TSX Venture Exchange: VSI
VANCOUVER, Dec. 21 /CNW/ - VendTek Systems Inc. (VSI - TSX Venture) (the
"Company"), a developer and licensor of software for the global prepaid
and financial services markets, today reported its financial results
for the fiscal year ended October 31, 2010.
Selected Fiscal 2010 Operational Highlights:
Signed agreement with Privinvest Holdings for exclusivity fee which will
result in revenues of $600,000 U.S. per year
VendTek Systems Technologies (Beijing) signed an agreement to co-develop
an asset management software system with Nantian Electronics Corp Ltd.,
a leading IT company in banking automation in China.
Increased the number of transactions processed globally to 75,761,401 in
2010 from 70,200,227 in 2009
Implementation of new bill payment services for e-Fresh™ which allows
for utility and insurance payments
Selected Fiscal 2010 Financial Information:
Software license and services revenues for fiscal 2010 were $1.9
million, a 44 % increase from $1.3 million in 2009;
Virtual prepaid revenues in the U.S. grew 61.9% to $4.1 million in
fiscal 2010 from $2.5 million in fiscal 2009;
Gross profit increased to $6.3 million in 2010 from $6.1 million in
Adjusted EBITDA1 improved to $48,000 in 2010 from a deficit of $408,000 in 2009;
Consolidated net loss was $328,000 in 2010 compared to $1.1 million in
As at October 31, 2010 the Company's cash balance was $4.8 million
compared to $2.7 million on October 31, 2009.
"This year was a transition period for us. During the year, we emerged
from the restatement of our prior years' financial results; added
significant knowledge and experience to our Board with the addition of
four new members; and positioned the Company for significant growth
with our investments in our sales, development and international
operations," said Doug Buchanan, President and Chief Executive Officer
of VendTek Systems.
"Looking forward to 2011, we have five main initiatives that we are
focusing our efforts around. The first is to launch our operations in
Brazil. Second, we will increase our international license revenues.
Third, we will take actions to increase the profitability of our North
American operations. Fourth, we will continue to expand our e-Fresh™
platform. Finally, we will pursue strategic acquisitions. As we execute
on these priorities, we believe we will create significant shareholder
value," continued Mr. Buchanan.
Nurez Khimji, Secretary and Chief Financial Officer of the Company,
said, "The significant improvement in our adjusted EBITDA occurred
while still investing $325,000 in our Brazilian operations and
infrastructure investment. We look forward to generating revenues and
cash flows from those operations. "
"In Canada, we were encouraged to see the number of prepaid subscribers
increase. However, we continued to experience a lower number of
transactions per subscriber. This is consistent with the lower ARPU for
prepaid customers reported by the wireless operators. The increase in
prepaid voice and data offerings in Canada and improvements in the
economy should have a positive impact on the number of transactions in
Canada in the future," stated Mr. Khimji.
VendTek's MD&A and complete statements are available at www.sedar.com and the Company's website www.vendteksystems.com.
VendTek will host a conference call in January 2011 to discuss the
financial results. A news release will be issued once a date is
VendTek develops and licenses automated transaction system software and
supporting technologies. VendTek's customers, subsidiaries and its Now
Prepay division use e-Fresh™ software to build electronic, prepaid
services networks that enable consumers to purchase prepaid products
and services via POS and self-serve terminals connected to a central
server. This system creates significant value through improved
efficiencies compared to a traditional distribution model. e-Fresh™
reduces shrinkage and inventory requirements for vendors while
improving consumer access to prepaid products and services by
completely eliminating physical cards and vouchers. VendTek has
deployed its software around the world including Canada, United States,
Asia, the Middle East and Africa. For further information please visit
the Company's websites www.vendteksystems.com and www.nowprepay.com.
This news release contains statements which are not current statements
or historical facts and are "forward-looking information" within the
meaning of applicable Canadian securities laws. All statements, other
than statements of historical fact, contained in this news release
constitute forward-looking information. Wherever possible, words such
as "plans", "expects" or "does not expect", "budget", "forecasts",
"projections", "anticipate" or "does not anticipate", "believe",
"intent", "potential", "strategy", "schedule", "estimates" and similar
expressions or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved and other similar expressions have been used to identify
forward-looking information. These forward-looking statements relate
to, among other things the Company's expectations regarding future
growth, results of operations (including, without limitation, future
production and sales, and operating and capital expenditures),
performance (both operational and financial), business and political
environment and business prospects (including the timing and
development of new deposits and the success of exploration activities)
Although the forward-looking information in this news release reflects
the Company's current beliefs on the date of this news release based
upon information currently available to management and based upon what
management believes to be reasonable assumptions, the Company cannot be
certain that actual results, performance, achievements, prospects and
opportunities, either expressed or implied, will be consistent with
such forward-looking information. By its very nature, forward-looking
information necessarily involves significant known and unknown risks,
assumptions, uncertainties and contingencies that may cause the
Company's actual results, assumptions, performance, achievements,
prospects and opportunities in future periods to differ materially from
those expressed or implied by such forward-looking information. These
risks and uncertainties include, among other things, revenue growth,
operating results, the market demand for our products, product
development, and litigation as well other factors described in the
Risks Related to Our Business Section in our 2009 annual Management
Discussion and Analysis. There may be other factors that cause results,
assumptions, performance, achievements, prospects or opportunities in
future periods not to be as anticipated, estimated or intended.
There can be no assurances that forward-looking information and
statements will prove to be accurate, as many factors and future
events, both known and unknown could cause actual results, performance
or achievements to vary or differ materially, from the results,
performance or achievements that are or may be expressed or implied by
such forward-looking statements contained in this news release.
Accordingly, all such factors should be considered carefully when
making decisions with respect to the Company, and prospective investors
should not place undue reliance on forward-looking information. The
Company assumes no obligation to update or revise forward-looking
information to reflect changes in assumptions, changes in circumstances
or any other events affecting such forward-looking information, except
as 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.
1 Management defines Adjusted EBITDA as net income adjusted for,
interest, taxes, depreciation expenses, amortization expenses, foreign
exchange differences and stock based compensation expenses.
SOURCE VendTek Systems Inc.
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