VANCOUVER, June 24 /PRNewswire-FirstCall/ -- VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "Company"), a leading provider of automated transaction systems software, is pleased to report the results of its operations for the three and six months ended April 30, 2008. The Company also announced it has amended its financial results for the first quarter ended January 31, 2008.
Quarterly revenues and cost of revenues for the first quarter have been restated due to a technical transaction processing error. The Company recorded the entire dollar value of transactions instead of the specific amount attributable to the Company. Revenues and cost of revenues have been reduced by $1,096,218 to $28,994,961 and $27,330,846 respectively. Gross margin and net earnings were not affected.
Highlights of the Company's second quarter results include: - Revenues increased 67% to $28.883 million in 2008 from $17.291 million in 2007. - Software and service revenue increased 14% from $231,000 in 2007 to $266,000 in 2008. - Earnings before income taxes increased from $97,000 in 2007 to $251,000 in 2008. - Ten consecutive profitable quarters. - Launch of network in North Africa in March 2008. Highlights of the Company's six months results include: - Revenues increased 72% from $33.706 million in 2007 to $57.878 million in 2008. - Prepaid telecommunications revenue increased 73% from $33.157 million in 2007 to $57.317 million in 2008. - Earnings before income taxes increased from $365,000 in 2007 to $478,000 in 2008. - Net income of $316,000 (or $0.01 per share) after a $162,000 tax provision. - Increased number of terminals in Canada to 13,958.
"The continued growth of our business in Canada and the United Arab Emirates is reflected in our results. We are very pleased to have launched our network in North Africa during the quarter. Today, we are processing transactions in Canada, China, U.A.E, and North Africa. We anticipate strong future growth from the United States as well," said Doug Buchanan, President and Chief Executive Officer of VendTek.
"We have corrected the error in the first quarter and have put additional control procedures in place. Our strong growth requires us to continue to evaluate our systems and processes to ensure that we have the appropriate controls," continued Mr. Buchanan.
"We believe our continued financial strength has positioned us for growth. We generated almost $1.4 million from our operations for the first half of this year compared to approximately $516,000 for the first half of 2007," said Nurez Khimji, Chief Financial Officer of VendTek.
Mr. Buchanan and Mr. Khimji will discuss the financial results on Wednesday, June 25th, at 10:00am (PDT). Access to the conference call can be obtained by dialing 416-644-3433 or 1-800-732-6179.
The complete statements are available at http://www.sedar.com/. About VendTek
VendTek develops and licenses automated transaction system software and supporting technologies that improve the efficiency of product delivery, reduce costs to clients and offer superior safety measures. VendTek's customers and its division, Now Prepay Corp. and its subsidiaries are using e-Fresh(TM) software to build electronic, prepaid services networks, which enable consumers to purchase prepaid services via POS and self-serve terminals connected to a central e-Fresh(TM) server. This system creates significant value through improved efficiencies compared to the traditional distribution paradigm. e-Fresh(TM) reduces shrinkage and inventory requirements while improving consumer access to prepaid services by completely eliminating physical cards and vouchers. For further information please visit the Company's websites http://www.vendteksys.com/ and http://www.nowprepay.com/.
Forward Looking Statements
In order to provide our investors with an understanding of our current results and future prospects, our communications often include written or oral forward-looking statements. This earnings announcement & MD&A and other material filed with the Canadian securities regulators contain statements that are forward-looking. These statements are made pursuant to the "safe harbor" provisions of applicable Canadian securities legislation. These statements represent the Company's intentions, plans, expectations and beliefs and are based on our experience and our assessment of historical and future trends and the application of key assumptions relating to future events and circumstances. These statements may include, but are not limited to, comments about our objectives and priorities for 2008 and beyond, strategies and targets, expectations for our financial condition, and the outlook for our operations and external factors that may impact results, including global economies and industry trends.
Forward-looking statements require assumptions and involve risks and uncertainties related to our business and the general economic environment, many beyond our control. There is significant risk that the predictions, forecasts, conclusions or projections we make will not prove to be accurate and that our actual results will be materially different from the targets, expectations, estimates or intentions expressed in the forward-looking statements. We caution readers not to place undue reliance on our forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic conditions in the countries in which we operate; currency fluctuations; market demand for our products and services; our ability to execute projects and deliver solutions; our ability to execute our strategic plans and to complete and integrate acquisitions; the degree of competition in the geographic and business areas in which we operate; our ability to attract and retain qualified employees and contain payroll costs; our ability to contain expenses; technological changes and research and development; the length of the sales cycle required to close larger solution contracts; availability of financial resources to carry out our strategy; our ability to protect our intellectual and intangible properties; legal claims; critical accounting estimates; the possible effects on our business of war or terrorist activities; disease or illness that affects local, national or international economies; and disruptions to public infrastructure, such as transportation, communications, power or water supply. We caution that this list is not exhaustive of all possible factors.
Other factors could adversely affect our results.
When relying on forward-looking statements to make decisions with respect to the Company, investors should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Unless required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the company or on its behalf.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
CONTACT: For more information or to receive the complete statements please contact Samantha Haynes at (604) 805-4653 or 1-800-806-4958 or
