Friday, 10 August 2007

Brainhunter Numbers Continuing Moving In Positive Direction

The release of Q3F07 (June 30th) results continued to reinforce Brainhunter's (BH - TSX) public assertions of last year that F2007 would be the start of a long trend to the positive.

Revenues in the quarter were $56.57 million versus just over $42 million for the same quarter of last year. Revenues on the nine months were a few thousand dollars short of $170 million, a 42% jump over the nine months of F2006. The Company is on an annualized run rate of $225 million.

EBITDA in the current fiscal year is $6.176 million and up 39% over last year. Backlog plus expected renewals and extensions of contracts and standing offers exceed $4 hundred million, with over $2 hundred million expected for the F2008. Organic growth for F2007 ending September 30, 2007 is expected to exceed 35%.

A key line in the news release was: "Continued growth to consolidated EBITDA is expected in the 2008 fiscal year from both organic and acquisition initiatives. Brainhunter is also expecting improvement in consolidated profit margins, attributed to higher margin software and solutions sales, in particular, as results materialize from the Master Vendor Client Relationship Model."

The net loss for the nine months was $939 thousand versus $4.8 million for the nine months of F2006, which did include approximately $2 million in re-structuring charges and one-time costs.