All amounts are stated in
- Revenue of
$15.1 million - Total Contract Value ("TCV")(1) bookings of
$21.5 million - Gross margin of 70%
- Adjusted EBITDA(1) of
$3.0 million or 20% of revenue - Adjusted EPS(1) loss of
$(0.25) $20.3 million of cash on balance sheet
"Our legacy revenue stabilization has been a priority over the last two years, and that will continue into 2023," said
- TCV of Q4 '22 bookings totaled
$21.5 million . For the year endedDecember 31, 2022 , TCV bookings totaled$91.6 million .
- The Company and Salesforce announced a new partnership to unify and integrate BSS and data-rich applications, empowering telecom operators using MuleSoft to simplify and unify their BSS and customer data and accelerate 5G ecosystem monetization. The new integration will allow operators to unlock the power of their data, streamline processes across all systems and deliver truly connected customer experiences faster.
- The Company launched the new Optiva Partner Monetization platform. It empowers telecom operators to monetize the B2B2X market and build partner ecosystems. Operators can leverage a simplified, unified and open platform that evolves with their roadmap and the market. The end-to-end partner management platform will allow operators to play any role in the B2B2X value chain; partner across industries, use cases and business types; and enjoy a fully digitized experience with a self-service partner portal.
Fourth Quarter 2022 Financial Results Highlights:
Q4 Fiscal 2022 Highlights | Three Months Ended | Twelve Months Ended | |||
($ US Millions, except per share information) | |||||
(Unaudited) | 2022 | 2021 | 2022 | 2021 | |
Revenue | 15.1 | 16.2 | 61.8 | 65.2 | |
Net Income (Loss) | (1.5) | (3.3) | 0.7 | 18.5 | |
Earnings (Loss) Per Share | |||||
Adjusted Earnings (Loss) Per Share(1) | |||||
Adjusted EBITDA(1) | 3.0 | 3.6 | 13.9 | 18.6 | |
Cash from (used in) operating activities | 2.0 | (3.3) | (0.2) | 2.6 | |
Total cash, including restricted cash | 20.3 | 30.4 | 20.3 | 30.4 |
- Revenue for Q4'22 was
$15.1 million . On a year-over-year basis, the change by revenue type included a$2.8 million decrease in support and subscription revenue, a$1.8 million increase in software and services revenue and$0.1 million decrease in third-party software and hardware revenue.
- Gross margin for Q4'22 amounted to 70% compared to 75% during the same period in 2021. The decline in gross margin is attributable primarily due to the impact of more customizations with lower margins ordered by customers that required fulfillment compared to the previous period and lower percentage of revenue from support and subscription revenue that has a higher margin. Gross margins may fluctuate as the Company proves out its cloud-native model and product capabilities to new and existing customers when they onboard the public or private cloud in future periods.
- General and administrative expenses decreased to
$3.4 million compared to$4.8 million during the same period in 2021. The decrease is mainly due to lower compensation costs, lower legal costs and lower stock-based compensation.
- Adjusted Earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) for Q4'22 decreased to
$3.0 million as compared to$3.6 million during the same period in 2021, primarily driven by lower gross margin.
- Net loss for Q4'22 was
$1.5 million compared to net loss of$3.3 million during the same period in 2021. Excluding the impact from change in value of warrants the Company had a net loss of$1.5 million for the three months endedDecember 31, 2022 , versus a net loss of$2.5 million during the corresponding period in 2021.
- The Company ended the fourth quarter with a cash balance of
$20.3 million (including restricted cash). The Company had positive cash flow from operations during the quarter.
(1) EBITDA, Adjusted EBITDA, TCV and adjusted EPS are non-IFRS measures. These measures are defined in the "Non-IFRS Financial Measures" section of this news release. |
Date:
Time: 8:30 a.m. Eastern Standard Time
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"EBITDA" and "Adjusted EBITDA" are not financial measures calculated and presented in accordance with International Financial Reporting Standards (IFRS) and should not be considered in isolation or as a substitute to net income (loss), operating income or any other financial measures of performance calculated and presented in accordance with IFRS, or as an alternative to cash flow from operating activities as a measure of liquidity. The Company defines EBITDA as net income (loss) excluding amounts for depreciation and amortization, other income, finance costs, finance income, income tax expense (recovery), foreign exchange gain (loss) and share-based compensation. The Company defines "Adjusted EBITDA" as EBITDA (as defined above), excluding restructuring costs, one-time provision amounts, and any one-time transaction costs associated with shareholder conflict. The Company believes that Adjusted EBITDA is a metric that investors may find useful in understanding the Company's financial position. The following table provides a reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands of
Three months ended, | Year ended, | |||
2022 | 2021 | 2022 | 2021 | |
Net income (loss) for the period | $ (1,506) | $ (3,309) | $ 709 | $ 18,503 |
Add back / (substract): | ||||
Depreciation of property and equipment | 157 | 86 | 512 | 169 |
Amortization of intangible assets | 361 | 363 | 1,444 | 1,451 |
Finance income | (150) | (64) | (406) | (535) |
Finance costs (recovery) | 2,398 | 3,241 | 7,916 | (6,259) |
Income tax expense | 541 | 1,078 | 2,171 | 3,516 |
Foreign exchange loss (gain) | 376 | 369 | 1,168 | (266) |
Share-based compensation | 863 | 1,884 | 1,947 | 3,790 |
EBITDA | 3,040 | 3,647 | 15,461 | 20,369 |
Release of provisions | - | - | (1,571) | (1,314) |
One-time cost (recovery) related to shareholder conflict | - | - | - | (434) |
Adjusted EBITDA | $ 3,040 | $ 3,647 | $ 13,890 | $ 18,621 |
Adjusted EPS is reported diluted EPS excluding the impact of change in the fair value of warrants, one-time costs (recovery) related to shareholder conflict and release of provisions.
TCV is the Total Contract Value of all bookings closed in the period.
Certain statements in this document may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use such words as "may," "will," "expect," "continue," "believe," "plan," "intend," "would," "could," "should," "anticipate" and other similar terminology. These statements are forward-looking as they are based on our current expectations, as at
Consolidated Statements of Financial Position | ||
(Expressed in thousands of | ||
As at | ||
2022 | 2021 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 18,386 | $ 29,587 |
Trade accounts and other receivables | 7,535 | 7,203 |
Unbilled revenue | 17,821 | 8,209 |
Prepaid expenses | 1,938 | 3,044 |
Income taxes receivable | 3,820 | 4,362 |
Other assets | 610 | 823 |
Total current assets | 50,110 | 53,228 |
Restricted cash | 1,948 | 792 |
Property and equipment | 1,221 | 883 |
Deferred income taxes | 376 | 432 |
Other assets | - | 372 |
Long-term unbilled revenue | 332 | 2,878 |
Intangible assets | 360 | 1,804 |
Goodwill | 32,271 | 32,271 |
Total assets | $ 86,618 | $ 92,660 |
Liabilities and Shareholders' Equity (Deficit) | ||
Current liabilities: | ||
Trade payables | $ 3,147 | $ 2,083 |
Accrued liabilities | 11,624 | 12,905 |
Provisions | - | 4,200 |
Income taxes payable | 4,365 | 3,468 |
Deferred revenue | 1,995 | 3,995 |
Total current liabilities | 21,131 | 26,651 |
Deferred revenue | 403 | 151 |
Other liabilities | 2,302 | 2,096 |
Pension and other long-term employment benefit plans | 713 | 9,423 |
Debentures | 87,716 | 86,990 |
Series A Warrant | - | 1,495 |
Standby Warrant | - | 172 |
Deferred income taxes | 433 | 746 |
Total liabilities | 112,698 | 127,724 |
Shareholders' equity (deficit): | ||
Share capital | 270,560 | 270,560 |
Contributed surplus | 15,941 | 14,172 |
Deficit | (316,630) | (317,339) |
Accumulated other comprehensive income (loss) | 4,049 | (2,457) |
Total shareholders' equity (deficit) | (26,080) | (35,064) |
Total liabilities and shareholders' equity (deficit) | $ 86,618 | $ 92,660 |
Consolidated Statements of Comprehensive Income (Loss) | ||
(Expressed in thousands of | ||
Years ended | ||
2022 | 2021 | |
Revenue: | ||
Support and subscription | $ 39,024 | $ 47,635 |
Software licenses, services and other | 22,755 | 17,601 |
61,779 | 65,236 | |
Cost of revenue | 17,193 | 14,875 |
Gross profit | 44,586 | 50,361 |
Operating expenses: | ||
Sales and marketing | 9,872 | 8,130 |
General and administrative | 11,089 | 16,762 |
Research and development | 12,067 | 10,510 |
33,028 | 35,402 | |
Income from operations | 11,558 | 14,959 |
Foreign exchange gain / (loss) | (1,168) | 266 |
Finance and other income | 406 | 535 |
Finance recovery (costs) | (7,916) | 6,259 |
Income before income taxes | 2,880 | 22,019 |
Income taxes (recovery): | ||
Current | 2,428 | 3,864 |
Deferred | (257) | (348) |
2,171 | 3,516 | |
Net income for the year | 709 | 18,503 |
Other comprehensive income: | ||
Items that will not be reclassified to net income: | ||
Actuarial gain / (loss) on pension and non-pension | ||
post-employment benefit plans, net of income | ||
tax expense of nil (2021 - nil) | 6,505 | 4,441 |
Total comprehensive income | $ 7,214 | $ 22,944 |
Net income per common share | ||
Basic | $ 0.11 | $ 3.12 |
Diluted | 0.11 | 3.11 |
Weighted average number of | ||
common shares (thousands): | ||
Basic | 6,178 | 5,928 |
Diluted | 6,178 | 5,949 |
Consolidated Statements of Cash Flows | ||
(Expressed in thousands of | ||
Years ended | ||
2022 | 2021 | |
Cash provided by (used in): | ||
Operating activities: | ||
Net income (loss) for the year | $ 709 | $ 18,503 |
Adjustments for: | ||
Depreciation of property and equipment | 512 | 169 |
Amortization of intangible assets | 1,444 | 1,451 |
Finance income | (406) | (535) |
Finance costs (recovery) | 7,916 | (6,259) |
Income tax expense | 2,171 | 3,516 |
Unrealized foreign exchange (gain) / loss | (378) | (3,110) |
Share-based compensation | 1,947 | 3,790 |
Pensions | (1,749) | 1,614 |
Provisions | (4,200) | (1,355) |
Change in non-cash operating working capital | (5,474) | (9,606) |
2,492 | 8,178 | |
Interest paid | (29) | (111) |
Interest received | 226 | 24 |
Promissory note paid | (2,000) | - |
Income taxes paid | (926) | (5,444) |
(237) | 2,647 | |
Financing activities: | ||
Interest paid on debentures | (8,775) | (8,764) |
Issue of share capital | - | 19,656 |
(8,775) | 10,892 | |
Investing activities: | ||
Purchase of property and equipment | (850) | (1,053) |
Increase in restricted cash | (1,156) | (166) |
(2,006) | (1,219) | |
Effect of foreign exchange rate changes | ||
on cash and cash equivalents | (183) | (397) |
Increase (decrease) in cash and cash equivalents | (11,201) | 11,923 |
Cash and cash equivalents, beginning of period | 29,587 | 17,664 |
Cash and cash equivalents, end of year | $ 18,386 | $ 29,587 |
SOURCE
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