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CALGARY, ALBERTA - Solium Capital Inc. ("Solium" or the "Company") today announced its financial results for the quarter ended March 31, 2004. Solium specializes in technology and services for the administration of equity-based incentive and savings programs for public corporations and their employees. Through its web-based applications, Solium is focused on redefining the product and service standards in this sector. Solium achieved the following milestones during the first quarter of 2004: 1. The Company activated three new corporate clients onto the E-SOAP application, adding more than 1,800 participants to the system. 2. The Company successfully launched its new Share Purchase platform. Migration of the corporate clients from GRS Securities Inc. onto the platform progressed through the quarter. Migration was completed in April 2004. Approximately 100,000 employee participants across 47 companies are now using Solium's new application. Operating revenue from the arrangement with GRS Securities Inc. will begin to be reflected in the April 2004 financial results. Revenue Gross revenue from E-SOAP services in the first quarter of 2004 was $396,000, an increase of $182,000 or 85% from $214,000 in the first quarter of 2003. This increase is attributable to (1) increased license fees through the growth of the Company's client base; and (2) an increase in exercise fees. Corporate license and implementation fees for E-SOAP totaled $280,000 in the first quarter of 2004 compared to $181,000 in the comparable quarter of 2003. The Company ended the quarter with 22,305 participants generating revenue on E-SOAP. This represents a growth of 68% from the 13,255 participants enrolled as at March 31, 2003. Exercise fees for the first quarter of 2004 were $116,000 compared to $33,000 in the first quarter of 2003. Expenses Salaries and wages expense for the first quarter of 2004 was $371,000 compared to $276,000 in the first quarter of 2003. The increase is mainly attributable to the addition of five employees in the latter part of 2003 and beginning of 2004. In addition, stock-based compensation expense recognized in the first quarter of 2004 totaled $4,540 compared to $496 in the first quarter of 2003. General and administrative expense totaled $167,000 in the first quarter of 2004 compared to $255,000 in the comparable quarter of 2003. The decrease is mainly a result of decreases to recurring data feed costs of approximately $46,000, bad debts of $11,000, rent costs of $7,000, professional fees of $6,000, and travel costs of $5,000; and an increase in bank interest revenue of $2,000. Amortization expense was $49,000 in the first quarter of 2004 compared to $33,000 in the first quarter of 2003. The increase is a result of the amortization of capital assets added through the acquisition of Bitonic Solutions Inc. $25,000 in debenture interest was incurred in the first quarter of 2004 on the $1,000,000 of demand debentures outstanding. Net Financial Results The net loss for the quarter ended March 31, 2004 was $216,000 compared to a net loss of $330,000 in the same quarter of 2003. The improvement to the financial results is attributable to the factors described herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. FOR FURTHER INFORMATION PLEASE CONTACT:
Solium Capital Inc. |
