AMOUNTS ARE EXPRESSED IN U.S. DOLLARS
Workbrain reported first quarter revenue of $21.0 million, compared with $10.3 million for the first quarter of 2004, and $17.8 million for the fourth quarter of 2004; increases of 103% and 18%, respectively.
Net income for the first quarter was $795,000, or $0.05 per basic share. This compares to a net loss of $1.4 million, or $0.08 per share, for the first quarter of 2004, and net income of $437,000, or $0.03 per basic share, for the fourth quarter of 2004.
Adjusted net income for the first quarter was $985,000, or $0.06 per basic share, after excluding stock based compensation charges of $280,000, a foreign exchange gain of $164,000 and amortization of acquisition-related intangibles of $74,000. Adjusted net loss for the first quarter of 2004 was $474,000, or $0.03 per share, after excluding stock based compensation charges of $229,000, a foreign exchange loss of $557,000, and amortization of acquisition-related intangibles of $126,000. Adjusted net income for the fourth quarter of 2004 was $380,000, or $0.02 per share, after excluding stock based compensation charges of $320,000, a foreign exchange gain of $452,000, and amortization of acquisition-related intangibles of $75,000.
“We are delighted with our performance in the first quarter,” said David Ossip, president and CEO of Workbrain Corporation. “We more than doubled our quarterly revenue compared with the same quarter last year. We also increased our profitability dramatically over the same period, while continuing to make significant investments in our people and our products. We believe these continued investments will further extend our leading position in the enterprise workforce management market. Our success has been driven by satisfied clients who have seen a significant return on investment from fast and comprehensive implementations. Based on the tremendous response of our customers, and on our current view of the market, our prospects and our pipeline, we have increased our revenue expectations for 2005 to a range between $80 million and $84 million.”
FINANCIAL HIGHLIGHTS
- 15th consecutive quarter of revenue growth
- 103% increase in quarterly revenue to $21.0 million, up from $10.3 million in the first quarter of 2004
- Increased quarterly net income to $795,000, or $0.05 per basic share, compared with a net loss of $1.4 million, or $0.08 per share in the first quarter of 2004
- Increased committed backlog to approximately $25 million, up from approximately $24 million in the fourth quarter of 2004
- Increased cash and short-term investments to $51.2 million, up $7.8 million compared with the first quarter of 2004
BUSINESS HIGHLIGHTS
- New customers included Nissan North America, Compass Group USA, Ball Corporation, Menards and Mirant.
- Successful implementations during the quarter included a national retailer, major manufacturers including a leading automaker, a prominent police force, an airline, and three financial services firms including a partner-led deployment to a top-five bank with over 150,000 employees.
- Workbrain added veteran professionals in all areas, including industry leader Susan Hutt as Senior Vice President of Global Services, responsible for product implementation, customer support, educational services, hosting & reader services.
- Workbrain was again recognized among “Canada’s 50 Best Managed Companies”.
REVENUE OUTLOOK
Workbrain has increased revenue guidance and expects to achieve total revenue in the range of $80 million to $84 million for the 2005 fiscal year, representing annual growth in the range of 40% to 47%. Copies of the audited consolidated financial statements will be available at Workbrain’s website at www.workbrain.com, or on SEDAR at www.sedar.com
