Welcome!

@CloudExpo Authors: Tim Hinds, Liz McMillan, Dana Gardner, Elizabeth White, Pat Romanski

News Feed Item

Posera-HDX Announces Financial Results for the Third Quarter of 2012

TORONTO, Nov. 14, 2012 /CNW/ - Posera-HDX Ltd. ("Posera-HDX") (the Company) announced today its financial results for the three and nine-months ended September 30th, 2012. Posera-HDX is listed on the TSX under the symbol "HDX".

Paul Howell, Chief Executive Officer, reports:

While fourth quarter business activity has improved drastically, the third quarter of 2012 was a difficult period. There were fewer new restaurants opened because of the worldwide economy. There were also fewer restaurant renovations and technology refreshes. The lack of available third party lease funding for clients resulted in fewer restaurants being approved for technology financing, the reseller community experienced lower than expected software sales and a major vendor to Posera-HDX had significant inventory availability issues. These factors have resulted in slower than expected sales activity in the third quarter of 2012. Sales and service revenues for the three-months ended September 30, 2012 were $4,032,574 representing a decrease of 11.2% from $4,541,336 from the three-months ended September 30, 2011.

Excluding the Company's investment in the payment processing division, one-time expenses and non-cash costs associated with the amortization of acquired intangible assets, property plant and equipment and stock-based compensation, the Company would have recognized normalized EBITDA profit of $140,401 for the three-months ended September 30, 2012.

The Company experienced a normalized EBITDA loss of ($32,206) for the three-months ended September 30, 2012 of which, $172,607 is due to the ongoing expenses related to the Company's investment strategy for our payment processing division. Additionally, the Company incurred $107,964 of one-time expenditures during the three-months ended September 30, 2012.

Company-wide non-cash amortization of intangible assets and property plant and equipment was $365,470 and stock-based compensation was $87,239, for the three-months ended September 30, 2012. HDX Payment Processing Ltd. ("HDXPP") (the acquired Cash N Go Ltd. payments processing division) experienced a loss of $194,551 and Posera-HDX Scheduler Inc. (the acquired assets of 2020 Hyperscheduler / Hypervison) experienced a loss of $38,959. The Company expects to continue to make significant investments in these divisions into the foreseeable future and will strive to increase revenue for these divisions and products as quickly as possible. 

Posera-HDX Ltd. continues to invest and focus on developing significant new revenue opportunities that are complimentary to the Company's current operational foundation and synergistic with the Company's intellectual property assets. New software as a service ("SaaS") products and business modules with recurring revenue are under construction. This will allow the Company to deliver an enhanced range of services to the Company's current client base and will bolster the Company's ability to attract new customers.

Following the acquisition of HDXPP in December 2011, and following the announcement on June 14th, 2012 that the Company has been approved for membership to the Interac Association as an Indirect Connector to perform the functions of an Acquirer in the Shared Cash Dispensing ("SCD") Service, Posera-HDX continues to make significant investments to enhance systems, facilities, and operating procedures in order to secure the necessary approvals to operate a payment processing switch and an ATM transaction processing switch. Through HDXPP, Posera - HDX owns and operates a Postillion payment switch developed by S1 Corporation. In addition, to the provision of SCD services, Posera-HDX plans to expand the payment switch to facilitate the processing of Point-of-Sale transactions for its merchant client base. HDXPP has retained team members and contractors with the appropriate industry expertise to allow the Company to further develop the payment processing division with an eye toward monetizing the Company's investment in this division as quickly as possible. To take advantage of the convergence in retail technologies currently underway, the Company continues to pursue merger and acquisition opportunities with complimentary organizations although none are specifically named at this time.

Highlights and Summary - Three-months ended September 30, 2012 (Unaudited)

  • Net loss for the three-months ended September 30, 2012 was a loss of $679,992, an increase of $459,356 from a loss of $220,636 for the three-months ended September 30, 2011, and an increase of $238,966 from a loss of $441,026 for the three-months ended June 30, 2012;
  • EBITDA for the three-months ended September 30, 2012, was ($227,409), a decrease of $372,926 from $145,517 for the three-months ended September 30, 2011, and a decrease of $93,166 from ($134,243) for the three-months ended June 30, 2012;
  • Normalized EBITDA for the three-months ended September 30, 2012 was ($32,206), a decrease of $416,620 from $384,414 for the three-months ended September 30, 2011, and a decrease of $32,963 from $757 for the three-months ended June 30, 2012;
  • Total revenue was $4,032,574 for the three-months ended September 30, 2012, down $508,762 (11.2%) from $4,541,336 for the three-months ended September 30, 2011 and down $213,386 (5.0%) from $4,245,960 for the three-months ended June 30, 2012;
  • Gross profit was $1,503,360 for the three-months ended September 30, 2012, down $409,992 (21.4%) from $1,913,352 for the three-months ended September 30, 2011, and down $50,558 (3.3%) from $1,553,918 for the three-months ended June 30, 2012;
  • Operating expenses were $2,096,239 for the three-months ended September 30, 2012, up $10,540 (0.5%) from $2,085,699 for the three-months ended September 30, 2011, and up  $38,234 (1.9%) from $2,058,005 for the three-months ended June 30, 2012;
  • Included in cost of sales and operating expenses for the three-months ended September 30, 2012, September 30, 2011 and June 30, 2012 were certain one-time non-recurring expenditures and non-cash stock-based compensation expense (recovery) totaling $195,203, $238,897 and $135,000 respectively as referenced on pages 18-19 of this MD&A;
  • Posera-HDX's cash and cash equivalents totaled $671,341 as at September 30, 2012, an increase of $237,482 (54.7%) from $433,859 as at September 30, 2011, and a decrease of $780,861 (53.8%) from $1,452,212 as at June 30, 2012. Bank indebtedness was $236,060 as at September 30, 2012, an increase of $43,510 (22.6%) compared to $192,550 as at September 30, 2011, and an increase of $401 (0.2%) compared to $235,659 as at June 30, 2012; and
  • Posera-HDX's working capital totaled $1,506,701 as at September 30, 2012, an increase of $302,680 (25.1%) from $1,204,021 as at September 30, 2011, and a decrease of $503,848 (25.1%) from $2,010,549 as at June 30, 2012.

About Posera-HDX Limited (the "Company)

The Company is in the business of managing merchant transactions with consumers and facilitating payment. The Company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post-sale software and hardware support services.

The Company's leading edge technology also includes prepaid stored value payments solutions, customer self-serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

Through its corporate offices in Toronto, London, Brantford, Seattle Washington, Montreal, Paris, Singapore, and Glasgow, Posera-HDX has a direct sales and service team.

The company has also built a network of approximately 112 value added resale partner companies in 25 countries. There are approximately 1,100 representatives selling, supporting & installing the Posera-HDX Maitre 'D software worldwide and the solution has been deployed in over 20,000 locations in eight different languages around the world.

Posera-HDX customers include Tim Hortons, Wendy's, Arby's, Quick (France), Popeye's, East Side Mario's, O'briens, St-Hubert, Pita Pit, Popeye's, Dunkin' Donuts, Pizza Delight, Baton Rouge, Scores, Hooters, Casey's, Supermac's, HDOS, KFC, Extreme Pita, Pizza Hut, among many others.

Forward-Looking Statements 

This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates.  Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management.  The forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events.  These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form of Posera - HDX Inc. filed on March 29th, 2012 with the regulatory authorities.  Posera-HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

SOURCE Posera-HDX

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
As enterprises around the world struggle with their digital transformation efforts, many are finding that innovative digital teams are moving much faster than their hidebound IT organizations. Rather than struggling to convince traditional IT to get with the digital program, executives are taking advice from IT research firm Gartner, and encouraging existing IT to continue in their desultory ways. However, many CIOs are realizing the dangers of following Gartner’s advice. The central challenge ...
Cloud Object Storage is effectively infinitely scalable and boasts the lowest total costs. But cloud SLAs and T&Cs are traditionally optimized for huge customers like Netflix, so applications demanding better confidentiality or higher availability typically can’t reap the benefits of public cloud storage. In his session at 18th Cloud Expo, Don Martin, CTO of Security First Corp, will provide an overview of innovative technologies available today – secret sharing and information dispersal algori...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Cloud-based NCLC (No-code/low code) application builder platforms empower everyone in the organization to quickly build applications and executable processes that broaden access, deepen collaboration, and enhance transparency for all team members. Line of business owners (LOBO) and operations managers know best their part of the business and their processes. IT departments are beginning to leverage NCLC platforms to empower and enable LOBOs to lead the innovation, transform the organization, an...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, will discuss how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He will discuss how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...