WANTED Technologies Reports a 15% increase in its recurring revenue base over last fiscal year

Business intelligence products for the Corporate Human Capital Management sector gain traction

• New product advances to accelerate strategic growth in the Corporate Human Capital marketplace include Salary ranges, International data collection and Corporate Competitive Intelligence Hiring reports.
• Gain of nearly 1,000 new client seats in the Corporate and Staffing sector, from 164 seats one year ago to 1,149 seats at the end of the second quarter. Helping to drive this increase are distribution partnerships and introductory offers designed to introduce WANTED's products to this new marketplace.
• Annualized recurring revenue growth rates in the Corporate and Staffing markets of more than 30 percent, adding to year-over-year revenue gains in the Company's core market segments of Government and Online Media clients.
• Gain of 15 percent overall in the recurring revenue base of $5.4 million in Canadian dollars as of December 31, 2011, from $4.7 million in Q2 2011.
• Revenue of $1,382,921 for the second quarter of fiscal 2012, a gain of $4,081, compared to $1,378,840 in the second quarter of fiscal 2011.
• Positive EBITDA of $20,531, a gain of $11,768, compared to $8,763 in the second quarter of fiscal 2011.
• Narrowing of the Company's net loss to $94,121, compared to a net loss of $102,807 in the second quarter of fiscal 2011.

QUEBEC CITY, Feb. 21, 2012 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today an increase of 15% on its recurring revenue base for the quarter ended December 31, 2011, compared to the prior year. Annualized recurring revenues were $5.4 million in Canadian dollars compared to $4.7 million one year ago. All amounts are in Canadian dollars, unless otherwise indicated.

The Company also reported $1,382,921 in total revenues for the quarter, a gain of $4,081 over the prior year. EBITDA of $20,531 represented a positive variation of $11,768 over the prior year.

The Company, which has been investing in product development over the past 12 months as part of its new entry into the Corporate Human Capital Management sector, narrowed its net loss to $94,121 from $102,807 in the second quarter of fiscal 2011.

"The gains we are seeing are evidence that our new products are gaining traction among the clients in the global talent marketplace," said Bruce Murray, President and CEO. "The investments we made over the past year to create a new category of business intelligence products and services for the talent marketplace are paying off."

In 2011, WANTED launched a new product platform designed to give Corporate Human Resource organizations real-time insight into the supply and demand for talent. These products make workforce planning, recruiting and competitive intelligence gathering more efficient.

Clients subscribe to WANTED's services through a web-based interface called WANTED Analytics^TM. Clients include global firms such as General Electric, Johnson & Johnson, Microsoft, Starbucks, McKesson and many others. WANTED currently counts more than 800 human resource professionals accessing its data.

As of December 31, 2011, contracts in hand, in Canadian dollars, represented approximately $5.4 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately $4.7 million dollars as of December 31, 2010, an increase of 15 percent. The majority of WANTED's clients are in the US and when viewed in US dollars, the level of recurring revenues as of December 31, 2011 is up 13 percent from $4.7 million dollars as of December 31, 2010.

WANTED's decision to diversify its client base beyond Media clients has succeeded in replacing some of the lost recurring revenue. Gains have come from the Corporate, Staffing and Government sectors leading to a more stable recurring revenue base. These three sectors, represented together, at the end of the second quarter of fiscal 2012, approximately 51% of the total recurring revenue base compared to 45% a year ago. The Company's partnership with The Conference Board, positively contributed to this diversification.

		Three-month periods				Six-month periods
		ended December 31,				ended December 31,
		2011		2010		2011		2010
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
		$		$		$		$
Revenues		1,382,921		1,378,840		2,702,976		2,626,185
Cost of sales		(118,351)		(190,630)		(230,148)		(326,607)
Gross margin		1,264,570		1,188,210		2,472,828		2,299,578
Expenses
	Research and development, net of tax credits	(495,268)		(450,566)		(1,042,336)		(827,697)
	Marketing and selling	(539,915)		(476,848)		(1,147,971)		(957,777)
	Administrative	(287,548)		(323,844)		(598,050)		(572,642)
	Other financial expenses	(5,035)		(5,342)		(9,726)		(8,914)
	Other losses-net			(222)				(2,297)
		(1,327,766)		(1,256,822)		(2,798,083)		(2,369,327)
Operating loss		(63,196)		(68,612)		(325,255)		(69,749)
	Finance income	2,231		2,120		4,769		4,588
	Finance costs	(23,392)		(37,186)		40,581		(59,179)
Finance costs-net		(21,161)		(35,066)		45,350		(54,591)
Loss before income taxes		(84,357)		(103,678)		(279,905)		(124,340)
Current Income taxes		(29,333)		(18,698)		(63,397)		(37,493)
Deferred Income taxes		19,569		19,569		39,138		39,138
Net loss and comprensive loss		(94,121)		(102,807)		(304,164)		(122,695)
Basic and diluted net loss per share		(0.004)		(0.004)		(0.013)		(0.005)

 

Operating costs went from $1,256,822 in the second quarter of fiscal 2011 to $1,327,766 for the second quarter of fiscal 2012, an increase of 6 percent. For the first six months of fiscal 2012, operating costs totalled $2,798,083, compared to $2,369,327 for the first six months of the previous fiscal year, an increase of $428,756 or 18 percent. These increases mostly result from increases in research and development and in marketing and selling expenses.

EBITDA for the second quarter of fiscal 2012 totalled $20,531, up $11,768 from an EBITDA of $8,763 for the second quarter of fiscal 2011. For the first six months of fiscal 2012, negative EBITDA totalled $67,691, a decrease of $151,528. EBITDA represents the net earnings before net financial expense, income taxes, depreciation and amortization on property, plant and equipment and intangible assets. As International Financial Reporting Standards do not provide a standardized definition for this measure, it may not be comparable to similar measures used by other companies.

Net loss for the quarter ended December 31, 2011 amounted to $94,121 (loss of $0.004 per share) compared to $102,807 (loss of $0.004 per share) for the corresponding quarter of the previous year, a positive variation of $8,686. This variation mostly results from a decrease of $19,321 in loss before income taxes, partially offset by an increase of $10,635 in the provision for income taxes.

For the first six months of fiscal 2012, net loss reached $304,164, compared to $122,695 for the first six months of the previous fiscal year, a negative variation of $181,469. This variation mostly results from the combination of increases of $155,565 in loss before income taxes and $25,904 in the provision for income taxes.

Financial position

As at December 31, 2011, WANTED had a cash position (cash and investments) of $1,510,660 and a working capital of $998,541. This compares with a cash position of $1,426,715 and a working capital of $1,183,931 as at June 30, 2011, representing an increase of $83,945 in the cash position and a decrease of $185,390 in the working capital. This increase of $83,945 in the Company's liquidity is mainly the result of positive cash flows of $175,650 generated by the operating activities, partially offset by negative cash flows of $10,850 and $80,855 used by investing and financing activities respectively.

Total assets stood at $5,773,789 at December 31, 2011, down $381,976 from $6,155,765 at June 30, 2011. The variance in total assets is mainly due to decreases of $236,737 in current assets, $63,699 in property, plant and equipment and $81,540 in intangible assets.

Those interested will be able to access the information on the December 31, 2011 unaudited interim consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.com and at the Company's website, www.wantedtech.com, as of Tuesday, February 21^st, 2012.

About WANTED Analytics™

WANTED Analytics™ helps recruiting organizations make better decisions faster with real-time business intelligence on jobs, employers, and talent. Analytics™ brings together, for the first time, years of hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions.

Clients in the staffing, HR, RPO, media, and government sectors use WANTED Analytics™ to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions, and source hard-to-fill positions.

About WANTED Technologies Corporation

WANTED Technologies (TSX-V:WAN) provides real-time business intelligence for the talent marketplace. Founded in 1999, the Company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of more than 600 million unique job listings. For more information or to sample WANTED's services, visit www.wantedanalytics.com.

WANTED is also the exclusive data provider for The Conference Board's Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Any statement that appears prospective shall not be interpreted as such.

Source: 
WANTED Technologies Corporation

Contact: 
Mr. Bruce Murray, President and CEO
Tel: [phone], ext. 222
Mr. Martin Auclair, VP Finance and CFO
Tel: [phone], ext. 337