Preo Software Inc.
CNSX : PKM

Preo Software Inc.

August 31, 2009 20:25 ET

Preo Software Inc.: Second Quarter 2009 Results

Preo achieves a 19 fold increase in revenues while reducing costs

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2009) - Preo Software Inc. ("Preo" or the "Company") (CNSX:PKM) developer of the award winning print knowledge management system - Printelligence today reported financial results for the three and six months ended June 30, 2009. For the second quarter of 2009, Preo reported a loss of $0.01 per share on revenues of $131,989 as compared to a loss of $0.03 per share on revenues of $6,973 for the same quarter last year. On a year to date basis the Company reported a loss of $0.02 per share on revenues of $221,980 as compared to a loss of $0.06 per share on revenues of $12,160 for the first six months of 2008.

Second Quarter Highlights

- An 19 fold increase in revenues during the quarter when compared to Q2 2008 ($132K vs $7K) of which $44K was for consulting services;

- An 18 fold increase in revenues on a YTD basis ($222K vs 12K) of which $98K was for consulting services;

- A 41% reduction in expenses in the first half of 2009 compared to the same time last year ($828K vs $1,398K);

- $511,632 less cash used in operating activities in the first six months of 2009 as compared to the first half of last year ($703K vs $1,214K);

- Commercialization activities continued including the concerted effort to identify and nurture indirect and OEM channel opportunities;

- A number of presentations were made to Fortune 1,000 companies and product trials were approved or underway

Commenting on the second quarter 2009 results, Gary McCone, Preo's President and CEO said, "I am very pleased with our financial performance so far in 2009. Not only have we significantly grown revenues but we have done it while reducing costs, all this in spite of a challenging economic climate. More importantly, we are rapidly building a base of satisfied, reference accounts that we expect to leverage into more sales. I believe the results clearly demonstrate that Preo's Printelligence product is ready for widespread adoption. We will be focusing much of our resources and energy to aggressively build out our sales and marketing infrastructure and distribution reach."



PREO SOFTWARE INC.

Statements of Loss, Comprehensive Loss and Deficit
Three and Six Months Ended June 30, 2009 and 2008
(unaudited)

Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
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Sales
Software licenses $ 88,359 $ 850 $ 124,173 $ 2,350
Consulting services 43,630 6,123 97,807 9,810
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131,989 6,973 221,980 12,160

Cost of sales 38,037 18,976 68,661 32,983
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93,952 (12,003) 153,319 (20,823)
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Expenses
Research and development 53,670 291,905 347,053 642,606
General and
administration 162,467 236,382 361,254 410,682
Sales and marketing 59,593 109,310 129,714 184,721
Amortization 12,709 6,087 24,483 16,362
Interest on convertible
debenture - 43,250 - 72,689
Accretion of convertible
debenture 12,904 - 22,200 -
Stock-based compensation 46,613 26,763 96,436 49,900
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347,956 713,697 981,140 1,376,960
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(254,004) (725,700) (827,821) (1,397,783)
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Other income (loss)
Interest income 1,870 22 1,870 1,286
Foreign exchange (loss)
gain (2,972) 58 (4,316) (12)
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(1,102) 80 (2,446) 1,274
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Net loss and
comprehensive loss (255,106) (725,620) (830,267) (1,396,509)

Deficit, beginning of
the period (6,869,777) (4,502,016) (6,294,616) (3,831,127)
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Deficit, end of three
months $(7,124,883) $(5,227,636) $(7,124,883) $(5,227,636)
---------------------------------------------------
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Net loss and
comprehensive loss
per share (note 6)
Basic and diluted $ (0.01) $ (0.03) $ (0.02) $ (0.06)
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About Preo:

Preo Software Inc. provides Print Knowledge Management Systems (PKMS) to enterprises around the world. Printelligence™, the company's award winning SaaS (Software as a Service) offering, uses a proprietary 4-step cost savings model that ensures an ongoing effective and efficient deployment of an enterprise's print resources and activities. Through the use of our patented PKMS Rules Engine and an ROI Program customers have achieved significant cost reductions through the deployment of Printelligence.

Preo is based in Calgary, Alberta, Canada.

FORWARD-LOOKING STATEMENTS

Statements set out in this news release that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may include expectations, opinions or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Corporation as at the date statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to, risks, uncertainties and other factors that are beyond the control of the Corporation. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information contained in this news release. Assumptions relating to certain forward-looking information contained in this news release are set out above in this news release. Although the Corporation believes that the expectations reflected in the forward-looking statements set out in this news release are reasonably, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Corporation contained in this news release are expressly qualified, in their entirety, by this cautionary statement. The forward-looking statements are made as of the date of this news release and The Corporation assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to the Corporation and its securities can be found in the disclosure documents filed by the Corporation with the securities regulatory authorities (including the joint information circular and proxy statement of the Corporation and CDG dated June 23, 2008, which was filed on SEDAR on June 27, 2008), available at www.sedar.com.

The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Preo Software Inc.
    Mr. Karim Teja
    Chief Financial Officer
    (403) 265-0556
    (403) 210-8299 (FAX)
    Website: www.preosoftware.com