Gemcom Software International Inc.
TSX : GCM

Gemcom Software International Inc.

November 09, 2005 20:13 ET

Gemcom Announces Second Quarter Results and Net Earnings Increase of 29%

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2005) - Gemcom Software International Inc. (TSX:GCM), a global provider of mine production management solutions (MPMS), today announced the Company's financial results for the second quarter ended September 30, 2005.

The Company achieved a net profit of $324,959, or basic and diluted net earnings of $0.02 per share, compared to $260,255 or $0.01 per share in the same quarter last year. For the six months ended September 30, 2005, the Company reported a net income of $644,007, or basic and diluted net earnings of $0.03 per share. This represents a 29% increase over the net earnings of $500,438, or basic and diluted net earnings of $0.02 per share, reported in the same period of the prior year. All figures are quoted in Canadian dollars.

"Improving operational effectiveness in our regional business units has contributed to the Company's increased net earnings," said Garth Albright, CFO. "These effective cost controls and revenue increases have permitted us to grow the Company's profitability, strengthen its balance sheet and significantly increase working capital."

Key Q2 Financial Highlights:

- Year to date revenue growth was 12%. Total revenue for the fiscal year to date was $8.6 million versus $7.7 million over the same period in the prior fiscal year.

- Net earnings to September 30, 2005 grew 29% to $644,007 as compared to $500,438 for the prior year comparable period.

- Working capital increased 55% to $2.6 million at September 30, 2005 when compared to $1.7 million at March 31, 2005.

- Investment in research and development year to date increased by 28% to $2.0 million when compared to the prior year comparable period expenditure.

"We continue to see increased awareness in the industry of the benefits in using our integrated mining solutions," said Rick Moignard, President and CEO. "By increasing R&D investment, while maintaining profitability, we have been able to build on our strengths and provide solutions the industry is looking for, such as our new Gemcom In-Site™ production information management platform."

Complete financial statements can be found via SEDAR (www.sedar.com), or on the Company's website (www.gemcomsoftware.com).

About Gemcom

Gemcom is a global provider of Mine Production Management Solutions ("MPMS"). Established in 1985, the Company delivers technical mining applications, professional services, training, and support. Reliable, timely information provided by Gemcom's MPMS allows for greater control throughout the mine lifecycle, which can translate into significant productivity gains.

Gemcom has a customer base of more than 1000 mine sites in over 85 countries, including such industry giants as Anglo American, BHP Billiton, Codelco, CVRD, De Beers, Falconbridge, Rio Tinto, and Teck Cominco, which rely on Gemcom's software to facilitate economic decision-making at their operations.

Contact Information