Serenic Corporation – Update for Fiscal 2013
EDMONTON, Alberta, Canada (March 27, 2013) – Serenic Corporation (TSX-V: SER), an international software developer and marketer providing financial software solutions to not-for-profit (“NFP”), educational and government organizations is pleased to provide an update to its shareholders following completion of business for the Company’s fiscal year ended February 28, 2013 (“Fiscal 2013”).
Serenic’s primary operational objective for Fiscal 2013 was to reinvest resources to position the Company to achieve sustainable revenue and value growth over the longer term, while maintaining EBITDA positive results on an annualized basis and sustaining the Company’s strong financial position. Fiscal 2013 results are reflective of these longer term objectives, with the completion of a much stronger fourth quarter than the previous three quarters. Revenue for Fiscal 2013 will be approximately $12 million, which would represent an 11% growth over the prior fiscal year. EBITDA and net income are anticipated to be positive for the year.
Several factors influenced the Company’s progress during Fiscal 2013. Firstly, new software vendors continued to emerge as competitors in our chosen markets. Secondly, the global economies continued to operate without significant recovery, which served to impede sales to certain prospects and customers who remain fiscally cautious because of their revenue uncertainties. And thirdly, as previously reported, Microsoft announced its intention in July of 2012 to commence transition to a volume, “Cloud” based sales strategy for certain of its enterprise resource planning (“ERP”) products, which impacted Serenic’s business to some degree.
While this change in strategy may have significant positive effects on Serenic’s future business, Management believes that the immediate result was that some prospective customers chose to defer their purchase decisions pending clarification and finalization of new software pricing and deployment details. Serenic has been developing products for the past few years that conform to Microsoft’s strategy to deliver software solutions to customers via the Cloud to supplement its historical offering of on-premise solutions. Serenic’s sales of certain Cloud based products and services will result in reduced revenues being reported in the short term because these software solutions are accessed by way of monthly fees as compared to the historical sales model wherein software licenses are fully paid and reported at time of purchase.
The Company continues to solidify its position and value as an important partner within Microsoft’s global ERP ecosystem and continues to attract important new customers within its niche markets. With more than $4 million of cash on hand at Fiscal 2013 year end and nominal long term debt, Management considers the Company to be adequately financed to sustain future operations. Management intends to continue to seek partnerships with other organizations to leverage opportunities in current markets and/or to engage in new markets. Management will also continue to investigate merger and acquisition opportunities for accretive acquisition candidates, as well as other scenarios that could optimize value for shareholders.
The Company expects to publish its full audited financial reports for Fiscal 2013 during the last week of June 2013, and to subsequently hold the next Annual General Meeting of the Company’s Shareholders during the latter part of July 2013.
Forward Looking Statements
This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Serenic’s products and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, "Risks and Uncertainties" in Managements’ Discussion and Analysis filed with the Alberta and British Columbia Securities Commissions. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.