EDMONTON, ALBERTA--(Marketwire - Jan. 25, 2012) - 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 and nine months ended November 30, 2011.

Financial results are summarized as follows:

(Unaudited) (Unaudited)
Three months ended: Nine months ended:
Nov. 30, 2011 Nov. 30, 2010 Increase (decrease) Nov. 30, 2011 Nov. 30, 2010 Increase (decrease)
$ $ % $ $ %
Revenue 2,676,372 2,638,481 1.4 % 8,258,272 8,684,355 (4.9 %)
Net loss (103,595 ) (326,629 ) (68.3 %) (223,955 ) (324,940 ) (31.1 %)
Basic and diluted loss per share (0.01 ) (0.02 ) 50.0 % (0.01 ) (0.02 ) 50.0 %
EBITDA (1) 4,603 (146,320 ) 103.1 % 113,608 32,898 245.3 %
EBITDA as a % of sales 0.2 % (5.5 %) 103.1 % 1.4 % 0.4 % 263.2 %
Weighted average common shares outstanding - basic 15,171,973 15,190,458 15,183,751 15,190,385

(1) EBITDA represents earnings before interest, taxes, depreciation, amortization, and stock based compensation. Please review the Serenic Management Discussion and Analysis for the quarter ended November 30, 2011 for more information

Quarter Highlights

  • Revenue for the three months ended November 30, 2011 increased nominally from the same period last year, with foreign exchange rates having had no effect on the year over year comparison. Software license sales rose 15.9% overall during Q3 2011 compared to Q3 2010 due to increased partner channel business within North America. Direct license sales decreased from Q3 of last year and International sales were at similar levels. Client services revenue declined 24.0% in the quarter compared to the prior year due to the Company having processed a backlog of implementation and services work in Q3 2010. Revenue from software maintenance contracts was higher by 12.8% because of an increase in client base and high renewal rates.
  • Gross profit in Q3 increased overall by 5.2% or $86,471 over the same period last year. Gross profit from software license sales increased 20.6% or $63,180 and software maintenance contracts increased 13.8% or $111,581, offset by the decrease in gross profit from client services revenue of 16.4% or $88,490, commensurate with the decline in client services revenue.
  • Expenses declined by 2.2% or $43,123, which occurred across all the major expense groups.
  • Other income rose by $93,049, due to a favourable increase in the Canadian to U.S. dollar foreign exchange rates that occurred in November, 2011.
  • Overall, the net loss improved from $326,629 for Q3 last year to $103,595 in the current quarter. EBITDA improved significantly to $4,603, as compared to ($146,320) last year. A key Company goal is to be EBITDA positive in each quarter.
  • Serenic's sales team was augmented during the quarter with the appointment of a new Director of Channel Sales for North America, a new HCM sales manager for North America, and a new sales representative based in Germany.
  • Our product management and development teams focused on the development of new products designed to complement the Navigator suite and Navigator Online has remained a priority. In response to feedback from early adopter users, our cloud computing offerings were expanded and functionality was revised to attract a wider array of new customers.
  • The "Year of the Customer" theme instituted at the beginning of the fiscal year continued in Q3 with attention focused on initiatives to elevate customer satisfaction and loyalty through active performance measurement and improvements to on-line communication and client support mechanisms.


  • For the nine months year to date, revenue decreased over last year by $426,083 or 4.9%. The average foreign exchange rates fell from $1.0259 last year to $0.9869 in this period, accounting for $326,000 of this decrease. While revenue was down by 4.9%, gross profit declined by only 1.6% or $88,378, due to a change in the sales mix which favoured revenue streams with greater profitability.
  • Sales by North American partners, human capital management software sales and recurring software maintenance contract sales were higher for the nine months year to date compared to the prior period, while direct sales, client services revenue and sales from international channel partners were lower.
  • Expenses for the nine months declined by 1.9% or $115,374 in the current year. Last year, consultants were hired to assist with corporate development initiatives and external auditors were engaged to provide assistance for conversion to IFRS standards, neither of which expenses re-occurred this year. Additionally, the changing foreign exchange rate served to reduce expenses by approximately $217,000.
  • Year to date, gains from foreign exchange increased by $68,102 as the higher foreign exchange rate elevated the Canadian dollar value of the Company's U.S. cash and other U.S. dollar denominated monetary assets.
  • The reduction in expenses and increase in other income has more than offset the reduction in gross profit, causing the net loss to reduce from $324,940 recorded last year to $223,955 for the nine months of this year. As measured by EBITDA, the Company improved its cash generation which increased from $32,398 last year to $113,608 in the current period.

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


Serenic expects to continue to experience incremental improvement in the business, despite being hampered by a very cautious global market. Selling cycles continue to be prolonged, as most new customers generally conduct significantly more due diligence with their software application purchases than was previously the case. Although such caution continues to delay the closing of new business, what is reassuring is that Serenic's applications are generally successful in most competitive sales situations. We are essentially on pace with sales plans as they relate to our historical products and applications, however at a more modest pace than we had hoped. We are also working diligently on next generation cloud computing (SaaS) products which we expect will be able to facilitate success within new niche markets, with the objective being to garner new customers that our historical on-premise solutions have not specifically addressed to date. Ongoing marketing activities continue to build our sales pipelines and indications confirm management's belief that demand for Serenic's applications and services remain strong, both in North America and internationally.

Corporate development initiatives will also continue as a priority to seek potential merger and acquisition possibilities that may serve to increase revenue and EBITDA, and/or otherwise advance our objective to better deliver value for our shareholders.

While we remain prudent with expenses, we continue to invest in the development of evolutionary products and services, the addition of new employees where required, and into certain other marketing and sales initiatives that we expect will assist the growth of our business. Our balance sheet, cash and working capital positions remain strong in management's opinion, which support our ability to execute our current strategies and plans, essentially unhampered. We continue to look forward to deliver incremental progress in the shorter term, and greater realizable value for stakeholders in the longer term.

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 (Lakewood), Colorado and staff located throughout the USA, and in Europe and Africa.


Dwayne Kushniruk, Chairman, SERENIC CORPORATION

Forward Looking Statements

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Serenic Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, software industry risks, general business risks, foreign currency risks, economic dependence risks, and credit risks.

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

Contact Information:

Serenic Corporation
Dwayne Kushniruk
1-877-426-5385 x 509

Serenic Corporation
Paul Johnston
1-877-426-5385 x 509

Cantech Communications
Nick Waddell
Investor Relations
Toll free: (877) 737-3642 x144