VANCOUVER, Nov. 25 /CNW/ - Monexa Technologies Corp. (TSX-Venture: MXA) today announced its quarterly results for the three-month period ended September 30, 2009. The financial statements were prepared in accordance with Canadian generally accepted accounting principles.
For the three months ended September 30, 2009, revenue was $949,665, a decrease of 29% from $1,329,000 in the corresponding period in 2008. Although revenue was lower than the same period in 2008, gross margin improved to 48% in the third quarter of 2009 as compared to 41% in 2008. Net loss increased by $287,000 to $490,000 in the third quarter of 2009 as compared to $204,000 in 2008. Cash used in operating activities increased by $81,000 to $252,000 in the third quarter of 2009 as compared to $171,000 in 2008.
John Jacobson, President and CEO said "Leading SaaS companies like Salesforce.com, Success Factors, Netsuite and many others created exceptional shareholder value by investing heavily in sales and marketing long before investors saw the resulting strong revenue growth. Once they'd demonstrated that their product was competitive and attractive to a large market, their extraordinary multi-year expenditures on selling delivered a portfolio of recurring revenue contracts whose value today far exceeds their cost. While their revenues were initially relatively small, the more they spent on selling, the more recurring revenue contracts they won, driving their company's valuation higher."
John continued, "Monexa is at a comparable early point in marketing its subscription billing on-demand service. Monexa Billing is a capable and competitive monetization platform for subscription businesses. Now we're ramping up our marketing and selling expenses to build our portfolio of long-term business. In 2009 we've signed new contracts with SaaS software companies, Cloud Computing companies, traditional software companies and more than one media business. We began with a vision to deliver monetization for SaaS and Cloud Computing companies, but we're seeing increasing interest from other vertical markets. We believe that subscription billing is an excellent opportunity in a growing market that will be the key source of Monexa's future value."
Monexa pioneered the on-demand subscription billing space and over the past 11 years has worked with hundreds of businesses to help monetize their services. Monexa's monetization platform removes the barriers imposed by traditional systems and plugs directly into a client's finance, marketing and operations, enabling them to run their subscription business their way. Monexa operates out of Vancouver, B.C. and serves customers including AOL Canada, Sprint, Amway and Bell Mobility among others. For more information visit www.monexa.com.
This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE MONEXA TECHNOLOGIES CORP.
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