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May 2, 2003 - Solium Releases 2003 First Quarter Results
CALGARY, ALBERTA-Solium Capital Inc. ("Solium" or the "Company") today announced its financial results for the quarter ended March 31, 2003.
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.
During the first quarter of 2003, Solium achieved the following milestones:
- The Company successfully closed the acquisition of Bitonic Solutions Inc. ("Bitonic").
- The Company activated two new corporate clients onto the E-SOAP application.
- The Company successfully made changes to the E-SOAP application and re-negotiated its datafeed contracts, which will result in a $15,000 monthly decrease to the datafeed costs commencing in the middle of 2003.
Revenue
Gross revenue from E-SOAP services in the first quarter of 2003 was $213,897, an increase of 92% from $111,528 in the first quarter of 2002.
The Company ended the quarter with 13,255 active participants enrolled on the E-SOAP system. This represents a growth of 69% from the 7,859 enrolled as at March 31, 2002. During the first quarter of 2003, approximately 850 new participants were enrolled onto the system.
During the first quarter of 2003, the Company also recorded $229,555 in other revenue. This revenue relates to an investment tax credit refund on scientific research and development performed in 2000.
Expenses
Salaries and wages expense for the first quarter of 2003 was $275,638 compared to $180,253 in the first quarter of 2002. The employee base was increased to twenty people at the end of March 31, 2003 from nine people at the end of the first quarter of 2002. This increase was due to the addition of sales and marketing staff, and the internalization of the Company's systems development through the integration of personnel from Stormworks Ltd. ("Stormworks"), the subsidiary purchased in May 2002, and from Bitonic, the subsidiary purchased in February 2003.
General and administrative costs totaled $255,090 in the first quarter of 2003, an increase of $37,768 from $217,988 in the comparable quarter of 2002. $15,000 of this change was due to increased travel to other major markets in Canada as the Company strives to increase its client base in cities such as Toronto, Montreal and Vancouver. A further $11,000 of the change was a result of an allowance for a doubtful receivable. In addition, a Toronto office was established in the fall of 2002, adding $13,500 per quarter in rent.
Also included in total expenses for the first quarter of 2003 was the addition of $17,522 in amortization expense as a result of the addition of assets through the acquisition of Stormworks and Bitonic. $25,000 in debenture interest was accrued on the $1,000,000 of demand debentures that were issued at the end of 2002. Finally, $188,047 of expense was incurred through the write-off of goodwill.
Net Financial Results
The net loss for the quarter ended March 31, 2003 was $329,261, an improvement of $146,250 when compared to a net loss of $475,511 in the same quarter of 2002.
The net loss from continuing operations for the quarter ended March 31, 2003 was $329,261, compared to a net loss from continuing operations of $361,931 in the first 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
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
INDUSTRY: SCR
SUBJECT: NWS
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