Monexa Technologies Corp. Reports Q2 2010 Results

VANCOUVER, Aug. 20 /CNW/ - Monexa Technologies Corp. (TSX-Venture: MXA) today announced its quarterly results for the three-month period ended June 30, 2010. The financial statements were prepared in accordance with Canadian generally accepted accounting principles.

For the three months ended June 30, 2010, revenue was $808K, a 31% decrease from $1,061K in the corresponding quarter in 2009. As compared to Q1 2010 revenue Q2 2010 revenue dropped by 9% or $78K ($886K vs. $808K).The net loss for the quarter was ($393K) a 5 % decrease from ($415K) for Q2 2009, As compared to Q1 2010 the Q2 2010 net loss dropped by $40K or 9% ($393K vs.$433K). EBITDA loss for the quarter was ($304K) down from ($390K) loss in the corresponding quarter in 2009. As compared to EBITDA Q1 2010 the Q2 EBITDA loss was lower by $58K ($304K vs. $362K).

John Jacobson, President and CEO said "Our focus in the second quarter was on performance improvements across the entire Company. We maintained strong sales to new Software as a Service (SaaS) customers and introduced a significant number of new product features to the Monexa Subscription Billing solution along with an updated pricing model."

Garth Albright, CFO said, "During the past quarter the Company has focused on increasing its Software as a Service (SaaS) customer sales and implementing new SaaS customers while reducing our operational cash flow. The company succeeded in all three goals. Operating expenses dropped by $212K or 23% quarter over quarter and during Q2, four new SaaS customers were closed and three new SaaS customers were fully implemented.

Achievements in Q2 2010:

    
    -   Partnered with SaaS Integration leader Pervasive Software to provide
        enterprise customers out-of-box integrations to Monexa Billing
        including:

           -  Monexa Billing to SalesForce.com for integration of
              subscription billing data with CRM records.
           -  Monexa Billing to ERP and Finance systems for integration of
              subscription revenue with accounting systems of record.
           -  Advanced mediation of billing usage data from cloud computing
              and telecom providers.

    -   Continued success in signing new Monexa Billing customers with a new
        fortune 500 retail customer and three new SaaS customer wins.

    -   Release of new features to the Monexa Billing platform including
        simplified usage billing for cloud computing companies, integration
        of Monexa Billing into Pervasive Software's DataCloud solution and a
        new SOAP API allowing customers faster and easier integration with
        Monexa Billing data.
    

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.

    
                                June     March  December September      June
                                  30        31        31        30        30
    (000's)                     2010      2010      2009      2009      2009
    -------------------------------------------------------------------------

    Operating Loss             $(393)    $(433)    $(628)    $(490)    $(415)
    Amortization and
     depreciation                 11        11        35        19        18
    Interest - net                78        60        51        36         7
    Tax                            -         -         -         -         -
    -------------------------------------------------------------------------
    EBITDA                     $(304)    $(362)    $(542)    $(435)    $(390)
    -------------------------------------------------------------------------
    

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: 604.630.5661, E: [email protected]