DEQ Systems Corp.
TSX VENTURE : DEQ

DEQ Systems Corp.

April 24, 2008 17:55 ET

DEQ Releases its 2008 First Quarter Results

LEVIS, QUEBEC--(Marketwire - April 24, 2008) - DEQ Systems Corp. (TSX VENTURE:DEQ) announced today the filing of its 2008 first quarter financial results for the period ended February 29, 2008.

A conference call will be held on Friday, April 25th at 9am EST to present and discuss the results. Those interested in participating should dial (416) 644-3415 or toll free 1 (800) 731-6941. A visual presentation (Powerpoint) will be available on DEQ's website (www.deq.com) in the Invest/Financial Reports/PowerPoint section to support the call content. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website.

2008 FIRST QUARTER HIGHLIGHTS:

Financial

- 29 % increase in recurring revenue to $611,000 compared to Q4 - 2007

- 41% increase in gross profit from $466,141 in Q4 - 2007 to $658,311 in Q1 - 2008

- Increase from 750 to 815 of Leased Table Equivalent ("LTE") systems

- 24 % average annual growth in recurring revenue in the last three years

- Continued stable operating costs at $815,000 for the quarter

- Solid cash position above $10 million with no interest bearing debt

Operating

- Nevada Field Trial Ongoing

- Macau Field Trial Ongoing

- DEQ wins a Top 20 USA Gaming Innovation Award

- Pechanga installs 11 EZ Baccarat Tables with EZTRAK

- DEQ Obtains Remote Betting Patent in the Philippines

- DEQ signs on Ten Stix Gaming as EZTRAK/EZAnte USA Distributor

"During the first quarter of 2008, our efforts were focused on paving the way for our US commercialization. We completed the technical phase of our Nevada G3TM field trial, filed operating permits in over five other states and signed letters of interest with strategic clients," stated Earle G. Hall, President & CEO of DEQ. "All of our product lines are experiencing traction in the US and we are very encouraged by our customers' feedback. We are now well positioned to penetrate North America's most significant gaming market. Once the expected Nevada authorization is received, our already established partnership should lead to a quick deployment of our G3TM system in the Las Vegas table game market."



Balance Sheets Nov. 30, 2006 Feb. 28, 2007 Nov. 30, 2006 Feb. 29, 2008
(Audited) (unaudited) (Audited) (unaudited)
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Cash and cash
equivalents 3,591,367 295,856 11,364,112 10,316.664
Current assets
(other than
cash) 2,783,913 2,013,389 2,180,534 2,649,097
Long-term assets 7,329,713 7,329,713 9,187,762 9,174,872
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Total Assets $13,704,993 $12,783,570 $22,732,408 $22,140,633
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Current
liabilities 1,581,378 379,067 1,716,162 1,074,818
Long-term
liabilities 655,896 654,574 577,073 577,073
Shareholders'
equity 11,467,719 11,749,929 20,439,173 20,488,741
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Total Liabilities
and Equity $13,704,993 $12,783,570 $22,732,408 $22,140,633
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Number of shares
outstanding 53,241,149 53,248,149 69,350,794 69,907,919
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Additional financial information

First Quarter Twelve Month Period
Feb. 28, 2007 Feb. 29, 2008 Feb. 28, 2007 Feb. 29, 2008
(unaudited) (unaudited) (unaudited) (unaudited)
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$ $ $ $
Revenue
Distribution
Recurring
revenue 727,333 611,144 2,008,462 2,133,914
Product sales
and patents
rights 607,699 312,577 1,925,868 1,035,924
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1,335,032 923,721 3,934,330 3,169,839
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Gross Profit 1,161,231 658,311 2,390,701 2,251,690

Operating Cost(1) 952,092 811,679 2,985,239 3,064,331
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EBITDA(2) 209,139 (153,368) (594,538) (812,641)

Interest income,
net of expenses 88,765 171,606 190,657 453,594
Deferred revenue
variation (285,550) (118,286) - 549,076
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Adjust. Operational
Cash Flow(2) $12,354 $(100,048) $(403,881) $190,029
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Note 1: Operating Cost is excluding stock-option based compensation.
Note 2: We use EBITDA (Earnings before interest, taxes, depreciation and
amortization) and Adjusted Operational Cash Flow as performance
measurements in our financial disclosure. These measurements are
not recognized under generally accepted accounting principles.
The reconciliations above demonstrate how we calculate such
measurements from our financial statements.



Statement of Earnings

First Quarter Twelve Month Period
Feb. 28, 2007 Feb. 29, 2008 Feb. 28, 2007 Feb. 29, 2008
(unaudited) (unaudited) (unaudited) (unaudited)
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$ $ $ $
Revenue
Royalties 641,004 535,131 1,595,387 1,855,943
Sale of
equipment 607,699 312,577 1,763,278 928,764
Equipment rental 86,329 76,013 449,075 277,971
Patent rights - - 162,590 107,160
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1,335,032 923,721 3,934,330 3,169.839

Gross Profit 1,161,231 658,311 2,390,701 2,251,690
% Gross margin 87% 71% 61% 71%

Net Earnings (Loss) $67,687 $(183,933) $(2,200,672) $(1,958,062)
Net Earnings (Loss)
per share $0.001 $(0.003) $(0.056) $(0.034)


ABOUT DEQ

Founded in 1998, DEQ Systems Corp. (TSX VENTURE:DEQ) is a leader in the table game bonusing technology field. DEQ's patents, products and features include side bet bonusing games with progressive and random jackpot prizes, slot machine style mystery bonusing, multiple credit and denomination betting flexibility, dealer hand betting, electronic credit bank, electronic rake, baccarat hand tracking, multimedia animation and sound effects. DEQ has an extensive patent portfolio that is recognized in more than 50 countries such as the USA, Macau, Australia and Canada. DEQ's bonusing solutions and products are present in more that 200 casinos in over 30 countries.

DEQ Systems Corp. has been selected in the TSX Venture 50 in 2007. "2007 Venture 50" is a trademark of TSX inc. and is used under license.

Forward-looking statements contained in this Press Release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

TSX Venture does not accept any responsibility regarding the accuracy of the information contained in this press release.

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