WANTED Technologies reports 39% increase in revenue to $10.1 million and record net income of $2.6 million ($0.109 per share) for the year ended June 30th, 2014

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  Revenues of $10,056,648, an increase of 39% or $2,825,429 compared to revenues of $7,231,219 for fiscal 2013. Excluding a significant non-recurring revenue of $976,988 derived from one agreement, revenues grew 26% over the prior year.
• Record net income of $2,634,753 ($0.109 per share) for fiscal 2014 compared to a net income of $1,362,555 ($0.057 per share) for fiscal 2013, an increase of $1,272,198.
• EBITDA of $3,659,329 or 36% of revenues, compared to an EBITDA of $1,816,907 in the prior year, an increase of $1,842,422.

• Growth of 24% in the Company's recurring revenue base in US dollars to reach US$7.7 million as of June 30^th, 2014, an increase of US$1.5 million over the recurring revenue base of US$6.2 million as at June 30^th, 2013 (excluding US$1.0 million reported in prior year as recurring revenue from a reseller partnership terminated in June 2014).
• WANTED announced during fiscal 2014 that it will be expanding its sales organization to focus on direct sales efforts in the market for "big data" analytics in the Human Capital Management sector.
• The Company, which sells its products through its direct sales force and through resellers, announced the termination of one of its reseller agreements, effective June 22, 2014. The reseller agreement represented revenues of $1,341,098 for fiscal 2014 and $419,812 for the most recent quarter.
• In October, 2014, the Company deployed an International version of its product platform which includes data and analytics describing the talent marketplace in 20 additional countries. With the addition of these 20 countries, and including the current coverage of the United States and Canada, the Company now offers human capital analytics for the 22 largest economies in the world.

QUEBEC CITY, Oct. 23, 2014 - WANTED Technologies (TSX-V:WAN.V - News), the leading supplier of "big data" analytics for the human capital marketplace, reported today a 39 percent year over year increase in revenues and record net income of $2,634,753 or $0.109 per share for fiscal 2014. The Company's annualized recurring revenue base increased 24% during fiscal 2014, reaching $7.7 million in US dollars as of June 30^th, 2014. This compares to $6.2 million one year ago excluding US$1.0 million reported as recurring revenue in prior year from a reseller partnership terminated in June 2014. All amounts are in Canadian dollars, unless otherwise indicated.

For the fiscal year ended June 30, 2014, WANTED posted revenues of $10,056,648 compared to $7,231,219 for the fiscal year ended June 30, 2013, an increase of $2,825,429 or 39%. The gain over the prior year mostly results from the Company's product diversification and partnership strategy supported by the continued growth and improvement in economic conditions and from deriving during fiscal 2014 a significant non-recurring fee of $976,988 from licensing a component of its historical "big data" warehouse of more than one billion records. Revenue during fiscal 2014 also included an amount of $1,341,098, or 13% of revenues, derived from a reseller agreement that was terminated on June 22, 2014.

"Our results from fiscal 2014 were the best in the history of the organization," said Bruce Murray, WANTED's President and CEO. "Our strategy of diversifying our business and developing products for high-growth markets is responsible for these results."

During fiscal 2014, one significant "big data" license agreement was responsible for non-recurring revenues of $976,988. This significant contract, which was signed during the second quarter, demonstrated how the Company's proprietary analytical processes can convert a sizeable data warehouse of information into compelling products. In this instance, the Company licensed a portion of its database of more than one billion records to enable a financial services client to make more informed analytical decisions about small and medium-sized businesses.

WANTED has been collecting and storing this category of data since 2005. The Company mines the historical data for trends and provides current data for real-time analysis.

"We have demonstrated the value of one or our key assets, which is an extremely large database of current and historical data on the employment marketplace," said Murray. "We build products based on this 'big data' warehouse, which give our clients insights and actionable intelligence to operate their businesses more efficiently."

Excluding both the one-time non-recurring revenue of $976,988 from a specific contract associated with the financial sector and any revenue from the partnership that ended in June 2014, total revenue grew 20% during fiscal 2014 over the prior year.

Note also that after removing any revenue from the partnership that ended in June 2014, revenues for fiscal 2014 derived from the combined Corporate and Staffing sectors increased 65% during fiscal 2014 and represented 26% of total revenues. These two sectors represented 21% of total revenues in the prior year.

"Different clients use our data in diverse ways," Murray said. "We offer a flexible user interface and multiple delivery options, which give our users many alternatives for applying our data to their business requirements".

In addition to the gains in topline revenues, the Company continued to record strong gains in recurring revenues, EBITDA and net income.

As of June 30, 2014, contracts in hand, in US dollars, represented approximately $7.7 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately $6.2 million dollars as of June 30, 2013 when we exclude revenues associated with the reseller partner terminated in June 2014, representing an increase of 24 percent. In Canadian dollars, the annualized recurring revenue base represented $8.3 million dollars, a 30% increase over prior year. At the end of fiscal 2014, 68% of that recurring revenue base was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 63% at the end of the previous fiscal year.

Overall operating costs increased by $842,528, or 16 percent, during fiscal 2014. Research and development costs, before recognition in the second quarter of fiscal 2014 of a non-recurring tax credit of $482,640, totalled $2,680,373, compared to $2,324,265 in the previous fiscal year, a net increase of $356,108 or 15% mostly resulting from increased staffing levels and computer infrastructure related to the Company's product expansion to include data to be able to serve international markets. Marketing and selling expenses totalled $2,310,490, compared with $1,952,469 in the previous year, an increase of $358,021 or 18% due to variable compensation resulting from higher sales and consulting services related to targeted marketing initiatives. Administrative expenses showed an increase of $605,370, or 54%, going from $1,126,251 in fiscal 2013 to $1,731,621 in fiscal 2014. This increase is mainly due to variable compensation following the solid financial performance of the Company, to foreign exchange variations, as well as an increase in professional legal and fiscal fees.

EBITDA for the fiscal year ended June 30^th, 2014 represented $3,659,329, an increase of $1,842,422 over the EBITDA of $1,816,907 recorded in the prior fiscal year. As noted above, the EBITDA was positively affected by a non-recurring tax credits amounting to $482,640 recorded in the second quarter of fiscal 2014 and non-recurring revenues totalling $976,988 derived from one specific contract executed with a client from the financial sector. EBITDA represents the net income before net finance income excluding gain or loss due to variation in foreign exchange, income taxes on net income, and amortization and impairment of property, plant and equipment and intangible assets. It is used by managers, analysts, investors and other financial stakeholders to assess the Corporation's performance and management from a financial and operational standpoint. As International Financial Reporting Standards do not provide a standardized definition for this measure, it may not be comparable to similar measures used by other companies.

Net income for fiscal 2014 was $2,634,753, or $0.109 per share, an improvement of $1,272,198 over the net income of $1,362,555 recorded in fiscal 2013, or $0.057 per share. This improvement mostly results from an increase of 41 % or $2,744,634 in gross margin partially offset by an increase of $842,528, or 16 percent, in operating costs. Net income was also affected negatively by an increase of $550,065 in tax expense resulting from both an increased profitability and the fact that the Company used during fiscal 2014 the remaining balance of the eligible research and development costs and tax losses available to reduce its income taxes in future years.

Summary of financial results for the fourth quarter of 2014

During the fourth quarter of fiscal 2014, WANTED's total revenue amounted to $2,708,721, an increase of 27% over the $2,125,294 recorded for the corresponding quarter of the previous fiscal year. Note that revenues for the last quarter of fiscal 2014 included an amount of $419,812 from a reseller agreement that was terminated on June 22, 2014. Revenues from this reseller represented $235,724 for the corresponding quarter of prior year.

Net income for the fourth quarter of fiscal 2014 amounted to $383,140 (or $0.016 per share), compared with a net income of $541,333 (or $0.022 per share) for the corresponding quarter in 2013, a negative variation of $158,193 mostly resulting from investments in the Company's direct sales force, an increase in cost of sales as well as an increase in variable compensation resulting from the solid performance of the Company.

EBITDA for the fourth quarter of fiscal 2014 was $584,847, representing 22% of revenues. The EBITDA for the fourth quarter of fiscal 2013 was $635,558 representing 30% of revenues.

Financial position

As at June 30, 2014, WANTED had $6,724,870 in cash and monetary investments, including $2,037,852 in redeemable term deposits. This compares to $3,101,798 in cash and monetary investments at the end of fiscal 2013, an increase of $3,623,072. This increase is the result of the strong profitability of the Company during fiscal 2014, which, combined with favourable variations in working capital items, caused cash flows from operating activities to generate $3,835,496 in additional liquidities during fiscal 2014. This positive contribution was however partially offset by cash used for investing and financing activities of $165,253 and $47,171 respectively.

As at June 30, 2014, total assets amounted to $11,955,516 compared with $7,658,548 as at June 30, 2013, an increase of $4,296,968 mostly resulting from the increase in cash and monetary investments of $3,623,072. The increase in total assets also resulted from an increase of $514,848 in current and non-current tax credits receivable mostly due to the recognition in the second quarter of fiscal 2014 of a non-recurring tax credit of $482,640. Increases of $140,957 in trade and other receivables driven by higher sales, $147,357 in property, plant and equipment and $33,814 in prepaid expenses also contributed to the increase in total assets. These increases were however partially offset by a decrease of $163,080 in intangible assets resulting from amortization.

Those interested will be able to access the information on the June 30, 2014 audited consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.com and at the Company's website, www.wantedtech.com, as of Thursday, October 23^th, 2014.

About WANTED Analytics™

WANTED Analytics™ helps recruiting organizations make better decisions faster with real-time business intelligence on jobs, employers, and talent. Analytics brings together, for the first time, years of hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions.

Clients in the staffing, HR, RPO, media, and government sectors use WANTED Analytics™ to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions, and source hard-to-fill positions.

About WANTED Technologies Corporation

WANTED Technologies (TSX-V:WAN.V - News) provides real-time data analytics for the talent marketplace. Founded in 1999, the company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of more than one billion unique job listings. For more information or to sample WANTED's services, visit www.wantedanalytics.com.

WANTED is also the exclusive data provider for The Conference Board Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE WANTED Technologies Corp.