(COMTEX) B: XENOS GROUP REPORTS YEAR-END RESULTS E-COMMERCE SOFTWARE
B: XENOS GROUP REPORTS YEAR-END RESULTS E-COMMERCE SOFTWARE COMPANY ACHIEVES
RECORD REVENUE AND EARNINGS
TORONTO, Dec 21, 1999 /CNW-PRN via COMTEX/ -- Xenos Group (TSE: XNS)
today reported its preliminary results for the year ended September
30th, 1999, subject to clarification of tax issues. The results show an
83% increase in consolidated revenue and a 323% increase in net
earnings over the previous year, a reflection of growing demand for the
company's electronic document presentment software among major
customers across North America.
"These results demonstrate that Xenos Group has had a very strong and
profitable year," said Stuart Butts, the company's chairman and chief
executive officer. "We released a new version of our flagship software,
earned the confidence of significant new customers, completed a
successful IPO, and positioned Xenos to take advantage of the rapid
growth of the international market for the electronic presentment of
documents, statements and bills."
Consolidated revenue was $10,514,340, compared with $5,748,595 last
year. Net earnings were $746,510, compared with a 1998 net loss of $334,
539. Basic earnings per share increased to $ 0.10 from a loss of $ 0.07
in 1998, while EBITDA for the year was $2,707,828 compared with
$793,387 during 1998.
In keeping with Canadian generally accepted accounting principles,
these results reflect; 1) capitalization of $1,100,000 related to the
development cost of Documorph 2.0. Documorph, the company's flagship
product, was built during the fiscal year and achieved its first sale
subsequent to year-end, 2) deferred maintenance revenues in the amount
of $669,163, and 3) an additional $227,000 of previously capitalized
financing expenses has been written off. This is related to the
retirement of long-term debt and in keeping with the use of proceeds
raised from their IPO in August 1999.
In 1999, Xenos attracted growing customer interest in the North
American market, announcing contracts and relationships with Key Bank,
Lincoln National Life Insurance Co., Bell Canada, Canada Post, Bear
Stearns, Manulife Financial and others. The company recently
established a European presence with the acquisition of London-based
Geneva Digital, a high value-added consultancy in the electronic
document market space. With the successful, on-time release of its new
Documorph 2.0 software in the summer of 1999, Xenos is positioned to
offer a robust software product that better addresses its customers'
diverse electronic billing, document and statement presentment needs.
Xenos continues to define the electronic document presentment market
space, a subset of which was recently examined by Killen & Associates,
a leading market research and consulting firm. In fact, a recent Killen
study predicted that the North American electronic statement and
electronic bill presentment and payment (EBPP) market will grow to $32
billion by 2005.
Consolidated Statements of Earnings (Loss).
All figures in Canadian Dollars.
Twelve Months to September 30, 1999
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September 1999 September 1998
Sales $10,514,340 $5,748,595
Service integration costs 1,075,133 812,989
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Gross profit 9,439,207 4,935,606
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Expenses
Sales, marketing & administrative 5,275,081 3,092,542
Research and development 1,456,298 1,049,677
Amortization 2,010,840 851,985
Interest 248,660 213,602
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8,990,879 5,207,806
Earnings (loss) from operations 448,328 (272,200)
Other Income
Gain on Sale of Investment 219,292 -
Interest & Dividends 81,556 20,265
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Earnings (loss) before income taxes 749,176 (251,935)
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Provision for income taxes 2,666 82,604
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Net earnings (loss) $746,510 $(334,539)
------------- ------------
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Net earnings (loss) per share
Basic $0.10 $(0.07)
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Fully diluted $0.10 $(0.07)
------------- ------------
Earnings before interest, taxes,
depreciation and amortization
- (EBITDA) $2,927,120 $793,387
About Xenos Group Based in Toronto, ON, and Dallas, TX, Xenos Group
(www.xenos.com) is a leader in e-commerce software for on-line
statements and bills. Using the world's most advanced transformation
technology, the company gives customers the ability to convert any
high-volume printed paper document to any electronic format 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.
Xenos was listed on the Toronto Stock Exchange (symbol: XNS) on August
11th 1999.
SOURCE Xenos Group
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: Xenos Group: Stuart Butts or Martin Heenan 905-709-1020;
Environics Communications: Bruce MacLellan or Daniel Tisch
416-920-9000,
ext. 219 or 260
(XNS.)
GEOGRAPHY: Ontario
INDUSTRY CODE: CPR
SUBJECT CODE: ERN
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