Zedi Inc.

Zedi Inc.

November 10, 2010 17:45 ET

Zedi Inc. announces Q3 2010 financial results

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2010) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for Q3-2010. "For the third quarter in a row we are reporting a revenue record, a meaningful accomplishment by any measure. Q3 2010 revenues are the highest third quarter revenues in Zedi's history. In addition, we recognized and were paid for our single largest piece of international revenue from the Russian Federation trial at $1,046,000, a significant milestone for Zedi as we pursue our growth strategy outside of the Western Canadian Sedimentary Basin." said Matthew Heffernan, Zedi President & CEO. The Q3 2010 interim 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.

The new record for Zedi's third-quarter revenues as recorded during Q3 2010 is $14,626,000, compared to $11,197,000 in Q3 2009, the previous Q3 record. Earnings before interest, taxes, depreciation, amortization and stock –based compensation expense ("EBITDAS") for Q3 2010 was $2,275,000 compared to $1,951,000 in Q3 2009. While EBITDAS is a non-GAAP measure it is commonly used by industry to normalize non-operating factors that are included in net income. Net income before tax for Q3 2010 was $1,385,000 an increase of $559,000 when compared to the net income before tax of $826,000 in Q3 2009. A stock-based compensation expense of $154,000 was recognized in Q3 2010. Although this is a non-cash expense, with no actual impact on the Company's operations, generally accepted accounting principles require that it be recognized in the calculation of net income.

The Company tracks recurring revenue as a percentage of operating expenses. Recurring revenue for the first nine months of 2010 covered 175% of operating expenses, consistent with the first nine months of 2009. Zedi as well tracks recurring revenue as a percentage of the Company's total cash requirements, which in addition to operating expenses includes deferred development and capital asset purchases, and reports 156% for the first nine months of 2010, up from 143% for the same period in 2009. The Company believes that these two measures are significant indicators of performance and sustainability.

The Company also announces that it has authorized the granting of 1,918,000 options to employees, officers and directors of the corporation. The exercise price of the options is $0.77, which is the latest closing price at the time the options were granted by the Board of Directors. All of the options vest equally in thirds over a three year period and expire in equal amounts on the second, third and fourth anniversaries from the date of grant. The Company also authorized the granting of 683,600 Restricted Stock Units to employees, officers and directors of the corporation vesting two years from the date of grant. 

Zedi Inc. (TSX VENTURE:ZED) specializes in the end-to-end management of oil and gas production operations. Zedi arms producers from the field to head office with accurate, timely and centralized data to help them make better business decisions. Using technology to gather highly accurate data from well sites, Zedi automatically moves it through vital work processes including web-based field data capture and production accounting systems. Zedi technology is continually evolving in the control and optimization of wells to ensure maximum production and cost reduction. Established in 1987, Zedi has enhanced the operational performance of more than 800 upstream, midstream and oilfield service customers.

Cautionary Statement Regarding Forward-Looking Information

Certain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. Specifically, this press release contains statements regarding Zedi's growth strategy, recurring revenue and related expectations of sustainability. These statements are based on certain assumptions and analysis made by Zedi in light of its experience and its perception of historical trends, current market conditions and expected future market developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Zedi's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zedi's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by Zedi will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Zedi or its business or operations. Except as may be required by law, Zedi assumes no obligation to publicly update any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.

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

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