TORONTO--(BUSINESS WIRE)--NamSys Inc. (CTZ – TSX-V) today reports the results of operations for the first three months of fiscal 2020, ended January 31st. All amounts referenced herein are in Canadian dollars.
Revenue for the first three months of fiscal 2020 was $1,123,835 as compared to $902,410 for the same period last year. Income before Income Tax, a key metric in gauging business performance, was $266,921 ($0.01 per share), as compared to $408,633 ($0.01 per share) in the first quarter of fiscal 2019. The Company is not presently fully taxable due to loss carry forwards and Federal tax credits from previous years. It is noteworthy that as a result of changes to our Chief Operating Officer’s employment agreement, the payout from the Company under the “Employee Long Term Bonus Plan” (the “Plan”) is being amortized starting in the last quarter of 2019. This means that the Company is amortizing the cost of fulfilling obligations under the Plan each quarter so that full payment to the COO and possibly to other senior operating personnel, will be paid out to the beneficiaries (or beneficiary) no later than December 31, 2021. The total amortization of the Plan charged to operating expenses this quarter was $241,210. The aggregate accrued benefit is $404,928 to January 31, 2020. Comprehensive income for the first quarter of 2020 was $195,687 ($0.01 per share) compared to $302,225 ($0.01 per share) for the comparable period in 2019.
The Financial Statements and Management’s Discussion and Analysis for the first quarter of fiscal 2020 are available under the Company’s profile on SEDAR at www.sedar.com.
K. Barry Sparks, the Chief Executive of NamSys, stated: “Again this year, in excess of 80% of the revenue generated in the quarter was recurring in nature. This includes maintenance, systems upgrades, monitoring fees and sales of software product as a service (“SaaS”). The “Cirreon™” group of applications hosted and sold on a cloud usage basis, continues to make excellent progress in the marketplace.
The principal objective for the NamSys Team continues to be growing distribution. Management are working diligently to assist existing distributors expand the use of our products in their networks and at the same time initiating new distributors, offering our products, through their networks. New Cirreon applications for broadly based financial institution activities continue to be rolled out by our distributors. The addition of these products is reflected in our results.
Based upon the success in the marketplace of the Cirreon products in addition to a satisfied base of CC32 licence holders, it remains our belief that the Company will continue to make strides in achieving greater revenue and higher profits in 2019 and beyond.”
NamSys plans to host a conference call for interested investors as part of the Annual Meeting presentation on April 29th, 2020 at 11:00 am. We will provide details of the conference “hook up” during the week of April 13th, 2020 by way of a Press Release. This information will also be available no later than April 20th, 2020 on our website at www.NamSys.com/investor-relations.
NamSys Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, retailers, public transportation operations and the gaming industry. NamSys’ proprietary software products for this market are “open-architected” and have been developed to interface with clients’ legacy systems.
The TSX Venture Exchange has neither approved nor disapproved of the information contained in this release. This Media Release may contain forward-looking statements, which reflect the Corporation’s current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation’s strategies for achieving increased revenue and profitability.