WANTED Technologies Corporation
TSX VENTURE : WAN

WANTED Technologies Corporation

February 28, 2007 09:00 ET

WANTED Posts 69% Revenue Growth and Net Earnings of $75,546 in the Second Quarter of Fiscal 2007

MONTREAL, QUEBEC--(CCNMatthews - Feb. 28, 2007) - WANTED Technologies Corporation ("WANTED" or the "Company") (TSX VENTURE:WAN), a leading supplier of real-time sales and business intelligence solutions for the media classified and recruitment industries, reported its results today for its 2007 second quarter ended December 31, 2006. All amounts are in Canadian dollars unless otherwise indicated.

Highlights

- 69% revenue growth in the 2nd quarter of fiscal 2007 compared to the same period in 2006.

- Net earnings of $75,546 for the 2nd quarter of fiscal 2007 compared to $15,834 the previous quarter.

- 88% growth of recurring revenue base as at December 31, 2006 compared to December 31, 2005.

Summary of Financial Results for the 2nd Quarter and the First Six Months of Fiscal 2007

Sales for the three-month period ended December 31, 2006 totalled $758,643, compared to $447,635 for the same period in the previous fiscal year, an increase of 69%. Sales for the six-month period ended December 31, 2006 totalled $1,414,988, compared to $841,820 for the same period in the previous fiscal year, an increase of 68%. This increase is due to the recruitment of new customers and the popularity of WANTED's products.

It should be noted that WANTED derives its revenues from renewable annual contracts that generate recurring revenues for the Company. As at December 31, 2006, contracts in hand represented just over $3.0 million in annualized revenues; this represents an increase of 88% as compared to contracts in hand as at December 31, 2005, which represented $1.6 million dollars in annualized revenues. The concept of recurring annualized revenues assumes that all current customer contracts will be renewed as of the calculation date, since the majority of WANTED's customer contracts are 12-month agreements.



Three-month Periods Six-month periods
ended December 31, ended December 31,
-----------------------------------------------------------------------
2006 2005 2006 2005
(unaudited) (unaudited) (unaudited) (unaudited)
-----------------------------------------------------------------------
$ $ $ $
Revenues 758,643 447,635 1,414,988 841,820
Cost of good sold 9,314 9,314
-----------------------------------------------------------------------
Gross margin 749,329 447,635 1,405,674 841,820

Operating expenses 647,963 474,187 1,283,981 797,931
-----------------------------------------------------------------------

Earnings (loss)
before other items 101,366 (26,552) 121,693 43,889
Other items:
Exchange gain (loss) 10,798 (2,088) 6,305 (22,125)
Stock-based compensation (36,618) (36,618) (303,600)
Dividends on Class
"C" shares (141,251)
-----------------------------------------------------------------------
Net earnings (loss) 75,546 (28,640) 91,380 (423,087)
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Basic and diluted net
earnings (loss) per share 0.004 (0.001) 0.004 (0.027)

Weighted average number
of shares outstanding 20,687,672 20,273,448 20,643,107 15,807,397


"We are pleased with the significant increase in our sales during the first six months of the fiscal year. We are proud to have achieved profitability in the first six months of the fiscal year. More specifically, we are proud to have illustrated the strength of our recurring revenue concept in terms of profitability during the second quarter", stated David Tanguay, President and Chief Executive Officer of WANTED.

The Company's operating costs were $647,963 for the three-month period ended December 31, 2006, 37% higher than the costs of $474,187 for the same period in fiscal 2006. For the first six months of fiscal 2007, operating costs totalled $1,283,981, compared to $797,931 for the first six months of the previous fiscal year, an increase of 61%. This increase is directly related to the implementation of operating, marketing and administrative structures and resources to enable WANTED to sustain its sales growth.

Net earnings for the second quarter ended December 31, 2006 totalled $75,546 (or $0.004 per share), compared to a net loss of $28,640 (or $0.001 per share) for the same period in the previous fiscal year. For the first six-month period ended December 31, 2006, the Company reported net earnings of $91,380 (or $0.004 per share), compared to a net loss of $423,087 (or $0.027 per share) for the same period last year.

Financial Position

At December 31, 2006, WANTED had working capital of $1,974,810, compared to $1,879,048 at June 30, 2006. Cash and short-term investments stood at $1,856,774 at December 31, 2006, compared to $1,804,271 at June 30, 2006. Total assets were $2,986,320 at December 31, 2006, compared to $2,580,209 at June 30, 2006.

Complete information, including unaudited interim financial statements for the quarter ended December 31, 2006, related notes, and the management report will be available via the Internet at www.sedar.com and on the Company's website at www.wantedtech.com, as of Thursday, March 1, 2007.

About WANTED

WANTED is a leading supplier of real-time sales and business intelligence solutions for the media classified and recruitment industries. Using its proprietary On-Demand data mining, lead generation and CRM (Customer Relationship Management) integrated technologies, WANTED aggregates real-time data from thousands of online job boards, real estate and newspaper sites, as well as corporate Web sites on a daily basis.

WANTED's data is used to optimize sales and to implement marketing strategies within the classified ad departments of major media organizations, as well as by staffing firms, advertising agencies and human resources specialists.

WANTED is also the exclusive data provider for the United States Conference Board's Help-Wanted Online Data Series™, a monthly economic indicator of job availability in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Any statement that appears prospective shall not be interpreted as such.

Contact Information

  • WANTED Technologies Corp.
    Mr. David Tanguay
    President and CEO
    418-523-6663, ext. 222
    or
    WANTED Technologies Corp.
    Mr. Philippe Frenière
    Vice President Finance & CFO
    514-875-8989, ext. 232
    www.wantedtech.com