Amadeus discloses year-end results for fiscal 2006
Quebec City, October 30th, 2006 —Amadeus International Inc. (TSX-V: AML), a pioneer and leader of advanced compliance process control solutions, today announced its results for fiscal 2006, ended June 30th, 2006.
Amadeus’ revenues have increased by 16.9% to $1,646,896 for the fiscal year ended June 30th, 2006, compared with $1,408,410 for fiscal 2005. The loss before financial expenses, income tax on earning and amortization (EBITDA) amount to $2,773,515, versus $2,322,550 for the corresponding quarter last year. The increase in net loss is mainly due to the low revenues generated by software license sales during the last two quarters and to the business re-engineering the Company underwent in the last quarter of fiscal 2006.
Amadeus incurred a net loss of $1,735,599, or $0.05 per share, in 2006, as opposed to a net loss of $2,805,638, or $0.12 per share, the previous year. The net loss reduction comes from the net income from discontinued operations, which totals $2,415,932.
| (Canadian dollars) | Fiscal Year Ended June 30th, |
|
| 2006 | 2005 | |
| $ | $ | |
| Revenues | 1,646,896 | 1,408,896 |
| Gross profit | 1,154,839 | 1,064,395 |
| Net loss from continuing operations | (4,151,531) | (2,876,436) |
| Net earnings from discontinued operations | 2,415,932 | 70,798 |
| Net loss | (1,735,599) | (2,805,638) |
| EBITDA* | (2,773,515) | (2,322,550) |
Any statement that appears prospective shall not be interpreted as such
Revenues for the fourth quarter of fiscal 2006 totaled $256,066, a decrease of 16.7% as compared with $307,550 for the fourth quarter of 2005. Amadeus reported a net loss from continuing operations of $1,837,318, or $0.05 per share, for the quarter ended June 30th, 2006, versus a net loss from continuing operations of $958,030, or $0.03 per share, for the corresponding period the previous year. Amadeus posted net income from discontinued operations totaling $1,716,784, or $0.05 per share, in the last quarter of fiscal 2006, as opposed to a net profit of $70,798 for the corresponding period the previous year. Amadeus reported a net loss of $120,534 during the fourth quarter of fiscal 2006, compared with a net loss of $887,232 in the same period a year earlier.Current assets amounted to $2,261,461 as at June 30th, 2006, versus $2,230,906 a year earlier. Current liabilities totaled $2,105,532 as at June 30th, 2006, versus $2,338,444 in the same period last year. Amadeus increased its working capital by $263,467 to stand at $155,929 at fiscal year-end 2006, compared with a deficit of $107,538 at the end of fiscal 2005. As at June 30th, 2006, the Company had cash resources of $37,037, as opposed to $321,134 for the corresponding period the previous year. Its cash resources were primarily used to finance its operating activities during the year.
Outlook
Fiscal 2006 was a key turning period for Amadeus, punctuated by many important steps: the signature of a partnership agreement with EMC Documentum™; the appointment of a new President and Chief Executive Officer and its review of the Company’s activities to improve sales velocity; a new strategy aimed at increasing focus on the Company’s core business, which involved the sale of some of M3K Solutions’ assets; the restructuring and optimizing of the Sales and Marketing Department; the access to new markets such as medical device and financial services; the deployment of a migration tool to help clients protect and leverage their software investments; and, finally, the signature of new reseller partnerships, thus increasing sales coverage. Management is confident that these initiatives taken during fiscal year 2006 will help position the Company for growth and improved performance in the fast growing market that is compliance process control today.
“We are confident that the initiatives taken during fiscal 2006 will help strengthen Amadeus’ positioning”, said Yves Leblanc, President and CEO of Amadeus. “We are now well positioned to increase our notoriety and scope within the sectors we have targeted, which will help us further capitalize on the fast growing market that is compliance process control today.”
| (Canadian dollars, except for number of shares) | |||||
| Twelve months ended | |||||
| CONSOLIDATED STATEMENTS OF EARNINGS | June 30th | ||||
| Unaudited | 2006 | 2005 | |||
| $ | $ | ||||
| Revenues | 1,646,896 | 1,408,410 | |||
| Cost of sales | 492,057 | 344,015 | |||
| Gross margin | 1,154,839 | 1,064,395 | |||
| Operating expenses | |||||
| Research and development | 1,109,511 | 1,071,999 | |||
| General, selling and administrative | 2,952,467 | 2,338,713 | |||
| Depreciation and amortization | 482,899 | 263,298 | |||
| Write-off of a technology | 379,094 | - | |||
| 4,923,971 | 3,674,010 | ||||
| Loss before financial expenses | (3,769,132) | (2,609,615) | |||
| Financial expenses | 382,399 | 264,211 | |||
| Income tax expenses | - | 2,610 | |||
| Net loss from continuing operations | (4,151,531) | (2,876,436) | |||
| Net earnings from discontinued operations | 2,415,932 | 70,798 | |||
| Net loss for the year | (1,735,599) | (2,805,638) | |||
| Basic and diluted net loss per share from continuing operations | (0.12) | (0.12) | |||
| Basic and diluted net earnings per share from discontinued operations | 0.07 | - | |||
| Basic and diluted net loss per share | (0.05) | (0.12) | |||
| Basic and diluted weighted average number of shares outstanding | 34,381,630 | 24,724,557 | |||
| Issued and outstanding shares | 34,472,287 | 34,381,378 | |||
| CONSOLIDATED BALANCE SHEETS | As at June 30th, | As at June 30th, | |||
| Unaudited | 2006 | 2005 | |||
| $ | $ | ||||
| Cash | 37,037 | 231,134 | |||
| Other current assets | 1,266,501 | 1,326,346 | |||
| Current assets of discontinued operations | 957,923 | 673,426 | |||
| 2,261,461 | 2,230,906 | ||||
| Long-term assets | 832,809 | 1,709,098 | |||
| Long-term assets of discontinued operations | 604,469 | 2,367,967 | |||
| Total assets | 3,698,739 | 6,307,971 | |||
| Current liabilities | 1,728,536 | 1,880,961 | |||
| Current liabilities of discontinued operations | 376,996 | 457,483 | |||
| Long–term liabilities | 2,484,959 | 1,857,996 | |||
| Long–term liabilities of discontinued operations | 269,445 | 1,845,877 | |||
| 4,859,936 | 6,042,317 | ||||
| Shareholders’ equity (deficiency) | (1,161,197) | 265,654 | |||
| Total liabilities and shareholders’ equity (deficiency) | 3,698,739 | 6,307,971 | |||
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For further information:
Isabelle Rivoal, Marketing and Communications Director
Phone: +1 (418) 525-0606, ext. 2231
E-mail: isabelle.rivoal@amadeussolutions.com
