Cytiva Software Inc. (CRX:CA) News

Cytiva Achieves 30% Revenue Growth for First Six Months of 2008

Unaudited Q2 08 Financials Show Strong Growth in Both Recognized and Deferred Revenue

Vancouver, British Columbia CANADA, August 21, 2008 /FSC/ - Cytiva Software Inc. (CRX - TSX Venture, CRXFF - OTCBB_Pink_Sheets), a leading provider of on-demand talent management software solutions, announced today unaudited results from the quarter ended June 30, 2008.  

Deferred revenue balance grew 48 percent over the first six months in 2008 from $1,727,101 to $2,555,714.  In Cytiva's subscription based Software as a Service business model, deferred revenue represents revenues collected from clients that will be recognized over the next 12 months.

Second quarter recognized revenue increased 25 percent to $1,603,248 compared with $1,279,235 for the same period in 2007. For the three-month period, the company had a net loss of $616,157 (three cents per share), compared with a net loss of $219,942 (one cent per share) for the same period in 2007. The increase in net loss is attributed to increased headcount to service the rapidly growing client base, amortization of customer lists related to the acquisition of one45 software and amortization of development costs for Cytiva's new SonicPerform product.

Net cash provided by operations was $102,186 for the three month period 2008 compared to $114,564 - Q2 2007.   Net cash from operations for the first six months 2008 was $247,290 compared to $145,250 in 2007.Because of its Software as a Service model where expenses are immediate, while revenue is deferred, Cytiva believes cash flow from operations, growth in deferred revenue and increasing sales figures are key indicators of the long term health of the business than profits.

In addition, Cytiva reported over $1,300,000 in new contracted business for the period, a 67-per-cent increase over the same period last year. In addition to new contracted sales, Cytiva achieved 100 per cent renewal revenue.  Revenue from new contracted business will be deferred and recognized over the life of the contracts on a monthly basis. Of the new contracted business, 39 percent will be recognized over the next 12 months with the remaining 61 percent being recognized over the subsequent 24 to 36 months.

"The fact that we are making large investments in acquisitions and new products, while increasing our deferred revenue, cash flow from operations and sales, shows we are prudently and successfully executing our rapid growth strategy," said Jason Moreau, CEO of Cytiva Software. "The combination of continued demand, expansion of our product line and our Software as a Service revenue model has allowed Cytiva to continue strong growth in the face of uncertain economic times."

Second quarter highlights include:

-48% deferred revenue growth in the first six months 2008
-25% year over year revenue growth
-Cash flow positive from operations, $102,186
-Over $1,300,000 in new contracted business
-100% renewal revenue
-21 new SonicRecruit customers
-4 new Medical Education customers
-Closed first SonicPerform deal
-16th consecutive period of quarter-over-quarter growth
-Extended and increased the convertible debenture

About Cytiva Software Inc.

Cytiva Software Inc. (CRX: TSX.V) provides innovative on-demand talent management software and services to mid-sized and Fortune 500 companies. Its flagship talent acquisition product, SonicRecruit, allows corporations to screen applicants, automate recruiting departments, customize corporate career sites and hire great people. This premier applicant tracking system improves recruiting effectiveness, speeding up the hiring process and reducing cost per hire. Cytiva's SonicPerform employee performance management system automates employee evaluations, aligns employees around key goals and encourages year round feedback.  For more information, visit http://www.sonicrecruit.com.

The TSX has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

Forward-looking Statements: This news release contains forward-looking statements related to the future financial condition and results of operations of Cytiva. These statements are based on current expectations and estimates about the human resources markets in which Cytiva operates and management's beliefs and assumptions regarding these markets. These statements are subject to important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. Some of the factors which could cause results or events to differ materially from current expectations include but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; and success in implementing productivity initiatives. Some of these factors are largely beyond the control of Cytiva. Should any factor impact Cytiva in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by Cytiva will be realized or, even if substantially realized, that they will have the expected consequences for Cytiva. Readers should not place undue reliance on any forward-looking statements. Further, Cytiva disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.

CONTACT:

Ian Alexander
mediarelations@sonicrecruit.com
(510) 984-1986


Source: Cytiva Software Inc. (CRX - TSX-V) (CRXFF - Pink Sheets) http://www.careerexchange.com
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