Angoss Reports Fourth Quarter and Fiscal 2011 Results
TORONTO, March 28, 2012 /CNW/ - Angoss Software Corporation (Angoss) (TSX-V: ANC) a leading provider of business intelligence and predictive analytics software and solutions, today announced unaudited results for the fourth quarter and twelve months ended November 30, 2011. Intellimaxx operations have been treated as discontinued operations and all revenue and expenses are reported as a single line item.
Fourth quarter 2011 earned revenues from continuing operations were $1,596,858, down 1.6% from Q4, 2010 revenues of $1,622,022. Year to date 2011 earned revenues from continuing operations of $6,941,404 were up 3.7% from 2010 revenues of $6,690,836.
Fourth quarter operating expenses were $1,873,473, up 11.0% from prior year expenses of $1,687,801, resulting in operating loss of $276,615 versus prior year operating loss of $65,779. Twelve month operating expenses were up 7.2%, resulting in operating income of $63,979 compared to an operating income of $272,807 in 2010.
Fourth quarter 2011 loss from continuing operations was $423,974 (2010 - $677,886). Twelve month 2011 loss from continuing operations was $824,019 (2010 - $640,547).
Fourth quarter 2011 loss from discontinued operations was $402,260 (2010 - $326,751) including fourth quarter 2011 write-offs of intangible, capital and other assets of $214,012. Twelve month 2011 loss from discontinued operations was $1,981,003 (2010 - $763,705) including year to date 2011 write-offs of intangible, capital and other assets of $1,321,506.
The Company reported a Q4 net loss of $826,234 ($0.09 per share) versus a prior year net loss of $1,004,637 ($0.14 per share). Year to date, the net loss was $2,805,022 ($0.32 per share) compared to $1,404,252 ($0.19 per share) in 2010.
"2011 was a difficult year for Angoss and the company feels confident that it has successfully taken the required steps to return to profitability," said Martin Galligan, President and Chief Executive Officer. "Our decision to exit non-core businesses has allowed the Company to return to its strength in data mining and predictive analytics, and our management team and Board of Directors is fully committed to successful execution of this strategy."
Outlook
The Company continues to re-focus on its core business.
Recent global economic turmoil may impact decisions in the current fiscal year and we will closely watch developments in the USA economy during the coming months. Our software and solutions pipeline continues to grow and we also see a healthy interest from the market in predictive analytics. There is great interest in both structured and unstructured analytics and in response to this we launched text analytics capabilities via our KnowledgeCLOUD solutions in the first quarter. Version 8.0 of our software is expected to be released in May 2012 and with it will introduce significant improvements and launch a text analytics software product to the market.
Financial Results
| ANGOSS Software Corporation | |||||||||||||
| Income Statement Information | |||||||||||||
| (unaudited, stated in Canadian dollars) | |||||||||||||
| For the period ended | Three months ended | Twelve months ended | |||||||||||
| November 30, | November 30, | November 30, | November 30, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Revenues | $1,596,858 | $1,622,022 | $6,941,404 | $6,690,836 | |||||||||
| Operating Expenses | |||||||||||||
| General and administration | 534,271 | 345,826 | 1,768,231 | 1,547,328 | |||||||||
| Sales and marketing | 1,196,937 | 982,075 | 3,936,004 | 3,502,702 | |||||||||
| Research and development, net | 142,265 | 359,900 | 1,173,190 | 1,367,999 | |||||||||
| 1,873,473 | 1,687,801 | 6,877,425 | 6,418,029 | ||||||||||
| Income before the following | (276,615) | (65,779) | 63,979 | 272,807 | |||||||||
| Termination benefits | - | (463,000) | (60,625) | (463,000) | |||||||||
| Amortization of capital assets | (65,600) | (82,097) | (322,030) | (294,538) | |||||||||
| Amortization of intangible assets | (35,543) | (2,237) | (68,363) | (10,820) | |||||||||
| Interest expense | (34,358) | (27,658) | (125,355) | (185,514) | |||||||||
| Interest accretion on preferred shares | (26,534) | - | (26,534) | - | |||||||||
| Foreign exchange gain (loss) | 43,936 | (24,473) | (62,086) | 61,525 | |||||||||
| Stock based compensation | (29,260) | (12,642) | (223,005) | (21,007) | |||||||||
| Loss from continuing operations | (423,974) | (677,886) | (824,019) | (640,547) | |||||||||
| Discontinued operations - Intellimaxx | (402,260) | (326,751) | (1,981,003) | (763,705) | |||||||||
| Net (loss) and comprehensive (loss) for the period | $(826,234) | $(1,004,637) | $(2,805,022) | $(1,404,252) | |||||||||
| Basic and diluted (loss) per share | $(0.09) | $(0.14) | $(0.32) | $(0.19) | |||||||||
| Weighted average number of shares outstanding | |||||||||||||
| Basic and diluted | 9,417,606 | 7,256,612 | 8,698,771 | 7,256,612 | |||||||||
| Selected Balance Sheet Information | November 30, | November 30, | |||||||||
| (unaudited) | 2011 | 2010 | |||||||||
| Cash and cash equivalents | $1,439,478 | $1,325,546 | |||||||||
| Restricted investments | 35,709 | 335,000 | |||||||||
| Accounts receivable | 1,696,037 | 1,887,896 | |||||||||
| Assets of discontinued operations | 33,966 | 1,767,418 | |||||||||
| Total assets | 4,511,903 | 6,380,359 | |||||||||
| Accounts payable and accrued liabilities | 1,301,856 | 1,378,601 | |||||||||
| Current portion of deferred revenue | 3,464,497 | 4,209,065 | |||||||||
| Liabilities of discontinued operations | 27,880 | 404,511 | |||||||||
| Total liabilities | 8,035,846 | 8,392,845 | |||||||||
| Liabilities and shareholders' equity | $4,511,903 | $6,380,359 | |||||||||
| Selected Cash Flow Information | ||||||||||||
| (unaudited, stated in Canadian dollars) | ||||||||||||
| For the period ended | Three months ended | Twelve months ended | ||||||||||
| November 30, | November 30, | November 30, | November 30, | |||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Cash provided (used) by operating activities | $(607,612) | $(367,960) | $(473,335) | $850,231 | ||||||||
| Cash used in investing activities | (161,321) | (382,194) | (694,893) | (455,848) | ||||||||
| Cash provided (used) by financing activities | 1,688,254 | 60,966 | 1,963,516 | (258,869) | ||||||||
| Effect of foreign exchange rate fluctuations on cash and cash equivalents |
12,418 | (66,827) | (57,174) | (72,947) | ||||||||
| Cash provided (used) by continuing operations | 931,739 | (756,015) | 738,114 | 62,567 | ||||||||
| Cash provided (used) by discontinued operations | 85,406 | 503,021 | (624,182) | (260,684) | ||||||||
| Net increase (decrease) in cash during the period | 1,017,145 | (252,994) | 113,932 | (198,117) | ||||||||
About Angoss Software Corporation
Angoss is a global leader in delivering predictive analytics to businesses looking to improve performance across sales, marketing and risk. With a suite of desktop, client-server and in-database software products and Software-as-a-Service solutions, Angoss delivers powerful approaches to turn information into actionable business decisions and competitive advantage. Angoss software products and solutions are user-friendly and agile, making predictive analytics accessible and easy to use. Many of the world's leading financial services, insurance, retail, health care and information communication and technology organizations use Angoss predictive analytics software products and solutions to grow revenue, increase sales productivity and improve marketing effectiveness while reducing risk and cost. Headquartered in Toronto, Canada, Angoss has offices in the United States and United Kingdom. For more information, visit www.angoss.com.
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, Angoss' objectives, goals, future plans, obtaining regulatory approval for and closing the financings. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: the risk that the sale of our products and services involves a long sales cycle; the risk that the economic environment and business conditions will remain difficult to predict; the risk of competition in our target markets; the risk that we may not respond adequately to evolving technologies; the risk that we or our customers may have difficulties in introducing our products or services; the risk that we will encounter difficulties in continuing to offer services; the risk that we will encounter difficulties in integrating the operations of acquired companies with our own; the risks of conducting our operations in a variety of international locations; the risk that we may need to record future write-downs of assets arising from our investments in other companies; the risks relating to the costs that we may incur as a result of litigation against us; and other risks described in our filings with securities regulatory authorities, including our annual reports, interim financial statements and similar disclosure documents. Angoss does not undertake any obligation to update this forward-looking information after the date of its initial publication, except as required under 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.
Lon Vining
Chief Financial Officer
416-593-2420
[email protected]
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