MONTREAL, Sept. 15, 2008 (GLOBE NEWSWIRE) -- Superclick, Inc. (OTCBB:SPCK), a technology leader in IP infrastructure management solutions to the hospitality industry today announced financial results for the third quarter, ended July 31, 2008.
Financial Results for the Three Months Ended July 31, 2008
Superclick reported net revenues of $1,479,286 for the third quarter ended July 31, 2008, an increase of $78,940, or 5.6% year-over-year. Product sales contributed $691,123 to the total net revenues, a decrease of $129,257, or 15% year-over-year, while services, or recurring revenues, contributed $788,163 to total net revenues, an increase of $208,197, or 35% year-over-year.
Maintenance revenue growth was the result of the continued increase in rooms under support. Revenue derived from the deployment of solutions was down compared to last year mainly due to the postponement of certain material installations to Q4. However, year-to-date showed growth of 44.8%, compared to last year.
Gross profit for the three months ended July 31, 2008 and 2007 was $769,261 and $733,799, respectively, a 4.8% or $35,462 improvement. Gross margin for the three months ended July 31, 2008 and 2007 remained strong at 52.0% and 52.4%, respectively.
Selling, General and Administrative expenses for the three months ended July 31, 2008 and 2007 were $383,204 or 25.9% of net revenue and $458,465 or 32.7% of net revenue, respectively. This represents a $75,261 or 16.4% favorable variance compared to the same quarter last year. The favorable variances were incurred in all areas of the business.
Research and development expenses for the three months ended July 31, 2008 were comparable to those of the three months ended July 31, 2007. The current quarter expenses were $44,963 or 3.0% of net revenue whereas last year's quarter expenses were $43,822 or 3.1% of net revenue, respectively.
Income from Operations for the three months ended July 31, 2008 was $326,024 or 22.0% of net revenue, compared to $215,002 or 15.4% of net revenue for the three months ended July 31, 2007. Net Income for the three months ended July 31, 2008 was $199,145 or 13.5% of revenue compared to $124,651 or 8.9% of revenue for the same period last year.
For the three months ended July 31, 2008 and 2007, basic earnings per share were $0.004 compared to $0.003, respectively. Earnings per share fully diluted for the current quarter was $0.003 compared to $0.002 last year.
Financial Results for the Nine Months Ended July 31, 2008
Net revenue for the nine months ended July 31, 2008 and 2007 was $4,765,447 and $3,399,630, respectively. This is the highest revenue recorded by Superclick than in any previous nine month period. Compared to the same period last year, the nine month favorable variance was $1,365,817 or 40.2%. Revenue growth was a result of increased activity in the deployment of the company's varied solutions coupled with growth in guest support and maintenance revenues as a result of the continued increase in rooms under support.
Gross profit and gross margin for the nine months ended July 31, 2008 and 2007 was $2,435,238 and 51.1% and $1,793,345 and 52.8%, respectively. With the margins remaining strong on a year over year basis the total revenue growth of 40.2% produced $641,893 more dollars when compared to last year, resulting in a 35.8% improvement on a year-over-year basis.
For the nine months ended July 31, 2008 and 2007 SG&A was $1,149,485 or 24.1% of revenue and $1,198,746 or 35.3% of revenue, respectively.
Year-to-date research and development expenses were also comparable when compared to last year. Expenses for July 31, 2008 and 2007 were $134,506 or 2.8% of net revenue and $117,021 or 3.4% of net revenue, respectively.
Income from Operations for the nine months ended July 31, 2008 was $1,103,026 or 23.1% of net revenue, compared to $429,441 or 12.6% of net revenue for the nine months ended July 31, 2007. Net Income for the nine months ended July 31, 2008 was $642,042 or 13.5% of revenue compared to $190,881 or 5.6% of revenue for the same period last year.
For the nine months ended July 31, 2008 and 2007, basic earnings per share were $0.015 and $0.005, respectively. Earnings per share fully diluted were $0.009 and $0.003, respectively.
Weighted average basic shares outstanding for the three and nine months ended July 31, 2008 were 44,285,141 and 43,429,325, respectively. Weighted average fully diluted shares outstanding for the three and nine months ended July 31, 2008 were 66,539,983 and 68,834,437, respectively.
Sandro Natale, Superclick's CEO, commented that, "We began to see broader macroeconomic pressures impacting the economy begin to weigh on our customers in the third quarter. Several contracts that we expected to see closed in the third quarter have been pushed into the fourth quarter, and even into the next fiscal year. However, we expect to close on these opportunities, and we remain encouraged by continued expansion of our business with existing and new brands. Our platform is truly best of breed, and we expect to see further expansion of our business into markets overseas, as well as here in North America."
About Superclick, Inc.
Superclick, Inc. (OTCBB:SPCK), through its wholly owned, Montreal-based subsidiary Superclick Networks, Inc., develops, manufactures, markets and supports the Superclick Internet Management System (SIMS(tm)), Monitoring and Management Application (MAMA(tm)) and Media Distribution System (MDS(tm)) in worldwide hospitality, conference center and event, multi-tenant unit (MTU) and university markets. Current clients include MTU residences and Candlewood Suites(r), Crowne Plaza(r), Four Points by Sheraton(r), InterContinental Hotels Group PLC(r), Hilton(r), Holiday Inn(r), Holiday Inn Express(r), Hampton Inn(r), Marriott(r), Novotel(r), Radisson(r), Sheraton(r), Westin(r) and Wyndham(r) hotels in Canada, the Caribbean and the United States.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements with the terms "believes," "belief," "expects," "intends," "anticipates," "will" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.