ODESIA ANNOUNCES THIRD QUARTER FINANCIAL RESULTS : SIGNIFICANT INCREASE IN
NET INCOME
Update on status of previously announced LOI with FGT
MONTREAL, Nov. 25 /CNW Telbec/ - ODESIA Group Inc. ("Odesia") (TSX-V:ODS), an international corporation specializing in business-intelligence solutions (BI), decision processes and data warehousing, is pleased to announce its third quarter 2010 financial results.
2010 Third Quarter Highlights
- Odesia achieved its fifth consecutive profitable quarter with a net income of $208,000 for Q3 of 2010 compared to $24,000 for the same period in 2009.
- The Company generated an EBITDA1 of $250,000 for the third quarter of 2010, a 131% increase over the same quarter in 2009, despite a sales decline of 11% from Q3 2009 to Q3 2010.
- Partnership agreement established with FGT.
- Exclusive agreement formed with ATPIware for distribution of BusinessGPS in America.
"Many indicators lead us to believe that the financial crisis affecting our sector is weakening and we are optimistic about our future" declared Nicolas Bonnafous, President and CEO of ODESIA. Simon Lepage, Chief Financial Officer, added, "We are happy with our results. In fact, thanks to measures taken to optimize operations in Canada and France, and to stabilize activities in Mexico, we are now poised to generate profits on an ongoing basis."
Summary of financial results
The decline in the last quarter's sales figure is mainly explained by 1) a lower level of business than usual over the summer, 2) a change in the business model in France which temporarily impacted revenue, but which will benefit the company in the long run, and 3) issues (now successfully addressed) with the management team in Mexico.
In spite of a 11% drop in its sales for the three-month period ended September 30th, 2010, compared to the same quarter in 2009, ODESIA generated an EBITDA1 of $250,000 compared to $108,000 for the same period ended on September 30th, 2009. Net profit totalled $208,000 for the third quarter of 2010, compared to $24,000 for the equivalent period last year.
Selected financial information
($000's except per share amounts) | For the three-month period ended September 30, (unaudited) |
For the nine-month period ended September 30, (unaudited) |
|||
2010 | 2009 | 2010 | 2009 | ||
Sales | 2,849 | 3,218 | 9,462 | 10,672 | |
EBITDA1 | 250 | 108 | 555 | (98) | |
Net earnings (loss) and comprehensive income (loss) | 208 | 24 | 223 | (499) | |
Basic net earnings (loss) per share | 0.007 | 0.001 | 0.008 | (0.017) | |
Diluted net earnings (loss) per share | 0.007 | 0.001 | 0.008 | (0.017) |
In conclusion, Mr. Bonnafous indicated that "The restructuring of the last few years, combined with gradually improving economic conditions, enables ODESIA to be better positioned for the future. The Company can now benefit from the new structure in place to aggressively pursue opportunities in the rapidly growing Business Intelligence sector."
Update on transaction with FGT
As previously announced on September 23rd, 2010, Odesia entered into a non-binding letter of intent (LOI) to acquire 100% interest in FGT. While this transaction remains an attractive opportunity for both parties, considering the current market conditions, Odesia has chosen to concentrate on its core operations and to continue building on its profitable current business. While the formal acquisition process has stopped, the partnership with FGT remains. Both companies will continue working together at this mutually beneficial endeavour while not excluding the possibility of a more formal relationship in the future.
Additional information on the three-month period ended September 30, 2010
The financial information regarding the quarter ended September 30, 2010 should be read in parallel with the Company's annual, consolidated financial statements and MD&A (Management Discussion and Analysis). These documents can be found on www.sedar.com
About ODESIA Group Inc.
ODESIA is an international corporation specialized in business-intelligence (BI) solutions, decision processes and data warehousing for large corporations. The Company's goal is to provide customers with a complete solution, regardless of the technical challenges involved. For more information visit us at www.odesia.com.
Disclaimer in regards to forward-looking statements
This press release contains forward-looking statements which reflect ODESIA's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein.
Neither the 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.
1EBITDA is defined as earnings before amortization of tangible and intangible assets, financial expenses and foreign exchange, and income taxes
For further information:
ODESIA Group Inc. Mr. Nicolas Bonnafous, President and CEO Tel. 514.876.1155 [email protected] |
Evolution Group inc. Mr. Sylvain Archambault, President Tel. 1.866.703.4887 [email protected] |
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