Seguridad Mania.com - España y América Latina

EDMONTON, ALBERTA -- (Marketwired) -- 06/24/13 -- Serenic Corporation (the "Company" or "Serenic") (TSX VENTURE: SER), an international software developer specializing in integrated financial management and human capital management ("HCM") solutions for Non-Profit organizations, government agencies, and Microsoft Dynamics NAV users, announces its financial results for the three months and year ended February 28, 2013.

Financial results are summarized as follows:

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                   Three months ended:                 Year ended:
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                Feb 28,     Feb 29,             Feb 28,     Feb 29,
                   2013        2012 Increase       2013        2012 Increase
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                      $           $        %          $           $        %
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Revenue       3,905,255   2,787,885     40.1 12,071,865  10,860,633     11.2
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Net income
 (loss)         575,636      47,580  1,109.8     39,110    (176,375)   122.2
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Basic and
 diluted
 income
 (loss) per
 share             0.04        0.00    400.0       0.00       (0.01)   125.0
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EBITDA(1)       778,151      62,046  1,154.2    547,153     175,654    211.5
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EBITDA as a
 % of sales        19.9%        2.2%   804.5        4.5%        1.6%   181.3
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Weighted
 average
 common
 shares
 outstanding
 - basic     14,511,647  15,105,683          14,732,450  15,164,562
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1.  EBITDA represents earnings before interest, taxes, depreciation,
    amortization, and stock based compensation. Please review the Serenic
    Management Discussion and Analysis for the year ended February 28, 2013
    for more information.

Summary of Operations in Fiscal 2013

--  The Company had two principal objectives during the year - to increase
    organic growth and to investigate opportunities to enhance shareholder
    value. With regards to the first objective, Serenic is pleased to
    announce that it achieved this goal which management believes will
    assist in achieving the second objective in the long run. Revenue
    increased by $1,211,232 or 11.2% to $12,071,865; gross profit increased
    by $708,840 or 9.5%; and the Company recorded net income of $39,110, an
    improvement over the last year's loss of $176,375. EBITDA also increased
    significantly by $371,499 or 211.5% from $175,654 in the prior year to
    $547,153 this year.

--  The previously announced transition to the Microsoft Global Road to
    Repeatability ("GR2R") program and volume based sales model affected
    every area of the Company to a significant degree. Product strategies
    and features bundling were re-examined and revised, and many new
    features to support the new strategies were designed and coded into the
    new version of Serenic Navigator that has recently been released. In
    parallel with this, marketing strategies and programs were also revised
    and a new sales group was formed to develop the new highly prescriptive
    sales model, which will reduce the extensive customer interaction which
    characterized our historical (highly consultative) sales methodology.
    Extensive time was spent developing simplified pricing models which had
    to align with Microsoft's revised pricing. The Client Services group
    invested considerable time to research how to adopt and deploy
    "RapidStart", a streamlined model for implementing software and which
    should promote higher productivity from this group. Concurrently, work
    continued on the development of the Company's new version of
    DonorVision, that has now been released. This new product provides NFP
    organizations with an improved method of donor management through this
    customer relationship management ("CRM") based product, which will be
    marketed as a cloud application but which may still be integrated into
    Serenic Navigator and its companion products. The Company is looking
    forward to executing its revised strategies in the new and future fiscal
    years.

--  The Company continued to progress with respect to other areas during the
    year. New reseller partners were added in Africa, Switzerland, Canada,
    England and the United States; however, because it frequently takes a
    new reseller partner as long as twelve months to become productive, the
    payback for increasing the partner reseller channel is expected to
    commence in Fiscal 2014. Changes were also made to the Company's
    internal sales personnel in Fiscal 2013, in order to better accommodate
    the changing mix of business, from the highly consultative to the more
    prescriptive sales models.

--  The Company renewed its normal course issuer bid during the year, and
    purchased and cancelled 551,000 shares at a cost of $139,287 in Fiscal
    2013.

--  The Company explored several opportunities to potentially increase
    shareholder value and liquidity during Fiscal 2013, however, none of the
    scenarios investigated would have generated fair value for shareholders
    and additional work in this area continues.

Fiscal 2013 Financial Highlights

--  Serenic Navigator license sales increased by 31.8% over the prior year
    with direct license sales up 43.7%. Sales through our partner reseller
    channel also improved and increased 24.5% over the prior year.
    International license sales were approximately the same as last year due
    to the continued contribution of our African reseller partners. New
    license sales of our HCM products declined 13.1% from the prior year.
    The Company has initiated steps to reverse this decline in Fiscal 2014
    and beyond, including the addition of a volume sales strategy for HCM
    products and the provision of significantly enhanced human resource
    functionality offerings currently scheduled to commence in Q4 of Fiscal
    2014.

--  Revenue from client services declined from the prior year. Revenue from
    this segment is driven by direct license sales and therefore through the
    first three quarters of the year, the demand for implementation services
    declined commensurately.

--  Revenue from software maintenance contracts continued to increase due to
    the addition of new clients and a high software maintenance contract
    renewal rate from our existing customers who choose to keep their
    solutions updated with the latest versions of the Serenic Navigator and
    HCM products.

--  Gross profit increased overall due to the increase in revenue, except
    for the client services which declined due to its reduction in revenue.
    The gross margin on license sales was consistent year over year while it
    improved 3.2% in respect of client services revenue due to a more
    favourable mix of more profitable transactions. The gross margin on
    software maintenance contracts declined by 3.4% due to the influence of
    certain contracts where vendor costs were a higher than normal portion
    of the maintenance revenue earned.

--  Higher revenues generated an improvement in gross profit of $708,840. Of
    this amount, higher expenses and a change from income tax recovery to
    income tax expense absorbed $506,575 of the gross profit increase
    resulting in a net income increase of $215,485 or 122.2% over the net
    loss of the prior year. The improvement in net income caused EBITDA to
    increase by $371,499 to $547,153, an improvement over the EBITDA of
    $175,654 generated in the prior year.

--  Cash assets at fiscal year-end increased to $4,332,578 in 2013 from
    $3,935,658 in 2012 as a result of the improved financial performance.

Quarter Highlights

--  Software license sales increased by $1,122,678 or 164.1% to $1,807,000
    from the same period last year due to significant license sales
    completed in the current quarter. Client services revenue declined by
    16.6% as a reduced level of direct software license sales made earlier
    in the year reduced demand for services. Software maintenance contract
    and other revenue improved by 8.6% to $1,480,261 due to high contract
    renewal rates with existing customers and new clients being added.

--  Gross profit increased by $789,088 or 40.7% primarily due to the
    increase in software license sales where the associated gross profit
    increased by $843,516 to $1,305,399.

--  Expenses rose by $161,361 or 8.4%. Salaries and employee benefits rose
    by $158,220 or 10.0%, sales and marketing costs were flat quarter over
    quarter and general and administrative costs declined by $120,383. Cost
    capitalization related to new Company products declined by $132,777 due
    to product development nearing completion, which generated an effective
    expense increase.

--  The strong increase in revenue and gross profit in the current quarter
    caused net income to increase to $575,636 from $47,580 recorded last
    year. EBITDA also rose sharply to $778,151, an increase of $716,105 over
    last year's figure.

Please refer to the latest financial statements and MD&A filed on www.sedar.com for full financial analysis and details.

Outlook

Serenic has released its new versions of Serenic Navigator and Serenic DonorVison. This software will progress Serenic's new sales model collaboratively with Microsoft's volume model, wherein software will be marketed and deployed utilizing a highly prescriptive, "low-touch" customer experience. Management believes that this approach will ultimately be able to deliver higher sales volumes from a large segment of the NFP market that the Company has not previously been able to address. As well, we will continue our traditional sales methodology which uses highly consultative prospect communications and offers functionally rich solutions to those organizations who wish to continue to deploy on-premise licenses and to customize their software. Both of these strategies will be augmented by optional hosting of the software solutions on the new Microsoft Azure cloud based platform, which will feature attractive monthly payment plans and allow clients to avoid higher initial cash outlays. With respect to the Company's human capital management solutions, management's plan is to initiate similar strategies to foster higher volume sales opportunities for payroll and human resource management solutions.

In regards to corporate development, the primary objective remains to be that of optimizing shareholder value, which might entail a capital structure change, new strategic ventures, and/or merger and acquisition scenarios. Management strongly believes that the market capitalization of the Company as reflected in its current share price does not adequately reflect Serenic's fair value, and we will take appropriate action when that action would best serve the interests of shareholders.

We believe the Company remains adequately financed to operate as anticipated. Given the foundational work and investment over the past few years, and initiation of the volume sales strategies in collaboration with Microsoft in Fiscal 2013, Management is very excited to execute the 2014 business plan. Management remains confident that our course of action will ultimately generate greater value for our shareholders over the longer term.

Share Appreciation Rights Plan

On June 18, 2013, the Board of Directors approved the creation of a Share Appreciation Rights Plan (the "SARs Plan"), to be utilized in lieu of or in conjunction with the Company's Stock Option Plan, as a mechanism to incent individuals engaged by the Company. Pursuant to the terms of the SARs Plan, Share Appreciation Rights ("SARs") may be granted to directors, officers, employees and consultants of the Company. SARs granted under the SARs Plan vest immediately, expire in five years or 90 days after a grantee's termination of engagement with the Company, and upon exercise, pay to the grantee an amount equal to the difference between the Issue price and the Maturity price of the SARs. The Issue Price is the volume weighted average price of the Company's shares as traded on the TSX Venture Exchange during the twenty trading days prior to the date of issue of the SAR, less discounts similar to those allowed for stock options under TSX Venture Exchange regulations. The Maturity Price is the volume weighted average price of the Company's shares as traded on the TSX Venture Exchange during the twenty trading days prior to the date the grantee wishes to exercise the SARs. The total number of outstanding SARs authorized by the Board of Directors shall not exceed ten percent (10%) of the outstanding shares of the Company and the Board of Directors may further revise the maximum number of allowed SARS and other terms of the Plan as deemed appropriate.

On June 18, 2013, the Company granted in lieu of stock options, a total of 250,000 SARs to the Directors and Officers. 50,000 SARs were granted to each of Dwayne Kushniruk, Randy Keith, Ron Odynski and Doug Thomson, and 25,000 SARs were granted to each of David Tam and Paul Johnston. All SARs were granted with an Issue Price of $0.18.

About Serenic Corporation

Serenic Corporation publishes mission-critical software products for not-for-profits (NFP), educational institutions and governments. The Company's products are based on leading application and technology platforms from Microsoft, including Dynamics NAV, SQL Server, and .NET, and are distributed in North America and internationally through value-added resellers and a direct sales organization. Serenic Corporation is the exclusive developer of human resource management and payroll products for Microsoft Dynamics NAV ERP users in North America. Serenic has offices in Edmonton, Alberta and Denver, Colorado and staff located in Canada, England, Africa and throughout the USA.

ON BEHALF OF THE BOARD OF DIRECTORS

SERENIC CORPORATION

Dwayne Kushniruk, Chairman

Forward Looking Statements

This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Serenic's products and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, "Risks and Uncertainties" in Managements' Discussion and Analysis filed with the Alberta and British Columbia Securities Commissions. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.