Synergex Corporation

Synergex Corporation

November 12, 2008 09:15 ET

Synergex Reports Record Sales and Gross Profit in Q3 2008

MISSISSAUGA, ONTARIO--(Marketwire - Nov. 12, 2008) - Synergex Corporation (TSX:SYX), a premier provider of international logistics and distribution services, today announced its financial results for the third quarter ended September 30, 2008. Record sales and gross profit were driven by continuing growth of the Company's customer network, product line expansion, and penetration of new markets in Latin America.

"Earlier in the year, we outlined our plans to focus on building our core business while, at the same time, streamline our operations," said David Aiello, President and CEO of Synergex Corporation. "Our efforts are bringing positive results."

Sales for third quarter were a record $52.0 million, up 68% from $30.9 million for the same period a year ago. The Company also reported record high sales over the nine month period of $116.7 million, up $34.4 million from the comparable period in the prior year.

Third quarter gross profit increased 50% to $6.9 million from $4.6 million for the comparable period in 2007. For the nine month period, Synergex attained record high gross profits of $17.4 million, up nearly 50% compared to the $11.7 million recorded in the same period in the prior year. Margin growth continued to reflect increased demand for game software following last year's strong sales of next generation game consoles.

In the third quarter, the Company reported a net income of approximately $367,000 compared to $214,000 for the comparable period a year ago. Discontinued operations generated a net loss of $463,000 in 2008 prior to the divesture in June 2008. In Q3, Synergex reported a net income from continuing operations of $367,000, a decrease from the $426,000 in the same period last year. This is due to an increase in operating expenses to support continued growth in Latin American, as well as non-cash Latin American start-up costs deferred from 2007.

"I am confident that we will ensure that Synergex' momentum takes us to stronger gains in 2009," said Aiello.

Conference Call

Synergex is pleased to invite all interested parties to participate in a conference call at 4:00 p.m. Eastern Time today, November 12, during which these results, and management's outlook for future periods, will be discussed.

To access the conference call, please dial 416-695-7806 or 1-888-789-9572, pass code 3273416#.

The call will also be webcast live and archived in the Investor Relations section of the Company's website,

About Synergex Corporation

Synergex is a premier international service provider of supply chain management solutions, specializing in logistics, distribution, freight forwarding, localization and packaging services. Headquartered in Mississauga, Ontario, with operations across North, Central and South America, Synergex serves a broad base of customers that includes a number of multinational enterprises. Synergex is listed on the Toronto Stock Exchange and trades under the symbol SYX. For further information, please visit

Forward Looking Statements

Some of the statements contained in this news release may be forward-looking statements such as the Company's future plans, objectives and goals. The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties, which could cause actual results to vary considerably from these statements.

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