Monexa Technologies Corp Reports 2009 Operating Results

VANCOUVER, April 22 /CNW/ - Monexa Technologies Corp. (TSX-Venture: MXA) today announced its quarterly and annual financial results for the year ended December 31, 2009.

For the year ended December 31, 2009 revenue was $4.2M, a 26% decrease compared to $5.7M for the year ended December 31, 2008 and the net loss increased to ($1.7M) from ($939K) for 2008.

For the quarter ended December 31, 2009 revenue was $903K as compared to $1.4M in the corresponding period in 2008. The net loss for the quarter was ($628K) as compared to a ($238K) net loss in the prior comparable quarter in 2008. EBITDA loss was ($593K), up from ($199K) loss in the corresponding quarter in 2008.

John Jacobson, President and CEO said "The emerging Cloud Computing and Software-as-a-Service ("SaaS") market continues to expand, producing a new annual record number of signed revenue contracts and reseller agreements in 2009. We're aggressively pursuing new customers. To provide the necessary funding, we raised $1.6M during 2009 and in 2010."

Achievements in 2009:

    
    -   Rebranded the company "Monexa Technologies Corp." to better reflect
        the strategy of monetization for cloud computing and SaaS
        applications.
    -   Introduced a new user interface and API for Monexa Billing on demand,
        and added numerous new features.
    -   In Q3 and Q4 2009, closed a non-brokered private placement of 10.4M
        shares for total net proceeds of $1.2M to fund new customer
        acquisition.
    -   Acquired a record number of new customers in 2009.
    -   Achieved Level 1 certification to Payment Card Industry Data Security
        Standard (PCI-DSS) and completed the implementation of a new
        transaction interface to the Canadian and US banking systems. Monexa
        can now process all of its customers' payments through its own PCI-
        DSS compliant data centre.
    -   The company reduced operating costs and increased efficiency by
        implementing a new customer service strategy and partnership that
        contributed to increasing the Gross Margin percentage by 7% (2009 46%
        vs. 2008 39%).
    

Non-GAAP measures

EBITDA is a key measure used by management to evaluate the Company's performance. Management believes that EBITDA is useful as it provides an indication of the results generated by the Company's business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and other non-cash expenditures. EBITDA is not a recognized measure under Canadian GAAP, and accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with GAAP as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. EBITDA may not be comparable to similar measures presented by other issuers. The schedule below details how IP Applications reconciles its net loss per GAAP to EBITDA for the most recent four quarters. Note: for the quarter ended December 31, the impact of realized and unrealized foreign exchange gains and loss are excluded.

    
                                December   September        June       March
    (000's)                      31 2009     30 2009     30 2009     31 2009
    -------------------------------------------------------------------------
    Operating Loss                 $(628)      $(490)      $(415)      $(245)
    Amortization and depreciation     35          19          18          24
    Interest - net                    23          13           1           1
    Tax                                -           -           -           -
    -------------------------------------------------------------------------
    EBITDA                         $(570)      $(458)      $(396)      $(220)
    -------------------------------------------------------------------------
    

Additional details on the quarterly and year end results, including the audited Consolidated Financial Statements and Management Discussion and Analysis, are available at www.sedar.com under Monexa Technologies Corp.

About Monexa Technologies Corp

Monexa pioneered the on-demand subscription billing space and over the past 11 years has worked with hundreds of businesses to help monetize their services. Monexa's monetization platform removes the barriers imposed by traditional systems and plugs directly into a client's finance, marketing and operations, enabling them to run their subscription business their way. Monexa operates out of Vancouver, B.C. and serves customers including AOL Canada, Sprint, Amway and Bell Mobility among others. For more information visit www.monexa.com.

Forward-Looking Statements

This press release may contain forward-looking statements. The Company cautions users of this forward-looking information that actual results or events may vary materially either favorably or unfavorably from those described due to a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to: the inability of the Company to accurately forecast the revenue from new and existing customers; the inability of the Company's customers to accurately forecast their own demand for the Company's products and service; changes in the relative value of the US and Canadian dollars; the possibility that one or more customers or suppliers might experience financial difficulties that could affect the Company's ability to deliver and get paid for its products and services; and changes in the growth rate of technology and telecommunications concerns. Refer to the Company's management's discussion and analysis ("MD&A") for further discussion of these and other risks and uncertainties in relation to such forward-looking information.

Forward-looking information is based on management's current expectations, estimates and opinions. Please refer to the MD&A for a discussion of the events and circumstances which occur that cause, or are likely to cause, actual results to differ materially from such forward-looking information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information: John Jacobson, CEO, D [phone], E [email protected]