous Dexit office equalled $166,000. The Company incurred a net loss and comprehensive loss of $632,861 for the year and an EBITDA loss of $266,633.
The number of shares outstanding as at December 31, 2009 was 27,887,693.
Annual Highlights and Summary
- Revenue was $9,518,681 for the year ended December 31, 2009, up
18.8% from $8,010,106 for the year ended December 31, 2008;
- Gross margin was $5,878,246 for the year ended December 31, 2009, up
21.6% from $4,832,764 for the year ended December 31, 2008;
- The Company incurred a net loss and comprehensive loss of $632,861 for
the year ended December 31, 2009 which is an improvement from a loss
of $7,506,193 for the year ended December 31, 2008. The net loss from
operations for 2008 included write-downs of goodwill, intangible
assets and long-term investments of $5,835,289 compared to write-downs
in 2009 of $nil.; and
- HDX's cash, cash equivalents and short term investments totaled
$1,105,685 as at December 31, 2009 compared to $1,377,144 as at
December 31, 2008.
About the Company
HDX is in the business of managing merchant transactions with consumers and facilitating payment. HDX develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.
HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 31st 2010 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
SOURCE HOSTED DATA TRANSACTION SOLUTIONS INC.
For further information: For further information: Paul Howell, President/CEO, Hosted Data Transaction Solutions Inc. (HDX), 350 Bay Street, Suite 700, Toronto, Ontario, M5H 2S6, Phone: (416) 703-6462, extension 2263, Email: Paul.Howell@hdxsolutions.com