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 2009;
- 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 2009;
- 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 will host a conference call in January 2011 to discuss the financial results. A news release will be issued once a date is confirmed.
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) and opportunities.
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.
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