(Source: MARKETWIRE)
Copernic Inc., (the "Company"), (NASDAQ: CNIC), a leading software development company in the technology sector, specializing in internet, desktop and mobile search products, today reported its financial results for the second quarter ended June 30, 2009 (Q2). Unless otherwise stated, all figures in this release are in US dollars. For comparison purposes, historical data has been re-casted to reflect the sale of Mamma.com and its Ad Network.
Financial Highlights
- Revenue from continuing operations was $0.4 million for Q2 2009, compared to $0.6 million in Q2 2008, a decline of 31,2%
- Gross margin from continuing operations in Q2 2009 was 96,1% compared to 94,7% for Q2 2008
- Expenses from continuing operations in the second quarter of 2009 were at $1.2 million, compared to $1.3 million in the comparable period
- Net loss from continuing operations of $0.7 million ($0.05 per share) for the second quarter 2009 compared to net loss of $0.6 million ($0.05 per share) in the second quarter 2008
- Net income from discontinued operations of $4.5 million ($0.31 per share) for Q2 2009, compared to $0.1 million ($0.01 per share) in Q2 2008
- Liquidities sufficient to meet normal operating requirements until end of Q2 2010 were at $4.8 million as of June 30, 2009, compared to $5.1 million as of December 31, 2008.
Recent Highlights
- Sold the assets of Mamma.com and its Ad Network which closed an important chapter in the history of the Company
- Unveiled its new personal search portal called myCopernic that is designed to provide solutions for today's challenges: mobility and accessibility of personal data. It will also provide innovative solutions to search and access information that help professionals do business while being an integral part of the new Cloud Computing paradigm
- Announced the availability of myCopernic on the Go! - the first service available from the myCopernic personal search portal. myCopernic on the Go! offers the end-user an intelligent solution to search and access relevant information from virtually anywhere, using any internet enabled device or wireless handset
- Announced that it intends to seek shareholder approval to complete a share consolidation on the basis of one (1) post consolidation common share for every two (2) to ten (10) pre-consolidation shares. The exact consolidation factor will be determined at the discretion of the board of directors
"The asset sale of Mamma.com and its Ad Network was successfully completed at the end of the quarter. Management continues its cost restructuring programs to size its remaining business particularly when faced with the realities of poor sales growth due to the continued unfavourable economic environment", stated Marc Ferland President and CEO of Copernic.
Financial Results for the quarter ended June 30, 2009
Revenues from continuing operations in the second quarter of 2009 totaled $413,000, down from $600,000 in the second quarter of 2008 mainly due to a decline in software licensing revenues. Revenues in Q2 2009 were lower than Q1 2009 by $100,000.
Gross margin from continuing operations in Q2 2009 was 96,1% compared to 94,7% for Q2 2008.
Expenses in the second quarter of 2009 were at $1,153,000, compared to $1,271,000. The difference is mainly due to the continued cost reduction program.
Net loss from continuing operations in the second quarter 2009 was $703,000 ($0.05 per share), compared to a net loss of $634,000 ($0.05 per share) in the same quarter 2008.
Net income from discontinued operation in the second quarter 2009 was $4,471,000 ($0.31 per share), compared to $112,000 ($0.01 per share) in the same quarter 2008. The company sold the assets of Mamma.com and its Ad Network. The discontinued operation generated a net income of $281,000 in Q2 2009 compared to $112,000 for the same period last year, since public reporting costs and associated consulting fees have been reported in continuing operations in their entirety. The transaction generated a gain on a disposal of assets of $4,190,000.
Net income in the second quarter 2009 was $3,768,000 ($0.26 per share), compared to a net loss of $522,000 ($0.04 per share) in the same quarter 2008.
Liquidities totaled $4,767,000 which was a decrease of $406,000 from March 31, 2009. During Q2 2009, the Company paid its Directors & Officers Insurance for the current year, audit, legal fees and other costs related to 2008 year-end. Liquidities including temporary investment of $4,000,355 should be entirely available by the end of Q3 2009.
About Copernic Inc.
Copernic Inc. specializes in developing, marketing and selling cutting-edge search technology, providing innovative home and business software products and solutions for desktop, web and mobile users, through its online properties www.copernic.com.
More information can be found at www.copernic.com.
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission and the Ontario Securities Commission.
