OMAHA, NEBRASKA -- (MARKET WIRE) -- 05/16/08 -- FindEx.com, Inc. (OTCBB: FIND) announced yesterday its financial results of operations for the first quarter ended March 31, 2008.
For the first quarter ended March 31, 2008, net income for the first quarter 2008 was approximately $419,000, an increase of approximately $425,000 compared to a net loss of approximately $5,700 in the first quarter of 2007. During the first quarter 2008 the company had non-cash derivative valuation gains of approximately $306,000 compared to similar gains of only approximately $27,000 for the comparable period 2007, and a gain on settlement of derivative liabilities of approximately $451,000 for the first quarter 2008 and no such liabilities for the first quarter 2007.
Gross revenue for the first quarter was approximately $672,000, a 47% decrease of $598,000 ($360,000 due to the sale of the Membership Plus product line in October 2007) compared to gross revenue of approximately $1,270,000 in the first quarter 2007. Gross margin for first quarter 2007 was 53% of gross revenue, a 1% improvement over the first quarter 2007. Total operating expenses for the first quarter 2008 increased approximately $12,000 to approximately $698,000, a 2% change from the approximately $686,000 for the same period in 2007.
During the first quarter 2008, the company paid $150,000 cash to cancel warrants to purchase up to 21,875,000 shares of our common stock that accounted for the non-cash gain on settlement of derivative liabilities. In February 2008, the company used a combination of cash, debt and equity to purchase the FormTool® product line, including the www.formtool.com internet domain. Also, during the first quarter 2008, we did not release any new versions of QuickVerse® for our Windows®, Mac®, or Mobile device platforms.
Full details of the company's financials are contained in the company's Form 10-Q for the fiscal quarter ended March 31, 2008, filed on the SEC's EDGAR database, which is available at www.sec.gov.
Kirk Rowland, FindEx.com's Chief Financial Officer commented, "We were pleased to take the first step in our transformation from primarily serving the Christian and faith-based demographic to expanding our market base to extend across both consumer and business segments with the FormTool® purchase. Further, with the re-launch of the FormTool.com website which we expect to occur late in the second quarter, we will have taken the next step towards a more subscription- and Webcentric-based revenue model. The technological advancements we have made with the FormTool® site will also provide us with the tools we need to take our QuickVerse® website to the next level, also with a directional shift towards subscriptions and downloads."
Rowland added, "Looking forward, we believe that additional acquisitions, along with new product initiatives internally, will enable further enhancement of our existing product lines while building scale to provide long-term profitability."
About FindEx.com, Inc.
FindEx.com, Inc develops, publishes, markets, distributes and directly sells consumer and business software products for PC, Macintosh® and Mobile devices. The company develops its software products through in-house initiatives supplemented by outside developers. The company markets and distributes its software products principally through direct marketing and Internet sales programs, but also through retailers and distributors.
The company's main product is QuickVerse®, a Bible study search engine tool. Over 1,000,000 copies of QuickVerse® have been sold since the product's conception. FormTool® offers quality, professionally designed forms for business, accounting, construction, real estate, human resources and personal organization needs. All products are available at the company's websites www.quickverse.com and www.formtool.com®.
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of FindEx to be materially different from the statements made herein. Among others, these risks include but are not limited to the following: (i) limited liquidity and capital resources; (ii) intense business competition, (iii) fluctuations in operating results may result in unexpected reductions in revenue and stock price volatility; (iv) delays in product releases and introductions may result in unexpected reductions in revenue and stock price volatility, and (v) errors or defects in products may cause a loss of market acceptance and result in fewer sales. These, as well as other risks are described in the company's annual report on Form 10-KSB for the year ended December 31, 2007.