News and Events

Nstein Technologies announces solid growth in Q1 2008 results

2008-05-22

Highlights:

  • 59% increase in revenues over Q1 2007
  • 4 new deals signed including three valued at over $500,000
  • Acquisition of Picdar, a leading provider of picture and digital asset management solutions in the U.K.
Montreal, Quebec, May 22, 2008 - Nstein Technologies Inc. www.nstein.com (TSX-V: EIN) today announced its financial results for the first quarter of 2008.

Nstein's revenues in Q1 2008 were $6.03 million, an increase of 59% over the $3.8 million recorded a year earlier. Nstein posted a loss before financial expenses, income taxes on earnings, depreciation, amortization, exchange loss and restructuring fees (EBITDA) of $467,026, compared to a negative EBITDA of $194,525 for the first quarter of 2007. The net loss amounted to $891,890 or $0.019 per share, as opposed to a net loss of $638,596 or $0.019 per share for the same quarter last year.

"The increase in our revenues is the result of our intense efforts over the past year to reinforce our leadership in the e-publishing market. We have built on this momentum by signing four new deals, three of which are valued at more than $500,000 each. This has translated into a sharp rise in our sales figures," said Luc Filiatreault, President and Chief Executive Officer of Nstein Technologies.

"The slight drop in the EBITDA in the first quarter can be explained by the additional investments we made in our sales force so that we could speed up our revenue growth and market development in North America, the United Kingdom and France. This is part of our strategy to constantly fine-tune our corporate structure in line with our objective to be the dominant and prosperous player in the e-publishing industry," added Mr. Filiatreault.

The acquisition of Picdar, the U.K.'s leading provider of picture and digital asset management, was made official on February 13, 2008. The transaction occurred six weeks before the end of Q1 and Picdar's revenues contributed for 12% of the total revenues posted during the quarter.

"With Picdar on board, we now have access to a very prestigious portfolio of media clients in the U.K. and have increased our market share in Europe," Mr. Filiatreault added. "We have already made significant strides in many of the operational and technological aspects of the integration process, which is now in the capable hands of Louis Mousseau, formerly Nstein's Vice President, Corporate Development, and now Managing Director of Nstein Technologies in Europe. In this new role, Louis is in charge of all of Nstein's European operations. He will soon be relocating to London to directly supervise development activities and build Nstein's visibility in the European market."

Recent developments

Nstein recently hosted the Nstein Innovation Leaders Summit 2008 (May 14-16), the first conference directed at users of Nstein solutions. The event was a resounding success and was attended by 120 current and potential clients from around the world, as well as a number of renowned speakers. Media industry leaders engaged in an open dialogue about effective business strategies for getting ahead in today's Google®-disrupted world and a market where online consumers are more and more self-directed. Participants also explored the positive impact Nstein solutions can have in this context.

"The next few quarters will be devoted to consolidating our status as a leader in online publishing solutions and to broadening our offering through the development of new modules and the creation of updated versions of our existing software. Nstein's strong growth is supported by a seasoned management team and an exceptionally talented group of employees. These are tremendous assets and are sure to help create value for Nstein's shareholders," Mr. Filiatreault concluded.

To see the complete version of the press release with financial tables, click here.

About Nstein Technologies Inc.

Nstein Technologies (TSX-V: EIN) develops and markets multilingual solutions that power online publishing for the most prestigious newspapers, magazines, and content-driven organizations. Nstein's solutions generate new revenue opportunities and reduce operational costs by enabling the centralization, management and automated indexing of digital assets. Nstein partners with clients to design a complete online strategy for success using publishing industry best practices for the implementation of its Web Content Management, Digital Asset Management and Text Mining Engine products. www.nstein.com
  • The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
  • Any statement that appears prospective shall not be interpreted as such.

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For more information:

Nstein Technologies Inc.:
Investor Relations

Bruno Martel
Chief Financial Officer
Nstein Technologies Inc.
Tel: 514 908-5406
bruno.martel@nstein.com

Media

Rina Marchand
Marketing Manager
Nstein Technologies Inc.
Tel: 514 908-5406
rina.marchand@nstein.com


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