Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading developer of e-business networks and provider of complete B2B e-business solutions, today announced its financial results for the second quarter of fiscal year 2009, ended September 30, 2008.
- Revenues of $11.9 million compared to $12.1 million in the previous year
- Net earnings of $0.8 million compared to $0.9 million in the previous year
- EPS of $0.06 compared to $0.05 in the previous year and to $0.02 in the previous quarter
Revenues for the second quarter amounted to $11.9 million, as compared to $12.1 million in the corresponding quarter of the previous year. Again this quarter, most of Mediagrif's e-business networks experienced good organic growth, especially MERX, BidNet, Market Velocity, Construction Bidboard and Global Wine & Spirits. Such growth was partially offset by a decrease in the revenues of The Broker Forum and Power Source On-Line, and foreign exchange variations, which again negatively impacted quarterly revenues by $0.5 million.
Operating expenses decreased to $8.4 million during the second quarter from $8.6 million in the corresponding quarter of last year mainly due to overall cost reductions resulting from the restructuring announced in March 2008, which are partially offset by operating expenses related to the acquisitions made in the second quarter of last year and the related amortization of acquired intangible assets.
Earnings from operations amounted to $0.9 million as compared to $1.2 million in the corresponding quarter of last year. Net earnings and basic earnings per share for the second quarter amounted to $0.8 million or $0.06 per share, as compared to $0.9 million or $0.05 per share for the corresponding quarter of the previous year, and as compared to $0.02 per share in the previous quarter as a result of costs cutting initiatives started in Q4 2008.
"The second quarter results were positively affected by our cost reduction initiatives started in the fourth quarter of fiscal 2008 and the good performance of our ePublishing division as well as of Market Velocity and Global Wine & Spirits networks," commented Denis Gadbois, President and Chief Executive Officer of Mediagrif.
"We expect these networks to continue to perform well for the second half of the year despite the economic uncertainties. However, the outlook for The Broker Forum changed significantly due to the US and EU economic problems that are starting to affect Chinese export markets. We are taking measures to address those challenges by reviewing our operational structure, enhancing customer service and extending the product offering. But it will continue to have a negative impact on our revenue growth for the second half of the year."
"As for expenses, we will continue to review our cost structure and adjust our strategy to further increase efficiencies and margins." concluded Denis Gadbois. -- www.cnxmarketlink.com
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