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Nstein Technologies announces improved 2009 Q2 results
Nstein 2009 Q2 revenues were
"These results demonstrate the positive impact of the cost-cutting measures introduced by the company over the last twelve months. Because of the uncertain economic climate, the cost structure was reduced significantly, thereby making it possible to post a positive EBIDTA in the second quarter. This earnings level meets our expectations and again confirms the appeal of Nstein solutions to content publishers seeking avant-garde tools to drive their digital strategy. Our current and potential clients are still affected by the sharp decline in their advertising revenues during this recessionary period but signs of improvement encourage us to approach the second half of the year with cautious optimism. The financial situation of the company is sound, and we will be in a good position to profit from the coming recovery," said
At
About Nstein Technologies Inc.
Nstein Technologies (TSX-V: EIN) develops and markets multilingual solutions that power digital publishing for the most prestigious newspapers, magazines, and content-driven organizations. Nstein's solutions generate new revenue opportunities and reduce operational costs by enabling the centralization, management and automated indexing of digital assets. Nstein partners with clients to design a complete digital strategy for success using publishing industry best practices for the implementation of its Web Content Management, Digital Asset Management, Text Mining Engine and Picture Management Desk products. www.nstein.com
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adequacy or accuracy of this release.
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such.
NSTEIN TECHNOLOGIES INC.
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Consolidated Balance Sheets As at June 30 As at December 31
2009 2008
$ $
(unaudited)
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Assets
Current assets
Cash and cash equivalents 5,993,704 7,405,217
Term deposits 164,600 214,600
Accounts receivable 6,408,194 6,864,825
Refundable tax credits 1,633,477 984,478
Income taxes receivable - 335,656
Work in progress 856,604 680,639
Prepaid expenses 206,057 207,389
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15,262,636 16,692,804
Property, plant and equipment 645,201 736,506
Intangible assets 2,972,814 3,364,257
Goodwill 10,496,905 10,496,905
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29,377,556 31,290,472
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 3,695,092 4,442,361
Deferred revenues 3,475,146 3,236,640
Future income tax liabilities 150,315 150,315
Current portion of long-term debt 300,555 330,503
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7,621,108 8,159,819
Long-term debt 359,195 520,799
Future income tax liabilities 499,308 571,071
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8,479,611 9,251,689
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Shareholders' Equity
Share capital 54,152,340 54,028,128
Other equity components 2,684,514 2,695,998
Contributed surplus 2,047,367 1,805,717
Deficit (37,986,276) (36,491,060)
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20,897,945 22,038,783
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29,377,556 31,290,472
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NSTEIN TECHNOLOGIES INC.
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Consolidated Statements Three months ending Six months ending
of Earnings and Deficit June 30 June 30
2009 2008 2009 2008
$ $ $ $
(unaudited) (unaudited) (unaudited) (unaudited)
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Revenues 6,188,031 6,008,624 11,573,363 12,037,855
Cost of sales, net of
tax credits 2,659,015 2,861,739 5,482,415 5,386,153
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3,529,016 3,146,885 6,090,948 6,651,702
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Expenses
Selling and
administrative 2,614,923 3,357,316 5,251,091 6,384,989
Research and
development,
net of tax credits 573,529 966,211 1,252,263 1,910,381
Depreciation of
property, plant
and equipment 53,547 69,797 130,411 145,176
Amortization of
intangible assets 199,414 248,279 410,764 427,016
Loss on disposal of
property, plant and
equipment 5,382 - 5,382 -
Exchange (gain) loss 191,016 83,826 89,198 (80,294)
Financial (revenues)
expenses 9,781 10,761 39,988 (54,738)
Restructuring fees 174,446 - 478,826 419,156
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3,822,038 4,736,190 7,657,923 9,151,686
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Loss before income tax 293,022 1,589,305 1,566,975 2,499,984
Recovery of income tax
Future income tax (34,181) (37,578) (71,759) (56,367)
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(34,181) (37,578) (71,759) (56,367)
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Net loss and
comprehensive loss
for the period 258,841 1,551,727 1,495,216 2,443,617
Deficit - Beginning
of period 37,727,435 35,233,564 36,491,060 34,341,674
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Deficit - End of
period 37,986,276 36,785,291 37,986,276 36,785,291
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Basic and diluted net
loss share 0.005 0.030 0.029 0.050
Basic and diluted
weighted average
number of shares
outstanding 51,837,875 51,053,643 51,802,721 48,797,518
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NSTEIN TECHNOLOGIES INC.
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Consolidated Statements Three months ending Six months ending
of Cash Flows June 30 June 30
2009 2008 2009 2008
$ $ $ $
(unaudited) (unaudited) (unaudited) (unaudited)
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Cash flows from
operating activities
Loss for the period (258,841) (1,551,727) (1,495,216) (2,443,617)
Items not affecting
cash and cash
equivalents
Interest capitalized
on long-term debt 3,400 6,351 7,162 14,621
Unrealized exchange
loss (gain) 661 (396) 766 69,904
Depreciation of
property, plant
and equipment 53,547 69,797 130,411 145,176
Amortization of
intangible assets 199,414 248,279 410,764 427,016
Loss on disposal of
property, plant and
equipment 5,382 - 5,382 -
Stock-based
compensation costs 124,001 119,172 230,166 266,157
Compensation costs
related to the
deferred share unit
plan for directors (12,609) 44,750 (106,469) 75,500
Costs related to the
employee stock
purchase plan 33,127 17,124 62,106 34,796
Future income tax (34,181) (37,578) (71,759) (56,367)
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113,901 (1,084,228) (826,687) (1,466,814)
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Change in non-cash
operating working
capital items
Accounts receivable (72,454) 2,337,292 456,631 1,717,441
Refundable tax credits (444,309) (368,710) (648,999) 257,961
Income tax receivable 342,102 - 335,656 -
Work in progress (213,540) (107,378) (175,965) (563,778)
Prepaid expenses 37,593 (91,291) 1,332 (118,091)
Accounts payable and
accrued liabilities (247,016) (395,151) (423,064) (184,070)
Deferred revenues 5,167 (551,714) 238,506 862,747
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(592,457) 823,048 (215,903) 1,972,210
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(478,556) (261,180) (1,042,590) 505,396
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Cash flows from
financing activities
Variation in bank loans - - - (452,742)
Payments on long-term
debt (89,451) (35,371) (208,590) (188,966)
Payment on Balance of
purchase price of a
subsidiary - (1,080,591) - (1,080,591)
Issuance of common
shares, net of issue
expenses 33,127 (20,815) 62,106 (38,094)
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(56,324) (1,136,777) (146,484) (1,760,393)
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Cash flows from
investing activities
Variation in term
deposits - - 50,000 20,786
Business acquisitions,
net of cash and cash
equivalents (116,228) (287,335) (217,740) (2,648,694)
Additions to property,
plant and equipment (45,107) (66,728) (58,156) (95,138)
Additions to intangible
assets (13,100) (25,959) (20,670) (28,226)
Proceeds from the sale
of property, plant
and equipment 24,127 - 24,127 -
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(150,308) (380,022) (222,439) (2,751,272)
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Decrease in cash and
cash equivalents (685,188) (1,777,979) (1,411,513) (4,006,269)
Cash and cash
equivalents -
Beginning of period 6,678,892 9,502,565 7,405,217 11,730,855
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Cash and cash
equivalents -
End of period 5,993,704 7,724,586 5,993,704 7,724,586
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SOURCE NSTEIN TECHNOLOGIES INC.
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