Welcome!

News Feed Item

OneSoft Solutions Inc. (Formerly Serenic Corporation) Reports Financial Results for the Three Months Ended May 31, 2014

EDMONTON, ALBERTA -- (Marketwired) -- 07/29/14 -- THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

OneSoft Solutions Inc. (the "Company" or "OneSoft"), formerly Serenic Corporation ("Serenic"), (TSX VENTURE: SER), reports its financial results for the three months ended May 31, 2014.


----------------------------------------------------------------------------
                                         Three months ended May 31
                               ---------------------------------------------
                                                                 Increase /
                                          2014           2013     (Decrease)
                               ---------------------------------------------
                                             $              $              %
----------------------------------------------------------------------------
Revenue                              3,369,094      2,603,370          29.4
----------------------------------------------------------------------------
Net loss                             (210,037)      (317,052)         (33.8)
----------------------------------------------------------------------------
Basic and diluted loss per
 share                                  (0.02)         (0.02)             -
----------------------------------------------------------------------------
Adjusted EBITDA (1)                  (132,440)      (238,254)          44.4
----------------------------------------------------------------------------
Adjusted EBITDA as % of sales            (3.9)          (9.2)          57.0
----------------------------------------------------------------------------
Weighted average common shares
 outstanding - basic                13,961,958     14,639,646
-------------------------------------------------------------
Weighted average common shares
 outstanding - diluted              13,961,958     14,724,023
----------------------------------------------------------------------------

(1) Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, and stock option expense. Please review the Serenic Management Discussion and Analysis ("MD&A") for the Three months ended May 31, 2014 for more information

SALE OF SERENIC SUBSIDIARIES JULY 28, 2014

On July 28, 2014, Serenic closed on a sale transaction whereby Sylogist Ltd. acquired its three operating subsidiaries which were a substantial portion of Serenic's assets, for net cash of approximately $7,911,471, subject to certain closing adjustments. Please refer to the Serenic Press Release dated July 28, 2014 and the Management's Discussion and Analysis for the Three months ended May 31, 2014, both of which are posted on SEDAR.

CHANGE OF NAME OF CORPORATION and CHANGE OF CEO

On July 28, 2014, Serenic Corporation changed its name to OneSoft Solutions Inc., as this name change was required as a condition of the sale of the subsidiaries to Sylogist. Dwayne Kushniruk will replace Randy Keith as CEO and President of the Company, effective August 1, 2014. The Board wishes to thank Mr. Keith for his dedicated leadership of the Company since 2007, and looks forward to Mr. Keith's continued contribution as a director of the Company for the ensuing year.

QUARTER HIGHLIGHTS

During the quarter ended May 31, 2014 ("Fiscal 2015 Q1") revenue increased 29.4% to $3,360,094 from $2,603,370 for the comparative quarter last year. Software license sales were 43.3% higher year over year due to increases in Serenic Navigator license sales that were sold directly by Serenic and by reselling partners in the USA, Canada and in Africa. Services revenue increased 70% due to some large Human Resource Information System ("HRIS") projects being implemented by subcontractors, which were supplementary to Serenic's usual level of engagements with implementations and software version upgrades for direct customers. Serenic introduced its Total Care Plan in September 2013, which also added to Services revenue and which has resulted in an increased demand by customers for software version upgrades. Software maintenance contract revenue also increased year over year. The increase in the Canadian to U.S. dollar exchange rate also favourably affected revenues.

Gross profit increased 9.8% year over year, to $1,900,108 from $1,730,542, due to the increase in license and maintenance contracts revenue. Expenses were similar to last year at $2,080,442 versus $2,053,909 in the comparable period last year. While savings were realized from staff reductions that were made in February, 2014, the increase in the foreign exchange rate offset these and other cost savings measures. The net loss reduced year over year, from $317,052 in Q1 of Fiscal 2014 to $210,037 in Q1 of Fiscal 2015. Adjusted EBITDA also decreased year over year, from a loss of $238,254 in Q1 of Fiscal 2014 to a loss of $132,440 in Q1 of Fiscal 2015.

OUTLOOK

The sale of the Serenic operating companies to Sylogist is very beneficial. This has allowed us to unlock approximately $6.9 million (approximately $0.45 per share on a fully diluted basis) of value for shareholders, and also provide funding to advance the on-going Cloud business. With significant investment already having been made in the Cloud technology and products, we anticipate that new OneSoft divisions will now be operated with only minimal staff, and essentially in "start-up" mode until Cloud-only revenues start to occur and build.

The OneSoft IP includes: the underlying cloud technology that enables Serenic's legacy Dynamics NAV ERP products to be re-configured for Microsoft's Cloud and volume strategies: and, three products: Express, Essentials and Donor Vision 2013, which are derivative products of the Serenic legacy products. OneSoft's first order of business is to execute upon its plans to sell the OneSoft products into new NFP markets that are ideally suited for these products, which have not historically been addressable with Serenic's legacy solutions. This will be conducted pursuant to the OEM arrangement that OneSoft entered into with the Serenic operating companies immediately prior to Sylogist acquiring the Serenic companies. We intend to also investigate potential opportunities to enter into similar arrangements with other Dynamics NAV vendors who have developed ERP solutions for other vertical markets, whereby OneSoft's underlying technology can be applied to those products, and new volume markets within those verticals can be addressed. We believe that developing this bridge to Microsoft Cloud is not easily repeatable by or feasible for most small software companies to pursue, particularly by those who had not yet committed to this development strategy and are now lagging from a technology perspective.

Management's immediate priority is to now accelerate and leverage the OneSoft strategies. Investigation will be conducted to determine alternatives in this regard, which may include organic growth strategies as well as joint venture or M&A scenarios. The Company has sufficient cash to operate as envisioned (which will likely be on a negative EBITDA basis), for approximately four quarters. We anticipate that further announcements to outline future strategies will be forthcoming in the next couple of quarters.

ON BEHALF OF THE BOARD OF DIRECTORS

OneSoft Solutions Inc.

Dwayne Kushniruk, Chairman

Forward-looking Statements

This news release contains forward-looking statements relating to the future operations and profitability of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects", "believe", "will", "intends", "plans" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. In respect of the forward-looking information and statements, the Company has provided such in reliance on certain assumptions that it believes are reasonable at this time, including expectations and assumptions concerning, among other things: interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; the success of growth projects; future operating costs; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; and that there are no unforeseen material development or other costs related to current growth projects or current operations. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.

Readers are cautioned that the foregoing list of factors is not exhaustive. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act or other laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
OneSoft Solutions Inc.
Dwayne Kushniruk
[email protected]

OneSoft Solutions Inc.
Paul Johnston
CFO
780.426.5387 ext 509
[email protected]

Investor Relations
Cantech Communications
Nick Waddell
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and the...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.