Releases its 2009 First Quarter Results
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Apr 23, 2009 12:32PM
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April 23, 2009 | ||
DEQ Releases its 2009 First Quarter Results | ||
LEVIS, QUEBEC--(Marketwire - April 23, 2009) - DEQ Systems Corp. (TSX VENTURE:DEQ) announced today the filing of its 2009 first quarter financial results for the period ended February 28, 2009. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website. A conference call will be held on Friday, April 24, 2009 at 11am EST to present and discuss these results. Those interested in participating should dial (416) 644-3414 or toll free 1 (800) 733-7560. A visual presentation (Powerpoint) will be available on DEQ's website (www.deq.com) in the Invest/Financial Reports/PowerPoint section to support the call content. 2009 FIRST QUARTER HIGHLIGHTS: Financial - Revenue - 58% growth in recurring revenue in first quarter compared to previous year - 75% increase in gross profit in first quarter from $658,000 to $1,152,000 - 88% gross margin compared to 71% in 2008 due to increase in recurring revenue - 26% average annual growth in recurring revenue over the last three years - EBITDA - Positive EBITDA of $342,000 in first quarter of 2009 compared to a loss of $153,000 in 2008 - Cash Flow and Cash position - Positive adjusted cash flows from operations of $177,000 in first quarter of 2009 as compared to a loss of $100,000 in 2008 - Solid stable cash position of $6.2M - Operating Costs - Decreased annualized operating costs by 9% from $3.76M in 2008 to $3.45M in 2009 - Share purchase buy back - DEQ has repurchased a total of 826,500 shares at an avg. price of $0.29 as of April 23, 2009 Operational - Operating licenses were obtained in Indiana and Iowa - EZ Baccarat(TM) and EZ Trak(TM) Products were introduced in Las Vegas at MGM Grand and Wynn - G3(TM) Linked Jackpot 6 game configuration was deployed at Monte Carlo in Las Vegas - DEQ retained Rob Ziems as Intellectual Property Advisor to explore new ways to generate revenue from our extensive patent portfolio - Lucky Player Jackpot(TM) was installed in South Africa with TCS JohnHuxley and in Columbia with Shuffle Master - EZ Baccarat and EZ Trak systems were installed in Indiana at Ameristar - EZ Baccarat installation on four (4) tables at Wynn Casino in Macau Financial Results First Quarter Twelve Month Period Feb. 29, Feb. 28, Feb. 29, Feb. 28, 2008 2009 2008 2009 (unaudited) (unaudited) (unaudited) (unaudited) -------------------------------------------------------------- $ $ $ $ Revenue Royalties 535,131 810,838 1,855,943 2,521,313 Sale of equipment 312,577 213,421 928,764 578,154 Equipment rental 76,013 154,235 277,971 447,762 Patent rights - 126,000 107,160 920,300 -------------------------------------------------------------- 923,721 1,304,494 3,169,839 4,467,529 Gross Profit 658,311 1,151,523 2,251,690 3,703,114 % Gross margin 71% 88% 71% 83% Operating Costs (1) 811,679 809,216 3,064,331 3,447,791 -------------------------------------------------------------- EBITDA (2) (153,368) 342,307 (812,641) 255,322 Interest income, net of expenses 171,606 46,315 453,594 243,727 Deferred revenue variation (118,286) (212,181) 549,076 140,358 -------------------------------------------------------------- Adjust. Operational Cash Flow (2) $(100,048) $176,441 $190,029 $639,408 -------------------------------------------------------------- -------------------------------------------------------------- Additional Information: Recurring Revenue (3) $611,144 $965,073 $2,133,914 $2,969,075 Lease Table Equivalent (LTE)(Recurring Rev. / $3,000) 815 LTE 1287 LTE n/a n/a Net loss ($) (183,933) (423,395) (1,958,062) (1,749,077) Net loss per share ($) (0.003) (0.006) (0.034) (0.025) Note 1: Operating costs excluded stock option based compensation. Note 2: We use EBITDA (Earnings before interest, taxes, depreciation and amortization) and Adjusted Cash Flow from Operations as performance measurements in our financial disclosure. These measurements are not recognized under generally accepted accounting principles. The reconciliations above demonstrate how we calculate such measurements from our financial statements. Note 3: Recurring revenue is comprised of Royalties and Equipment rental. LTE: LTE is Leased Table Equivalent: DEQ receives an average of $3000 per table per year of patent royalties. This metric is used to standardize the amount of leased table royalties. Actual tables may vary as royalties may be derived from the usage of the patents without the physical machine in use. Balance Sheets February 29, November 30, February 28, 2008 2008 2009 (Unaudited) (Audited) (Unaudited) ------------------------------------------------------------------- Cash and cash equivalents 10,316,664 6,593,357 6,235,437 Current assets (other than cash) 2,649,097 1,860,176 2,280,104 Long-term assets 9,174,872 17,139,836 16,499,267 ------------------------------------------------------------------- Total Assets $22,140,633 $25,593,369 $25,014,808 ------------------------------------------------------------------- ------------------------------------------------------------------- Current liabilities 1,074,818 2,734,291 2,589,898 Long-term liabilities 577,073 2,725,668 2,821,226 Shareholders' equity 20,488,741 20,133,410 19,603,684 ------------------------------------------------------------------- Total Liabilities and Equity $22,140,633 $25,593,369 $25,014,808 ------------------------------------------------------------------- ------------------------------------------------------------------- Number of shares outstanding 69,907,919 70,416,315 69,760,315 ------------------------------------------------------------------- ------------------------------------------------------------------- Founded in 1998, DEQ Systems Corp. (TSX VENTURE:DEQ) is a leader in the table game bonusing technology field. DEQ's patents, products and features include side bet bonusing games with progressive and random jackpot prizes, slot machine style mystery bonusing, multiple credit and denomination betting flexibility, dealer hand betting, electronic credit bank, electronic rake, baccarat hand tracking, multimedia animation and sound effects. DEQ has an extensive patent portfolio that is recognized in more than 50 countries such as the USA, Macau, Australia and Canada. DEQ's bonusing solutions and products are present in more than 200 casinos in over 30 countries. For further information, please visit www.deq.com |