Northcore reports first quarter 2009 financial results


    TORONTO, May 13 /CNW/ - Northcore Technologies Inc. (TSX: NTI;
OTCBB:NTLNF), a global provider of asset management technology solutions,
announced today its interim financial results for the first quarter ended
March 31, 2009. All figures are reported in Canadian dollars.
    Northcore reported revenues of $159,000 for the first quarter, a decrease
of 10 percent from the $177,000 generated in the fourth quarter of 2008. In
the same period of 2008, Northcore generated revenues of $157,000.
    Northcore derives its revenues from application hosting activities
provided to customers, royalty fees from its business partners, the sale of
software licenses, and the delivery of technology services, such as
application development and software customization.
    Northcore reported a loss for the first quarter of $759,000 or $0.01 per
share, basic and diluted. This compares to a loss of $552,000 or $0.01 per
share, basic and diluted, in the fourth quarter of 2008. In the first quarter
of 2008, Northcore reported a loss of $692,000 or $0.01 per share, basic and
    Northcore also reported an EBITDA loss in the first quarter of 2009 of
$472,000. This compares to an EBITDA loss of $315,000 in the fourth quarter of
2008 and an EBITDA loss of $526,000 in the first quarter of 2008.
    EBITDA loss is defined as losses before interest, taxes, depreciation,
and employee stock options. Northcore considers EBITDA to be a meaningful
performance measure as it provides an approximation of operating cash flows.
    As at March 31, 2009, Northcore held cash and cash equivalents of
$1,176,000, and accounts receivable of approximately $174,000.

    Operating Highlights

    Northcore has completed the following customer and operating activities
in the period:

    -   Renewed a major application hosting contract with a key strategic
        partner with an expanded scope of services;
    -   Deployed a new mobile inspection application for an industry leader
        in the material handling business;
    -   Entered into a strategic partnership with Motorola following the
        success of the migration of Asset Tracker technology to an industrial
        use mobile platform;
    -   Deployed enhancements to two major Asset Tracker implementations
        under client engagement; and
    -   In addition to the conversion of $816,000 secured subordinated notes
        into equity, the Company raised $1,320,000 of new equity through the
        exercise of the associated warrants.


    "Northcore's first quarter results were challenged as prospective
customers re-evaluated cost reducing alternatives," said Duncan Copeland, CEO
of Northcore Technologies. "However, the recent migration of Asset Tracker
technology to an industrial mobile platform, well suited for use in
challenging physical environments, with connectivity to our Asset Seller
product, was evaluated as a "resounding success" by the customer during its
pilot test. This project has resulted in a request for broader technology
solutions from the customer, set a new standard of excellence for asset
disposition and created a product suite that is attractive to other customers.
With the recent addition of a senior sales leader to our team, we have high
expectations for enhanced sales and marketing activity at Northcore."
    Northcore will hold a conference call at 10:00 a.m. (Eastern time) on
Thursday May 14 to discuss its financial results and review operational
activities. Investors and followers of the Company can listen to a live
broadcast of the call from the investor relations section of the Company's

    About Northcore Technologies Inc.
    Northcore Technologies provides software solutions and services that help
organizations source, manage and sell their capital equipment and assets.
Northcore works with a growing number of customers and partners in a variety
of sectors including financial services, oil and gas and government.
    Northcore owns a 50 percent interest in GE Asset Manager, LLC, a joint
business venture with GE. Together, the companies work with leading
organizations around the world to help them gain more value from and more
control over their assets.
    Additional information about Northcore can be obtained at

    This news release may include comments that do not refer strictly to
historical results or actions and may be deemed to be forward-looking within
the meaning of the Safe Harbor provisions of the U.S. federal securities laws.
These include, among others, statements about expectations of future revenues,
cash flows, and cash requirements. Forward-looking statements are subject to
risks and uncertainties that may cause Northcore's ("the Company") results to
differ materially from expectations. These risks include the Company's ability
to raise additional funding, develop its business-to-business sales and
operations, develop appropriate strategic alliances and successful development
and implementation of technology, acceptance of the Company's products and
services, competitive factors, new products and technological changes, and
other such risks as the Company may identify and discuss from time to time,
including those risks disclosed in the Company's Form 20-F filed with the
Securities and Exchange Commission. Accordingly, there is no certainty that
the Company's plans will be achieved.

                         (financial results follow)

                         Northcore Technologies Inc.
                         Consolidated Balance Sheet
                 (expressed in thousands of Canadian dollars)
                         (Canadian GAAP, Unaudited)

                                          March 31,    March 31, December 31,
                                            2009         2009        2008
                                                       (in US$)

                                                     into US$ at
                                                     Cdn$ 1.2606

    Cash                                $    1,176   $      933   $      460
    Other current assets                       206          163          333
    Other assets                                15           12           19
      Total assets                      $    1,397   $    1,108   $      812

    Accounts payable and accrued
     liabilities                        $      882   $      700   $      948
    Deferred revenue                            19           15           30
    Current portion of long term debts       1,382        1,096        1,507
    Non-current portion of long term
     debts                                     624          495          730
    Shareholders' deficiency                (1,510)      (1,198)      (2,403)
      Total liabilities and
       shareholders' deficiency         $    1,397   $    1,108   $      812

                         Northcore Technologies Inc.
        Consolidated Statement of Operations and Comprehensive Income
    (expressed in thousands of Canadian dollars, except per share amounts)
                         (Canadian GAAP, Unaudited)

                                                  Three Months Ended
                                                       March 31,
                                            2009         2009         2008
                                                       (in US$)

                                                     into US$ at
                                                     Cdn$ 1.2606

    Revenue                             $      159   $      126   $      157

    General and administrative                 440          349          443
    Customer service and technology            174          138          178
    Sales and marketing                         17           14           62
    Employee stock options                      48           38           10
    Depreciation                                 8            6            9
      Total operating expenses                 687          545          702

    Loss from operations before the
     under-noted                              (528)        (419)        (545)

    Interest expense:
      Cash interest expense                     95           75           69
      Accretion of secured subordinated
       notes                                   136          108           78
                                               231          183          147

    Loss and comprehensive loss for
     the period                         $     (759)  $     (602)  $     (692)

    Loss per share, basic and diluted   $    (0.01)  $    (0.01)  $    (0.01)

    Weighted average number of shares
     outstanding basic and diluted (000's) 119,852      119,852      108,508

    %SEDAR: 00019461E          %CIK: 0001079171

For further information:

For further information: Northcore Technologies Inc., Investor
Relations, Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412, E-mail:

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