Serenic renews share buyback

The executive team of Serenic Software. Believing that “…current market conditions provide opportunities for Serenic to acquire common shares at attractive prices…” the company yesterday renewed its normal course issuer bid.

Serenic (TSXV:SER) yesterday announced it will renew the normal course issuer bid it began last June for another year.

Under the previous share buyback, the company purchased 313,500 common shares through open market purchases on the TSX Venture Exchange at an average cost of $. 27 cents per share.

Serenic, which was founded in 1999, designs and sells accounting software solutions for nonprofits, international NGOs and the public sector. Serenic used Microsoft Dynamics NAV, which is one of the most advanced ERP systems on the market, and through modification and the addition of enhanced functionality, created its flagship product , Serenic Navigator.

Navigator continues to receive widespread industry praise, including being ranked as the top NFP Accounting Software by ASA Research, multiple five-star ratings from CPA Technology Advisor, and was named a “Top 100” accounting product by Accounting Today magazine.

Late in 2010, Serenic moved to the cloud with its Serenic Navigator Online, streamlined Software as a Service (SaaS) version of Navigator that allowed the company to compete for the business of organizations smaller than it had in the past.

In January, Serenic reported its Q3 results. The company recorded revenue of $2.67-million, which was up slightly from the same period a year prior. The company, which has alternated between profitable and unprofitable quarters, lost $103,595 in Q3. One bright spot was software license sales, which rose 15.9% over all during the third quarter of fiscal 2012 compared with the third quarter of 2011, which the company attributed to increased partner channel business within North America.

Serenic’s cash balance at the end of Q3 was to $3.96-million, with no long term debt.

In a conversation last summer with Cantech Letter, Serenic CEO Randy said the impact of the nonprofit space to the overall economy might surprise casual observers. Keith pointed out that the nonprofit industry accounts for about 5% of the US Gross Domestic Product, employs nearly 13 million people or 10% of the workforce (which is more people than the finance, insurance, and real estate sectors combined) and reported $1.4 trillion in revenues in 2009.

At press time, share of Serenic were even at $.25 cents.

Disclaimer: Serenic is a sponsor of Cantech Letter and a client of Cantech Communications.

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