Gemcom Software International Inc.
TSX : GCM

Gemcom Software International Inc.

June 08, 2006 20:09 ET

Record Profits Highlight Gemcom's Year-End Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 8, 2006) - Gemcom Software International Inc. (TSX:GCM), a global provider of mine production management solutions, today announced the Company's results for the year ended March 31, 2006.

The Company achieved net income of $2,152,037 for the year, or basic and fully diluted earnings per share of $0.09, this represents a 52% increase from net income of $1,419,970, or basic and fully diluted earnings per share of $0.06 reported in the prior year. All figures are quoted in Canadian dollars.

"Record revenues, net income and earnings per share are just a few of the highlights of our year-end results," commented Garth Albright, Gemcom's CFO. "This is a clear reflection of our ability to execute our market development and sales strategies and of our ability to control costs."

- Revenue grew 14% to $18.5 million as compared to $16.2 million in the prior year.

- Net income grew 52% to $2.1 million as compared to $1.4 million in the prior year.

- Working capital increased 167% to $4.5 million at March 31, 2006 as compared to $1.7 million at the end of the prior year.

- Investment in research and development increased by 9% to $4.0 million as compared to the prior year, before adjustment for recognition of R&D investment tax credits of $231,833.

"Gemcom's strong financial performance has provided us with the resources required to develop the sophisticated technology the mining industry is looking for, while also allowing us to expand our product portfolio to gain access to new markets," said Rick Moignard, Gemcom's President and CEO.

Gemcom recently announced the signing of a non-binding Letter of Intent to acquire Surpac Minex Group, a provider of mining software and services with markets and technology complementary to its own. Upon completion of the acquisition, Gemcom will become the clear industry leader in exploration, planning and mine production management solutions.

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 sites in over 90 countries, including such industry giants as Anglo American, BHP Billiton, Codelco, CVRD, De Beers, Newmont, Rio Tinto and Teck Cominco.


Contact Information