Copernic Inc., (the "Company"), (NASDAQ: CNIC), a leading software
development company in the technology sector, specializing in
internet, desktop and mobile search products, today reported its
financial results for the fourth quarter and year ended December
31, 2008. Unless otherwise stated, all figures in this release are
in US dollars.
Financial Highlights
- Revenue was $1.9 million for the fourth quarter 2008 compared
to $1.7 million in the fourth quarter of 2007, an increase of 15.4%
.
- Revenue for the year ended December 31, 2008 was $7.0 million
compared to $8.1 million in the same period in 2007, a decline of
13.6% .
- Net loss of $4.3 million ($0.29 per share), including
write-downs of $4.4 million in the fourth quarter 2008, compared to
net loss of $11.0 million ($0.75 per share) including write-downs
of $10.2 million in the fourth quarter 2007.
- Net loss of $6.5 million ($0.44 per share) in 2008 compared to
net loss of $14.4 million ($0.99 per share) in 2007. Excluding the
write-downs of $4.4 million in 2008 and $10.2 million in 2007, net
loss for 2008 was $2.1 million compare to $4.2 million in 2007.
- Cash of $679,000 was generated from operations in the fourth
quarter 2008 versus cash usage of $795,000 in the comparable 2007
period.
- Liquidities sufficient to meet normal operating requirements
until end of 2009, were at $5.1 million as of December 31, 2008,
compared to $6.9 million as of December 31, 2007.
Recent Highlights
- Announced the consolidation of its operations in Quebec City
and will complete the closure of its Montreal office during the
first quarter 2009.
- Launched Copernic desktop search Professional edition - in
line with our product line extension strategy.
- Announced a Normal Course Issuer Bid to purchase a maximum of
5% of the common shares during the next 12 months.
"Copernic's improved results in the fourth quarter demonstrate
the success of its cost restructuring programs coupled with
continued new product development," said Marc Ferland, Copernic's
President and CEO. "Although we live through uncertain economic
times, the management team continues to drive towards sustainable
long term profitable growth."
Claire Castonguay, Vice President Finance and Controller will
terminate her employment with the Company at the end of the quarter
consistent with the closure of the Montreal office at that time.
Jean-Rock Fournier, Vice President Finance since the beginning of
the quarter and also located in Quebec City will assume the duties
of Chief Financial Officer effective March 31st. Mr. Fournier is a
Chartered Accountant since 2000, practiced public accounting with
KPMG, and has been Vice President Finance with Axion Technologies
and PGI, both companies in the Information Technology sector.
Financial Results for the quarter ended December 31, 2008
Revenues in the fourth quarter of 2008 totalled $1,910,000, up
from $1,654,000 in the fourth quarter of 2007.
Search and graphic advertising revenues were $1,435,000 in the
fourth quarter 2008, even with the comparable period in 2007.
Search advertising continues to consolidate with the industry
leaders, coupled with additional focus on ROI for advertisers
resulting in increased demand for higher quality traffic at reduced
prices. Copernic desktop search products, produced revenues of
$475,000 in the fourth quarter 2008, versus revenues of $208,000 in
the comparable 2007 period and is consistent with our continued
investments in new product development.
Gross margin in the fourth quarter was 68.5%, compared to 67.1%
in the same quarter in 2007 mainly due to a mix shift to higher
margin CDS products offset by price declines in the search
advertising business.
Expenses including write-downs were reduced by 48% to $5,750,000
in the fourth quarter of 2008 compared to $12,897,000 for the same
period in 2007. Excluding write-downs and settlement costs,
expenses in 2008 were at $1,339,000 down from $2,751,000 in the
same quarter last year.
Net loss in the fourth quarter 2008 was $4,260,000 ($0.29 per
share), compared to $10,990,000 ($0.75 per share) in the fourth
quarter 2007.
Liquidities totalled $5,073,000, which was an increase of
$679,000 over the previous quarter.
Financial Results for the Full Year 2008
Revenues for the full year 2008 were $7,012,000, down from
$8,116,000 in 2007, a 13.6% decline.
Search and graphic advertising revenues were $5,607,000 down
year over year in 2008 from $7,354,000 in 2007 or a 23.8%
decrease.
Copernic desktop search products were $1,405,000 in 2008, up
84.4% over 2007 at $762,000.
Gross margin decreased in 2008 at 63.9% from 67.5% mainly due to
price concessions for search partners to attract higher quality
traffic.
Total expenses for 2008, including write-downs and settlement
costs were $11,361,000 down from $21,160,000. Excluding write-downs
and settlement costs, expenses for 2008 were $6,929,000, compared
with the total of $11,013,000 in 2007, due to the positive impact
of our restructuring program.
Net loss for the full year 2008 was $6,491,000 ($0.44 per
share), down from a loss of $14,431,000 ($0.99 per share) in
2007.
About Copernic Inc.
Copernic Inc. specializes in developing, marketing and selling
cutting-edge search technology, providing innovative home and
business software products and solutions for desktop, web and
mobile users, through its online properties, including
www.mamma.com and www.copernic.com.
With its award winning Copernic Desktop Search� software search
engine product, the Company brings the power of a sophisticated,
yet easy-to-use search engine to the user's PC. Additionally,
Copernic Inc. provides both online advertising as well as pure
content to its vast array of partnerships worldwide through its
well established media placement channels. Copernic handles over 1
billion search requests per month and has media placement
partnerships established in North America and Europe.
More information can be found at www.copernic-inc.com.
Statements contained in this press release, which are not
historical facts, are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and
uncertainties that can cause actual results to differ materially
from estimated results. Such risks and uncertainties are detailed
in the Company's filings with the Securities and Exchange
Commission and the Ontario Securities Commission. The Company
expressly disclaims any intent or obligation to update any
description of the scope, focus or subject matter of the statements
in this press release.
Copernic Inc.
Condensed Consolidated Balance Sheets
As at December 31, 2008 and 2007
-------------------------------------------------------------------
(unaudited) (expressed in U.S. dollars and in accordance
with generally accepted accounting principles in Canada)
2008 2007
$ $
Assets
Current assets
Cash and cash equivalents 2,067,705 2,099,560
Restricted cash - 807,468
Temporary investments 3,005,227 3,965,384
Accounts receivable 907,560 918,033
Income taxes receivable 110,121 221,205
Prepaid expenses 170,864 208,655
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6,261,477 8,220,305
Property and equipment 240,094 459,872
Intangible assets 918,485 2,320,676
Goodwill 3,362,003 7,357,003
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10,782,059 18,357,856
-------------------------------------------------------------------
-------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 991,142 1,520,619
Deferred revenue 156,789 211,455
Deferred rent 4,805 11,016
Income taxes payable - 8,100
Current portion of obligations
under capital leases 57,267 56,071
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1,210,003 1,807,261
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Obligations under capital leases 39,992 99,788
Future income taxes 259,848 650,413
-------------------------------------------------------------------
Shareholders' Equity
Capital stock
Authorized
Unlimited common shares, no par value
Issued and outstanding
14,637,531 common shares 96,556,485 96,556,485
Additional paid-in capital 5,747,028 5,784,502
Cumulative translation adjustment 561,137 561,137
Accumulated deficit (93,592,434) (87,101,730)
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9,272,216 15,800,394
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10,782,059 18,357,856
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-------------------------------------------------------------------
Copernic Inc.
Condensed Consolidated Statements of Operations
--------------------------------------------------------------------------
(unaudited) (expressed in U.S. dollars and in accordance with generally
accepted accounting principles in Canada)
For the twelve months For the three months
ended December 31 ended December 31
2008 2007 2008 2007
$ $ $ $
Revenues 7,011,631 8,116,408 1,909,648 1,654,352
Cost of revenues 2,530,908 2,636,410 601,519 543,763
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Gross Margin 4,480,723 5,479,998 1,308,129 1,110,589
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Expenses
Marketing, sales and
services 938,611 1,897,822 160,802 480,531
General and
administration 2,907,964 4,691,572 525,309 1,020,709
Product development
and technical support 1,938,724 2,416,410 332,145 651,830
Amortization of
property and equipment 211,056 302,509 55,353 119,220
Amortization of
intangible assets 1,019,159 1,991,286 254,746 511,384
Write-downs and
settlement costs 4,432,264 10,146,311 4,410,733 10,146,311
Restructuring charges 101,012 - 69,621 -
Interest and
other income (162,880) (401,183) (40,762) (74,078)
Loss (gain) on
foreign exchange (24,440) 115,071 (18,218) 41,164
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11,361,470 21,159,798 5,749,729 12,897,071
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Loss before income
taxes (6,880,747) (15,679,800) (4,441,600)(11,786,482)
Recovery of future
income taxes (390,565) (1,250,453) (172,613) (796,926)
Current income taxes 522 1,479 (8,550) 525
--------------------------------------------------------------------------
Loss for the period (6,490,704) (14,430,826) (4,260,437)(10,990,081)
--------------------------------------------------------------------------
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Basic and diluted
loss per share (0.44) (0.99) (0.29) (0.75)
--------------------------------------------------------------------------
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Copernic Inc.
Condensed Consolidated Statements of Cash Flows
--------------------------------------------------------------------------
(unaudited) (expressed in U.S. dollars and in accordance with generally
accepted accounting principles in Canada)
For the twelve months For the three months
ended December 31 ended December 31
2008 2007 2008 2007
$ $ $ $
Cash flows from (used for)
Operating activities
Loss from
continuing operations (6,490,704) (14,430,826) (4,260,437) (10,990,081)
Adjustments for
Amortization of
property and
equipment 211,056 302,509 55,353 119,220
Amortization of
intangible assets 1,019,159 1,991,286 254,746 511,384
Employee stock-based
compensation (37,474) 660,312 (5,861) 175,568
Write-down of goodwill 3,995,000 8,060,841 3,995,000 8,060,841
Write-down of
intangible assets 394,192 1,985,470 394,192 1,985,470
Write-down
of investment - 150,000 - 150,000
Write-down of property
and equipment 43,072 - 21,541 -
Future income
taxes (390,565) (1,250,453) (172,613) (796,926)
Unrealized loss
on foreign exchange (25,199) 12,813 (18,919) (1,271)
Net change in non-cash
working capital items (439,106) 990,158 432,702 17,391
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Cash from (used for)
operating activities (1,720,569) (1,527,890) 659,704 (768,404)
Cash used for operating
activities from
discontinued operations - (6,253) - -
--------------------------------------------------------------------------
(1,720,569) (1,534,143) 659,704 (768,404)
--------------------------------------------------------------------------
Investing activities
Purchase of intangible
assets (5,054) (68,433) - (3,431)
Purchase of
property and equipment (15,879) (149,658) (2,836) (12,903)
Net decrease (increase)
in temporary investments 960,157 1,626,458 (3,005,227) (3,965,384)
--------------------------------------------------------------------------
Cash from (used for)
investing activities 939,224 1,408,367 (3,008,063) (3,981,718)
--------------------------------------------------------------------------
Financing activities
Issuance of capital
stock - 676,258 - -
Repayment of
obligations under
capital leases (57,976) (23,071) (14,075) (9,941)
--------------------------------------------------------------------------
Cash provided from
(used for) financing
activities (57,976) 653,187 (14,075) (9,941)
--------------------------------------------------------------------------
Net change in cash,
cash equivalents
and restricted cash
during the period (839,323) 527,411 (2,326,434) (4,760,063)
Cash, cash equivalents
and restricted cash -
Beginning of period 2,907,028 2,379,617 4,394,139 7,667,091
--------------------------------------------------------------------------
Cash, cash equivalents
and restricted cash -
End of period 2,067,705 2,907,028 2,067,705 2,907,028
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash and cash
equivalents
comprise:
Cash 1,066,817 596,493 1,066,817 596,493
Short-term investments 1,000,888 1,503,067 1,000,888 1,503,067
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2,067,705 2,099,560 2,067,705 2,099,560
Restricted cash - 807,468 - 807,468
--------------------------------------------------------------------------
2,067,705 2,907,028 2,067,705 2,907,028
--------------------------------------------------------------------------
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Contacts: Copernic Inc. Marc Ferland, President and Chief
Executive Officer 418-527-0528 mferland@copernic.com
www.copernic-inc.com
Copernic Inc. (MM) (NASDAQ:CNIC)
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Copernic Inc. (MM) (NASDAQ:CNIC)
過去 株価チャート
から 7 2023 まで 7 2024
