For the fiscal fourth quarter ended 30 September 2006, Xenos has reported revenues of USD3,327,000 compared to revenues of USD3,231,000 for the same quarter last year. Xenos reported negative EBITDA of USD622,000, compared to positive EBITDA of USD17,000, for the same period last year.
On the basis that revenues for the past two years have not met Management’s expectations, and after reviewing the Company’s historical performance, the Company determined that it was appropriate to write off the goodwill associated with two acquisitions in previous years. The write down of goodwill was USD6,375,000 and resulted in a fourth quarter net loss of USD7,934,000 or ($0.79) per share, compared with a net loss of USD341,000 or (USD0.04) per share, for the fourth quarter of fiscal 2005.
For the 2006 fiscal year, Xenos reported revenues of USD13,841,000 and a net loss of USD11,969,000 or (USD1.20) per share after the goodwill write down. This compares to revenues of USD14,470,000 and a net loss of USD1,763,000, or (USD0.18) per share, for fiscal 2005.
During the year the US dollar depreciated approximately 7percent against the Canadian dollar. Xenos estimates that its top line revenue would have grown by approximately 3 percent had exchange rates remained constant.
In October, Xenos announced senior management changes to support its refocused strategic direction, enhance operating efficiency, reduce or eliminate its cash burn in the current fiscal quarter. New investment in marketing has been reduced significantly and aligned with validated market opportunities qualified during 2006.
“During the past year we have built visibility and market awareness,” says Stuart Butts, the Chairman, CEO and President of Xenos. “Print media placements during 2006 included Information Week, Computer World, Business Integration Journal, Information Age, Computer Weekly, and le Monde Informatique, as well as in several specialised publications. Xenos d2e(TM) was recognised by KMWorld Magazine as a Trend-Setting Product of 2006, one of our Xenos terminalONE Transport(TM) customers, the Norwegian Directorate of Labour and Welfare (NAV), was named a winner in the healthcare category of the InfoWorld 100 awards for 2006 and Celent, a leading international financial services analyst firm, named Xenos a “Significant Player” in both the insurance and banking document handling solutions markets.”