) Conferencing, a global multimedia collaboration service company, has reported unaudited financial results for the first quarter ended March 31, 2008, reported under International Financial Reporting Standards (IFRS).
"We are very pleased with our first quarter financial results and the leadership position Genesys Meeting Center services have acquired," stated Francois Legros, Chairman and Chief Executive Officer.
"We are also proud of all the operational and financial accomplishments that the employees of Genesys have made. Their personal achievements are what have successfully led to the strategic transaction that Genesys shareholders have favorably accepted."
During the year, the company increased total volume by 23.7 percent; Genesys Meeting Center volume increased 24.4 percent; revenue increased 7.8 percent or 14.2 excluding exchange rate fluctuations; Genesys Meeting Center Revenue increased 8.7 percent; EBITDA1 increased to 9.0 million euros; and net income increased to 5.7 million euros.
The company believes the increase in volume was primarily driven by strong quarterly growth for Genesys Meeting Center services. This division increased by 24.4 percent in the first quarter of 2008.
Genesys also enjoyed an increase in gross margin that further reflects improved terms of the company’s telecommunications agreements and improved economies of scale resulting from very strong organic volume growth over the past several quarters.
The company successfully increased its net cash with an increase of 6.3 million euros. Cash from operating activities increased to 8.9 million euros. The total debt was 17.4 million euros and shareholders’ equity was 65.1 million euros compared to 61.7 million euros compared to 18.2 million as of the end of last year.
"As a result of increased economies of scale and strong profitability, Genesys has met its objective of ending this quarter for the first time having more cash-on-hand than total debt," stated Andrew Lazarus, Executive Vice President and Chief Financial Officer.
"We believe the company's improved ability to generate strong cash flow from operations and its ability to de-leverage its capital structure has been instrumental in allowing Genesys to realize an event that will maximize company value in a very meaningful way."
Genesys has done well to grasp the opportunities in conferencing by presenting its Web Meeting offering. As companies continue to demand real-time interactions with employees located throughout the world, such solutions as the Web Meeting are finding great acceptance and should help to drive further market value for the company.
West Corporation made a tender offer for ownership of Genesys and the company expects the transaction to close on May 22, 2008. All outstanding amounts under Genesys' existing credit agreement are expected to be prepaid on such date.