WANTED Technologies reports a 19.4% increase in revenue for the third quarter and a return to profitability

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

• Revenue of $1,510,548 for the third quarter of fiscal 2012, a gain of 19.4%, compared to $1,264,699 in the third quarter of fiscal 2011.
• Positive EBITDA of $138,882, a gain of $271,861, compared to a negative EBITDA of $132,979 in the third quarter of fiscal 2011.
• Net income of $17,094, compared to a net loss of $250,729 in the third quarter of fiscal 2011, a gain of $267,823.
• Gain of 24 percent overall in the recurring revenue base of $5.7 million in Canadian dollars as of March 31, 2012, from $4.6 million in the third quarter of fiscal 2011.

QUEBEC CITY, May 23, 2012 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today a 19 percent increase in revenues and a return to profitability in the third quarter of fiscal 2012. The Company's annualized recurring revenue base also increased 24%, reaching $5.7 million in Canadian dollars as of March 31, 2012. This compares to $4.6 million one year ago. All amounts are in Canadian dollars, unless otherwise indicated.

The Company reported $1,510,548 in total revenues for the quarter, a gain of $245,849 over the prior year. EBITDA of $138,882 represented a positive variation of $271,861 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, returned to profitability in the third quarter with a net income of $17,094 compared to a net loss of $250,729 in the third quarter of fiscal 2011, a positive variance of $267,823.

"The strong financial results we saw in Q3 are the result of a focused, long-term strategic effort to grow WANTED's business across a diverse set of clients in the marketplace for talent," said Bruce Murray, President and CEO. "The investments we made over the past year to create a new category of business intelligence products are starting to pay 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.

"The new clients we signed during the quarter are some of the world's leading global employers," said Murray. "We are dedicated to helping them make relevant, informed human capital decisions, based on insight into the market."

Among the clients signed during the quarter are companies across many business sectors. They include IBM, Intel, UPS, Liberty Mutual, BP, Phillips and Booz Allen Hamilton.

As of March 31, 2012, contracts in hand, in Canadian dollars, represented approximately $5.7 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately $4.6 million dollars as of March 31, 2011, an increase of 24 percent.

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 third quarter of fiscal 2012, approximately 58% of the total recurring revenue base compared to 46% a year ago. The Company's partnership with The Conference Board positively contributed to this diversification.

		Three-month periods				Nine-month periods
		ended March 31,				ended March 31,
		2012		2011		2012		2011
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
		$		$		$		$
Revenues		1,510,548		1,264,699		4,213,524		3,890,884
Cost of sales		(132,967)		(143,700)		(363,115)		(470,307)
Gross margin		1,377,581		1,120,999		3,850,409		3,420,577
Expenses
	Research and development, net of tax credits	(492,372)		(481,002)		(1,534,708)		(1,308,699)
	Marketing and selling	(551,720)		(548,439)		(1,699,691)		(1,506,216)
	Administrative	(265,621)		(300,207)		(863,671)		(872,849)
	Other financial expenses	(8,024)		(10,483)		(17,750)		(19,397)
	Other losses-net	(183)				(183)		(2,297)
		(1,317,920)		(1,340,131)		(4,116,003)		(3,709,458)
Operating income (loss)		59,661		(219,132)		(265,594)		(288,881)
	Finance income	2,452		2,014		7,221		6,602
	Finance costs	(30,474)		(33,358)		10,107		(92,537)
Finance costs-net		(28,022)		(31,344)		17,328		(85,935)
Income (loss) before income taxes		31,639		(250,476)		(248,266)		(374,816)
Current Income taxes		(34,114)		(19,822)		(97,511)		(57,315)
Deferred Income taxes		19,569		19,569		58,707		58,707
Net income (loss) and comprensive income (loss)		17,094		(250,729)		(287,070)		(373,424)
Basic and diluted net income (net loss) per share		0.001		(0.010)		(0.012)		(0.016)

 

Operating costs went from $1,329,648 in the third quarter of fiscal 2011 to $1,309,713 for the third quarter of fiscal 2012, a decrease of almost 2 percent. For the first nine months of fiscal 2012, operating costs totalled $4,098,070, compared to $3,687,764 for the first nine months of the previous fiscal year, an increase of $410,306 or 11 percent. The increase in the nine-month period mostly results from increases in research and development and in marketing and selling expenses.

EBITDA for the third quarter of fiscal 2012 totalled $138,882, up $271,861 from a negative EBITDA of $132,979 for the third quarter of fiscal 2011. For the first nine months of fiscal 2012, EBITDA totalled $71,190, an increase of $120,332 over last year. EBITDA represents the net income before finance costs-net (excluding gain or loss due to variation in foreign exchange), income taxes on net income, and amortization and impairment of 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 income for the quarter ended March 31, 2012 amounted to $17,094 (net income of $0.001 per share) compared to a net loss of $250,729 (loss of $0.010 per share) for the corresponding quarter of the previous year, a positive variation of $267,823.

For the first nine months of fiscal 2012, the net loss was $287,070, compared to a net loss of $373,424 for the first nine months of the previous fiscal year, a positive variation of $ 86,354.

Financial position

As of March 31, 2012, WANTED had a cash position (cash and investments) of $1,517,857 and a working capital of $1,065,507. 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 $91,142 in the cash position and a decrease of $118,424 in the working capital. The increase of $91,142 in the Company's liquidity is mainly the result of positive cash flows of $216,444 generated by the operating activities, partially offset by negative cash flows of $23,385 and $104,938 from investing and financing activities respectively.

Total assets stood at $5,959,927 at March 31, 2012, down $195,838 from $6,155,765 at June 30, 2011. The total assets variance is mainly due to decreases of $92,133 in property, plant and equipment and $122,310 in intangible assets, offset by an increase of $18,605 in current assets.

Those interested will be able to access the information on the March 31, 2012 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 Wednesday, May 23^rd, 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