Business News
Nstein Technologies posts 3Q 2008 revenues up 37%
Friday 14. November 2008 - Nstein Technologies Inc. www.nstein.com (TSX-V: EIN), today announced its results for the third quarter ended September 30, 2008.
Third-quarter revenues were $5.6 million compared to $4.1 million for the corresponding period in 2007, representing an increase of 37%. The Company signed four new projects during the third quarter, two in the United Kingdom and two in the United States. Despite the uncertain economic environment, the Company has been able to continue its growth due to marketing efforts over the past two years directed at a carefully targeted market undergoing a profound transformation.
The Company posted a loss before financial expense, income taxes, depreciation, amortization, exchange losses and restructuring fees (EBITDA) of $818,202 compared to a negative EBITDA of $84,025 for the third quarter of the previous year. This setback is due mainly to licensing revenues that were lower than anticipated because potential clients delayed their purchasing decisions. In fact, certain of these expected contracts materialized at the start of the fourth quarter, which offers reassurance about the potential of this market. In the context of the expected economic slowdown, certain adjustments were made to the cost structure during the third quarter. Nstein halted its hiring program and reviewed certain discretionary expenditures. The net loss for the three-month period ended September 30, 2008 was $1,056,073 or $0.021 per share, compared to $291,195 or $0.008 per share during the same period in 2007.
Revenues for the nine-month period ended September 30, 2008 amounted to $17.6 million compared to $11.9 million in 2007, and the Company posted a negative EBITDA of $2.5 million compared to $0.4 million for the same period in 2007. The net loss for the nine-month period was $3.5 million or $0.071 per share, compared to $1.9 million or $0.054 per share in 2007. At September 30, 2008, the Company had cash of $6.3 million, working capital of $6.7 million and a long-term debt of $0.5 million.
“We remain committed to becoming the world leader in digital publishing solutions. Our current and potential clients see the decline in their print revenues accelerating because of the reduction in advertising spending by businesses. Revenues from their digital assets continue to rise, however, proving the value of this business model and the relevance of the products offered by Nstein. We are confident that despite the current economic uncertainty, a number of clients will rely on Nstein when creating next-generation sites that enable them to increase their revenues substantially. The Company has a sound balance sheet and thus the resources necessary to achieve its business plan,” explained Luc Filiatreault, President and CEO of Nstein.