Serenic Corporation

Serenic Corporation

January 28, 2010 14:26 ET

Serenic Reports Sustained Revenue Growth and Profitability for Third Quarter Ended November 30, 2009

(This is an Amended Press Release to the Press Release dated Jan 26, 2010 and issued Jan 27, 2010.)

EDMONTON, ALBERTA--(Marketwire - Jan. 28, 2010) - Serenic Corporation (the "Company" or "Serenic") (TSX VENTURE:SER), an international software developer specializing in integrated financial management and HCM solutions for Non-Profit organizations, government agencies, and Microsoft Dynamics NAV users, is pleased to announce its financial results for the three and nine months ended November 30, 2009.

Financial results are summarized as follows:

Statement of             (Unaudited)                     (Unaudited)
 Operations          Three months ended:              Nine months ended:
                  Nov 30,     Nov 30,            Nov 30,      Nov 30,
                    2009        2008       %       2009         2008      %
                       $           $                  $            $
Revenue        2,588,602   2,278,695    13.6  8,292,794    6,650,532   24.7
Income (loss)
 for the
 period          154,064    (385,817)  139.9     451,940  (1,016,685) 144.5
Basic income
 per share          0.01       (0.03)  133.0        0.03       (0.07) 142.9
EBITDA (1)       277,448    (221,736)  225.1     845,994    (560,414) 251.0
 % of revenue       10.7        (9.7)  210.3        10.2        (8.4) 221.4
Diluted income
 (loss) per
 share              0.01       (0.03)  133.0        0.03       (0.07) 142.9
 common shares
 outstanding           #           #
 (basic)      15,185,458  15,185,458          15,185,458  15,182,819

1. EBITDA represents earnings before interest, taxes, depreciation,
   amortization, and stock based compensation. Please review the Serenic
   Management Discussion and Analysis for the quarter ended November 30,
   2009 for more information.


- Revenue for the quarter increased by 13.6% to total $2,588,602, up from $2,278,695 recorded in the comparable period last year. Factors responsible for this change were software license sales of $1,011,351, up 37.4% over Q3 last year; client services revenue of $802,855, up 7.4% from Q3 last year; and recurring maintenance and other revenue of $774,396 down 2.6% from Q3 last year.

- Gross profit was $1,770,531 for Q3 of this year versus $1,778,598 of Q3 last year. Incremental expenses of consulting subcontractors and sales referral fees offset the gross profit increases provided by the higher revenue and caused the gross margin percentage as a function of revenue to decline to 68.4% from 78.1% in the same quarter last year.

- Expenses in Q3 decreased overall by 31.0%, down by $706,510 to $1,571,669, from $2,278,179 as recorded in Q3 last year. Measures taken by management earlier this year to reduce expense were augmented by a lower foreign exchange rate and the capitalization of salary expense related to the development of the new version of the company's flagship products, Serenic Navigator, which was released to market on November 12, 2009.

- Net income for the quarter improved considerably to $154,064 from a loss of $385,817 in Q3 of last year. The generation of gross profit remained essentially the same as last year and significant reduction in expenses augmented by the salary capitalizations were responsible for the change in net income.

- Commensurate with the higher net income, EBITDA improved to $277,448 or 10.7% of revenue as compared to an EBITDA loss of $221,736 or 9.7% of revenue in Q3 of the prior year.

- Year-to-date revenue was $8,292,794, up by 24.7% from last year's figure of $6,650,532. International sales of software licenses plus continued success in North American markets has increased the nine month software revenue to $3,240,972, up by 22.3% over last year's comparable figure of $2,650,452. Client services revenue is up 44.5% and software maintenance other revenue is up 10.4% on a period over period-basis. Gross profit has increased by 16.1% to $5,903,389 from $5,082,562.

- Net income for the nine month period is $451,940, up 144.5% over the loss of $1,016,685 recorded for the comparable year to date period last year. Commensurate with these results, EBITDA has also been positively impacted, having increased to $845,994 in the current nine-month period as compared to an EBITDA loss of $560,414 for the nine month period ending November 30, 2008.

- Revenue for the past five quarters has increased by 14% 22%, 30%, 39% and 23% over their comparable periods in the prior year. Despite the challenging global economies 12 month trailing revenues have now increased to $10,967,786.

Please refer to the financial statements and Management Discussion and Analysis for the quarter ended November 30, 2009 filed at for more detailed information. This Amended Press Release will also be filed at


Our direct sales team and the reseller partner channel were very active in both domestic and international markets, with sales having been made to native American groups, humanitarian organizations and the finance department of a developing African country. The revenue growth trend for the past five quarters continued and has resulted in Serenic being again named to the Deloitte Technology Fast 50 list in October 2009, wherein the Company was ranked 29th in the list of the 50 fastest growing technology companies in Canada based on 5 year revenue growth.

On November 12, 2009, the new version of Serenic Navigator was released to market, after working in close collaboration with Microsoft's elite Technology Adoption Program. Serenic's next generation products contain both functional and technological advantages that are highly beneficial and sought after by organizations who typically consider Serenic's solutions.


Serenic's outlook remains essentially unchanged from that stated during the past year. Fortunately, during the current fiscal year, Serenic has been able to avoid many of the negative consequences of the economic recession and its associated uncertainties. Notwithstanding our success, however, we intend to maintain prudent operational strategies throughout Fiscal 2010 and continue to be mindful that the malaise of the economy may still impact our clientele in a more negative way than we have experienced to date. In short, we intend to remain vigilant to take swift corrective action if warranted by any change in circumstances.

Growth initiatives will be implemented where warranted, including the recruitment of additional training and sales personnel for both domestic and international operations. Expansion into international markets, which has been very beneficial in allowing us to deliver improved results, is expected to continue. Administrative spending will continue at an increased level in order to prepare for conversion of accounting procedures to International Financial Reporting Standards, as will be required for all Canadian publicly traded companies by 2011. Marketing costs may be elevated, as necessary to support the roll-out of the new Navigator products and to supplement their sales success.

Although development of the new Serenic products has just concluded, the Company continues to investigate potential integrations of synergistic products and services that fulfill new niche market opportunities, either by acquisition or through further internal development efforts. To this end, management will continue to seek out partnerships with other organizations to better leverage opportunities in current markets and/or to engage in new markets. Investigation of accretive merger and acquisition opportunities and other potential scenarios that might better serve long term objectives will continue to be pursued.

Serenic continues to maintain its strong cash position, with no debt. Sales and revenue growth has sustained for the past five quarters, and the company has made excellent progress in both its domestic and international niche markets. We continue to be very optimistic about Serenic's success and look forward to meeting the objectives of all stakeholders in the near future.


Serenic Corporation publishes mission-critical software products for not-for-profits (NFP), educational institutions and governments. The Company's products are based on leading application and technology platforms from Microsoft, including Dynamics NAV, SQL Server, and .NET, and are distributed in North America and internationally through value-added resellers and a direct sales organization. Serenic Corporation is the exclusive developer of human resource management and payroll products for Microsoft Dynamics NAV ERP users in North America. In October, 2009, Serenic was ranked 29th in the Deloitte Technology Canada Fast 50 and 256th in the Deloitte North America Fast 500, the second year in a row it had its name placed on these prestigious lists. Serenic was named the "ISV (Industry Solutions Vendor) Partner of the Year" by Microsoft for North America in 2009 and is a member of Microsoft's President Club and Inner Circle, the latter being an elite group of sixty-seven members representing the top 1% of Microsoft partners world-wide. Serenic has offices in Edmonton, Alberta and Denver, Colorado and staff located throughout the USA and Canada and has a Sales Manager resident in Europe.


By: "Dwayne Kushniruk"


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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Serenic Corporation
    Dwayne Kushniruk
    1-877-426-5385 x 509
    Serenic Corporation
    Paul Johnston
    1-877-426-5385 x 509
    Investor Relations
    The Dollarton Group Inc.
    Nick Waddell
    (877) 737-3642 x144
    Investor Relations
    The Dollarton Group Inc.
    Kit Spence
    (877) 737-3642 x144