Texada Software Inc.

Texada Software Inc.

May 01, 2008 11:08 ET

TEXADA Software Inc. Announces 2007 Year End Results

- Revenue of $4.036 million, a marginal increase over 2006 - Adjusted EBITDA loss of $1.4 million - Significant steps to reducing cost base and improving balance sheet

TORONTO, ONTARIO--(Marketwire - May 1, 2008) - TEXADA Software Inc. (TSX VENTURE:TXS), the premier provider of equipment rental and mobile asset management software, announces today its audited financial results for the full year ending December 31, 2007.

The Company for the year ended December 31, 2007 generated total revenues of $4,036,444 and a loss for the year of $3,299,906. Adjusted EBITDA (defined as loss for the year adjusted for amortization, accretion on convertible debt, interest expense, foreign exchange losses, stock based compensation expense, and severance expense) was a loss of $1,406,845. These results compare to total revenues of $4,003,390, a loss for the year of $3,174,391 and an Adjusted EBITDA loss of $1,299,155 for 2006.

Revenue for 2007 was marginally higher than revenue recorded for fiscal 2006. Growth in revenue year-over-year was hampered by unfavourable exchange rates, selected customer installations and deliveries deferred from Q4 of 2007 to Q1 of 2008 and a number of corporate changes, including refinancing of convertible debt that consumed management's time in Q4.

During the fourth quarter, Texada took a number of steps towards improving its balance sheet, steps towards becoming cash flow positive from operations and refocusing on customers. These steps included converting the majority of its $1,100,000 of existing debt to equity, raising and additional $500,000 of capital through the issuance of new convertible debentures and in March 2008 selling one of its internet domain names for $400,000 in cash. Refocusing software development activities on customer requirements and requests has resulted in staff reductions in research and development and a more focused development of cost-effective enhancements to the Company's technology.

"A significant portion of management's efforts in fourth quarter of 2007 were spent making Texada a better and more focused company for 2008. Balancing the needs of our key stakeholders - customers, investors and staff - is the best way for us to improve our balance sheet and become cash flow positive." said Nigel Miller, CEO of Texada. "Much of what we accomplished in late 2007 is helping us to move forward in a more fiscally responsible way and deliver value to all of our key stakeholders."

The Company's financial results are presented below:

Thousands of Canadian Dollars Three Months Ended Year Ended
(except per share amounts) December 31 December 31
2007 2006 2007 2006
Revenue $ 689 $ 1,005 $ 4,036 $ 4,003
Operating Loss (473) (213) (1,407) (1,299)
Loss for the Period (1,316) (646) (3,300) (3,174)
Loss per share $ (0.02) $ (0.02) $ (0.06) $ (0.11)

More information may be found at www.sedar.com.

About Texada Software (TSX VENTURE:TXS)

Texada Software Inc. is the premier provider of enterprise software solutions for mobile equipment and rental management. Texada's solutions are fully flexible and scalable to meet the unique needs of any sized operation and are backed by proven implementation, services and support.

Texada's market-driven software products combine knowledge and best practices from over 400 customers worldwide, resulting in solutions that manage the complete asset life-cycle from acquisition through to disposal. Our customers enjoy the benefits of enhanced efficiency through better asset utilization, effective location tracking, and optimized scheduling.

Texada can be reached at 1-800-361-1233 or +1-519-836-7073, or on the internet at www.texadasoftware.com.

This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors Texada's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

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

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