Xenos Group Reports First Quarter Results
TORONTO--(BUSINESS WIRE)--Jan. 27, 2000--Xenos Group (TSE:XNS. - news), a leader in software for online document, statement and bill presentment, today reported continuing strong sales growth for its first quarter ended December 31, 1999.
Consolidated revenue increased 190% to $4.1 million for the three-month period ended December 31, 1999 compared to the previous year's sales of $1.4 million for the same period. The 1999 revenue growth reflects the contribution of Geneva Digital, acquired by Xenos Group in early October 1999. The year over year revenues of Xenos operations, excluding the Geneva contribution, was $2.43 million compared to $1.42 million in the prior year, a 71% increase.
Net loss before taxes for the three-month period ended December 31, 1999 was $890,456 compared with a 1998 net loss of $427,948 for the same period. The largest component of this loss was increased amortization of goodwill costs totaling $1,084,702 (1998 - $235,341) predominantly related to the Geneva Digital acquisition. The company also incurred higher sales and marketing costs due to the launch of its Documorph 2.0 product in the quarter. EBITDA for 1999 was $136,288 compared to a loss of $125,805 for the prior year.
Xenos experienced 275% sales growth in license revenues with December's first quarter results of $1.9 million, up from 1998's comparative sales of $523,060. Xenos continues to receive growing customer interest in the North American and European markets. With the successful release of its Documorph 2.0 software product, Xenos is offering a scalable, robust software product that addresses the diverse requirements of customers.
''We are very pleased with our rate of sales growth. We are experiencing tremendous interest in our software, giving us a solid foundation for continued growth,'' said Stuart Butts, Chairman and CEO. ''The expansion of our sales team, acquisition of Geneva Digital and the opening of new sales offices is allowing us to respond to the needs of the rapidly growing worldwide e-commerce market.''
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. The 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. Three Months to December 31, 1999
December December
1999 1998
Sales 4,104,473 1,416,338
Service integration costs 1,039,647 280,673
Gross profit 3,064,826 1,135,665
Expenses
Sales, marketing &
Administrative 2,366,940 941,236
Research & development 561,598 320,233
Amortization 1,084,702 235,341
Interest 20,786 72,337
--------- ---------
Earnings (loss) from operations (969,200) (433,482)
Other Income
Interest & Dividends 78,744 5,534
Loss before income tax (890,456) (427,948)
Provision for income taxes ---- ----
Net Loss (890,456) (427,948)
Net loss per share
Basic (0.11) (0.08)
Earnings (loss) before interest, taxes
Depreciation and amortization - 136,288 (125,804)
(EBITDA)
About Xenos Group
Based in Dallas and Toronto, Xenos Group (TSE: XNS - news, www.xenos.com - news) is a leader in software for online documents, statements and bills. Using the world's most advanced transformation technology, the company gives customers the ability to convert high-volume printed paper documents to any electronic format on any contemporary production platform. Customers such as Bear Stearns, Bank of New York, KeyBank, Merrill Lynch, Manulife Financial, Bell Canada and the Canada Post/Cebra's Electronic Post Office - EPOST, use Xenos Group software to transform and distribute more than a billion document pages every year.
Xenos Group's Documorph(TM) software lets companies rapidly implement e-documents, e-statements and e-bills, enabling the benefits of cost savings, cross-selling opportunities and closer customer relationships.
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Contact:
Xenos Group
Angela Vanderburg
905/709-1020
angelav@xenosgroup.com
or
Environics (media only)
Bruce MacLellan
416/920-9000, ext. 219
Heather McNulty
203/325-8772 ext. 23
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