COMTEX) B: XENOS GROUP INC - Third Quarter Financial Results
B: XENOS GROUP INC - Third Quarter Financial Results
Toronto, Ontario, Aug. 27, 1999 (Market News Publishing via COMTEX)
-- Xenos Group reported results for its third quarter ended June 30,
1999.
Consolidated revenues increased 62% to $6.8 million for the nine-month
period ended June 30, 1999 compared to the previous year's sales of
$4.2 million for the same period. The company continues to experience
growing demand for its software offerings, the larger Bell Canada and
the Canada Post Corporations/Cebra Inc. projects augmented revenues
during the year. Net earnings of $112,815 in the nine-month period
ended June 30, 1999 compared with a 1998 net loss of $6,397 for the
same period. It should be noted that 1999 net income includes the
divestiture of a non-core asset, resulting in a one-time gain of $219,
000 in 1999. Basic earnings per share increased to $0.02 from $0.00 in
1998.
Xenos experienced strong quarter over quarter 75 % sales growth with
June's third quarter results of $2.903 million, up from 1998's
comparative sales of $1.66 million. Xenos continues to receive growing
customer interest in the North American market and has recently
established a European presence with several small but significant
sales. With the successful, on-time release of its' new Documorph 2.0
software products now available for general release, Xenos is
positioned to offer a broader software product that better addresses
the diverse requirements of our customers.
Xenos Group completed an Initial Public Offering of common shares on
August 11, where the Company sold 2,000,000 Common Shares from treasury
for net proceeds of $15,895,000. To date, proceeds from this issue have
been utilized to retire all corporate debt with the balance of the
proceeds invested in interest bearing securities. These funds are
reserved to execute the various business strategies outlined in the
prospectus.
"Our successful share offering, combined with increasing interest in
our software products, gives us a solid foundation for continued growth,
" said Martin Heenan, President and COO. "The recent re-organization of
our product development and client support teams to better serve our
clients has positioned Xenos Group to take advantage of enormous
opportunities in the rapidly growing e-commerce market."
Consolidated Statements of Earnings (Loss)
Nine Months to June 30, 1999 (unaudited)
Jun-99 Jun-98
Sales $6,863,344 $4,256,966
Service integration costs 1,441,192 785,270
Gross profit 5,422,152 3,471,696
Expenses
Sales, marketing & administrative 2,905,608 2,115,423
Research and development 1,600,442 610,899
Amortization 851,697 540,588
Interest 203,716 142,467
5,561,463 3,409,377
Earnings (loss) from operations (139,311) 62,319
Other Income 227,889 13,978
Earnings (loss) before income taxes 88,578 76,297
Provision for income taxes (recovery) (24,237) 82,694
Net earnings (loss) $112,815 ($6,397)
Net earnings (loss) per share
Basic $0.02 $0.00
Fully diluted $0.02 $0.00
Earnings before interest, taxes,
depreciation and amortization -
(EBITDA) $1,143,941 $759,352
About Xenos Group
Based in Toronto, ON, and Dallas, TX, Xenos Group
(www.xenosgroup.com)
is an innovative provider of e-commerce document presentment
software. The company's technology converts print or data streams from
existing host environments to the Internet, using any digital output
media on any platform. Large organizations with high-volume document
requirements use this unique technology to save millions of dollars
every year through the electronic reproduction and distribution of
branded customer-contact documents such as bills, policies and
statements. The company was listed on the Toronto Stock Exchange
(symbol: XNS) on August 11th 1999.
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TEL: (905) 709-1020 Xenos Group
TEL: (905) 709-1020 Xenos Grou
Stuart Butts or Linda Montgomery
EMAIL: lmontgomery@xenosgroup.com
TEL: (416) 920-9000 x260,219 Environics Communications
Daniel Tisch or Bruce MacLellan
EMAIL: dtisch@pr.environics.ca
bmaclellan@pr.environics.ca
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