SOURCE: Caneum, Inc.

August 18, 2006 21:01 ET

/ CORRECTION - Caneum, Inc.

NEWPORT BEACH, CA -- (MARKET WIRE) -- August 18, 2006 -- In the news release, "Caneum, Inc. Announces Record Second Quarter 2006 Financial Results," issued Wednesday, August 16, 2006, by Caneum, Inc. (OTCBB: CANM), we are advised by the company that revisions have been made to the release. Complete corrected text follows.

Caneum, Inc. Announces Record Second Quarter 2006 Financial Results

Company Announces 408% Year-Over-Year Quarterly Revenue Increase to $2,211,847

NEWPORT BEACH, CA -- August 18, 2006 -- Caneum, Inc. (OTCBB: CANM), a business process and information technology outsourcing services company, today announced that its revenue for the second quarter grew 408% to $2,211,847 from the prior year comparable period of $435,382. The Company also announced that revenue for the second quarter grew 159% sequentially to $2,211,847 over the prior first quarter comparable period of $854,719 and that this marked the 13th consecutive quarter of sequential top line growth. Revenue for the first half of 2006 increased 379% to $3,066,567 over the comparable first half of 2005 of $639,904. Similarly, gross margins for the first half of 2006 increased 21% to 31.0% over the comparable first half of 2005 of 25.6%.

Additionally, the Company posted a second quarter EBITDA loss of only $49,606 or ($0.01) per share, reduced from the prior year comparable period loss of $218,247, or ($0.05) per share. For the second quarter of 2006, the Company posted a net loss of $349,558, or ($0.06) per share, reducing the net loss 7% compared to the second quarter of 2005 from $376,516, or ($0.08) per share.

The Company, which has customers ranging from start-up to Fortune 500 companies, provides a broad range of business process and information technology outsourcing solutions and attributed its performance to continued strong demand for its outsourcing services, an expanded organic customer base, a higher margin outsourcing service mix and the successful acquisition and integration of TierOne Consulting, Inc. Reported results included:

--  Year-over-Year Second Quarter 2006 Revenues up 408% to $2,211,847 from
    $435,382 in the Second Quarter 2005
    
--  Year-over-Year Second Quarter 2006 Gross Margins up 49% to 33.0% from
    22.4% in the Second Quarter 2005
    
--  Year-over-Year Second Quarter EBITDA Loss down 77% to $49,606 or
    ($0.01) per share from $218,247 or ($0.05) per share in the Second Quarter
    2005
    
--  Year-over-Year Second Quarter 2006 Net Loss of $349,558, or ($0.06)
    per share, from a Second Quarter 2005 Net Loss of $376,516, or ($0.08) per
    share; net loss includes the effect of stock-based compensation associated
    with expensing stock options, non-cash consulting expense, amortization of
    intangible assets associated with last quarter's acquisition and a write-
    down of a prepaid investor relations asset
    
--  Quarter-over-Quarter Second Quarter 2006 Revenues up 159% to
    $2,211,847 from $854,719 in the First Quarter 2006
    
--  Quarter-over-Quarter Second Quarter 2006 Gross Margins up 33% to 33.0%
    from 25.1% in the First Quarter 2006
    
--  Quarter-over-Quarter Second Quarter 2006 EBITDA Loss down 77% to
    $49,606 from $206,509 in the First Quarter 2006
    
--  Quarter-over-Quarter Second Quarter 2006 Net Loss of $349,558, or
    ($0.06) per share, down from a First Quarter 2006 Net Loss of $352,781, or
    ($0.06) per share; net loss includes the effect of stock-based compensation
    associated with expensing stock options, non-cash consulting expense,
    amortization of intangible assets associated with last quarter's
    acquisition and a write-down of a prepaid investor relations asset
    
--  Year-over-Year First Half 2006 Revenues Up 379% to $3,066,567 from
    $639,904 in the First Half 2005
    
--  Year-over-Year First Half 2006 Gross Margins up 21% to 31.0% from
    25.6% in the First Half 2005
    
--  Year-over-Year First Half 2006 EBITDA Loss down to $256,115 from
    $526,722 in the First Half 2005
    
--  Year-over-Year First Half 2006 Net Loss down 27% to $638,311 from
    $878,444 in the First Half 2005; net loss includes the effect of stock-
    based compensation associated with expensing stock options, non-cash
    consulting expense, amortization of intangible assets associated with last
    quarter's acquisition and expense associated with a prepaid investor
    relations asset
    
Alan Knitowski, Chairman of Caneum, commented, "We are absolutely thrilled with the continued operating performance and growth of the Company, including the addition of several new customers and expansions with several existing customers. Not only have we proven the organic growth capabilities afforded by our agnostic hybrid outsourcing model, but we have also proven that we can acquire companies, integrate them quickly and immediately accelerate the combined enterprise. We are excited to have delivered our 13th consecutive quarter of record results and expect that the pending 3rd quarter will continue this well established multi-year trend. As always, we encourage prospective and current shareholders to review additional details and developments in our full 10-QSB now on file with the SEC."

Gary Allhusen, Chief Operating Officer, commented, "We've closed the acquisition, integrated the businesses, combined operations and expanded our capacity 43% and prepared the Company for our next phase of growth. In spite of significant investments in expanding our capability, we are very pleased with our Second Quarter results and equally optimistic about the momentum we carry into the Third Quarter on both the top and bottom lines of our business."

About Caneum, Inc.:

Caneum, Inc. is a global provider of business process and information technology outsourcing services across vertical industries including technology, energy, government, transportation, financial services, education and healthcare. The Company's mission is to push the boundaries of innovation and global competitiveness through the borderless integration of people, process, technology and information. To accomplish this, Caneum provides a suite of business strategy and planning capabilities to assist companies with their "make versus buy" decisions in the areas of data, network, infrastructure, personnel, development, enterprise software, maintenance, support and functional area business processes, and fulfills its services agnostically with a hybrid outsourcing model in-house, on-shore, near-shore and off-shore, depending on the business goals and objectives of its global customers. In parallel, Caneum is opportunistically pursuing accretive acquisitions within its core outsourcing service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. For more information, please visit the Company's web site at http://www.caneum.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operations and growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's use and reliance on third-party suppliers and contractors.

Contact Information


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    Caneum, Inc.
    Gary Allhusen
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