20-20 Technologies Inc.

20-20 Technologies Inc.

March 15, 2007 10:36 ET

20-20 Technologies Inc. Reports First Quarter Results for Fiscal 2007

LAVAL, QUEBEC--(CCNMatthews - March 15, 2007) - 20-20 Technologies Inc. (TSX:TWT), the world leader in 3D interior design and furniture manufacturing software, today announced quarterly results for the period ending January 31, 2007. All amounts are in U.S. dollars unless otherwise indicated.

First Quarter Highlights:

- Revenues increased 29.4% to $15.6 million
- 13.7% organic growth
- EPS unchanged at $0.04
- Entry into the Woodworker Software Market through Acquisition

"We are proud of having maintained our fast paced growth, almost half of which is organic. In addition, our recurring revenues continue to be a growing part of our business" noted Jean-Francois Grou, President and COO of the Company.

"Our EBITDA for the first quarter increased 52.5% over last year to $2.4 million, or 15.3% of revenues" said Jean Mignault, Chief Executive Officer. "Our recent business acquisitions have added an additional temporary non cash charge to our earnings amounting to approximately $270,000 in the form of amortization of intangible assets. We are focusing on deriving revenue synergies from these acquisitions which will progressively compensate for the added cost. Meanwhile, we continue to search for accretive consolidation opportunities by leveraging our existing presence worldwide" added Jean Mignault.


Revenues grew by 29.4%, reaching $15.6 million for the quarter ended January 31, 2007. The increase is attributable to revenues contributed by acquisitions totaling $1.9 million in fiscal 2007 as well as $1.6 million in organic growth. On an organic basis, excluding revenues from acquisitions in the quarter, revenues grew by 13.7% over the comparable period in 2006.

Revenues from license sales increased 18.4% to $5.4 million. On an organic basis, license sales for the quarter increased by 4.0% over the same period in 2006.

Revenues from maintenance and other recurring revenues increased 27.2% to $6.6 million. On an organic basis, these revenues grew by 14.4% compared to the same period last year.

Revenues from professional services increased 55.9% to $3.6 million for the quarter ended January 31, 2007. On an organic basis, these revenues grew by 31.0% versus 2006.

Operating Income

Operating income increased by 17.7% to $664,000 for the first quarter of 2007, representing 4.3% of total revenues compared to $564,000 or 4.7% of total revenues for the same period in 2006.

Net earnings

Net earnings for the period remained essentially the same at $780,000 or 5.0% of total revenues for the quarter compared to $773,000 or 6.4% of total revenues for the comparable period in 2006. Earnings per share remained unchanged from the same period last year at $0.04 per share, on a fully diluted basis for both periods.


On January 8, 2007, the Company acquired substantially all of the assets of Pattern Systems International, Inc. ("PSI"), based in Mount Arlington, New Jersey for a total consideration of $1 million (before acquisition fees), of which $225,000 remains as a balance of purchase price payable. PSI develops computer software products for distribution through dealers and sales representatives, with some direct sales, mainly for the cabinetmaker, architectural millwork and woodworking industry. The Company also offers customer support, maintenance on its products and provides training and catalog development.

Conference Call Information

20-20 will host a conference call to discuss results today, March 15, 2007 at 5 p.m. (ET). The call will be available by telephone at 514-807-8791 and 1-800-814-4860. The call will be web cast at www.2020technologies.com. An audio recording will be archived until midnight on Tuesday, May 15, 2007, and can be accessed by dialing 416-640-1917 and entering pass code 21222277#.

About 20-20 Technologies Inc.

20-20 Technologies is the world's leading provider of computer-aided design, business and manufacturing software solutions tailored for the interior design and furniture industries. Dealers and retailers use its desktop and Web-based products and solutions for the residential and commercial markets. 20-20 also offers a unique proprietary end to end solution, integrating the entire breadth of functions in interior design through one platform. It provides a bridge between data communication from a point-of-sale to manufacturing and world-leading enterprise resource planning (ERP) systems, including computer-aided engineering and plant floor automation software. Operating in 13 countries with more than 500 employees, 20-20 is a publicly traded company (TWT) on the Toronto Stock Exchange (TSX) and celebrates this year, its 20th anniversary. For more information, visit www.2020Technologies.com.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of securities laws.

Implicit in this information, particularly in respect of future operating results and economic performance of the Company are assumptions regarding projected revenue and expenses. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected.

For more exhaustive information on these risks and uncertainties you should refer to our most recently filed annual information form which is available at www.sedar.com. Forward-looking information contained in this report is based on management's current estimates, expectations and projections, which management believes are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time unless required by applicable securities law.

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