Company / News & Events / Press Releases / 2008

2008-03-18

Nstein Technologies announces record results for fourth quarter and fiscal 2007

Highlights:

  • First profitable quarter, with an EBITDA of $0.5 million representing 9% of the fourth quarter’s revenues
  • Sales up 61% over Q4 2006 and 70% over fiscal 2006
  • 27 new projects and clients signed in 2007
  • Total $12.9 million in financing obtained in 2007
  • $15.8 million in working capital as at December 31, 2007

 

Montreal, March 18, 2008 –Nstein Technologies Inc. www.nstein.com (TSX-V: EIN) today announced its financial results for the fourth quarter and fiscal 2007.

Nstein’s revenues in the fourth quarter of 2007 reached $6.3 million, an increase of 61% over the $3.9 million recorded a year earlier. Nstein posted earnings before financial expenses, income taxes on earnings, depreciation, amortization, exchange loss and restructuring fees (EBITDA) of $555,970, compared to a negative EBITDA of $302,804 the year before. Net earnings amounted to $109,713 or $0.003 per share, as opposed to net losses of $683,330 or ($0.02) per share for the fourth quarter of 2006.

“These results for the fourth quarter of 2007 are particularly remarkable and are attributable not only to the fact that Q4 is traditionally our strongest quarter, but also to the growing demand for Nstein solutions. It is more and more apparent that our products are becoming widely adopted by the e-publishing community. This has enabled us to virtually double our sales in 2007 and has had a positive impact on our profitability,” said Luc Filiatreault, President and Chief Executive Officer of Nstein Technologies.

Nstein’s revenues for the year amounted to $18.2 million, an increase of 70% over the $10.7 million recorded in 2006. Nstein posted earnings before financial expenses, income taxes on earnings, depreciation, amortization, exchange loss and restructuring fees (EBITDA) of $133,105, compared to a negative EBITDA of $2,785,873 last year. Net losses totalled $1,830,081 or $0.049 per share in 2007, as opposed to $4,834,372 or $0.186 per share for 2006.

“The positive results in the fourth quarter and fiscal 2007 confirm the market’s interest in Nstein’s solutions and speak to the high value press and media organizations place on our products,” added Mr. Filiatreault. “Some 27 new projects and clients in the e-publishing sector were added to our increasingly prestigious portfolio during the year. In the fourth quarter, we signed agreements with a number of internationally renowned corporations, including Readers’ Digest, Libération and Groupe Express-Roularta.”

During the fourth quarter, Nstein finalized a private financing deal for $8 million. This in addition to two other private placements concluded earlier the year brought the Company’s total financing to $12.9 million and considerably increased its working capital, which stood at $15.8 million at year-end. Nstein hired additional resources for its professional services team in the fourth quarter in order to ensure optimal service for its growing client base. The Company also expanded its sales team to step up its market development efforts in North America, the United Kingdom and France.

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

Recent developments

“Nstein recently acquired Picdar, a leading provider of picture and digital asset management solutions in the United Kingdom. The arrival of Picdar within the Nstein group gives us access to an unbeatable portfolio of prominent media clients in the U.K. and increases our market share in Europe. The Picdar team will contribute to our firm’s success both in Europe and around the world.” said Mr. Filiatreault.

“We made significant strides forward in 2007 and successfully consolidated a number of elements essential to our prosperity, namely an ever-expanding client roster, technology solutions that cater to the core needs of the e-publishing industry and financial stability. Our foundations are stronger than ever and we will continue to build on them to make Nstein the global leader in online publishing solutions,” concluded Mr. Filiatreault.

About Nstein Technologies Inc.

Nstein Technologies (TSX-V: EIN) develops and markets multilingual solutions that power online 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 online strategy for success using publishing industry best practices for the implementation of its Web Content Management, Digital Asset Management and Text Mining Engine 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.

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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

Renmark Financial Communications Inc. :

Maurice Dagenais: mdagenais@renmarkfinancial.com
Bryan Neebar: bneebar@renmarkfinancial.com
Tel.: (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com