NERDS INCREASES 2020 Revenue by 14%, and Decreases Net Loss by 40% over 2019
TORONTO, Oct. 2, 2020 /CNW/ - Nerds On Site Inc. ("NERDS" or the "Company") (CSE: NERD) (FSE: 3NS.F) (QTCQB: NOSUF), a mobile IT solutions company servicing the small, medium enterprise (SME) marketplace in Canada and the USA, is announcing that the Company has filed its audited financial statements and accompanying management discussion and analysis (MD&A) for the year ended May 31st, 2020.
"Our focus remains driving up the pleasure, productivity and profitability of technology in the lives of our SME and corporate clients across Canada and the USA," said Mr. Charles Regan, CEO of Nerds on Site. "Now facing unprecedented business circumstances, NERDS has focused its business to support our customers, both existing and new. Classified an essential service business during this COVID 19 pandemic, Nerds On Site has not experienced a negative impact as so many other enterprises have. As a truly mobile and remote service with almost no burden of office or real estate overhead, our business model has proven most effective during this global event. In fact, we have added approximately 5,500 new Clients in the current year – up from approximately 3,000 new Clients last year - representing an increase of more than 80% year over year."
Highlights
- Revenue for the year ended May 31, 2020 was $10,143,336 as compared to $8,906,433 for the year ended May 31, 2019, an increase of $1,236,903 or 14%.
- Gross profit for the year ended May 31, 2020 was $2,639,410 as compared to $2,265,522 for the year ended May 31, 2019, an increase of $373,888 or 16%. Gross margin for 2020 was 26% was compared to 25% for 2019.
- Selling, general and administrative expenses for the year ended May 31, 2020 was $4,470,336 as compared to $5,272,185 for year ended May 31, 2019, a reduction of $801,849 or 15%.
- Cash used in operating activities was ($1,605,328) for the year ended May 31, 2020, compared to ($3,617,077) or the year ended May 31, 2019, reflecting an improvement in cash used in operations of $2,011,749.
- Net loss for the year ended May 31, 2020 was ($2,034,711) as compared to ($3,423,321) for the year ended May 31, 2019, a decrease of $1,388,610 or 40%.
- Loss per share-basic and diluted was ($0.0236) for the year ended May 31, 2020 as compared to ($0.0478) for the year ended May 31, 2019, a reduction in loss per share by 51%.
In this current COVID-19 pandemic era, the Company has instituted new safety protocols with its NERDS team and throughout the Company's on-site service procedures with our Clients. The Company is prioritizing its ongoing response to the increase in cybercrime activity and the resulting monetization efforts of this criminal activity 6-12 months (and beyond) down the road.
"Our priorities going forward include the expansion of our partnership efforts in the Risk Aversion and Cyber Insurance space to more fully serve business clients and their business systems security needs," said Mr. Regan. "In addition, our highly responsive model is working right now to provision the SME space with standard, secure and productive remote workplace station setups. The new normal may now be in development, with some of our old – and some of our new – clients finding higher productivity opportunities with their distributed work-from-home team members. Another new offering is SchoolZone (nerdsonsite.com/SchoolZone) for the challenging 'back to school' experience of families. One thing becoming quite clear is that online security and technology will play an ever more important role in the new enterprise normal."
The full financials statements and MD&A are available at www.sedar.com.
About Nerds On Site:
Nerds On Site, a company founded in 1995, specializes in providing cost effective, leading edge solutions to Small and Medium sized Enterprise (SME), serving as the complete SME IT solution specialists. Nerds On Site was established in London, Ontario with current annual revenues of approximately $10,000,000. The Company services over 12,000 clients per year with a superb 96.5% customer satisfaction rating (more than 88,550 five-star ratings). NOS's business model is based on Nerds sub-contracts in Canada and a franchise model for USA expansion.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements - Certain information set forth in this material may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
SOURCE Nerds On Site Inc.
Mr. Charles Regan, CEO of Nerds On Site, Please visit www.investors.nerdsonsite.com, Call 1-877-778-2335, or email [email protected].
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