Toronto, March 8, 2012 — NexJ Systems Inc., (TSX: NXJ), a leading provider of next-generation enterprise customer relationship management solutions (CRM), today announced financial results for its fourth quarter and full year ended December 31, 2011.

Fiscal Year 2011 Highlights

  • Revenue growth of 34% to $30.2 million in fiscal 2011, from $22.5 million in fiscal 2010.
  • Adjusted EBITDA (as defined below) was a loss of $5.9 million for the year ended December 31, 2011 as compared to income of $0.4 million for the 2010 fiscal year.
  • Net loss was $7.5 million or $0.42 per share (basic and diluted) for the year ended December 31, 2011 as compared to net loss of $1.9 million or $0.14 per share (basic and diluted) in 2010.
  • Completed an initial public offering (“IPO”) on Toronto Stock Exchange (“TSX”) of 4,850,000 common shares at a price of $9.00 per share resulting in gross proceeds to NexJ of $43.7 million.
  • Ranked the sixth fastest growing company in North America on Deloitte’s 2011 Technology Fast 500™ and fourth in Canada on the Deloitte Technology Fast 50TM
  • Went in to production with five customers; and secured two new customers with a third closed subsequent to year end.
  • Appointed Tom Predovic as SVP Technology to oversee product management and application development for all of NexJ’s solutions and Eric Gombrich as Senior Vice President & General Manager Health Solutions Group.
  • Launched NexJ Contact 4.1, introducing one of the most advanced portal frameworks with rich functionality for service level management, computer telephony integration and advanced contact import.

Q4 2011 Financial Results

  • Revenue decreased 15% from $8.6 million in the fourth quarter of 2010 to $7.3 million in the fourth quarter of 2011.
  • Adjusted EBITDA (as defined below) was a loss of $2.3 million in the fourth quarter of 2011 from income of $1.1 million for the same period in 2010.
  • Net loss was $3.0 million or $0.15 per share (basic and diluted) for the period ended December 31, 2011, up from a net loss of $9 thousand or $0.00 per share (basic and diluted) in the period ended December 31, 2010.

“In 2011 NexJ delivered on our growth objectives while also making the investments in people, programs and products that will allow us to continue our aggressive pursuit of the significant opportunity before us,” said William M. Tatham, Chief Executive Officer of NexJ.  “We are encouraged with the level of activity we are currently experiencing across our target vertical markets and believe our differentiated offerings in combination with the additional reference accounts gained in 2011 will allow us to sustain our growth in 2012.”

NexJ will be hosting an earnings report conference call today at 5:00 p.m. ET. The call can be accessed via webcast or by phone by dialing 647-427-7450 (Toronto local or international) or 1-888-231-8191 (North America Toll Free).  Investors should dial in approximately 10 minutes before the teleconference is scheduled to begin.

A replay of the call will be available beginning today at 8:00 p.m. ET through 11:59 p.m. on March 15, 2012 and can be accessed by dialing 416-849-0833 (Toronto local) or toll free at 1-855-859-2056 and using password 53084596.

Financial Statements for the period are available for download.

Non-IFRS Measures

This news release includes certain measures that have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as Adjusted EBITDA and Adjusted EBITDA margin which are used to evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS.  The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed below.

The term “Adjusted EBITDA” refers to net income/loss before deducting share-based payment expense, finance income, finance costs, foreign exchange gain/loss, depreciation and income taxes.  “Adjusted EBITDA margin” refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.

The term Adjusted EBITDA and Adjusted EBITDA margin are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS.  Therefore, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similar measures presented by other issuers.  Investors are cautioned that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income (loss) as determined in accordance with IFRS.

About NexJ Systems Inc.

NexJ is a leading provider of enterprise private cloud software, delivering customer relationship management (CRM) solutions for financial services, insurance, and healthcare.  Our next-generation, people-centered software combines industry-specific functionality with information from multiple applications and data stores to provide comprehensive knowledge of the individual.  Organizations use this knowledge to provide superior sales and service by enabling proactive interactions that influence behavior.

NexJ Forward-looking Statement

Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “could”, “expects”, “may”, “should”, “will”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “plans”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) risks associated with expansion into healthcare and other new industry verticals; (xi) competition in our industry; (xii) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xiii) reliance upon a limited number of third-party software products to develop our products; (xiv) defects or disruptions in our products and services; (xv) currency exchange rate fluctuations; (xvi) lengthy sales cycles for our software; (xvii) global financial market conditions; and (xviii) failure to manage our growth successfully.

For additional information with respect to risks and other factors which could occur, see the Company’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2011 dated March 8, 2012, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.