WANTED Technologies Reports Q1 Increase in Revenues
WANTED Continues Successful Diversification Into New Market Segments
- Revenue of $1,247,345 for the first quarter, compared to $1,135,462 in the first quarter of prior year, a 10% increase
- Improvement of 18% in the Company's recurring revenue base in US dollars, from an annualized value of US$4.0 million as of September 30, 2009 to US$4.7 million as of September 30, 2010
- EBITDA of $75,074, compared to $118,629 in first quarter of fiscal 2010
- Net loss of $39,457, compared to net earnings of $5,774 in the first quarter of fiscal 2010, a negative variation of $45,231
QUEBEC CITY, Nov. 16 /CNW Telbec/ - WANTED Technologies (TSX-V: WAN), the leading source of business intelligence for the talent marketplace, reported today a net loss of $39,457 and revenues of $1,247,345 for the first quarter of fiscal 2011 ended September 30, 2010. All amounts are in Canadian dollars, unless otherwise indicated.
"WANTED's gain of 10 percent in revenues over the prior year in this most recent quarter shows that our investments in product diversification and market development are beginning to gain traction," said Bruce Murray, President and CEO of WANTED. "We also began to see improving sentiments among some sectors of the client base regarding stability of the employment picture."
"Our recurring base has grown 18 percent, compared to the prior year, on a constant US dollar basis said Murray. "These gains, along with the fact that we have diversified our client base, are very encouraging signs."
WANTED's investments in its AnalyticsTM platform are designed to enable the Company to enter the much larger market for corporate human capital services. As the economy recovers and demand for employees picks up, WANTED expects to begin licensing its AnalyticsTM platform services to corporate clients to improve the efficiency of their recruiting efforts.
WANTED's revenues for the quarter ended September 30, 2010 increased by 10 percent to $1,247,345 compared to $1,135,462 for the corresponding quarter of the previous year. The majority of WANTED's clients subscribe on an annual basis to the Company's online platform, AnalyticsTM 2.0. Recurring revenue contracts with these clients represent approximately 95 percent of WANTED's total revenues for the first quarter of fiscal 2011, compared to 91 percent for the first quarter of fiscal 2010.
As of September 30, 2010, contracts in hand, in Canadian dollars, represented approximately $4.9 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately $4.3 million dollars as of September 30, 2009, an increase of 14 percent. This 14 percent increase directly results from the signature of new contracts in the Government and Staffing sectors.
The majority of WANTED's clients are in the US and when viewed in US dollars, the level of recurring revenues as of September 30, 2010 is up 18 percent from 4.0 million dollars as of September 30, 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 Staffing and Government sectors leading to a more stable recurring revenue base. These two sectors, Staffing and Government, represented together, at the end of the first quarter of fiscal 2011, approximately 36% of the total recurring revenue base compared to 10% a year ago. The Company's partnership with The Conference Board, positively contributed to this diversification.
Three-month periods | |||||
ended September 30, | |||||
2010 | 2009 | ||||
(unaudited) | (unaudited) | ||||
$ | $ | ||||
Revenues | 1,247,345 | 1,135,462 | |||
Cost of sales | 6,032 | 243 | |||
Gross Margin | 1,241,313 | 1,135,219 | |||
Expenses | |||||
Research and development, net of tax credits | 377,131 | 338,853 | |||
Marketing and selling | 570,104 | 409,631 | |||
Administrative | 248,798 | 247,034 | |||
Amortization of intangible assets | 40,770 | 40,770 | |||
Financial expenses, net amount | 2,978 | 9,782 | |||
1,239,781 | 1,046,070 | ||||
Earnings before other revenue (expenses) | 1,532 | 89,149 | |||
Other revenue (expenses): | |||||
Exchange loss | (20,119) | (66,855) | |||
Loss on disposal of property, plant and equipement | (2,075) | ||||
Earnings (loss) before income taxes | (20,662) | 22,294 | |||
Income taxes | (18,795) | (16,520) | |||
Net earnings (loss) and Comprensive Income | (39,457) | 5,774 | |||
Basic and diluted net earnings (loss) per share | (0.0016) | 0.0002 |
Operating costs went from $1,046,070 in the first quarter of fiscal 2010 to $1,239,781 for the first quarter of fiscal 2011, an increase of $193,711, or 19 percent. This increase mostly results from increases of $38,278 in research and development expenses and $160,473 in sales and marketing expenses.
EBITDA for the first quarter of fiscal 2011 totalled $75,074, down $43,555 or 37 % from an EBITDA of $118,629 for the first quarter of fiscal 2010. EBITDA represents the net earnings before net financial expense, income taxes, depreciation and amortization on property, plant and equipment and intangible assets. As generally accepted accounting principles in Canada 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 September 30, 2010 amounted to $39,457 ($0.0016 per share) compared to net earnings of $5,774 ($0.0002 per share) for the corresponding quarter of the previous year, a negative variation of $45,231. This negative variation results from the decrease in earnings before other revenue and expenses and income taxes, offset by a positive variation related to foreign exchange. When compared to the previous year, earnings before other revenue and expenses and income taxes decreased $87,617 for the first quarter of fiscal 2011. WANTED recorded a foreign exchange loss of $20,119 in the first quarter of fiscal 2011 ended September 30, 2010, compared with a foreign exchange loss of $66,855 recorded in the corresponding quarter of prior year. An increase of $2,275 in the provision for income taxes contributed to the variation in net earnings.
Financial position
As at September 30, 2010, WANTED had a cash position (cash and temporary investments) of $1,717,204 and a working capital of $1,672,802. This compares with a cash position of $2,430,913 and a working capital of $1,801,720 as at June 30, 2010, representing decreases of $713,709 and $128,918 respectively. These decreases are mainly the result of cash flow used in operating, investing and financing activities. Note that a disbursement of $343,094 related to the reimbursement of the term loan expired in the first quarter of fiscal 2011 contributed significantly to the decrease in the cash position. The cash position was also affected by a negative variation of $286,785 associated with the changes in the working capital items mostly resulting from some delays in the collection of accounts receivable, an increase in the tax credits receivable and a decrease in deferred revenue.
Total assets stood at $5,425,387 at September 30, 2010, down $417,272 from $5,842,659 at June 30, 2010. The variance in total assets is mainly due to decreases of $523,329 in short-term assets and $40,770 in intangible assets, partially offset by an increase of $146,827 in property, plant and equipment.
Those interested will be able to access the information on the September 30, 2010 unaudited 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, November 16th, 2010
About WANTED Technologies Corporation
WANTED is the leading source of real-time employment market information. The Company provides insight and intelligence via its family of WANTED Analytics™Apps found at www.wantedanalytics.com. Clients in the media, HR/staffing and government sectors use WANTED Analytics™ Apps to prioritize sales opportunities, identify economic trends, and analyze competitive market conditions.
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.
WANTED Technologies (TSX-V:WAN) was 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. The Company began collecting detailed Hiring Demand data in October 2002, and currently maintains a database of more than 500 million unique job listings. To sample WANTED's services, visit www.wantedanalytics.com.
For more information about how WANTED helps organizations make better decisions and improve sales results, visit www.wantedtech.com.
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.
For further information:
Source: | WANTED Technologies Corporation |
Contact: |
Mr. Bruce Murray, President and CEO Tel: (418) 523-6663, ext. 222 Mr. Martin Auclair, VP Finance and CFO Tel: (418) 523-6663, ext. 337 |
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