Zedi Inc.
TSX VENTURE : ZED

Zedi Inc.

May 14, 2008 20:56 ET

Zedi Inc. Announces First Quarter 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - May 14, 2008) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for Q1 of 2008. "I am very pleased to present our results from Q1 2008. From a financial perspective, this quarter marked two significant milestones. First we recorded our highest quarterly revenue in the company's history at $11,377,000. Secondly, we surpassed 100% coverage of our total cash requirements with $4,633,000 in recurring revenues representing 106% of our total cash needs. This quarter is further evidence of our ability to execute on our strategy and deliver results," said Matthew Heffernan, Zedi President & CEO. The first quarter 2008 financial statements and MD & A are filed on Sedar and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca.

Revenues for the Q1 of 2008 were $11,377,000, compared to $8,435,000 in 2007, an increase of approximately 35%. The Company continues to generate strong positive cash flow with cash on hand at the end of the Q1 2008 of $13,239,000 and working capital of $18,834,000, compared to cash on hand at the end of the fiscal year 2007 of $12,539,000 and working capital of $20,759,000. None of the Company's cash is invested in asset-backed commercial paper.

Net income before tax for Q1 2008 was $877,000 or $0.01 per common share compared to net income before tax of $316,000 or $0.00 per common share for Q1 2007. A stock-based compensation expense of $413,000 was recognized in Q1 2008 compared to $641,000 for Q1 2007. Although these are non-cash expenses, with no actual impact on the Company's operations, generally accepted accounting principles require that they be recognized in the calculation of net income. Earnings before interest, taxes, depreciation, amortization and stock-based compensation expense ("EBITDAS") for Q1 2008 was $2,509,000 compared to $2,092,000 for Q1 2007. While EBITDAS is a non GAAP measure it is a common measure used by industry to normalize non-operating factors that are included in the net income results.

The Company continues to execute on its corporate strategy with the introduction of new products and services. EFM Walk-up™, a new low cost electronic flow measurement system targeted at wells with lower production, was launched in Q1. This product expands the available market suitable for Zedi technology. The acquisition and integration of J & J Oilfield was another significant milestone in Q1 adding field operations to the list of products and services offered by the Company. The acquisition was immediately accretive, adding $2,224,000 in revenue during the quarter of which $1,800,000 was recurring.

Zedi specializes in production operations management, delivering systems and services that help oil and gas producers to efficiently manage people, assets and information. We enable our customers to increase earnings from production, decrease operating costs, effectively utilize human, physical and fiscal assets and mitigate compliance risk.

Established in 1987, Zedi has enhanced the operational performance of more than 200 upstream, midstream and oilfield service customers. Please visit www.zedi.ca for more information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Zedi Inc.
    Debra Deane
    Vice President Marketing & Investor Relations
    (403) 444-1003
    (403) 444-1101 (FAX)
    Email: investor@zedi.ca
    Website: www.zedi.ca