EX-99.1 2 v113350_ex99-1.htm Unassociated Document
 
 
Copernic Inc. Announces 2008 First Quarter Results

Montreal, Canada, May 8, 2008 - Copernic Inc., (the “Company”), (NASDAQ: CNIC), a leading software development company in the technology sector, specializing in internet, desktop and mobile search products, today reported its financial results for the first quarter ended March 31, 2008. Unless otherwise stated, all figures in this release are in US dollars.

Financial Highlights

§
Revenue was $1.7 million for the first quarter 2008, same as fourth quarter 2007 compared to $2.6 million in the first quarter of 2007
§
Net loss of $1.1 million ($0.07 per share) for the first quarter 2008 compared to net loss of $1.4 million ($0.10 per share) in the first quarter 2007
§
Total expenses were at $2.2 million for the first quarter 2008 compared to $3.3 million for the first quarter 2007
§
Liquidities sufficient to meet normal operating requirements until end of Q1 2009, were at $6.2 million as of March 31, 2008, compared to $6.9 million as of December 31, 2007.

Recent Highlights

§
Won first prize in CTIA wireless 2008 E-Tech Award, recognized for innovation in the Enterprise solutions Category
§
Signed licensing deal with multi-national consulting firm for a corporate wide site license of Copernic Desktop Search Corporate Edition
§
Expanded global reach of Copernic desktop Search Corporate Edition with availability in French, German and Spanish

At the end of Q1 2008, Copernic took action and focused on a cost reduction plan for approximately $1.5 million on an annualized basis of which $1 million is related to reduced manpower. Mr. Ferland recently appointed President and CEO stated “these costs reductions are necessary in order for the Company to achieve profitability in the future.” Furthermore, he stated “marketing programs would be launched immediately to monetize Copernic’s technology in order to increase revenues.”

Financial Results for the quarter ended March 31, 2008

Revenues in the first quarter of 2008 totalled $1,709,000, down from $2,643,000 in the first quarter of 2007 mainly due to a decline in search and graphic advertising. Revenues in Q1 2008 were slightly higher than Q4 2007 by $55,000.

Gross margin in the first quarter 2008 was 60%, compared to 66% in the same quarter in 2007 mainly due to higher payouts to partners which deliver better quality traffic and usage of more bandwidth for having run our new Canadian data centers in parallel with the ones located in the United States. In April 2008 our US data centers were shut down.

Expenses in the first quarter of 2008 were at $2,182,000, compared to $2,751,000 excluding write-downs and settlement costs in Q4 2007 and $3,288,000 in Q1 2007.

Net loss in the first quarter 2008 was $1,086,000 ($0.07 per share), compared to a net loss of $1,381,000 ($0.10 per share) in the same quarter 2007.
 
 
Liquidities totalled $6,179,000, which was a decrease of 693,000 over the balance as at December 31, 2007. Liquidities included restricted cash of $828,000 which should be entirely available by the end of Q2 2008.

About Copernic Inc.
Copernic Inc. specializes in developing, marketing and selling cutting-edge search technology, providing innovative home and business software products and solutions for desktop, web and mobile users, through its online properties, including www.mamma.com and www.copernic.com.
 
With its award winning Copernic Desktop Search® software search engine product, the Company brings the power of a sophisticated, yet easy-to-use search engine to the user’s PC. Additionally, Copernic Inc. provides both online advertising as well as pure content to its vast array of partnerships worldwide through its well established media placement channels. Copernic handles over 1 billion search requests per month and has media placement partnerships established not only in North America, but also in Europe and Australia.
 
More information can be found at www.copernic-inc.com.
 
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company’s filings with the Securities and Exchange Commission and the Ontario Securities Commission. The Company expressly disclaims any intent or obligation to update any description of the scope, focus or subject matter of the statements in this press release.
 
FOR INFORMATION PLEASE CONTACT:
 
Copernic Inc.
Daniel Bertrand
Executive Vice President and Chief Financial Officer
Telephone Toll Free:  (877) 289-4682 #118
Telephone:  (514) 908-4318
Email:  dbertrand@copernic.com
Website:  www.copernic-inc.com


Copernic Inc.
Condensed Consolidated Balance Sheets
 
  
(unaudited) (expressed in U.S. dollars and in accordance with generally accepted accounting principles in Canada)  
   
   
As at
March 31,
2008
$
  
As at
December 31,
2007
$
  
Assets
              
               
Current assets
              
Cash and cash equivalents
    
5,351,028
    
2,099,560
  
Restricted Cash
    
827,552
    
807,468
  
Temporary investments
   
-
    
3,965,384
  
Accounts receivable
   
870,181
    
918,033
  
Income taxes receivable
    
227,396
    
221,205
  
Prepaid expenses
   
150,510
    
208,655
  
               
     
7,426,667
    
8,220,305
  
               
Property and equipment 
    
393,015
    
459,872
  
               
Intangible assets 
    
2,072,697
    
2,320,676
  
               
Goodwill 
    
7,357,003
    
7,357,003
  
               
     
17,249,382
    
18,357,856
  
               
Liabilities
              
               
Current liabilities
              
Accounts payable and accrued liabilities
   
1,548,617
    
1,520,619
  
Deferred revenue
    
242,257
    
211,455
  
Deferred rent
    
9,685
    
11,016
  
Income tax payable
    
8,100
    
8,100
  
Current portion capital lease obligations
    
55,302
    
56,071
  
               
     
1,863,961
    
1,807,261
  
               
Capital lease obligations
   
81,367
    
99,788
  
Future income taxes
    
577,763
    
650,413
  
               
 
              
               
Shareholders’ Equity
              
               
Capital stock 
              
Authorized
              
Unlimited common shares, no par value
              
Issued and outstanding 
              
14,637,531 common shares
    
96,556,485
    
96,556,485
  
               
Additional paid-in capital 
    
5,796,591
    
5,784,502
  
               
Accumulated other comprehensive income
    
561,137
    
561,137
  
               
Accumulated deficit
    
(88,187,922
)
  
(87,101,730
)
               
     
14,726,291
    
15,800,394
  
               
     
17,249,382
    
18,357,856
  

  
Copernic Inc.
Condensed Consolidated Statements of Operations
 
(unaudited) (expressed in U.S. dollars and in accordance with generally accepted accounting principles in Canada)  
   
   
For the three months ended
  
   
March 31
  
   
2008
$
  
2007
$
  
           
Revenues 
    
1,709,026
    
2,642,904
  
               
Cost of revenues  
    
680,620
    
885,714
  
               
Gross Margin
    
1,028,406
    
1,757,190
  
               
Expenses
              
Marketing, sales and services
    
433,813
    
448,331
  
General and administration
    
942,210
    
1,831,211
  
Product development and technical support
   
606,422
    
595,109
  
Amortization of property and equipment
   
47,173
    
56,342
  
Amortization of intangible assets
    
253,053
    
491,116
  
Interest and other income
    
(78,486
)
  
(142,826
)
Write-down of property and equipment
    
21,531
    
-
  
Loss (gain) on foreign exchange
    
(43,734
)
  
8,608
  
               
     
2,181,982
    
3,287,891
  
               
Loss from continuing operations
before income taxes
    
(1,153,576
)
  
(1,530,701
)
               
Current income taxes
    
5,267
    
-
  
Recovery of future income taxes
    
(72,651
)
  
(149,999
)
     
(67,384
)
  
(149,999
)
               
Net loss for the period
    
(1,086,192
)
  
(1,380,702
)
               
Basic and diluted net loss per share
    
(0.07
)
  
(0.10
)
               
Weighted average number of shares outstanding -basic and diluted
    
14,637,531
    
14,375,857
  
 
    
Copernic Inc.
Condensed Consolidated Statements of Cash Flows
 
(unaudited) (expressed in U.S. dollars and in accordance with generally accepted accounting principles in Canada)  
   
   
For the three months ended
  
   
March 31,
  
   
2008
$
  
2007
$
  
Cash flows from (used for)
              
               
Operating activities
              
Loss from continuing operations
    
(1,086,192
)
  
(1,380,702
)
Adjustments for
              
Amortization of property and equipment
   
47,173
    
56,342
  
Amortization of intangible assets
    
253,053
    
491,116
  
Employee stock-based compensation
    
12,089
    
296,672
  
Future income taxes
    
(72,651
)
  
(149,999
)
Write-down of property and equipment
    
21,531
    
-
  
Unrealized loss on foreign exchange
    
(6,184
)
  
-
  
Net change in non-cash working capital items
    
157,276
    
1,003,846
  
               
Cash from (used for) operating activities from continuing operations
    
(673,905
)
  
317,275
  
Cash used for operating activities from discontinued operations
    
-
    
(6,253
)
               
     
(673,905
)
  
311,022
  
               
Investing activities
              
Purchase of intangible assets
    
(5,074
)
  
(24,437
)
Purchase of property and equipment
    
(1,847
)
  
(55,224
)
Net decrease in temporary investments
    
3,965,384
    
4,090,639
  
               
Cash from investing activities
   
3,958,463
    
4,010,978
  
               
Financing activities
              
Issuance of capital stock
    
-
    
496,854
  
Repayment of obligations under capital leases
    
(13,006
)
  
-
  
               
Cash from (used for) financing activities
   
(13,006
)
  
496,854
  
               
Net change in cash and cash equivalents and restricted cash during the period
    
3,271,552
    
4,818,854
  
               
Cash and cash equivalents and restricted cash - Beginning of period
    
2,907,028
    
2,379,617
  
               
Cash and cash equivalents and restricted cash - End of period
    
6,178,580
    
7,198,471
  
Cash and cash equivalents and restricted cash comprise:
              
Cash
    
1,949,333
    
2,693,759
  
Short-term investments
    
3,401,695
    
4,504,712
  
               
     
5,351,028
    
7,198,471
  
Restricted Cash
    
827,552
    
-
  
               
     
6,178,580
    
7,198,471
  

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