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Posera-HDX Announces Financial Results for the First Quarter of 2012
May 15, 2012 (05:05 PM EDT)
TORONTO, May 15, 2012 /CNW/ - Posera-HDX Ltd. (TSX: HDX) (the "Company" or "Posera-HDX") announced today its financial results for the three-months ended March 31st, 2012. Posera-HDX is listed on the TSX under the symbol "HDX".
Paul Howell, Chief Executive Officer, reports:
Following the acquisition of Cash N Go in December 2011, and in keeping with the Company's long term business plan, Posera-HDX has begun to make significant investments to enhance systems, facilities, and operating procedures in order to secure the necessary approvals to operate a payment processing switch and an ATM transaction processing switch. The new division operates as HDX Payment Processing Ltd. Team members and contractors with the appropriate industry expertise have been retained to allow the Company to develop the payment processing division with an eye toward monetizing the Company's investment in this division as quickly as possible.
The first quarter is traditionally a slow period for new system sales in the hospitality industry and the worldwide economy has proven difficult resulting in slower than expected sales activity. Sales and service revenues for the three-months ended March 31, 2012 were $3,630,044. This represents a decrease of 12.3% from $4,131,148 from the three-months ended March 31, 2011. During 1st quarter 2011, the Company enjoyed enhanced sales activity due to government mandated system upgrades in the province of Quebec.
The Company has experienced an EBITDA loss of $326,615 for the three-months ended March 31, 2012. The Company incurred amortization of acquired intangible assets of $320,407 and amortization of property plant and equipment was $47,036 for the three-months ended March 31, 2012. HDX Payment Processing Ltd. (formerly Cash N Go Ltd. a payments processing company) experienced an EBITDA loss of $120,743 and Posera-HDX Scheduler Inc. (the acquired assets of 2020 ITS Inc.) experienced an EBITDA loss of $13,927. The Company expects to continue to make significant investments in these divisions into the foreseeable future and will strive to increase revenue for these divisions and products as quickly as possible.
The Company continues to pursue acquisitions within the point of sale and payments industries although none are specifically named at this time.
Quarterly Highlights and Summary
Non-IFRS Reporting Measures: Management reports on certain Non-IFRS ("International Financial Reporting Standards") measures to evaluate performance of the Company. Non-IFRS measures are also used to determine compliance with debt covenants and manage the capital structure. Because non-IFRS measures do not generally have a standardized meaning, securities regulations require that non-IFRS measures be clearly defined and qualified, and reconciled with their nearest IFRS measure. The Canadian Institute of Chartered Accountants (CICA) Canadian Performance Reporting Board has issued guidelines that define standardized earnings before interest, taxes, depreciation and amortization (EBITDA). For definitions of Non-IFRS measures, refer to the Company's quarterly management discussion and analysis for the three-months ended March 31, 2012.
Additional information on Posera- HDX's first quarter 2012 financial results will be available in the financial reports filed by the Company with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website at www.dexit.com.
About the Company
Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The Company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.
Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.
Posera-HDX Limited develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages. The Company sells and services its clients directly, as well as through a network of approximately 113 value added reseller partners in 25 countries with approximately 1,100 representatives selling, supporting & installing its software. Posera-HDX employs approximately 135 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect Posera-HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form filed on March 29th, 2012 with the regulatory authorities. Posera-HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.