MXA Monexa Technologies Corp

VANCOUVER, Aug. 29, 2011 /CNW/ -- VANCOUVER, Aug. 29, 2011 /CNW/ - Monexa Technologies Corp. (TSXV: MXA) today announced its quarterly results for the six-month period ended June 30, 2011. The financial statements were prepared in accordance with International Financial Reporting Standards. For the three months ended June 30, 2011, revenue totaled $707K, a 12% decrease from $808K in the corresponding quarter in 2010 as a result of a decline in ISP revenue of $152K, or 23.6%, offset by a $52K, or 32.5%, increase in SaaS revenue.   The net loss for the quarter was $339K, a 14% improvement from the $392K loss incurred in Q2 2010.  Adjusted EBITDA loss for the quarter ($173K) was down from the ($273K) loss in the corresponding quarter in 2010. John Jacobson, President and CEO said "Our SaaS billing revenue and margin showed excellent growth in the second quarter as new clients went into production and existing customers expanded.  Recognizing the need for increased capacity in the future, we improved the performance and capacity of our servers and renewed our commitment to Payment Card Industry security standards and the latest standard for Controls at a Service Organization, SSAE 16.  New features, including enhanced taxation support, an expanded API and other new capabilities were released into production." Garth Albright, CFO said " Monexa continues to roll out it's business plan while adjusting our operating and direct cost base and increasing our SaaS billing revenue.    In conjunction with our SaaS expansion plans Monexa has renewed our commitment to the Payment Card Industry security standards and has received PCI compliance certification at the highest level.   The Company during Q2 commenced the SSAE-16 Controls at a Service Organization level II audit and this audit was completed in Q3." Milestones in Q2 2011:  -- SaaS higher margin recurring revenue increased by $52K, or (33%), in Q2 while ISP traditional revenue declined by $152K in Q2. Overall revenue declined quarter over quarter by $101K. -- Direct cost of sales dropped by $121k to $292K for Q2 2011 as compared to $413K for the prior year's comparable quarter. -- Gross margin percentage increased to 59% in Q2 2011 vs. 49% in Q2 in 2010 as the higher margin SaaS revenue increased quarter over quarter. -- Operating expenses decreased by $57K or 8% to $662K in the second quarter, as compared to $719K in 2010. This decrease reflects the streamlining of the operations. -- Net loss of $330K for the quarter represents a 16% reduction from the net loss of $393K incurred in the second quarter in 2010. -- PCI compliance certified at the highest level in the quarter. -- SSAE-16 (formerly SAS 70) level II audit commenced in Q2. The audit was completed in August 2011. The quarterly and year-end results, including the audited Consolidated Financial Statements and Management Discussion and Analysis, are available at www.sedar.com under Monexa Technologies Corp. About Monexa Technologies Corp Monexa offers a flexible on-demand subscription billing solution that provides a scalable environment for expediting the launch of products, services and applications online.  This accelerates our customers' time to market and revenue return. Monexa pioneered the on-demand subscription billing space and has worked with hundreds of businesses to help monetize their services. Having the most capable and open subscription billing solution in the cloud, combined with proven billing industry expertise, sets Monexa apart from other service providers. Monexa's customers range in size from high growth SaaS and Cloud Infrastructure companies like Untangle and ActiveState to large household name companies like Pitney Bowes Business Insight, AOL Canada, Sprint, Amway and Bell Mobility. For more information visit http://www.monexa.com. Forward-Looking Statements This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/29/c7088.html p bInvestor Contact: /bbr/ Garth Albright CFO   D: 604.630.5657br/ E:a href="mailto:ir@monexa.com"ir@monexa.com/a /p

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