Xianburg Data Systems Canada Corporation
TSX VENTURE : XDS

August 26, 2013 21:10 ET

Xianburg Data Systems Reports Financial Result for the Year Ended December 31, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 26, 2013) - Xianburg Data Systems Canada Corporation (the "Company")(TSX VENTURE:XDS) today announced its financial results for the fourth quarter and twelve-month period ended December 31, 2012 ("FY 2012"). All amounts are reported in Canadian dollars unless otherwise stated.

Selected highlights of the year:

Financial:

  • Revenue of $2.75 million, an increase of 64% compared to $1.68 million for the previous fiscal year.
  • Adjusted EBITDA (a non-IFRS term) was $784K, an increase of $1,564K compared to ($780K) for the previous fiscal year. The Company uses adjusted EBITDA (a non-IFRS financial measure) internally to make strategic decisions, forecast future results and evaluate its performance, defined as net income before interest, income taxes, depreciation, amortization, stock option compensation expenses, foreign currency loss, and minority interest.
  • Gross margin of $1,008K (37% of revenue) an increase of 51% compared to $669K (40% of revenue) for the previous financial year.
  • Net income was $320K, an increase of $1,264K compared to a net loss of $944K in FY 2011.
FYE December 31 Fiscal 2012 Fiscal 2011
Revenue 1,031 2,748 585 1,680
Net income 493 320 (167 ) (944 )
Net earnings (loss) per share, basic and diluted $0.03 $0.02 ($0.01 ) ($0.06 )

The filing delay was due to certain financial statement presentation issues upon which the Company has been working closely with its auditors to resolve. There was no disagreement among the Company, its auditors or the Board or Audit Committee members in connection with the 2012 audited consolidated financial statements.

The Company is currently preparing interim financial statements for the quarters ended March 31, 2013 and June 30, 2013, and will file the same once they have been completed. The Company's Board and its management will also work with securities regulators with the goal of having the existing Cease Trade Orders revoked and the Company's shares resume trading on a Canadian stock exchange as soon as possible.

The Company's Board of Directors wishes to thank the Company's shareholders for their patience and support over the past few months.

The Company's Board of Directors also approved that the Company will hold the 2013 AGM on Monday, October 28, 2013 at Gowlings' Vancouver office, located at Suite 2300, 550 Burrard Street, Vancouver, British Columbia, Canada. September 16, 2013 has been set as the record date for the purpose of determining shareholders of the Company entitled to receive notice and to vote at the Meeting.

The Company also announces that it has completed its continuance from Alberta to British Columbia and that it is now governed under the Business Corporations Act (British Columbia).

About Xianburg Data Systems Canada Corporation

The Company, through its wholly-owned subsidiary Xianburg Data Systems (Canada) Inc., governs and administers the operating entity Xianburg International Data Group Co., Ltd.("XID"), a Chinese based operating company, and earns substantially all of its income from XID. XID is an IT products and services firm based in Xi'an and Beijing, PRC, and it is recognized as a leader in China in providing mass data storage and disaster recovery solutions. XID believes that it has held a position of advantage over its competitors in providing big data systems solutions since 2010. XID has published more than 200 volumes of economic, cultural and business databases and it is a leading publisher of such databases in China.

Contact Information

  • XIANBURG DATA SYSTEMS CANADA CORPORATION
    Farhan Rhemtulla
    Director of Investor Relations
    604-781-3693