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August 21, 2003 - Solium Releases 2003 Second Quarter Results
CALGARY, ALBERTA-Solium Capital Inc. ("Solium" or the "Company") today announced its financial results for the quarter ended June 30, 2003.
Solium specializes in technology and services for the administration of equity-based incentive and savings programs. Through its web-based applications, Solium is focused on redefining the service standard for public corporations and their employees.
During the second quarter of 2003, Solium achieved the following milestones:
- Succeeded in four competitive bids resulting in Letters of Intent and/or a Service Agreement for four new corporate clients to be implemented onto the E-SOAP system during the third and fourth quarters of 2003.
- Succeeded in developing enhancements to the E-SOAP system to administer stock appreciation rights ("SARs"), tandem SARs and cash units. Solium also began its share unit module during the quarter, which will enable the Company to manage awards such as restricted stock units, performance units and deferred stock units. The E-SOAP system now has the capability to service companies with a broad range of equity-based incentives and more sophisticated plan administration needs.
- Succeeded in re-launching the development of the Solium Share Purchase application (formerly known as E-SPP).
- Entered negotiations to form a strategic alliance with The Great-West Life Assurance Company.
Revenue
Gross revenue from E-SOAP services in the second quarter of 2003 was $198,277, an increase of 105% from $96,914 in the second quarter of 2002.
The Company ended the quarter with 10,974 active participants earning revenue on the E-SOAP system. This represents a growth of 51% from the 7,281 enrolled as at June 30, 2002. During the second quarter of 2003, one corporate client with over 1,600 participants was temporarily removed from the system as it went through financial restructuring and the redesigning of its stock option plan. This client has completed its restructuring and will be activated back onto E-SOAP by September 1, 2003 with approximately 400 participants. As a result, E-SOAP revenue decreased by approximately $19,000 during the second quarter when compared to the first quarter of 2003.
Expenses
Salaries and wages expense for the second quarter was $344,308, compared to $426,341 in the comparable period in 2002. The Company had an employee base of 20 people at the end of the second quarter of 2003 compared to 14 people at the end of the second quarter of 2002. Despite the increased employee base, total salaries and wages expense decreased quarter over quarter. This was due to severance expense incurred in 2002 which did not reoccur in 2003.
General and administrative costs totaled $179,681 in the second quarter of 2003, compared to $320,236 in the comparable period in 2002. The decrease is mainly a result of decreases to data feed costs of $30,000, regulatory costs of $10,000, professional fees and legal costs of $22,000, rent costs of $36,000, and systems and operating costs associated with Stormworks of $35,000.
$25,000 in debenture interest was incurred in the quarter on the $1,000,000 of demand debentures that were issued at the end of 2002.
Net Financial Results
The net loss for the quarter ended June 30, 2003 was $396,939, an improvement of $213,932 or 35% when compared to a net loss of $610,871 in the same quarter of 2002.
Additional Information
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
About Solium Capital Inc. (SUM - TSX Venture Exchange):
Solium is an outsourced provider of solutions for employee share entitlement programs. Solium's flagship application, E-SOAP, is a complete end-to-end solution for the administration, execution and reporting of employee stock options for Canadian public companies.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Solium Capital Inc.
Brian Craig, President and CEO, or Lynn Leong, Chief Financial Officer
(403) 515-3910
(877) 380-7793
Email: investorrelations@solium.com
Website: www.solium.com
INDUSTRY: SCR
SUBJECT: NWS
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