Click here to close now.




















Welcome!

IoT User Interface Authors: Elizabeth White, Liz McMillan, Jim Kaskade, Pat Romanski, Dana Gardner

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.

@CloudExpo Stories
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.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, 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. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks 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. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...