EDMONTON, July 25 /PRNewswire-FirstCall/ -- Serenic Corporation (the "Company") (TSX-V:SER), an international software developer and marketer providing financial software solutions to not-for-profit ("NFP"), educational and government organizations, announces its financial results for the first quarter ended May 31, 2008.
For the three-month period ended May 31, 2008, the Company increased revenues by 8.1% to $1,973,313 from $1,825,578 during the same three-month period the year prior. Navigator sales conducted by our partner channel contributed mostly to the increase, with the remainder coming from higher software maintenance revenue, and training classes and partially offset by lower consulting revenue. Gross margin increased by $192,506 or 15.1%, to $1,467,593, from $1,275,087 same quarter last year, as a result of the higher sales. A net loss of $550,842 ($0.04 per share) was recorded in the current quarter, as compared to a loss in the same quarter last year of $294,854 ($0.02 per share). These results were primarily due to the Company having increased operating expenses this year by $361,535 or 21.1%, as a result of hiring additional sales and consulting personnel and accelerating marketing initiatives and associated costs. A less significant contributory factor was the foreign exchange gain of $96,971 reported in the comparable quarter last year decreasing to $4,603 in the current quarter. These results are indicative of management's strategy to grow market share and top line revenues of the Company, which necessitates a reinvestment of resources in support of those objectives.
Quarter Highlights
The Company continued to work in close collaboration with its reseller partners and Microsoft in pursuit of key customer wins, resulting in the addition of several high-profile niche market leaders as new clients. Such clients included the Green Bay Catholic Diocese, one of the largest of such organizations in North America; the Banff Centre, a globally renowned arts, cultural, and educational institution; and an international philanthropic organization.
Outlook
The Company continues to evolve as a preferred supplier within niche segments of the NFP and public sector markets, and is becoming a major contender within these markets for both North American and global organizations. With no debt and $2.6 million cash on hand, the Company is continuing to execute upon its growth strategy to increase market share and revenue. Expectations are to continue the re-investment of resources in the current fiscal year to grow top line revenues, while still generating positive cash flow.
Forward Looking Statements
Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Serenic Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, software industry risks, general business risks, foreign currency risks, economic dependence risks, and credit risks.
About Serenic Corporation
Serenic Corporation is an industry-leading publisher of mission-critical software products that satisfy the unique and sophisticated functionality requirements of not for profit organizations, educational institutions, and government agencies. Built on Microsoft Dynamics NAV, Serenic's products deliver fully integrated solutions that can, in many organizations, eliminate the need for multiple third-party business applications.
A Microsoft Gold-certified Industry Solutions Vendor, the Corporation's products include the highly acclaimed Serenic Navigator*, Serenic DonorVision, and Serenic MinistryView. In addition, the Corporation is the exclusive developer of the human resources and payroll products for Microsoft Dynamics NAV users for North America.
Serenic Corporation is a public company with offices in Edmonton, Alberta and Lakewood, Colorado. It trades under the symbol "SER" on the TSX Venture Exchange in Canada. Additional information about the Company is available at http://www.serenic.com/.
ON BEHALF OF THE BOARD OF DIRECTORS By: "Dwayne Kushniruk" Chairman SERENIC CORPORATION The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Editor's Notes: The Corporation was recently ranked 20th in the Top 100 Growth Companies by Profit Magazine, and was honoured as one of the Top 10 Technology Companies in the 2008 TSX Venture emerging public companies list
