News and Events

Nstein Technologies announces record results for fourth quarter 2008

2009-03-18

(Montreal, Quebec), March 18, 2009 - Nstein Technologies inc. www.nstein.com (TSX-V : EIN), today announced its results for the fourth quarter and year ended December 31, 2008.

Nstein revenues for the fourth quarter of 2008 amounted to $8.1 million, an increase of 29% compared to $6.3 million a year earlier. The Company posted earnings before financial expenses, income taxes on earnings, depreciation, amortization, exchange loss and restructuring fees (EBITDA) of $813,915 compared to $555,970 the year before, an increase of 46%. Net earnings amounted to $1,350,304 or $0.026 per share, as opposed to $109,713 or $0.003 per share for the same period last year.

"Despite a difficult economic environment, Nstein was able to increase sales significantly during the fourth quarter of 2008. During this quarter, 8 new projects were sold, bringing the year's total to 20. These results have made it possible to begin the 2009 fiscal year on a sound financial footing, so that we can actively continue to develop our products and market our solutions" said Luc Filiatreault, President and Chief Executive Officer of Nstein Technologies.

Nstein's revenues for the year amounted to $25.7 million, an increase of 41%, compared to $18.2 million a year earlier. "Sales made during the year to major players in the publishing industry like Hearst Newspapers (owns over 65 newspapers including the San Francisco Chronicle and the Houston Chronicle), Bonnier (more than 40 magazines including Parenting and Popular Science), Independent News and Media (more than 200 publications including The Independent and The Belfast Telegraph) and others, indicating our progress toward our objective of becoming the leader in digital publishing solutions" said Luc Filiatreault. Acquisition of Picdar at the start of the year accounted for half of the increase in sales. The Company posted a loss before financial expenses, income taxes on earnings, depreciation, amortization, exchange loss and restructuring fees (Negative EBITDA) of $1,647,955 compared to EBITDA of $133,105 the previous year. The net loss amounted to $2,149,386 or $0.043 per share, as opposed to $1,830,081 or $0.049 for 2007. The decline in EBITDA is due in part to increased investment required at the beginning of the year to the sales force in order to accelerate the growth of the Company's revenues and its developing markets in North America, the United Kingdom and France. Because of the economic slowdown, the revenues from software licenses were lower than the company had anticipated, since some customers delayed their decision to purchase. In the context of an uncertain economic environment, the Company made certain adjustments in its cost structure during second half of the year, including halting its hiring program and reducing some discretionary spending and the size of its workforce. This sound and rigorous management has enabled the Company to begin fiscal year 2009 with cash of 7.4M$.

On February 9, the Company issued 910,000 stock options at an exercise price of $0.28 to certain employees and executives.

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 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

  • 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.

-30-

For more information:

Nstein Technologies inc.

Investor Relations

Bruno Martel
Chief Financial Officer
Tel.: (514) 908-5406
bruno.martel@nstein.com

Media

David Crouy
Marketing Director
Tél. : (514) 908-5406
david.crouy@nstein.com