ODESIA Group Inc.
TSX VENTURE : ODS

ODESIA Group Inc.

August 28, 2012 08:40 ET

ODESIA Reports Increase in Second Quarter Revenue

Q2 Results include +22% Revenue, and +5% Gross Profit Driven by Solid Business Management and Global Market Demand

MONTREAL, QUEBEC--(Marketwire - Aug. 28, 2012) - ODESIA Group Inc. ("ODESIA" or "the Company") (TSX VENTURE:ODS), an international corporation specialized in Corporate IT solutions, is pleased to announce its 2012 second quarter revenue of 2,948,000, a significant increase from the same period in 2011.

"A 22% increase in revenue from Q2 2011 and a 25% increase from the first semester of 2011 are positive indications of initial progress from ODESIA's strategic plan announced in late 2011," stated President and CEO, Nicolas Bonnafous. "In addition to organic growth in revenue, ODESIA also completed the successful acquisition and integration of Interfacing Technologies Corporation in Q2 2012. The award winning portfolio of BPM software products acquired from Interfacing, adds depth and breadth to our strategic mix of offerings."

Highlights for the second quarter ended June 30, 2012:

  • Interfacing Technologies Corporation's acquisition completed in May 2012;

  • Private placement of $750,000 completed in June 2012;

  • Revenue of $2,948,000; an increase of $537,000 or 22% from $2,411,000 in Q2 2011;

  • Revenue of $5,962,000 in the first semester of 2012; an increase of $1,192,000 or 25% from $4,770,000 in the same period in 2011;

  • Gross profit of 33% or $983,000; compared to 28% or 665,000 in Q2 2011;

  • Increase in sales & marketing effort, now represents 13% of sales compared to 8% in Q2 2011;

  • Net loss of $172,000 (including $72,000 of non-recurring expenses) compared to a net loss of $126,000 in Q2 2011;

  • Increased total equity attributable to the owners of ODESIA by $1,349,000 since December 2011.

Selected financial information

Income statement

($000's except per share amounts) For the three-month period
ended June 30,
(unaudited
) For the six-month period
ended June 30,
(unaudited
)
2012 2011 2012 2011
Revenue 2,948 2,411 5,962 4,770
Gross profit 983 665 1,836 1,410
Non-recurring expenses 72 - 72 -
Operating profit (loss) (133 ) (59 ) (69 ) 48
Net loss (172 ) (126 ) (157 ) (148 )
Basic and diluted net loss per share attributable to owners of ODESIA (0.005 ) (0.004 ) (0.005 ) (0.005 )

Statement of financial position

($000's) June 30, 2012
(unaudited
) December 31, 2011
(audited
)
Total assets 7,073 4,119
Convertible debentures and long-term debt including short-term portions 1,678 565

Outlook

The ODESIA leadership team strives to advance new corporate development initiatives to insure continuous organic growth and is also dedicated to deliver ongoing results by identifying acquisition opportunities.

Additional information on the second quarter ended June 30, 2012

The financial information regarding the second quarter ended June 30, 2012 should be read in parallel with the Company's consolidated financial statements and MD&A (Management Discussion and Analysis). These documents can be found on www.sedar.com

About ODESIA Group Inc.

ODESIA Group Inc. (TSX VENTURE:ODS) is a global technology solutions provider serving enterprise level Fortune 500 companies in the financial services, manufacturing, media and telecommunications industries. ODESIA's team mission is to empower multinational corporations with the ability to improve the efficiency of operations, enhance process performance, productivity and profitability, and make better overall business decisions by implementing Unified Business Intelligence solutions that present the right information, at the right time, and the right place. ODESIA is listed on the Toronto Venture exchange under the symbol "ODS." For more information on The Company visit www.odesia.com or for Investor Relations visit www.primecom.ca. A copy of the latest company data sheet is available at http://media3.marketwire.com/docs/ODS_Broker_Factsheet.pdf

Disclaimer in regards to forward-looking statements

This press release contains forward-looking statements which reflect ODESIA's current expectations regarding future events and may involve risks or uncertainties. Actual results could differ materially from those projected herein. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. ODESIA does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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