Monexa Technologies Corp. Reports Q1 2010 Results

VANCOUVER, May 27 /CNW/ - Monexa Technologies Corp. (TSX-Venture: MXA) today announced its quarterly results for the three-month period ended March 31, 2010. The financial statements were prepared in accordance with Canadian generally accepted accounting principles.

For the three months ended March 31, 2010, revenue was $886K, a decrease of 31% from $1,289K in the corresponding quarter in 2009. As compared to the Company's most recent completed quarter, revenue was $18K higher in Q4 2009 than Q1 2010 revenue or 2% ($903K vs. $886K), The net loss for the quarter was ($433K) as compared to a ($245K) for Q1 2009, an increase of $165K or 68%. As compared to Q4 2009 the Company loss Q1 2010 loss was lower by $196K than Q4 2009 loss or 31% ($628K vs.$433K). EBITDA loss was ($399K), up from ($220K) loss in the corresponding quarter in 2009. EBITDA Q1 2010 loss as compared to EBITDA Q4 2009 loss was lower by $171K ($570K vs. $399K).

John Jacobson, President and CEO said "We were very pleased to announce the Pitney Bowes Business Insight contract in Q1. We're pursuing more enterprise customers as well as numerous medium and small businesses."

Garth Albright, CFO said, "The company has taken important strides to grow its SaaS Billing customer base while improving operational efficiencies in our traditional business that are generating higher gross margin percentages. The company continues to invest in our research and development SaaS Billing platform as we expand our technology leading SaaS platform offering to meet and exceed our customers' expectations."

Achievements in Q1 2010:

    
    -   Achieved success of Monexa Billing in large enterprise accounts
        demonstrated by the Pitney Bowes Business Insights contract and
        implementation

    -   Achieved success in the online media industry with the Greener World
        Media implementation

    -   Introduced advanced subscription billing analytics, Paypal
        integration and enterprise level support for negotiated client
        contract pricing and automated administration

    -   Received recognition from premier SaaS market analysts, Saugatuck
        Technologies, as a leading provider of cloud billing solutions.

    -   Reaffirmed its PCI/DSS Compliance and ongoing commitment to data
        security with Service Provider Level 1 certification, assuring Monexa
        Billing customers of the highest level of payments security
    

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 Monexa 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.

    
                        March 31 December 31 September 30 June 30   March 31
    (000's)               2010       2009       2009       2009       2009
    -------------------------------------------------------------------------
    Operating Loss         $(433)     $(628)     $(490)     $(415)     $(245)
    Amortization and
     depreciation             11         35         19         18         24
    Interest - net            23         23         13          1          1
    Tax                        -          -          -          -          -
    -------------------------------------------------------------------------
    EBITDA                 $(399)     $(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 offers a flexible on-demand subscription billing solution that provides a scalable environment for expediting the launch of products, services and applications online. This accelerates our customers' time to market and revenue return.

Monexa pioneered the on-demand subscription billing space and has worked with hundreds of businesses to help monetize their services. Having the most capable and open subscription billing solution in the cloud, combined with proven billing industry expertise, sets Monexa apart from other service providers. Monexa's customers range in size from high growth SaaS and Cloud Infrastructure companies like Untangle and ActiveState to large household name companies like Pitney Bowes Business Insight, AOL Canada, Sprint, Amway and Bell Mobility. For more information visit http://www.monexa.com.

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be 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.

High resolution photos and interview opportunities available.

For further information: Investor Contact: John Jacobson, President and CEO, D: [phone], E: [email protected]