Xenos Reports Second Quarter And First Half Results
Xenos Group Inc. recently reported net income of $247,000 in the second quarter and net income for the first six months of fiscal 2008 of $775,000 or approximately $.08 per share. Xenos revenues for the second quarter ended March 31, 2008 rose to $3,805,000 as compared to revenues of $3,720,000 for the same quarter last year. Revenues for the six months ended March 31, 2008 were $7,954,000 as compared to $7,651,000 for the first six months of fiscal 2007. Xenos reported a significantly improved EBITDA of $979,000 for its first half as compared to EBITDA of $460,000 for the six months ended March 31, 2007.
Total expenses were reduced to $5,717,000, from $6,530,000 in the first half of fiscal 2007. Sales and marketing expenses were reduced to $2,419,000 for the first six months of the year from $2,930,000 last year.
Comparative results and revenues for the first two quarters were impacted by the relative strength in the Canadian dollar against our major trading currencies, particularly the US dollar. The CAN$/US$ closing rate at the end of the second quarter was $0.974 compared to $0.866 at the end of the second quarter last year, an increase of 12.5%. Revenue generated in US dollars represented the majority of revenues earned in the first half of the year. Xenos did however benefit from a foreign exchange gain of $212,000 for the first six months compared to a loss of $27,000 in the same period last year.
The second quarter continued the trends of both year-over-year revenue growth (7th consecutive quarter) and improved EBITDA (6th consecutive quarter).
At the half way point in the year, the Company is substantially on target to meet its overall financial objectives for the year, and its priority software development objective, initial release of the code-named Xenos Enterprise Server ("XES"). The beta release program with select customers is planned for the fourth quarter of this fiscal year, with the public release by October 1, 2008.
"We designed XES in response to our customers' business and technical requirements for a solution currently unfulfilled in the marketplace. They wanted to rationalize how to integrate, translate, repurpose, route, archive and deliver actionable business information throughout the enterprise and beyond. By providing data and document transformation as an enterprise service, XES enables the adoption of a cost-effective enterprise information architecture tailored to meet business and green IT objectives without the constraints imposed by incompatible hardware or software platforms and disparate data and document formats," said Stuart Butts, Chairman and CEO of Xenos.
At March 31, 2008, Xenos held cash of 8,248,000 or $.82 per common share (and no significant long-term debt), compared to $7,357,000 or $.74 at September 30, 2007.
Conference Call Notice
A conference call for shareholders, analysts and other members of the investment community has been scheduled for Friday, May 9 at 10:00 a.m. Eastern Time. Stuart Butts, Chairman, President and Chief Executive Officer, and George Kypreos, Chief Financial Officer, will discuss the financial results and provide updates on operations. To participate, please dial 416-644-3416, or 1-800-814-4862 approximately 10 minutes before the conference call.
The conference can also be heard over the Internet at the company's website. www.xenos.com
A recording of the conference call will be available through May 16. Please dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21271208, followed by the number sign, to listen to the rebroadcast. The call will also be archived for 30 days on the Xenos website.
About Xenos
Xenos high-performance software solutions streamline enterprise information supply chains. We enable our customers to process, transform, repurpose, personalize and deliver their data and documents when they need it, where they need it and how they need it. Xenos extends the value of existing IT investments, enabling organizations to increase efficiency, agility and accountability, while supporting Green IT initiatives.
By streamlining, standardizing and automating the handling of information on demand, our customers reduce costs while increasing a powerful competitive advantage—adaptability. Xenos has customers worldwide in financial services, insurance, healthcare, telecommunications, manufacturing, logistics, transportation, retail and government sectors. Xenos sells and supports its solutions directly from offices in Canada, the United States, the United Kingdom and France and through a global partner network. Xenos trades on the Toronto Stock Exchange under the trading symbol 'XNS.' For more information, visit www.xenos.com.
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