SOURCE: Caneum, Inc.

April 16, 2008 12:45 ET

Information Technology and Business Process Outsourcing Company Continues Rapid Growth With 70% Revenue Growth Year Over Year

NEWPORT BEACH, CA--(Marketwire - April 16, 2008) - Caneum, Inc. (PINKSHEETS: CANM), a global provider of business process and information technology outsourcing services, today announced financial results for 2007. "We are very pleased to announce that we are continuing to grow rapidly and have fully integrated both acquisitions completed in 2006. Our revenues for 2007 were $11.91M, up 70% from the previous year," said Suki Mudan, President and Principal Executive Officer of the Company. "We continue to have a strong pipeline of new customers, contracts and personnel and I am confident that 2008 should be another record year of sequential growth and expansion throughout our global business operations."

2007 Financial Summary

The Company reports operating income, net income and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables. Non-GAAP operating income, non-GAAP net income and non-GAAP EPS are computed net of stock-based compensation, bad debt allowances, imputed interest, depreciation/amortization, minority interest and foreign exchange charges.

2007 Financial Highlights

Revenues -- The Company reported revenues of $11.91M for 2007, representing a 70% increase over revenues of $6.99M for 2006.

Cost of Revenues -- The Company reported cost of revenues of $9.68M for 2007, representing an 81% increase over cost of revenues of $5.34M for 2006.

Operating Expenses -- The Company reported operating expenses of $4.74M for 2007, representing a 33% increase over operating expenses of $3.57M for 2006.

Stock-Based Compensation -- The Company reported stock-based compensation expenses of $0.98M for 2007, representing a 49% increase over stock-based compensation expenses of $0.66M for 2006.

Operating Loss -- The Company reported GAAP operating loss of ($2.52M) for 2007, compared to GAAP operating loss of ($1.93M) for 2006.

The Company reported non-GAAP operating loss of ($1.01M) for 2007, compared to non-GAAP operating loss of ($0.69M) for 2006.

Net Loss -- The Company reported GAAP net loss of $2.96M for 2007, representing a 45% increase over GAAP net loss of ($2.04M) for 2006. The Company reported non-GAAP net loss of ($1.22M) for 2007, compared to non-GAAP net loss of ($0.71M) for 2006.

EPS -- The Company reported GAAP EPS of ($0.37) for 2007, compared with GAAP EPS of ($0.44) for 2006. The Company reported non-GAAP EPS of ($0.15) for 2007, compared to non-GAAP EPS of ($0.11) for 2006.

For a detailed description of the Company's annual financial results, please review the full 2007 10-KSB annual report filed on EDGAR and available for review at http://www.sec.gov/Archives/edgar/data/1118961/000136231008001936/c72955e10vk.htm.

About Caneum, Inc.:

Caneum, Inc. is a global provider of business process and information technology outsourcing services across vertical industries including technology, energy, government, transportation, financial services, education and healthcare. The Company provides a suite of business strategy and planning capabilities to assist companies with their "make versus buy" decisions in the areas of data, network, product development, product maintenance and customer support, and fulfills its services in-house, on-shore, near-shore and off-shore, depending on the business goals and objectives of its global customers. In parallel, the Company is opportunistically pursuing accretive acquisitions within its core outsourcing product and service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. For more information, please visit the Company's web site at www.caneum.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's products and services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's extensive use of third-party suppliers.

Contact Information

  • Contact:
    Caneum, Inc.
    Gary Allhusen
    EVP, COO & Principal Financial Officer
    (949) 273-4000