News and Events

Nstein reports record sales for fourth quarter and fiscal 2006

2007-03-15

Fourth quarter 2006 sales of $3.9M, a 162% increase compared to fourth quarter 2005

Highlights:

  • Record sales for fourth quarter and fiscal 2006
  • Acquisition of Eurocortex, a European leader in content management
  • Important decrease of the EBITDA loss for fourth quarter 2006

Montreal, Quebec, March 15, 2007 - Nstein Technologies Inc., "Nstein" (TSX-V: EIN), today announced its results for the fourth quarter and fiscal year ended December 31, 2006.

Nstein's revenues in the fourth quarter of 2006 reached $3.9M compared to $1.5M, an increase of 162% over the revenues in the fourth quarter of last year and 38% over those of the third quarter of 2006. For the fourth quarter of 2006, Nstein posted a loss before financial expenses, exchange gain, income taxes on earnings, depreciation and amortization (EBITDA) of $0.3M, compared to $1.8M the year before. The loss amounted to $0.6M or $0.020 per share in the fourth quarter of 2006, as opposed to $3.9M or $0.209 for the same period last year.

Revenues for the year 2006 amounted to $10.7M compared to $9.1M in 2005, an increase of 18%. Loss before financial expenses, income tax, depreciation, amortization and impairment of intangible assets (EBITDA) stood at $2.8M compared to $3.1M for the previous year. Net losses totalled $4.8M or $0.186 per share in 2006, against $6.8M or $0.363 in 2005.

"These record sales for 2006, and more specifically the two last quarters, are the direct result of the great receptiveness of the e-publishing market towards Nstein's solutions and especially its new Ntelligent Content Management (NCM) Suite, a powerful combination of Nstein's text mining technology and Eurocortex's content management platform for the press and media industry," said Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies. "Never before have press and media organizations seen such a shift of their advertising revenues from print to digital media. By enabling cross media publishing and multichannel delivery (from any sources to various output formats such as RSS feeds, podcasts, etc.), Nstein's next-generation content management platform helps these organizations bridge the gap. The NCM Web 2.0-ready platform allows them to generate additional online revenues, accelerate their time-to-market and reduce their operational costs." 

Further commenting Nstein's acquisition of Eurocortex, Mr. Girard added: "Along with their extensive knowledge of the industry, Eurocortex's team brings a portfolio (30+ clients) of Europe's largest press and media organizations that consolidates Nstein's niche and will increase its market share within the e-publishing industry, especially in France and the UK. Also, the signing of contracts in 2006 with industry leaders such as Transcontinental Media and Corbis confirms Nstein's ability to provide world-class solutions to global e-publishing organizations." 

"Among the strategic initiatives pursued by Nstein in 2006 is the launch of a lab that encompasses the company's work for delivering its technology through a SAAS offer (Software as a Service)'as previously announced in 2006'and a new collaborative research agreement with the National Research Council Canada (NRCC). The addition of Nstein's text mining to the NRCC's search technology sets the ground for a next-generation search environment much more efficient and relevant than any current technology. Moreover, this environment is designed to be fully optimized for the online participatory communication tools brought by the new Web 2.0 reality," added Mr. Girard.

2007 Strategy

"While continuing to refine its cutting-edge text mining technology, Nstein will pursue intensive development and marketing of its NCM Suite for digital asset management and web content management. The company has never been so well positionned to gain significant market share in an e-publishing industry obviously in need of solutions that will help reshape its content management strategies. With software solutions more complete and unique than ever, with a much stronger presence in Europe and with the finest industry specialists as its team, Nstein's future stands on solid ground," concluded Mr. Girard.

To see the complete version of the press release with financial tables, click here.

About Nstein Technologies Inc.

Nstein Technologies (TSX-V: EIN) develops and markets leading-edge content management software for the media, publishing and entertainment industries. Its Ntelligent Content Management Suite enables the centralization, enrichment and publication of textual and rich media assets using advanced text mining. Nstein helps publishers significantly increase their content monetization and reduce their operational costs through cross media publishing and multichannel delivery. The Company is headquartered in Montreal, Canada, with offices in the USA and Europe. More information is available at www.nstein.com.

  • The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
  • Any statement that appears prospective shall not be interpreted as such.

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For more information:

Nstein Technologies Inc.:
Investor Relations

Bruno Martel
Chief Financial Officer
Nstein Technologies Inc.
Tel: 514 908-5406
bruno.martel@nstein.com


Media

Rina Marchand
Marketing Manager
Nstein Technologies Inc.
Tel: 514 908-5406
rina.marchand@nstein.com