SOURCE: GENESYS

November 14, 2007 00:33 ET

GENESYS REPORTS THIRD QUARTER RESULTS FOR 2007

VIENNA, VA and MONTPELLIER, FRANCE--(Marketwire - November 14, 2007) - Genesys Conferencing Reports Third Quarter Results for 2007

Vienna, Virginia, and Montpellier, France - November 14, 2007 - Genesys Conferencing

(Euronext Eurolist: FR0004270270), a global multimedia collaboration service leader, today reported unaudited financial results for the third quarter ended September 30, 2007. All results are reported under International Financial Reporting Standards (IFRS).

Volume and Revenue

Total volume in the third quarter of 2007 was 726 million minutes, an increase of 30.4% compared to 557 million minutes in the third quarter of 2006.

Total revenue for the third quarter of 2007 was 35.9 million euros, an increase of 1.8 million euros, or 5.3%, compared to 34.1 million euros for the third quarter of 2006. Genesys Meeting Center revenue was 28.7 million euros for the third quarter of 2007, an increase of 2.1 million euros, or 8.1%, compared to 26.6 million euros for the third quarter of 2006. As expected, video and attended conferencing services revenue declined by 0.3 million euros to 7.2 million euros compared to 7.5 million euros for the third quarter of 2006.

"The strong momentum we are experiencing in our multimedia collaboration services continues to drive our volume growth," said Francois Legros, Chairman and Chief Executive Officer. "Our customers are global leaders who recognize that applications like Genesys Meeting Center are well positioned to be the enablers of unified communications."

Gross Profit and Operating Expenses

Gross profit for the third quarter of 2007 was 21.8 million euros, an increase compared to 21.1 million euros for the third quarter of 2006. Gross margin for the third quarter of 2007 was 60.7% compared to a 61.9% margin for the third quarter of 2006.

Total operating expenses for the third quarter of 2007 were 17.3 million euros. In comparison, operating expenses for the third quarter of 2006 were 18.7 million euros. Operating expenses have benefited by a reduction in U.S. public company related expenses since the company's voluntary SEC deregistration in June 2007 and savings from organizational restructuring efforts made in late 2006 and early 2007.

EBITDA and Net Income

EBITDA[1], before stock-based compensation, for the third quarter of 2007 was 7.2 million euros compared to 5.1 million euros for the third quarter of 2006. Operating income for the third quarter of 2007 was 4.4 million euros compared to 2.5 million euros for the third quarter of 2006.

Net income for the third quarter of 2007 was 4.5 million euros compared to net income of 41 thousand euros for the third quarter of 2006. The company notes that net income includes the non-cash impact of unrealized foreign exchange gains (losses). In the third quarter of 2007, the company reported a foreign exchange gain of 1.1 million euros as compared to a foreign exchange loss of 0.6 million euros for the third quarter of 2006. These amounts were primarily unrealized, non-cash gains and losses.

Liquidity

As of September 30, 2007, the company's net cash[2] was 16.3 million euros compared to 6.4 million euros as of December 31, 2006.

The company's net debt[3] position as of September 30, 2007, decreased to 11.3 million euros compared to 23.2 million euros as of December 31, 2006. Shareholders' equity was 56.7 million euros as of September 30, 2007 compared to 49.9 million euros as of December 31, 2006.

"Since the beginning of the year, cash flow has benefited from the company's revenue growth and stabilized operating expenses," stated Andrew Lazarus Executive Vice President and Chief Financial Officer. "Additionally, as of October 31, 2007, the company repaid over 11.0 million U.S. dollars or nearly one-third of its existing debt."

Outlook

The following contains forward-looking information regarding Genesys Conferencing's financial outlook, based on current expectations and on the current value of the U.S. dollar to the euro. Actual results may differ materially and the company is under no obligation to update any forward-looking statements made in this press release.

As previously reported, based on the strong adoption of Genesys Meeting Center services during the nine-months ended September 30, 2007, as well as cost improvements ahead of plan for the second-half of 2007, the company increased its 2007 revenue and EBITDA targets.

For the full-year 2007, the company increased its revenue target from a previous range of 143 million euros to 145 million euros to a new range of 145 million euros to 146 million euros. Further, the company increased its EBITDA, before stock based compensation, target from a previous range of 21 million euros to 23 million euros to a new range of 25 million euros to 26 million euros.

Conference Call and Webcast

Chairman and Chief Executive Officer François Legros and Executive Vice President and Chief Financial Officer Andrew Lazarus will host a conference call on Wednesday, November 14, 2007 at 2:30 p.m. Central European Time or 8:30 a.m. Eastern Time to discuss third quarter 2007 financial results.

The online presentation may be accessed by joining the live webcast at

http://events.webeventservices.com/genesys/2007/11/14

A replay of the presentation will be available at www.genesys.com.

FINANCIAL TABLES TO FOLLOW

___________________

Targets

According to the AMF regulations in use, targets may not be considered as forecasts. Net income may not be estimated on the basis of the above mentioned EBITDA and on the basis of non-cash expenses previously recorded.

Impact of Exchange Rates

The company serves large enterprises on a worldwide basis. As a result, it has extensive international operations and, thus, significant exposure to exchange rate fluctuations, in particular those of the U.S. dollar. In 2006, and continuing through the third quarter of 2007, the U.S. dollar has fluctuated compared to the euro. As a result, the comparability of the company's revenues and results of operations expressed in euros were affected.

DisclaimerThis press release may contain some statements that constitute forward- looking statements. Forward-looking statements are statements other than historical information or statements of current condition. They may appear in a number of places in this press release and include statements concerning Genesys Conferencing's intent, belief or current expectations regarding future events and trends affecting Genesys Conferencing's financial condition or results of operations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Some of these factors are described in chapter 4.5 of the Document de Référence, filed with the Autorité des marchés financiers under number D.07-551 on June 5, 2007. Although Genesys Conferencing's management believe that their expectations are reasonable based on information currently available to them, they cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these statements. In any event, these statements speak only as of the date of this press release. Except to the extent required by law, Genesys Conferencing undertakes no obligation to revise or update any of them to reflect events or circumstances after the date of this press release, or to reflect new information or the occurrence of unanticipated events.

Genesys Conferencing—Connecting the World for 20 Years

Founded in 1986, Genesys is a leading provider of unified collaboration and communication services to thousands of organizations worldwide, including more than half of the Fortune Global 500. The company's flagship product, Genesys Meeting Center, provides an integrated multimedia collaboration solution that is easy to use and available on demand. With offices in more than 20 countries across North America, Europe and Asia Pacific, the company offers an unmatched global presence and strong local support. Genesys Conferencing is publicly traded on Euronext Eurolist C in France (FR0004270270). Additional information is available at www.genesys.com

At Genesys Conferencing

Andrew G. Lazarus

Executive Vice President, Chief Financial Officer

Phone: +1 703-749-2500

andrew.lazarus@genesys.com

Investor Relations

Phone: + 33 4 99 13 25 87

relations.investisseurs@genesys.com

GENESYS CONFERENCING

Consolidated Balance Sheets

(Unaudited IFRS, in thousands of euros, except share data)

+-------------------------+------------------+-------------------+
|                         |December 31, 2006 |September 30, 2007 |
+-------------------------+------------------+-------------------+
|ASSETS                   |                  |                   |
+-------------------------+------------------+-------------------+
|Non current assets       |                  |                   |
+-------------------------+------------------+-------------------+
|Goodwill, customer lists |           34,887 |            32,248 |
|and technology           |                  |                   |
+-------------------------+------------------+-------------------+
|Other intangible assets, |            6,939 |             6,413 |
|net                      |                  |                   |
+-------------------------+------------------+-------------------+
|Tangible assets, net     |           15,402 |            12,571 |
+-------------------------+------------------+-------------------+
|Financial assets, net    |            1,692 |             1,474 |

+-------------------------+------------------+-------------------+
|Deferred tax assets      |           10,829 |             9,925 |
+-------------------------+------------------+-------------------+
|Total non current assets |           69,749 |            62,631 |
+-------------------------+------------------+-------------------+
|Current assets           |                  |                   |
+-------------------------+------------------+-------------------+
|Accounts receivable, less|           24,464 |            24,289 |
|allowances               |                  |                   |
+-------------------------+------------------+-------------------+
|Prepaid expenses and     |            9,352 |            10,901 |
|other current assets     |                  |                   |
+-------------------------+------------------+-------------------+
|Cash and cash equivalents|            7,970 |            16,652 |
+-------------------------+------------------+-------------------+
|Total current assets     |           41,786 |            51,842 |
+-------------------------+------------------+-------------------+
|TOTAL ASSETS             |          111,535 |           114,473 |
+-------------------------+------------------+-------------------+
|LIABILITIES AND          |                  |                   |
|SHAREHOLDERS' EQUITY     |                  |                   |
+-------------------------+------------------+-------------------+
|Shareholders' equity     |                  |                   |
|(deficit)                |                  |                   |
+-------------------------+------------------+-------------------+
|Ordinary shares, nominal |           69,798 |            69,883 |
|value of €1 per share    |                  |                   |
+-------------------------+------------------+-------------------+
|Common shares to be      |              135 |                69 |
|issued                   |                  |                   |
+-------------------------+------------------+-------------------+
|Additional paid-in       |          179,706 |           181,494 |
|capital                  |                  |                   |
+-------------------------+------------------+-------------------+
|Additional paid-in       |            3,735 |             1,899 |
|capital to be issued     |                  |                   |
+-------------------------+------------------+-------------------+
|Reserve for stock-based  |            3,410 |             4,056 |
|compensation             |                  |                   |
+-------------------------+------------------+-------------------+
|Accumulated deficit      |        (218,411) |         (211,986) |
+-------------------------+------------------+-------------------+
|Net income               |            6,421 |             6,925 |
+-------------------------+------------------+-------------------+
|Currency translation     |            5,095 |             4,356 |
|adjustments              |                  |                   |
+-------------------------+------------------+-------------------+
|Total shareholders'      |           49,889 |            56,696 |
|equity (deficit)         |                  |                   |
+-------------------------+------------------+-------------------+
|Provisions for risks and |              434 |               386 |
|charges                  |                  |                   |
+-------------------------+------------------+-------------------+
|Deferred tax liability   |            1,298 |             1,294 |
+-------------------------+------------------+-------------------+
|Long-term debt           |                  |                   |
+-------------------------+------------------+-------------------+
|Long-term portion of     |           20,127 |            19,309 |
|long-term debt           |                  |                   |
+-------------------------+------------------+-------------------+
|Long-term portion of     |              182 |               161 |
|capitalized lease        |                  |                   |
|obligations              |                  |                   |
+-------------------------+------------------+-------------------+
|Total long-term debt and |           22,041 |            21,150 |
|other liabilities        |                  |                   |
+-------------------------+------------------+-------------------+
|Current liabilities      |                  |                   |
+-------------------------+------------------+-------------------+
|Bank overdrafts          |            1,673 |               336 |
+-------------------------+------------------+-------------------+
|Accounts payable and     |           12,436 |            10,045 |
|accrued liabilities      |                  |                   |
+-------------------------+------------------+-------------------+
|Taxes payable and        |           11,144 |            13,352 |
|deferred compensation    |                  |                   |
+-------------------------+------------------+-------------------+
|Current portion of       |            1,601 |               818 |
|provision for risks and  |                  |                   |
|charges                  |                  |                   |
+-------------------------+------------------+-------------------+
|Current portion of       |            9,086 |             8,117 |
|long-term debt           |                  |                   |
+-------------------------+------------------+-------------------+
|Current portion of       |              125 |                31 |
|capitalized lease        |                  |                   |
|obligations              |                  |                   |
+-------------------------+------------------+-------------------+
|Other current liabilities|            3,540 |             3,928 |
+-------------------------+------------------+-------------------+
|Total current liabilities|           39,605 |            36,627 |
+-------------------------+------------------+-------------------+
|LIABILITIES AND          |          111,535 |           114,473 |
|SHAREHOLDERS' EQUITY     |                  |                   |
+-------------------------+------------------+-------------------+
GENESYS CONFERENCING

Consolidated Statements of Operations

(Unaudited IFRS, in thousands of euros, except share and per share data)

+-------------------------+--------------------+--------------------+
|                         |Three months ended  |Three months ended  |
|                         |September 30        |September 30        |
+-------------------------+--------------------+--------------------+
|                         |                2006|                2007|
+-------------------------+--------------------+--------------------+
|Revenue                  |              34,135|              35,873|
+-------------------------+--------------------+--------------------+
|Cost of revenue          |              12,997|              14,113|
+-------------------------+--------------------+--------------------+
|Gross profit             |              21,138|               21,76|
+-------------------------+--------------------+--------------------+
|Operating expenses       |                    |                    |
+-------------------------+--------------------+--------------------+
|Research and development |                 553|               1,313|
+-------------------------+--------------------+--------------------+
|Selling and marketing    |               9,928|               9,075|
+-------------------------+--------------------+--------------------+
|General and              |                7,62|               6,434|
|administrative           |                    |                    |
+-------------------------+--------------------+--------------------+
|Restructuring charge     |                   -|                 -26|
+-------------------------+--------------------+--------------------+
|Amortization of          |                 586|                 551|
|intangibles              |                    |                    |
+-------------------------+--------------------+--------------------+
|                         |              18,687|              17,347|
+-------------------------+--------------------+--------------------+
|Operating income         |               2,451|               4,413|
+-------------------------+--------------------+--------------------+
|Interest income          |                  22|                  99|
+-------------------------+--------------------+--------------------+
|Interest expense         |                -884|                -868|
+-------------------------+--------------------+--------------------+
|Foreign exchange gain    |                -562|               1,072|
|(loss)                   |                    |                    |
+-------------------------+--------------------+--------------------+
|Other income (expense)   |                -403|                 241|
+-------------------------+--------------------+--------------------+
|Income tax credit        |                -583|                -479|
|(expense)                |                    |                    |
+-------------------------+--------------------+--------------------+
|Net income               |                  41|               4,478|
+-------------------------+--------------------+--------------------+
|Basic net income per     |                0.00|                0.06|
|share                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Diluted net income per   |                0.00|                0.06|
|share                    |                    |                    |
+-------------------------+--------------------+--------------------+

|Number of outstanding    |          69,912,650|          69,976,567|
|shares used in           |                    |                    |
+-------------------------+--------------------+--------------------+
|computing basic net      |                    |                    |
|income per share         |                    |                    |
+-------------------------+--------------------+--------------------+
|Number of outstanding    |          69,912,650|          70,246,576|
|shares used in           |                    |                    |
+-------------------------+--------------------+--------------------+
|computing diluted net    |                    |                    |
|income per share         |                    |                    |
+-------------------------+--------------------+--------------------+

+-------------------------+--------------------+--------------------+
|                         |Nine months ended   |Nine months ended   |
|                         |September 30        |September 30        |
+-------------------------+--------------------+--------------------+
|                         |                2006|                2007|
+-------------------------+--------------------+--------------------+
|Revenue                  |             106,414|             109,789|
+-------------------------+--------------------+--------------------+
|Cost of revenue          |               38,14|              42,279|
+-------------------------+--------------------+--------------------+
|Gross profit             |              68,274|               67,51|
+-------------------------+--------------------+--------------------+
|Operating expenses       |                    |                    |
+-------------------------+--------------------+--------------------+
|Research and development |               2,897|               4,066|
+-------------------------+--------------------+--------------------+
|Selling and marketing    |              31,816|              28,541|
+-------------------------+--------------------+--------------------+
|General and              |              22,892|              21,177|
|administrative           |                    |                    |
+-------------------------+--------------------+--------------------+
|Restructuring charge     |                 -33|                 823|
+-------------------------+--------------------+--------------------+
|Amortization of          |               1,959|               1,684|
|intangibles              |                    |                    |
+-------------------------+--------------------+--------------------+
|                         |              59,531|              56,291|
+-------------------------+--------------------+--------------------+
|Operating income         |               8,743|              11,219|
+-------------------------+--------------------+--------------------+
|Interest income          |                  80|                 208|
+-------------------------+--------------------+--------------------+
|Interest expense         |              -2,527|              -2,395|
+-------------------------+--------------------+--------------------+
|Foreign exchange gain    |              -2,212|                 245|
|(loss)                   |                    |                    |
+-------------------------+--------------------+--------------------+
|Other income (expense)   |              -1,283|                -239|
+-------------------------+--------------------+--------------------+
|Income tax credit        |              -2,455|              -2,113|
|(expense)                |                    |                    |
+-------------------------+--------------------+--------------------+
|Net income               |                 346|               6,925|
+-------------------------+--------------------+--------------------+
|Basic net income per     |                0.01|                0.10|
|share                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Diluted net income per   |                0.01|                0.10|
|share                    |                    |                    |
+-------------------------+--------------------+--------------------+
|Number of outstanding    |          60,105,225|          69,974,588|
|shares used in           |                    |                    |
+-------------------------+--------------------+--------------------+
|computing basic net      |                    |                    |
|income per share         |                    |                    |
+-------------------------+--------------------+--------------------+
|Number of outstanding    |          60,105,225|          70,291,910|
|shares used in           |                    |                    |
+-------------------------+--------------------+--------------------+
|computing diluted net    |                    |                    |
|income per share         |                    |                    |
+-------------------------+--------------------+--------------------+
GENESYS CONFERENCING

Note to the Consolidated Financial Statements

(Unaudited IFRS, in thousands of euros)

+-------------------------+--------------------+-------------------+
|                         |Three months ended  |Three months ended |
|                         |September 30        |                   |
+-------------------------+--------------------+-------------------+
|                         |                    |      September 30 |
+-------------------------+--------------------+-------------------+
|NOTE A- EBITDA           |2006                |              2007 |
|calculation              |                    |                   |
+-------------------------+--------------------+-------------------+
|Operating income         |2,451               |             4,413 |
+-------------------------+--------------------+-------------------+
|Amortization of          |586                 |               551 |
|intangibles              |                    |                   |
+-------------------------+--------------------+-------------------+
|Depreciation             |1,984               |             2,023 |
+-------------------------+--------------------+-------------------+
|EBITDA                   |5,021               |             6,987 |
+-------------------------+--------------------+-------------------+
|Stock-based compensation |81                  |               198 |
+-------------------------+--------------------+-------------------+
|EBITDA before stock-based|5,102               |             7,185 |
|compensation             |                    |                   |
+-------------------------+--------------------+-------------------+

+-------------------------+--------------------+--------------------+
|                         |Nine months ended   |Nine months ended   |
|                         |September 30        |September 30        |
+-------------------------+--------------------+--------------------+
|                         |                    |                    |
+-------------------------+--------------------+--------------------+
|NOTE A- EBITDA           |2006                |2007                |
|calculation              |                    |                    |
+-------------------------+--------------------+--------------------+
|Operating income         |8,743               |11,219              |
+-------------------------+--------------------+--------------------+
|Amortization of          |1,959               |1,684               |
|intangibles              |                    |                    |
+-------------------------+--------------------+--------------------+
|Depreciation             |6,294               |5,918               |
+-------------------------+--------------------+--------------------+
|EBITDA                   |16,996              |18,821              |
+-------------------------+--------------------+--------------------+
|Stock-based compensation |419                 |646                 |
+-------------------------+--------------------+--------------------+
|EBITDA before stock-based|17,415              |19,467              |
|compensation             |                    |                    |
+-------------------------+--------------------+--------------------+
GENESYS CONFERENCING

Consolidated Statements of Cash Flows

(Unaudited IFRS, in thousands of euros)

+-------------------------+-------------------+-------------------+
|                         |Three months ended |Three months ended |
+-------------------------+-------------------+-------------------+
|                         |       September 30|      September 30,|
+-------------------------+-------------------+-------------------+
|                         |               2006|               2007|
+-------------------------+-------------------+-------------------+
|Cash flows from operating|                   |                   |
|activities:              |                   |                   |
+-------------------------+-------------------+-------------------+
|Net (loss) income        |                 41|              4,478|
+-------------------------+-------------------+-------------------+
|Adjustments to reconcile |                   |                   |
|net (loss) income to net |                   |                   |
|cash provided            |                   |                   |
+-------------------------+-------------------+-------------------+
|by operating activities: |                   |                   |
+-------------------------+-------------------+-------------------+
|Depreciation and         |              1,984|              2,023|
|amortization of property |                   |                   |
|and equipment            |                   |                   |

+-------------------------+-------------------+-------------------+
|Amortization of          |                586|                551|
|intangibles              |                   |                   |
+-------------------------+-------------------+-------------------+
|Allowance (recovery) for |                 72|               -296|
|bad debt                 |                   |                   |
+-------------------------+-------------------+-------------------+
|Stock‑based        |                 81|                198|
|compensation             |                   |                   |
+-------------------------+-------------------+-------------------+
|(Gain) loss on disposal  |                 -8|                 34|
|of property and equipment|                   |                   |
+-------------------------+-------------------+-------------------+
|Deferred taxes           |                306|                196|
+-------------------------+-------------------+-------------------+
|Changes in operating     |               -256|               1,85|
|assets and liabilities   |                   |                   |
+-------------------------+-------------------+-------------------+
|Net cash provided by     |              2,806|              9,034|
|operating activities     |                   |                   |
+-------------------------+-------------------+-------------------+
|Cash flows from investing|                   |                   |
|activities:              |                   |                   |
+-------------------------+-------------------+-------------------+
|Purchases of property and|             -2,941|              -1,15|
|equipment                |                   |                   |
+-------------------------+-------------------+-------------------+
|Net cash used in         |             -2,941|              -1,15|
|investing activities     |                   |                   |
+-------------------------+-------------------+-------------------+
|Cash flows from financing|                   |                   |
|activities:              |                   |                   |
+-------------------------+-------------------+-------------------+
|Increase (decrease) in   |                399|             -1,164|
|bank overdrafts          |                   |                   |
+-------------------------+-------------------+-------------------+
|Increase (decrease) in   |             -1,042|               -362|
|factored receivables     |                   |                   |
|borrowing                |                   |                   |
+-------------------------+-------------------+-------------------+
|(Increase) decrease in   |                  -|                 -2|
|restricted cash          |                   |                   |
+-------------------------+-------------------+-------------------+
|Principal payments on    |                  -|               -167|
|long‑term debt     |                   |                   |
+-------------------------+-------------------+-------------------+
|Interest paid            |                  -|               -115|
+-------------------------+-------------------+-------------------+
|Net cash provided by     |               -643|              -1,81|
|(used in) financing      |                   |                   |
|activities               |                   |                   |
+-------------------------+-------------------+-------------------+
|Effect of foreign        |                358|               -897|
|exchange rate changes on |                   |                   |
|cash                     |                   |                   |
+-------------------------+-------------------+-------------------+
|and cash equivalents     |                   |                   |
+-------------------------+-------------------+-------------------+
|Increase (decrease) in   |               -420|              5,177|
|cash and cash equivalents|                   |                   |
+-------------------------+-------------------+-------------------+
|Cash and cash            |              6,753|             11,475|
|equivalents, beginning of|                   |                   |
|period                   |                   |                   |
+-------------------------+-------------------+-------------------+
|Cash and cash            |              6,333|             16,652|
|equivalents, end of      |                   |                   |
|period                   |                   |                   |
+-------------------------+-------------------+-------------------+
[1] See attached note to consolidated statements of operations for reconciliation of Operating Income and EBITDA. The company believes that EBITDA is a meaningful measure of performance, because it presents the company's results of operations without the non-cash impact of depreciation and amortization. EBITDA is reported excluding stock-based compensation expense.

[2] Net cash includes cash and cash equivalents less bank overdrafts.

[3] Net debt includes current and long-term portions of long-term debt and capitalized lease obligations, less net cash.

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