| June 26, 2007
-VendTek Systems Inc. (TSX-V: VSI) (“VendTek”
or “The Company"), a leading provider of
automated transaction systems software, today announced
the results of its operations for the second quarter
ending April 30, 2007.
Key highlights for the six months ending April 30th,
2007, include:
- Revenues increased to $33.706 million or 28% higher
compared to the same period in 2006.
- Earnings of $365,000 for
the six months ended April 30th, 2007, compared to
$200,000 for 2006.
- The sixth consecutive quarter
of profitability.
Key highlights for the three months ended April 30th,
2007 include:
- Total revenues increased 28% for the second quarter
of 2007 to $17.291 million from $13.468 million.
- Prepaid telecommunications
revenue totaled $17.039 million for the quarter ended
April 30, 2007, compared to $13.376 million for the
same quarter in 2006.
- Overall gross margins increased from 5.6% for the
second quarter of 2006 to 6.7% for the second quarter
of 2007.
Revenues for the six months ended April 30, 2007, increased
$7.414 million to $33.706 million, or 28%, from $26.292
million for the corresponding period in 2006.
Our prepaid telecommunications revenue totaled $33.157
million for the quarters ended April 30, 2007, compared
to $26.102 million for the same quarter in 2006. The
27% increase is primarily due to ongoing installation
of POS terminals across Canada for distribution of virtual
prepaid telecommunications vouchers (or PINs) through
our distribution network.
Our software and related service revenue increased by
$391,000 (or 384%) to $492,000 for the first two quarters
of 2007 from $102,000 for the same period in 2006. Software
and services revenue increased primarily because of
our licensing customer in the United Arab Emirates.
Operating expenses increased 50% from $1.240 million
for the first six months of 2006 to $1.862 million in
2007. The majority of the increase is due to one-time
expenditures related to the amalgamation of Now Prepay
Corporation, setting up an additional subsidiary –Gulf
Payment Networks, — and executive search fees
increased general and administrative expenses. Selling
and marketing expenses increased $110,000 to $258,000
due to increased international and Canadian sales initiatives.
Research and development expenses increased $60,000
to $224,000 for the six months ending April 30th, 2007.
Net income for the six months ended April 30, 2007 was
$364,922, an 83% increase, compared to $199,534 for
the six months ended April 30, 2006.
On May 7, 2007, subsequent to the end of the quarter,
the Company acquired all the issued and outstanding
shares of Go Prepaid Inc. a private company based in
Toronto, Ontario. Go Prepaid specializes in the distribution
of prepaid telecom products and has been a distribution
partner of NPC since 1999.
“Demand for our transaction service solutions
continues to grow in Canada and internationally. Our
network in Canada has more than 11,000 terminals. As
we look forward to the rest of the year, we expect to
generate revenues from the United States and continue
our international efforts,” said Doug Buchanan,
President and CEO of VendTek Systems Inc.
The complete statements are available at www.sedar.com.
For more information or to receive the complete statements
please contact Samantha Haynes at 604.805.4653 or 1-800-806-4958
or shaynes@vendteksys.com.
About VendTek
VendTek develops and licenses automated transaction
system software and supporting technologies that improve
the efficiency of product delivery, reduce costs to
clients and offer superior safety measures. VendTek's
customers and its subsidiaries, Now Prepay Corp. (in
Canada) and VendTek Systems Technologies (in China),
are using e-Fresh™ software to build electronic,
prepaid services networks, which enable consumers to
purchase prepaid services via POS and self-serve terminals
connected to a central e-Fresh™ server. This system
creates significant value through improved efficiencies
compared to the traditional distribution paradigm. e-Fresh™
reduces shrinkage and inventory requirements while improving
consumer access to prepaid services by completely eliminating
physical cards and vouchers. For further information
please visit the Company’s websites www.vendteksys.com
and www.nowprepay.com.
| This release contains forward-looking
statements within the meaning of the “safe
harbor'' provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These statements
are based on management's current expectations and
beliefs and are subject to a number of risks and
uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The Company assumes no obligation to
update any forward-looking information contained
in this news release. |
The TSX Venture Exchange
has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
|
