Serenic Corporation — Corporate Update
EDMONTON, April 22, 2009 — Serenic Corporation ("Serenic" or the "Company") (TSX-V:SER), an international software developer and marketer providing financial software solutions to not-for-profit ("NFP"), educational and government organizations is pleased to provide an update to its shareholders following completion of business for the Company's fiscal year ended February 28, 2009 ("Fiscal 2009").
The Company embarked upon its Fiscal 2009 business plan in a relatively stable global economy that deteriorated significantly during the second half of the year. In accordance with the original business plan, management undertook a number of growth initiatives during the first few months of Fiscal 2009, anticipating that revenues would continue its historical growth rates. As a result of the global economic melt-down that began to negatively affect revenues in September 2008, management responded by postponing and curtailing certain initiatives, in a cautionary move to conserve cash and better position the Company to weather the economic downturn. This caused un-planned operational losses because programs were stopped before they could become profitable. However, management feels confident that the Company is now well-poised to re-engage growth initiatives relatively quickly once the current economic downturn reverses course. Measures taken between September 2008 and February 2009 to reorganize business, operational and financial plans have reduced committed expenditures for Fiscal 2010 by approximately $0.75 million from Fiscal 2009, providing the Company greater flexibility to respond to the realities of the current economy.
Considering the severity of the economic downturn, management is relatively pleased with Fiscal 2009 results. Revenue for Fiscal 2009 decreased only marginally from the previous year by approximately 6%. The Company continues to release new versions of its products, and to win new customers. With approximately $2.9 million of cash on hand at Fiscal 2009 year end, no long term debt, and cash positive financial projections for Fiscal 2010, management considers the Corporation to be adequately financed to sustain operations as anticipated, and deliver moderate revenue growth. Expectations are to retain comfortable cash balances throughout Fiscal 2010 without any requirement for incurrence of long term debt or additional equity financings.