Serenic Corporation

Serenic Corporation

January 29, 2009 23:59 ET

Serenic Announces Financial Results for Third Quarter Ended November 30, 2008

EDMONTON, ALBERTA--(Marketwire - Jan. 29, 2009) - Serenic Corporation ("Serenic" or the "Company") (TSX VENTURE:SER), an international software developer and marketer providing financial software solutions to not-for-profit ("NFP"), educational and government organizations, announces its financial results for the third quarter ended November 30, 2008.


Statement of (Unaudited) (Unaudited)

Operations Three months ended: Nine months ended:



Nov 30, Nov 30, Nov 30, Nov 30,

2008 2007 % 2008 2007 %


$ $ $ $


Revenue 2,278,695 1,874,805 121.5% 6,650,532 7,783,734 85.4%


Income (loss)

for the

period (385,817) (322,979) 119.5% (1,016,685) 407,189 (249.7%)


Basic income

(loss) per

share (0.03) (0.02) 150.0% (0.07) 0.03 (233.3%)


EBITDA(1) (221,736) (168,341) (131.7)% (560,616) 879,998 (163.7%)


EBITDA as a %

of revenue (9.7%) (9.0%) (8.4%) 11.3%


Weighted average

common shares

outstanding No. No. No. No.

(basic) 15,185,758 15,050,370 15,182,819 13,955,297


Revenue for Q3 was $2,278,695, up $403,890 or 21.5% from the comparable period in the previous year. Gross margin was $1,778,598 for the current quarter, up 38.5% over the comparable period last year. Higher ratios of consulting and recurring maintenance revenues in the overall sales mix, coupled with software license sales on par with last year caused the gains. Year to date revenue was $6,650,532, as compared with $7,783,734 in the previous year. Because the Company recorded a multi-million dollar single sale in the previous year that did not repeat this year, this year represented a 14.6% decrease from the previous year.

The Company embarked upon its business plan for the current fiscal year by investing in additional employees and resources to grow the business, with expectations that revenue would increase year over year. As a result of the additional expenses, coupled with the lower than projected revenues due to the economic meltdown, the Company recorded a net loss of $385,817 for the quarter, an increase from the loss of $322,979 recorded for the comparable period last year. The YTD net loss was $1,016,685, as compared to net earnings of $407,189 recorded for the same period last year.

Serenic continues to demonstrate solid success in growing its market share, reseller channels, and client base, despite the lagging sales of new NFP licenses in the quarter. Sales of payroll and human resource management software, client services and consulting, and recurring software maintenance all increased over the comparable period of the previous year. Please review the Company's financial statements, MD&A and other filings on-line at for more detailed information.

In response to the uncertainties of the current economic turndown management has chosen to postpone certain growth initiatives that have caused the negative results in the short term. Management believes that the more cautionary stance to preserve resources is prudent given the current economic situation, and expects that the Company will be well-positioned to realize on its opportunities once a more stable economy prevails.


During Q3 the Company announced sales to several high profile not-for-profit clients, including those made to an international humanitarian agency that fosters rural business growth in 30 developing countries, a large religious governance organization, the Carnegie Institution for Science, and the Danish Red Cross. The Company also received two more accolades for growth performance: Serenic was ranked 31st in the Deloitte Technology Fast 50, a list of the 50 fastest growing companies in Canada, for posting a 522% revenue growth between 2003 and 2007; and 300th in Deloitte's 2008 Technology Fast 500, a list of the 500 fastest growing technology companies in North America.


The Company remains committed to increase market share, its customer base, and top line revenues as long term objectives. Because of the recent onset of the global economic crises, management has taken cautionary actions to position the Company to best weather this crises, even if such actions might delay the long term objectives. The Company embarked upon its business plan for the current fiscal year by investing in additional employees, resources, and initiatives with the expectation that revenue could be increased year over year; however management has since chosen to curtail certain growth initiatives in favor of a more prudent stance that is more applicable to the current economy. While the current economic conditions are not expected to remain negative over the longer term for the NFP and public sector industries, some short term negative impact is anticipated. Management has become more selective and cautious in pursuing planned initiatives, while still positioning the Company for growth. In this regard, the Company has proceeded to establish a presence in Europe, and will continue to evolve its position as a preferred supplier within niche segments of the NFP and public sector markets both in North America and globally. With cash on hand and no debt, management is confident that by taking responsive action as necessary to address the current volatility of the economic situation, the Company will remain well-positioned to take advantage of future growth opportunities.

Forward Looking Statements

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Serenic Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, software industry risks, general business risks, foreign currency risks, economic dependence risks, and credit risks.

(1) Non-GAAP Measure

EBITDA is term not specifically defined in the CICA Handbook and does not have any standardized meaning prescribed by GAAP. This non-GAAP measurement may not be comparable to similar measures presented by other companies. EBITDA, as used by Serenic, represents earnings before interest, taxes, depreciation, amortization and stock compensation expense.

About Serenic Corporation

Serenic Corporation is an industry-leading publisher of mission-critical software products that satisfy the unique and sophisticated functionality requirements of not for profit organizations, educational institutions, and government agencies. Built on Microsoft Dynamics NAV, Serenic's products deliver fully integrated solutions that can, in many organizations, eliminate the need for multiple third-party business applications.

A Microsoft Gold-certified Industry Solutions Vendor, the Corporation's products include the highly acclaimed Serenic Navigator(*), Serenic DonorVision, and Serenic MinistryView. In addition, the Corporation is the exclusive developer of the human resources and payroll products for Microsoft Dynamics NAV users for North America.

Serenic Corporation is a public company with offices in Edmonton, Alberta and Lakewood, Colorado. It trades under the symbol "SER" on the TSX Venture Exchange in Canada. Additional information about the Company is available at


By: "Dwayne Kushniruk"



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