Click here to close now.




















Welcome!

Silverlight Authors: Srinivasan Sundara Rajan, Yeshim Deniz, Greg O'Connor, Trevor Parsons, AppDynamics Blog

News Feed Item

Serenic Aligns With Microsoft's Volume and Cloud Based Business Models; Reports Results for the Three and Nine Months Ended November 30, 2012

EDMONTON, ALBERTA -- (Marketwire) -- 01/30/13 -- Serenic Corporation (the "Company" or "Serenic") (TSX VENTURE:SER), an international software developer specializing in integrated financial management and human capital management ("HCM") solutions for Non-Profit organizations, government agencies, and Microsoft Dynamics NAV users, announces its financial results for the three months and nine months ended November 30, 2012.

Volume and Cloud-based Business Model

In July 2012, Microsoft announced significant changes to their strategies to market and sell their financial, accounting and enterprise resource planning software (together, "ERP") products, which will impact Serenic and its future strategies. Microsoft's expectation is to significantly increase its penetration within ERP markets, similar to their past experience in having dominated office automation applications (word processing, spreadsheet, Power Point, e-mail), data base applications (Microsoft Access, Microsoft SQL), and segments of the customer relationship management ("CRM") markets. Microsoft's objective is to deploy its ERP applications to a wider range of customers, from small to medium size businesses ("SMB") to major enterprise organizations (Fortune 500 and equivalent), and allow customers to utilize on-premise licensed installations, software-as-a-service ("SaaS" or "Cloud") applications, or any combination thereof. Microsoft's underlying technologies are designed to use any browser-enabled device to access these ERP solutions which feature seamless integration to operating and office systems (e.g., full integration with Windows 8, Office, SharePoint, CRM etc.) and thereby result in simplified access and a superior user experience. We expect these technologies and strategies will provide Serenic with a competitive advantage.

In order to accomplish their objectives, Microsoft has initiated significant changes to its business and sales models. To address the SMB market, Microsoft is adopting new strategies to achieve much higher volume sales than has been attained historically. Microsoft has rolled out a Global Road to Repeatability ("GR2R") program, through which Microsoft is assisting Serenic and other selected resellers to prepare to exploit the volume market by revamping products, pricing, lead generation, marketing, sales, deployment and implementation strategies. The GR2R model is inclusive of both on-premise and cloud based deployment. To simplify the purchase experience for new customers, Microsoft has introduced "Perpetual Product Licensing" with its latest release of Dynamics NAV. Historically, a customer was provided with numerous choices regarding inclusion or exclusion of functionality choices, which resulted in complexities to the purchase process. Now a prospective client will simply choose between a basic or comprehensive functionality solution, select the number of users required by their organization and select whether they wish to use an on-premise or cloud-based computing environment. Serenic has paralleled this strategy for its own products, which will be offered commencing with the next release of Serenic Navigator anticipated in the first half of calendar 2013.

Serenic's business model has historically been closely aligned with and an integral part of Microsoft's global eco-system of ERP reseller partners and service providers. Management believes that Serenic's go-forward strategies should continue to align with Microsoft's in order to maximize our opportunities by leveraging Microsoft's global credibility and market presence within businesses.

Serenic began to enhance its historical business model in Q2 of Fiscal 2013 by supplementing the traditional on-premise deployment of Serenic Navigator to larger non-profits and NGOs with a version that management anticipates will have strong appeal in the SMB market. While management believes this evolution represents an exciting opportunity for Serenic in the longer term, it presents some challenges in the shorter term.

With respect to the SMB market for Serenic products, certain aspects of our historical operational model will need to be revamped to transition from the highly consultative and resource intensive approach to a more prescriptive and automated process that will enable Serenic to engage more efficiently with a higher volume of new customers while expending fewer resources. The volume regime mandates lower product and services pricing, higher automation with respect to marketing and sales processes, shorter sales cycles, and streamlined deployment, implementation and training cycles. It also mandates offering cloud-based solutions that are attuned to this fast growing segment of our markets.

Serenic's Navigator and HCM products for SMB have been undergoing re-development during the past few years in anticipation of the imminent paradigm shift to Microsoft's cloud-based technology and are essentially ready for deployment under Microsoft's Azure platform. Azure is Microsoft's new global software hosting program, which is expected to be released to market by mid calendar 2013. As we progress through adoption of GR2R, Serenic's products will continue to be modified to simplify customer decision making and the deployment of our solutions for the cloud and volume models. As part of this initiative, Serenic has re-developed DonorVision as a new stand-alone, cloud based product based on Microsoft CRM, which is anticipated to be released to market within the next three months. To better address the larger Enterprise customers on a go-forward basis, Serenic Navigator will be enhanced with appropriate changes to incorporate new functionality requirements that have been identified for this market.

While much work to prepare for the volume model has already been completed, certain challenges still remain to be resolved. This transition is expected to be underway for a period of time that is currently unknown, although Management anticipates some momentum from cloud- based products within one or two quarters after Microsoft makes Azure generally available in the market. Until then, we anticipate that confusion amongst new customers about differences between historical and GR2R product strategies, pricing and services may delay some new customers who may elect to wait until all components of the GR2R model are fully operational before finalizing their buying decisions. Thus, a segment of Serenic's new customer pipeline may temporarily continue to be "on hold" pending further progress in this regard. Management anticipates that future individual sales will be lower in price relative to historical averages, but also anticipates that revenue and profits overall will increase once the efficiencies of the GR2R strategy take hold and the volume of transaction increases.


Quarter Highlights                                                          
                                                                            
Financial results are summarized as follows:                                
----------------------------------------------------------------------------
                                                       Three months ended:  
                                     ---------------------------------------
                                        Nov. 30,      Nov. 30,    Increase  
                                            2012          2011   (decrease) 
                                     ---------------------------------------
                                               $             $            % 
----------------------------------------------------------------------------
Revenue                                2,410,529     2,619,548        (8.0%)
----------------------------------------------------------------------------
Net loss                                 191,186       103,595        84.6% 
----------------------------------------------------------------------------
Basic and diluted loss per share            0.01          0.01           -  
----------------------------------------------------------------------------
EBITDA (1)                              (100,092)        4,603        NM(2) 
----------------------------------------------------------------------------
EBITDA as a % of sales                      (4.2%)         0.2%       NM(2) 
----------------------------------------------------------------------------
Weighted average common shares                                              
 outstanding - basic and fully                                              
 diluted                              14,817,260    15,171,973              
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                                        Nine months ended:  
                                     ---------------------------------------
                                        Nov. 30,      Nov. 30,    Increase  
                                            2012          2011   (decrease) 
                                     ---------------------------------------
                                               $             $            % 
----------------------------------------------------------------------------
Revenue                                8,166,610     8,072,748         1.2% 
----------------------------------------------------------------------------
Net loss                                 536,526       223,955       139.6% 
----------------------------------------------------------------------------
Basic and diluted loss per share            0.04          0.01       300.0% 
----------------------------------------------------------------------------
EBITDA (1)                              (230,998)      113,608      (303.3%)
----------------------------------------------------------------------------
EBITDA as a % of sales                      (2.8%)         1.4%     (300.0%)
----------------------------------------------------------------------------
Weighted average common shares                                              
 outstanding - basic and fully                                              
 diluted                              14,804,713    15,183,751              
----------------------------------------------------------------------------
(1) EBITDA represents earnings before interest, taxes, depreciation,        
    amortization, and stock based compensation. Please review the Serenic   
    Management Discussion and Analysis for the three and nine months ended  
    November 30, 2012 for more information                                  
(2) The mathematical expression of the percentage change is not meaningful  

The Company has continued to focus on two primary objectives during the quarter: to maximize organic revenue while implementing the above-noted significant transition, and to investigate opportunities to enhance shareholder value. During the quarter, international Serenic Navigator software license sales improved, while in North America, Serenic Navigator licenses slowed. HCM license sales remained essentially on par with the corresponding period last year. The Company announced to its prospective customers that its new version of Serenic Navigator will be made available early in calendar 2013, that it has revised pricing and a greatly simplified ordering process, and has features that are necessary for the Company's transition to cloud and volume based business models as discussed in the previous section. Certain prospective clients appear to be waiting for the new version to be released before making their final buying decisions, and this was a contributing factor affecting new license sales and revenue during the quarter. Additionally, the Company faced increased competition in its market and is therefore taking steps to refine its sales methodology to improve initial customer engagement. Client services revenue was also lower in the quarter, as a result of lower demand for services being heavily dependent upon direct license sales. Maintenance revenues continued to grow during the quarter, due to the ongoing addition of new customers and the high renewal rate of existing maintenance contracts. Additionally, two of the Company's larger customers elected to retroactively renew maintenance contracts and the recognition of the lapsed period revenue positively impacted revenue in the quarter. Recurring maintenance revenue has grown significantly during the past few years and now comprises approximately 53% of our annual revenues.

Expenses remained in line with expectations and budgets. The reduced revenue resulted in lower than planned gross profit which caused the Company to record a net loss and negative EBITDA in the quarter. Due to the operating loss in the quarter, the Company's cash balances reduced to $3.4 million at quarter-end from $3.8 million at the beginning of the quarter.

The Company's marketing group remained very active in generating new leads. Members of the marketing team, along with members of our senior management team participated in several seminars hosted by Microsoft, for the purpose of transitioning to the GR2R business model. Development of Serenic's new cloud based donor management product based on Microsoft CRM continued during the quarter, and is anticipated to be released to market in the first half of calendar 2013. This new offering will be deployed as a cloud-based solution, and will be marketed both as an integrated module of Serenic Navigator and as a stand-alone application for organizations who may not yet be ready to upgrade their existing financial systems. Management believes that this product will compete strongly with prevalent high-volume products offered by certain competitors, and that sales may contribute significantly to our organic growth revenues.

The Company continued to investigate certain corporate development initiatives during the quarter, in accordance with the Company's objective to enhance and realize value for shareholders. The Company also continued to purchase shares pursuant to its Normal Course Issuer Bid ("NCIB") program, wherein 551,000 shares have been acquired for cancellation during the current fiscal year through January 3, 2013.

Outlook

Management believes that Serenic's pursuit of cloud and volume strategies, combined with its traditional sale of on-premise software licenses, represents the best opportunity to deliver maximum value for Serenic stakeholders over the longer term. Despite the short term challenges that we expect will continue during the next several quarters, Management believes that the longer term outlook for Serenic stakeholders remains very positive. Our strategy for the balance of Fiscal 2013 is to remain focused on maximizing revenues by operating our historical business model, while concurrently supplementing it with the GR2R strategy and continuing to manage resources and risks in a prudent manner.

From a corporate development perspective, we intend to continue to pursue potential scenarios to maximize value for our shareholders beyond what organic growth would produce. The primary objective remains to be that of optimizing shareholder value, which might entail a capital structure change, new strategic ventures, and/or merger and acquisition scenarios. Management strongly believes that the current market capitalization of the Company as reflected in its current share price does not adequately reflect Serenic's fair value, and we intend to take appropriate action that would best serve the interests of shareholders as soon as a suitable arrangement can be identified and acted upon.

We believe the Company remains adequately financed to operate as anticipated. We continue to be excited about our future opportunities and remain confident in our belief that our intended course of action will ultimately result in the achievement of greater value for all of our stakeholders.

Please refer to the full financial Q3, 2013 report filed on sedar.com for more information.

About Serenic Corporation

Serenic Corporation publishes mission-critical software products for not-for-profits (NFP), educational institutions and governments. The Company's products are based on leading application and technology platforms from Microsoft, including Dynamics NAV, SQL Server, and .NET, and are distributed in North America and internationally through value-added resellers and a direct sales organization. Serenic Corporation is the exclusive developer of human resource management and payroll products for Microsoft Dynamics NAV ERP users in North America. Serenic has offices in Edmonton, Alberta and Denver (Lakewood), Colorado and staff located throughout the USA, and in Europe and Africa.

ON BEHALF OF THE BOARD OF DIRECTORS

Dwayne Kushniruk, Chairman

SERENIC CORPORATION

Forward Looking Statements

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Serenic Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, software industry risks, general business risks, risks associated with aligning to Microsoft's new marketing strategy announced in 2012, foreign currency risks, economic dependence risks, and credit risks.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
Cantech Communications
Nick Waddell
Investor Relations
Toll free: (877) 737-3642 x144
[email protected]

Serenic Corporation
Dwayne Kushniruk
Chairman
[email protected]

Serenic Corporation
Paul Johnston
CFO
1-877-426-5385 x 509
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be.
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small, but are focused on specific tasks. The ability for developers to deploy multiple containers – thous...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the data to create additional revenue streams, such as improved warranties or premium features. Or slash...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Communication) is an open source project supported by Google, Mozilla and Opera that aims to enable bro...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!