SOURCE: WANTED

February 17, 2009 08:00 ET

WANTED Technologies Posts Record Revenue in Q2

Revenue for the Leading Source of Hiring Demand Intelligence Grew 13 Percent Over the Prior Year

QUEBEC--(Marketwire - February 17, 2009) - WANTED Technologies (TSX-V: WAN)

--  Record quarterly revenues of $1,610,643 compared to $1,428,657 in last
    fiscal year, an increase of 13 %
--  EBITDA of $278,211, compared to $218,501 for second quarter of prior
    year, representing an increase of 27 %
--  Net earnings of $113,599, or 7.1% of revenues, compared to $106,935,
    or 7.5% of revenues for the second quarter of prior year
--  Cash flows from operating activities of $454,337 for the second
    quarter and $1,017,837 for the six-month period ended December 31, 2008
--  Increase of 50% in the installed base of business professionals using
    WANTED Analytics™ for the second quarter of fiscal 2009 compared to the
    second quarter of fiscal 2008
    

WANTED Technologies (TSX-V: WAN), the leading source of hiring demand intelligence, reported today record revenue for the second quarter of fiscal 2009 ended December 31, 2008. The company generated revenues of $1,610,643, up 13 % over revenue of $1,428,657 for the second quarter of fiscal 2008. All amounts are in Canadian dollars, unless otherwise indicated.

"We achieved these results at a time of increasing economic uncertainty," said Bruce Murray, President and CEO of WANTED. "We are particularly encouraged by the decisions of major clients to extend the scope of their subscriptions to our employment market business intelligence platform, WANTED Analytics."

The majority of WANTED's clients currently serve the employment and advertising services marketplace. Both sectors are expected to experience pressure on their revenues during the current economic recession.

"During the second quarter, we began a concerted effort to introduce WANTED Analytics to new market segments," said Murray. "These initiatives, which involve an increased allocation of sales and marketing expenses, are critical for WANTED to diversify its customer base and reach clients whose businesses are less prone to economic cycles."

Revenues for the second quarter ended December 31, 2008 were $1,610,643, representing an increase of $181,986 or 13 % over $1,428,657 posted for the corresponding quarter of the previous year. For the six-month period ended December 31, 2008, revenue totalled $3,021,180, compared to $2,876,646 for the same period in the previous fiscal year, an increase of 5 %.

WANTED's business model is largely focused on building its recurring revenue base through annual subscriptions to its leading employment market intelligence platform, Analytics™ 2.0. Approximately 92 % of total revenue for the second quarter of fiscal 2009 came from recurring revenue contracts, compared to 79 % for the corresponding quarter of prior year. The recurring revenue base increased from 4.6 million at the end of the second quarter of fiscal 2008 to 6.3 million at the end of the second quarter of fiscal 2009, an increase of 37 %. At the end of the first quarter of fiscal 2009 ended September 30, 2008, the recurring revenue base stood at 5.2 million. The increase, both in the revenue and the recurring revenue base combined with favourable exchange rates during the first six months of fiscal 2009, reflects an extremely positive reaction from the market to the newly-released online employment platform Analytics™ 2.0.

Operating costs increased from $1,191,406 in the second quarter of fiscal 2008 to $1,530,992 for the second quarter of fiscal 2009, an increase of $339,586 or 29 %. For the first six months of fiscal 2009, operating costs totalled $2,697,513, compared to $2,491,963 for the first six months of the previous fiscal year, an increase of $205,550 or 8 %. These increases are directly attributable to investments in hiring additional resources in both sales and product marketing to support the newly released Analytics™ 2.0 in new market segments.

EBITDA for the second quarter of fiscal 2009 was $278,211 compared with $218,501 for the second quarter of fiscal 2008, an increase of $59,710, or 27 %. For the first six months of fiscal 2009, EBITDA totalled $666,282, compared to $450,431 for the first six months of the previous fiscal year, an increase of $215,851 or 48 %. EBITDA represents the net earnings before net financial expense, income taxes, depreciation and amortization on property, plant and equipment and intangible assets. As generally accepted accounting principles in Canada do not provide a standardized definition for this measure, it may not be comparable to similar measures used by other companies.

Net earnings for the quarter ended December 31, 2008 amounted to $113,599 ($0.005 per share) compared to $106,935 ($0.004 per share) for the corresponding quarter of the previous year, an increase of $6,664, or 6 %. For the first six months of fiscal 2009, net earnings reached $338,348, compared to $220,339 for the first six months of the previous fiscal year, an increase of $118,009 or 54 %.

                             Three-month periods     Six-month periods
                              ended December 31       ended December 31
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            (unaudited) (unaudited) (unaudited) (unaudited)
                            ----------- ----------  ----------- ----------
                                      $          $            $          $
Revenues                      1,610,643  1,428,657    3,021,180  2,876,646
Cost of goods sold               29,449    123,817       37,192    123,817
                            ----------- ----------  ----------- ----------
Margin                        1,581,194  1,304,840    2,983,988  2,752,829

Expenses
  Research and development,
   net of tax credits           404,280    412,513      727,786    834,920
  Marketing and selling         694,071    344,945    1,171,894    736,523
  General and
   administrative               370,174    370,479      674,183    781,285
  Amortization of
   intangible assets             52,311     52,311      104,623    104,623
  Financial expenses, net
   amount                        10,156     11,158       19,027     34,612
                            ----------- ----------  ----------- ----------
                              1,530,992  1,191,406    2,697,513  2,491,963
                            ----------- ----------  ----------- ----------
Earnings before other
 revenue (expenses)              50,202    113,434      286,475    260,866
Other revenue (expenses):
  Exchange gain (loss)          122,761     (8,561)     171,117    (42,589)
  Gains on disposal of
   property, plant and
   equipment                         50      2,062           50      2,062
                            ----------- ----------  ----------- ----------
Earnings before income
 taxes                          173,013    106,935      457,642    220,339
Income taxes                     59,414                 119,294
                            ----------- ----------  ----------- ----------
Net earnings and
 Comprehensive Income           113,599    106,935      338,348    220,339
                            =========== ==========  =========== ==========
Basic and diluted net
 earnings per share               0.005      0.004        0.014      0.009

Cash flows generated from operating activities were $454,337 for the second quarter of fiscal 2009 compared to cash flows used for operating activities of $135,847 in the corresponding quarter of previous year, a positive variation of $590,184. This variation mostly results from a positive variance of $598,339 in the changes in the working capital items mostly resulting from significant accounts receivable collection in the six-month period ended December 31, 2008 compared to customer payments being delayed in the corresponding six-month period of the previous year. For the first six months of fiscal 2009, cash flows from operating activities reached $1,017,837, compared to cash flows used for operating activities of $32,605 in the corresponding period of previous year, a positive variation of $1,050,442.

Financial position

As at December 31, 2008, WANTED had working capital of $1,945,695 compared to $1,604,785 at June 30, 2008, an increase of $340,910. Cash and short-term investments stood at $2,021,934 at December 31, 2008 compared to $1,265,871 at June 30, 2008, a significant increase of $756,063 mostly resulting from cash flows generated by the operating activities.

Total assets stood at $6,212,988 at December 31, 2008, up $407,767 from $5,805,221 at June 30, 2008. The increase in total assets is mainly due to an increase of $482,658 in current assets, partially offset by a decrease in intangible assets of $104,623 resulting from the amortization expense.

Those interested will be able to access the information on the December 31, 2008 unaudited consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.com and at the Company's website, www.wantedtech.com, as of Tuesday, February 17th, 2009.

About WANTED Technologies Corporation

WANTED is the leading source of hiring demand intelligence. Clients in the media, HR/staffing, financial services and government sectors use WANTED's online data and SaaS-based analytical solutions to identify economic trends, analyze competitive and market activities and prioritize sales opportunities.

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

WANTED Technologies (TSX-V: WAN) was founded in 1999. The company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. The company began collecting detailed hiring demand data in October, 2002, and currently maintains a database of hundreds of millions of unique job listings. Visit www.wantedtech.com for more information about how WANTED helps organizations make better decisions and improve sales results.

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.