Amadeus continues growth in the second quarter of fiscal 2006.
Quarter Highlights:
- Decrease of 92% of the loss before interest, income taxes and amortization compared to Q2 of last year
- Signature of an Independent Software Vendor relationship with EMC Documentum
- HyperBranch Medical Technology, Inc. selected the Amadeus’ eQCM® compliance process control suite as the foundation for enterprise-wide compliance.
Subsequent event:
- Appointment on January 12, 2006 of Mr. Yves Leblanc as President and Chief Executive Officer.
- Closing of a private placement at a minimum of $1 000 000 and a maximum of 1 400 000 $ in Canadian dollars, $1 000 000 was subscribed on February 9, 2006 in convertible debentures with a limited number of Canadian institutional investors.
Quebec City, February 27, 2006 – Amadeus International, Inc. (TSX: AML), disclosed today its Q2-2006 results. Amadeus is experiencing in the second quarter significant momentum and growth through increased demand following the signature of a new partnership with ECM Documentum. For the second quarter in a row, Amadeus generated 100% more revenues from the sale of its software licenses compared to last year. HyperBranch Medical Technology Inc. is among the companies that selected the eQCM®product suite for their enterprise compliance. Amadeus has also carried on the integration of its consulting division, M3K Solutions, a service group that assists organizations in their corporate governance compliance initiatives.
Second quarter Financial Results
Amadeus’s revenues increase by 335.6% to $1,691,036 for the second quarter ended December 31, 2005, compared with $388,183 for the same quarter last year. The increase is attributable mainly to the revenues from services growing from $86,055 in the second quarter of fiscal 2005 to $1,235,263 for the same period in 2006, following the acquisition of M3K Solutions on June 1, 2005. Furthermore, software licencing revenues have increased by 124.8% over the period.
Research and development expenses increased by 32.7% to $373,958 in the quarter from $281,861 in the second quarter of 2005. Investment in research and development is a priority for Amadeus management. The Company plans to continue to develop its products during the current fiscal year.
Due mainly to the strengthening of the sales force to better serve the U.S. market and from additional expenses incurring in managing a public company, operating expenses increased by 26.4% to total $678,561 for the second quarter of 2006, compared with $536,713 for the same quarter in fiscal 2005.
Depreciation and amortization expenses rose 281.6% to $244,792 in the quarter from $64,144 in 2005. This increase is attributable to the amortization of the identifiable intangible assets arising from the acquisition of M3K Solutions in June 2005.
As a result, Amadeus incurred a net loss of $400,913 or $0.01 per share in the second quarter of 2006, compared with a net loss of $660,079 or $0.03 per share the previous year. The weighted average number of common shares issued and outstanding rose from 20,193,913 in 2005 to 34,831,379, due on one hand to the issue of 7,050,000 and 2,756,463 common shares respectively in connection with the qualifying transaction and the concurrent private placement in December 2004, and on the other to the issue of 5,428,571 common shares as part of the acquisition of M3K Solutions in June 2005.
Financial Position
The Company had total assets of $6,159,897 as at December 31, 2005, up from $6,443,093 on September 30, 2005. Current assets amounted to $2,535,425 as at December 31, 2005, versus $2,592,945 a quarter earlier.
Total liabilities amounted to $6,718,256 at the close of the second quarter of fiscal 2006, compared with $6,618,901 as at September 30, 2005. As for current liabilities, they totalled $3,287,882 as at December 31, 2005, versus $3,061,647 a quarter earlier. Amadeus posted a working capital deficiency of $752,457 as at December 31, 2005.
Shareholders’ equity deficit is $558,359 at the end of the second quarter, down from equity of $175,808 as at September 30, 2005. The number of common shares issued and outstanding stood at 34,381,378 by the close of the second quarter of fiscal 2006.
The Company announced on February 10, 2006 the closing of a private placement of a minimum of $1 000 000 and a maximum of 1 400 000 $ in Canadian dollars. $1 000 000 was subscribed on February 9, 2006 in convertible debentures with a limited number of Canadian institutional investors.
Forward-looking statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
About Amadeus International
Amadeus International is the pioneer and leader of Compliance Process Control solutions and corporate governance services. Its flagship product, eQCM, is a flexible, web-based integrated suite of applications that allow organizations to map regulated business processes such as CAPA, non-conformances, customer complaints, EH&S, corporate governance, and other related quality and business processes. Also, Amadeus’s Consulting Services division offers world-class professional services for corporate governance that comply with global regulations such as Sarbanes-Oxley, Basel II, and others. The application suite is coupled with powerful business intelligence capabilities, Enterprise Content Management, and related technologies that help organizations achieve sustained compliance. Amadeus International’s headquarters are located in Quebec City with satellite offices in Chicago, Montreal, New Jersey, Paris, Minnesota, and Philadelphia. Amadeus’s solutions are distributed across four continents.
Financial Highlights
|
Quarter ended December 31, 2005 |
Quarter ended December 31, 2004 |
|
|
|
Revenues |
$1,691,036 |
$388,183 |
Gross profit |
$991,016 |
$296,582 |
Operating expenses |
$1,297,311 |
$882,718 |
EBITDA * |
$(43,141) |
$(521,992) |
Net loss |
$(400,913) |
$(660,079) |
Weighted average number of shares issued and outstanding |
34,831,913 |
19,193,913 |
|
As at December 31, 2005 |
As at December 31, 2004 |
Total assets |
$6,159,897 |
$4,081,356 |
Long-term debt |
$1,212,115 |
$69,620 |
Shareholders’ equity (Deficit) |
$(558,359) |
$825,486 |
* Definition of EBITDA: Earnings (loss) before financial expenses, income tax on earning and amortization. EBITDA is presented as an additional measurement of earnings in order to assist the reader to establish the Company’s ability to generate cash from activities and to acquit its financial charges. It is also an indicator generally used for purposes of evaluation. Canadian generally accepted accounting principles give no standard interpretation to this measurement and it cannot therefore be compared to similar measurements used by other enterprises.
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Information:
Frédéric Garand,
Vice President and Chief Financial Officer
Tel.: (418) 525-0606, ext. 2268
frederic.garand@amadeussolutions.com
Isabelle Rivoal,
Manager, Marketing and Communications
Tel.: (418) 525-0606, ext. 2231
isabelle.rivoal@amadeussolutions.com
