Nstein Technologies announces its 2009 Q3 results
Nstein revenues for the third quarter of 2009 were
"The recession continued to affect sales of new software licenses and related specialized services in the third quarter. Historically, new sales have been lower during the summer, and the current economic situation seems to have amplified this seasonal effect. Potential clients have postponed many projects, but we are confident that these sales will materialize by the end of the fiscal year. Despite the decrease in revenues, we have controlled our losses by applying cost-cutting measures in recent months. At the recession exit, the financial situation of the company remains sound and we will be well positioned when companies in the media sector resume investing in upgrading their digital operations. In addition, we recently announced initiatives intended to expand our offering to clients in the life sciences, government and enterprise sectors. Based on the strength of our experience in management of semantic content within the most demanding industry in this area, we are convinced that our solutions have great value for clients in these target sectors," said Luc Filiatreault, President and CEO of Nstein Technologies.
On
About Nstein Technologies Inc.
Nstein Technologies (TSX: EIN) provides next generation content management solutions that help information-rich enterprises centralize, understand and manage vast amounts of content. At the heart of Nstein's solutions, semantic analysis allows information to be easily found and packaged together - so it can be connected to the right internal and external audiences. Nstein's Content Management and Web Publishing solutions both rely on Nstein's patented Text Mining Engine for semantic & text analysis. This unlocks content's value and allows clients (from an array of different industries) to leverage existing content to: create and deliver new products; facilitate internal and external research and knowledge sharing; and reduce content-related costs.
- The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
- Any statement that appears prospective shall not be interpreted as
such.
NSTEIN TECHNOLOGIES INC.
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Consolidated Balance Sheets As at As at
September 30 December 31
2009 2008
$ $
(unaudited)
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Assets
Current assets
Cash and cash equivalents 5,708,780 7,405,217
Term deposits 164,600 214,600
Accounts receivable 4,045,889 6,864,825
Refundable tax credits 1,859,236 984,478
Income taxes receivable - 335,656
Work in progress 765,080 680,639
Prepaid expenses 240,739 207,389
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12,784,324 16,692,804
Property, plant and equipment 591,706 736,506
Intangible assets 2,779,632 3,364,257
Goodwill 10,496,905 10,496,905
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26,652,567 31,290,472
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 3,173,088 4,442,361
Deferred revenues 2,526,162 3,236,640
Future income tax liabilities 150,315 150,315
Current portion of long-term debt 257,034 330,503
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6,106,599 8,159,819
Long-term debt 311,090 520,799
Future income tax liabilities 463,994 571,071
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6,881,683 9,251,689
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Shareholders' Equity
Share capital 54,216,982 54,028,128
Other equity components 2,771,627 2,695,998
Contributed surplus 2,066,696 1,805,717
Deficit (39,284,421) (36,491,060)
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19,770,884 22,038,783
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26,652,567 31,290,472
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NSTEIN TECHNOLOGIES INC.
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Consolidated Statements Three months ending Nine months ending
of Earnings and September 30 September 30
Deficit 2009 2008 2009 2008
$ $ $ $
(unaudited) (unaudited) (unaudited) (unaudited)
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Revenues 4,632,715 5,600,516 16,206,078 17,638,371
Cost of sales, net
of tax credits 2,221,832 2,663,933 7,704,247 8,050,086
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2,410,883 2,936,583 8,501,831 9,588,285
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Expenses
Selling and
administrative 2,553,672 3,029,453 7,804,763 9,414,442
Research and
development, net
of tax credits 679,921 725,332 1,932,184 2,635,713
Depreciation of
property, plant
and equipment 49,248 81,255 179,659 226,431
Amortization of
intangible assets 193,148 246,127 603,912 673,143
Loss on disposal of
property, plant and
equipment 1,205 - 6,587 -
Exchange loss (gain) 257,051 (2,729) 346,249 (83,023)
Financial (revenues)
expenses 10,096 (49,204) 50,084 (103,942)
Restructuring fees - - 478,826 419,156
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3,744,341 4,030,234 11,402,264 13,181,920
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Loss before income tax 1,333,458 1,093,651 2,900,433 3,593,635
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Recovery of income tax
Future income tax (35,313) (37,578) (107,072) (93,945)
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(35,313) (37,578) (107,072) (93,945)
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Net loss and
comprehensive loss
for the period 1,298,145 1,056,073 2,793,361 3,499,690
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Deficit - Beginning
of period 37,986,276 36,785,291 36,491,060 34,341,674
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Deficit - End of
period 39,284,421 37,841,364 39,284,421 37,841,364
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Basic and diluted
net loss share 0.025 0.021 0.054 0,071
Basic and diluted
weighted average
number of shares
outstanding 52,098,939 51,340,575 51,902,453 49,609,672
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NSTEIN TECHNOLOGIES INC.
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Consolidated Statements Three months ending Nine months ending
of Cash Flows September 30 September 30
2009 2008 2009 2008
$ $ $ $
(unaudited) (unaudited) (unaudited) (unaudited)
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Cash flows from
operating activities
Loss for the period (1,298,145) (1,056,073) (2,793,361) (3,499,690)
Items not affecting
cash and cash
equivalents
Interest capitalized
on long-term debt 1,473 3,633 8,635 18,254
Unrealized exchange
loss (gain) (2,722) (28,987) (1,956) 40,917
Depreciation of
property, plant and
equipment 49,248 81,255 179,659 226,431
Amortization of
intangible assets 193,148 246,127 603,912 673,143
Loss disposal of
property, plant and
equipment 1,205 - 6,587 -
Stock-based
compensation costs 107,192 116,326 337,358 382,483
Compensation costs
related to the
deferred share unit
plan for directors 6,765 - (99,704) 75,500
Costs related to the
employee stock
purchase plan 31,362 22,332 93,468 57,128
Recovery of income
tax (35,313) (37,578) (107,072) (93,945)
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(945,787) (652,965) (1,772,474) (2,119,779)
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Change in non-cash
operating working
capital items
Accounts receivable 2,362,305 954,342 2,818,936 2,671,783
Refundable tax
credits (225,759) (321,144) (874,758) (63,183)
Income tax receivable - - 335,656 -
Work in progress 91,524 (125,281) (84,441) (689,059)
Prepaid expenses (34,682) 74,721 (33,350) (43,370)
Accounts payable
and accrued
liabilities (496,184) (18,386) (919,248) (202,456)
Deferred revenues (948,984) (521,737) (710,478) 341,010
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748,220 42,515 532,317 2,014,725
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(197,567) (610,450) (1,240,157) (105,054)
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Cash flows from
financing activities
Variation in bank loans - - - (452,742)
Payments on long-term
debt (90,377) (83,878) (298,967) (272,844)
Payment on Balance of
purchase price of a
subsidiary - (533,210) - (1,613,801)
Issuance of common
shares, net of issue
expenses 32,529 17,332 94,635 (20,762)
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(57,848) (599,756) (204,332) (2,360,149)
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Cash flows from
investing activities
Variation in term
deposits - (50,000) 50,000 (29,214)
Business acquisitions,
net of cash and cash
equivalents (32,585) (73,475) (250,325) (2,722,169)
Additions to property,
plant and equipment (11,000) (79,037) (69,156) (174,175)
Additions to intangible
assets - (6,787) (20,670) (35,013)
Proceeds from the sale
of property, plant and
equipment 14,076 - 38,203 -
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(29,509) (209,299) (251,948) (2,960,571)
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Decrease in cash and
cash equivalents (284,924) (1,419,505) (1,696,437) (5,425,774)
Cash and cash
equivalents -
Beginning of
period 5,993,704 7,724,586 7,405,217 11,730,855
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Cash and cash
equivalents - End
of period 5,708,780 6,305,081 5,708,780 6,305,081
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For further information: Bruno Martel, Chief Financial Officer, Investor Relations, Nstein Technologies inc., (514) 908-5406, [email protected]
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