Parta Dialogue Inc.
TSX VENTURE : PAD

Parta Dialogue Inc.

September 30, 2013 11:42 ET

Parta Dialogue Announces a 22% Increase of its Revenues for its Fiscal Year Ended May 31, 2013 and Grants Stock Options

MONTREAL, QUEBEC and TORONTO, ONTARIO and PARIS, FRANCE and MEXICO CITY, MEXICO--(Marketwired - Sept. 30, 2013) - Parta Dialogue Inc. ("Parta") (TSX VENTURE:PAD), an upcoming leader in Social Marketing Technology and Social Learning, released results for its last fiscal year ended May 31, 2013. Revenues have increased by 22% compared to the previous year ended May 31, 2012 and by 82% compared to the same ended May 31, 2011. Audited consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.

In addition to the $532K increase in revenues for the fiscal year, Parta has also announced that, in comparison to the same year ended May 31, 2012, its cost of sales have increased by 64% and the cost of marketing and sales have increased by 83% to support the Company's growth plan and the strategy of selling its digital marketing suite of technology and services to leading agencies and brands across the globe. "We have invested a significant amount of money into our technologies for a small company such as us and are convinced we have created a leading edge for ourselves and our customers. We have reduced our development costs and shifted our investment into sales and market development with a strategy to sell through a wholesale model to leading digital agencies and to clients direct. Our investment in product development costs over the past two years and the shift to sales and marketing is representative of our transition from a services company to a technology company supported by services", said Paul Allard - CEO. Cost of sales includes a total of $757K in research and development expenses and $666K in amortization of intangible assets. Operating expenses also includes $188K expenses related to the acquisition of M Thirty Communications Inc. in September 2012.

OVERALL PERFORMANCE

For the fiscal year ended May 31, 2013, the Company shows a net loss attributable to shareholders of $2,820,745 compared to a net loss of $1,265,371 for the previous year ended May 31, 2012 and a net loss of $1,045,164 for the fiscal year ended May 31, 2011. Revenues have decreased by 13%, from $516,055 for the quarter ended May 31, 2012 to $449,506 for the quarter ended May 31, 2013. For the comparative years, revenues increased for 9% in E-Learning segment and increased for 31% in Social Media segment. Increases in the Cost of Sales and Sales and Marketing reflect the massive investment that the Company has made in the development and commercialization of its new product #esuite™ Social Marketing Suite.

The gross margin decreased by 115% from $575,333 - or 24% of sales - for the fiscal year ended May 31, 2012 to ($84,390) - or (3%) of sales- for the fiscal year ended May 31, 2013. The operating expenses have increased by 48%, from $1,850,567 - or 76% of sales - for the fiscal year ended May 31, 2012 to $2,745,087 - or 92% of sales - for the fiscal year ended May 31, 2013. For the comparative years, the Sales and Marketing expenses have increased by 83% and the General and Administrative expenses have increased by 59%. Adjusted EBITDA decreased by $1,113,916 from ($626,764) - or (26%) of sales - for the fiscal year ended May 31, 2012 to ($1,740,680) - or (59%) of sales - for the fiscal year ended May 31, 2013. For the comparative years, loss per share was ($0.05) for the fiscal year ended May 31, 2013, to be compared to ($0.03) for the fiscal year ended May 31, 2012 and ($0.04) for the Fiscal year ended May 31, 2011. PARTA's total assets as at May 31, 2013 amounted to $3,342,734, a decrease of $34,379 from May 31, 2012.

GRANT OF STOCK OPTIONS

Parta also announces it has granted a total of 160,000 Stock Options from its Incentive Stock Option Plan to employees. These options will allow the holder to purchase an additional common share of Parta at the price of $0.10 for a period of 3 years. This grant of options is subject to appropriate regulatory approvals and the terms of Parta's Incentive Stock Option Plan.

About Parta

Parta Dialogue is an up and coming leader in Social Media Optimization and Social Learning .for organizations at the forefront of digital strategy. Our clients include some of the largest and some of the smallest (but hippest) companies in the world, and the list is growing. Parta is aggressively investing in building out the most robust technology offering in the market (#esuite™) for brands and companies to support their entire social marketing cycle, from the data they want, to the insights they need leading to conversions they crave. The #esuite includes: social listening (#elisten™), publishing (#eshare™), and measuring social communities in real-time (#evalue™).

Many visionary businesses already employ Parta's solutions for internal and external online engagement. Among these are Proctor and Gamble, Nestlé, Durex, Budweiser, IBM, Mazda, Universal Pictures and Rock the Vote. www.partadialogue.com

Parta is listed on the TSXV under the symbol PAD and operates through two subsidiaries:

#engagementlabs: www.engagementlabs.com

edu-performance: www.eduperformance.com

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