WANTED Technologies Reports Fifth Consecutive Quarter over Quarter Revenue Growth
WANTED Technologies Reports Fifth Consecutive Quarter over Quarter Revenue Growth and a Record Number of Users
WANTED Technologies the leading source of business intelligence for the talent marketplace, has reported revenues of $1,320,055 for the first quarter of fiscal 2012 ended September 30, 2011, a six percent gain over the prior year and the fifth consecutive quarter over quarter revenue growth when analysed in US$. All amounts are in Canadian dollars, unless otherwise indicated.
The weakness of the American dollar, compared to the prior year was responsible for a currency-related negative variance of approximately $71,000. Had exchanged remained constant with the prior year, WANTED would have shown a revenue increase of 12%.
During the quarter, the Company continued its investments in products to enter the Corporate and Staffing markets, reporting a net loss $210,043. With the majority of the new product features developed and deployed during the last few quarters, WANTED scaled back its operating expenses, which will improve operating cash flows and net income in the coming quarters.
"WANTED's strategy has been to diversify its client base beyond the Media sector and to enter the larger market for corporate talent solutions with new products and services," said Bruce Murray, President and CEO. "In spite of adverse economic conditions, this strategy has successfully led to WANTED's revenue growth in the most recent quarter."
The Company is executing this strategy through a combination of direct sales and partnerships. Through the end of the quarter ending September 30, 2011, WANTED has partnered with companies that serve the recruiting functions of both the Corporate HR and Staffing industries. Through these partnerships, and through WANTED's direct sales organization, the Company currently serves more than 1,000 professionals in these sectors.
"We have maintained a steady and consistent strategy of developing high value services based on a core set of data that we began archiving in 2005," said Murray. "This data warehouse of more than 650 million records is one of the largest set of detailed employment available to the marketplace."
During the most recent quarter, WANTED released a series of new features and capabilities based on this data warehouse. These include detailed compensation information by occupation and location, estimates of the difficulty of hiring personnel in every location in the US and estimates of the average length of time online job opening remain open.
"This kind of information, when organized into the WANTED AnalyticsTM interface, provides an unprecedented degree of insight and timeliness for the talent marketplace," said Murray. "The investments we have made over the past year are clearly beginning to pay off."
The majority of WANTED's clients either subscribe on an annual basis to the Company's online platform, AnalyticsTM or access WANTED products through a partner platform. Recurring revenue contracts with these clients represent approximately 90 percent of WANTED's total revenues for the first quarter of fiscal 2012, compared to 95 percent for the first quarter of fiscal 2011.
As of September 30, 2011, contracts in hand, in Canadian dollars, represented approximately $5.1 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately $4.9 million dollars as of September 30, 2010, an increase of 4 percent. The majority of WANTED's clients are in the US and when viewed in US dollars, the level of recurring revenues as of September 30, 2011 is up 9 percent from $4.7 million dollars as of September 30, 2010.
WANTED's decision to diversify its client base beyond Media clients has succeeded in replacing some of the lost recurring revenue. Gains have come from the Corporate, Staffing and Government sectors leading to a more stable recurring revenue base. These three sectors, represented together, at the end of the first quarter of fiscal 2012, approximately 51% of the total recurring revenue base compared to 36% a year ago. The Company's partnership with The Conference Board, positively contributed to this diversification.
Operating costs went from $1,112,505 in the first quarter of fiscal 2011 to $1,470,317 for the first quarter of fiscal 2012, an increase of 32 percent. This increase mostly results from increases in research and development, marketing and selling and administrative expenses.
Negative EBITDA for the first quarter of fiscal 2012 totalled $88,222, down $163,296 from an EBITDA of $75,074 for the first quarter of fiscal 2011. EBITDA represents the net earnings before net financial expense, income taxes, depreciation and amortization on property, plant and equipment and intangible assets. 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.
Net loss for the quarter ended September 30, 2011 amounted to $210,043 ($0.0087 per share) compared to $19,888 ($0.0008 per share) for the corresponding quarter of the previous year, a negative variation of $190,155. This variation mostly results from the combination of an increase of $174,886 in loss before income taxes and an increase of $15,269 in the provision for income taxes.
As at September 30, 2011, WANTED had a cash position (cash and investments) of $1,415,942 and a working capital of $1,015,969. This compares with a cash position of $1,426,715 and a working capital of $1,183,931 as at June 30, 2011, representing decreases of $10,773 and $167,962 respectively. These decreases are mainly the result of negative cash flows of $8,595 and $52,774 used for investing and financing activities respectively, partially offset by cash flows of $50,596 generated by operating activities.
Total assets stood at $5,827,874 at September 30, 2011, down $327,891 from $6,155,765 at June 30, 2011. The variance in total assets is mainly due to decreases of $269,508 in current assets, $17,613 in property, plant and equipment and $40,770 in intangible assets.
Those interested will be able to access the information on the September 30, 2011 unaudited interim consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.comand at the Company's website, www.wantedtech.com, as of Friday, December 16th, 2011.