- Revenues of $2,141,872, an
increase of 8% or $154,520 compared
to revenues of $1,987,352 in the
first quarter of fiscal 2014. Note that revenues from the first
quarter of prior year included an amount of $275,144 from a reseller partner agreement that
terminated in June 2014. Excluding
the revenues from this partner from prior year, revenue grew
$429,664, or 25%
- Growth of 20% or $1.3
million in the Company's recurring revenue base in US
dollars, from an annualized value of US$6.5
million as of September 30,
2013 (excluding US$1.0 million
reported in prior year as recurring revenue from a reseller
partnership terminated in June 2014)
to US$7.8 million as of September 30, 2014.
- Net income of $82,490
($0,003 per share) compared to a net
income of $458,504 ($0,019 per share) in the first quarter of fiscal
2014, a decrease of $376,014.
- EBITDA of $286,775, compared to
an EBITDA of $582,835 in the first
quarter of fiscal 2014, a decrease of $296,060.
- In October, 2014, the Company deployed an International version
of its product platform which includes data and analytics
describing the talent marketplace in 20 additional countries. With
the addition of these 20 countries, and including the current
coverage of the United States and
Canada, the Company now offers
human capital analytics for the 22 largest economies in the
world.
- WANTED continues to step up investment in both its
international product and in expanding its direct sales force in
order to best exploit and accelerate the global market penetration
for its big data analytics solutions in the Human Capital
Management sector.
QUEBEC CITY, Nov. 18, 2014 /CNW Telbec/ - WANTED
Technologies (TSXV: WAN), the leading supplier of big data
analytics for the human capital marketplace, reported today first
quarter revenues of $2,141,872 for
the period ending September
30th, 2014, a gain of 8% over the same period in
prior year. Note that revenues from the first quarter of fiscal
2014 included an amount of $275,144
from a reseller partner agreement that terminated in June 2014. Excluding the revenues from this
partner from prior year, revenue grew $429,664, or 25%. The Company continues to
innovate in the market and expand its customer footprint, including
the recent launch of an international version of its services. This
followed strategic investments in research and development and
marketing and selling expenses, resulting in net income of
$82,490, compared to a net income of
$458,504 for the same period last
year. All amounts are in Canadian dollars, unless otherwise
indicated.
"Our first quarter results continue to reflect strong demand for
our employment analytics platform and data services across all of
our current target segments, namely Staffing agencies, corporate HR
and Government," said Meredith
Amdur, WANTED's President and CEO. "This validates the
market growth potential we are seeing in the market for HR
Technology and services. It also supports our decision to invest in
both product and direct sales capabilities to exploit and
accelerate the emerging global market for our HR analytics
solution."
Excluding revenues from the partnership ended in June 2014, quarterly revenues for the Corporate
and Staffing segments were up 65% year-over-year and represented
35% of total revenue, compared with 26% one year ago.
The rapid growth in adoption of next generation cloud-based
talent management systems from leading ERP players like IBM, SAP,
and Oracle as well as newer SaaS players like Workday and
Salesforce are expanding WANTED's opportunities to leverage its
vast current and historical employment database and analytics
directly into recruiters' and HR professionals' workflow. "This
continued corporate migration to the cloud is fostering the
emergence of a new data ecosystem, of which WANTED is a part. The
transition creates opportunities for us to provide data analytics
and actionable insights that enable faster and better business
decisions by tapping both internal and external information to
better plan, recruit and retain workforce in a competitive global
economy," said Amdur.
The first iteration of the Company's new International data
product, providing job demand data from the 22 top economies, is on
course to increase both direct sales and re-seller opportunities.
This new offering, which our customers have been asking for, will
enhance the value of our existing solution for large multinational
customers.
As of September 30, 2014,
contracts in hand, in US dollars, had an approximate value of
7.8 million dollars in annualized
recurring revenues, an increase of 1.3
million dollars or 20% over an annualized recurring revenue
book of 6.5 million dollars as of
September 30, 2013 (excluding
US$1.0 million reported in prior year
as recurring revenue contracts from a reseller partnership
terminated in June 2014).
At the end of first quarter of fiscal 2015, 69% of the recurring
revenue base was supported by contracts from the Staffing,
Corporate and Government sectors. This compares to 65% at the end
of the corresponding quarter of the previous fiscal year (excluding
revenues from the partnership ended in June
2014).
Operating costs increased from $1,407,650 in the first quarter of fiscal 2014 to
$2,000,510 in the first quarter of
fiscal 2015, an increase $592,860 or
42% mostly related to additional investments in research and
development and marketing and selling expenses to support growth in
North American and international markets. A total increase of
$240,672 in stock based compensation
expenses for the combined research and development, marketing and
selling and administrative functions following the issuance of
880,000 stock options during the first quarter of fiscal 2015 also
contributed to this increase in operating costs.
|
|
Three-month periods
ended
|
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
$
|
|
$
|
Revenues
|
2,141,872
|
|
1,987,352
|
Cost of
sales
|
(82,173)
|
|
(73,693)
|
Gross
Margin
|
2,059,699
|
|
1,913,659
|
|
|
|
|
|
Expenses
|
|
|
|
|
Research and
development
|
(756,810)
|
|
(609,795)
|
|
Marketing and
selling
|
(675,209)
|
|
(469,605)
|
|
Administrative
|
(562,398)
|
|
(324,165)
|
|
Other financial
expenses
|
(6,093)
|
|
(4,085)
|
|
|
(2,000,510)
|
|
(1,407,650)
|
|
|
|
|
|
Operating
income
|
59,189
|
|
506,009
|
|
|
|
|
|
Finance
income
|
122,927
|
|
3,003
|
Finance
costs
|
(380)
|
|
(35,526)
|
|
|
|
|
|
Income before
tax
|
181,736
|
|
473,486
|
|
|
|
|
|
Current tax
expense
|
(138,491)
|
|
(34,551)
|
Deferred tax
income
|
39,245
|
|
19,569
|
Tax
expense
|
(99,246)
|
|
(14,982)
|
|
|
|
|
|
Net income and
comprehensive income
|
82,490
|
|
458,504
|
|
|
|
|
|
Basic and diluted net
income per share
|
0.003
|
|
0.019
|
Research and development costs totalled $756,810, compared to $609,795 in the previous corresponding quarter of
the prior year, a net increase of $147,015 or 24% mostly resulting from increased
staffing levels and computer infrastructure to support the growing
database. The stock options issued by the Corporation during the
first quarter of fiscal 2015 triggered an increase of $52,234 in research and development expenses over
the corresponding quarter of the prior year. Marketing and selling
expenses totalled $675,209, compared
with $469,605 in the previous year,
an increase of $205,604 or 44%
resulting from an increase in overall compensation attributable to
a more important direct sales force. Stock options contributed
$37,663 to this increase in Marketing
and selling expenses. Administrative expenses showed an increase of
$238,233, or 73%, going from
$324,165 in the first quarter of
fiscal 2014 to $562,398 in the
corresponding quarter of fiscal 2015. An increase of
$150,775 in the stock based
compensation expense, combined with an increase in variable
compensations and the addition of new resources to support growth
mainly contributed to this increase in administrative expenses.
|
Reconciliation of
EBITDA to Net Income
|
|
|
|
|
Q1-2015
|
Q1-2014
|
Q1-2013
|
|
|
|
|
09-30-14
|
09-30-13
|
09-30-12
|
(Unaudited)
|
|
$
|
$
|
$
|
|
|
|
|
|
|
|
|
Net income for
the period
|
|
82,490
|
458,504
|
116,972
|
|
|
|
|
|
|
|
|
PLUS
(LESS):
|
|
|
|
|
|
|
Income tax
expense
|
|
99,246
|
14,982
|
17,366
|
|
|
Finance costs
(income)-net
|
|
(122,547)
|
32,523
|
46,281
|
|
|
Other financial
expenses
|
|
6,093
|
4,085
|
3,100
|
|
|
Depreciation of
property, plant and equipment
|
|
77,153
|
66,750
|
60,822
|
|
|
Amortization of
intangible assets
|
|
40,770
|
40,770
|
40,770
|
|
|
Net gains (losses) on
foreign exchange
|
|
103,570
|
(34,779)
|
(46,848)
|
|
EBITDA
|
|
286,775
|
582,835
|
238,463
|
EBITDA of $286,775 for the
three-month period ended September
30th, 2014 represented a decrease of $296,060 over the same period last year. EBITDA
represents the net income before net finance income excluding gain
or loss due to variation in foreign exchange, income taxes on net
income, and amortization and impairment of property, plant and
equipment and intangible assets. It is used by managers, analysts,
investors and other financial stakeholders to assess the
Corporation's performance and management from a financial and
operational standpoint. As International Financial Reporting
Standards do not provide a standardized definition for this
measure, it may not be comparable to similar measures used by other
companies.
The net income for the first quarter of fiscal 2015 was
$82,490, or $0.003 per share. This compares to a net income
of $458,504 in the first quarter of
fiscal 2014 or $0.019 per share. This
decrease in profitability is mostly due to an increase of
$592,860 or 42% in operating
expenses, partially offset by an increase of $146,040 in gross margin.
Financial position
As at September 30, 2014, WANTED
had $7,213,212 in cash and monetary
investments, including $3,037,852 in
redeemable term deposits, compared with $6,724,870 as at June 30,
2014. This increase of $488,342 in the Company's liquidity mostly
results from positive cash flows of $611,024 generated from operating activities.
As at September 30, 2014, total
assets stood at $12,317,235 compared
with $11,955,516 as at June 30, 2014, an increase of $361,719.
Those interested will be able to access the information on the
September 30, 2014 unaudited interim
consolidated financial statements, the notes thereto and the
management discussion and analysis via the Internet at
www.sedar.com and at the Company's website, www.wantedtech.com, as
of Tuesday, November 18th,
2014.
About WANTED Analytics™
WANTED Analytics™ helps recruiting organizations make
better decisions faster with real-time business intelligence on
jobs, employers, and talent. Analytics brings together, for the
first time, years of hiring demand and talent supply data to create
a true talent intelligence platform for hard-to-fill positions.
Clients in the staffing, HR, RPO, media, and government sectors
use WANTED Analytics™ to find sales leads, analyze
employment trends, gather competitive intelligence, forecast
economic conditions, and source hard-to-fill positions.
About WANTED Technologies Corporation
WANTED Technologies (TSXV:WAN) provides real-time data analytics
for the talent marketplace. Founded in 1999, the company's
headquarters are in Quebec City,
Canada, and it maintains a US-based subsidiary with primary
offices in New York City. WANTED
began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of
more than one billion unique job listings. For more information or
to sample WANTED's services, visit www.wantedanalytics.com.
WANTED is also the exclusive data provider for The Conference
Board Help Wanted OnLine Data Series®, the monthly economic
indicator of Hiring Demand in the United
States.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
SOURCE WANTED Technologies Corp.