Parlay is OK despite United States exit

Total revenues for the twelve months to the end of December were reported at us$ 6.89 million, which was a drop of 1 % from 2007, while royalty revenues fell 40 % to us$ 3.79 million.

However, the Ontario firm’s total expenses fell from us$ 6.98 million in 2007 to us$ 6.19 million last year while earnings before tax skyrocketed to us$ 775,814 from us$ 116,609 with its earnings margin increasing to eleven percent from 2%. In addition, Parlay reported net income of us$ 402,210, which was up from a loss of us$ 40,943 in 2007, while taking in us$ 2.36 million in software licensing fees.

“In 2008, Parlay took a very significant step to divest its US-facing business and focus on licensing its software to customers in the United Kingdom and Europe,” said Scott White, CEO for Parlay. “The impact of that divestiture required that that we bring our cost structure into line with revenues, which efforts were substantially completed in the fourth quarter. We also anticipated that it could take up to three quarters to see the results of refocused sales and marketing initiatives translate into new royalty revenues.”

For the final three months of 2008, Parlay reported total revenues of slightly over us$ 1 million, which was down 38 % year-on-year, while royalty revenues dropped 53 % to us$ 704,044. But, it took in 72,767 over the fourth quarter in software licensing fees and set a new record with revenues from support services up 90 % to us$ 194,258.

”Recently executed licensing arrangements and new customer launches will increasingly contribute to revenues throughout 2009 while our cost base will remain static,” said White. “Parlay ended 2008 with in excess of us$ 2,584,000 in cash. We have continued to invest in our technology and human resources with our share re-purchases exceeding 1,700,000 shares since the commencement of our normal course issuer bid.”