Zedi Inc. Announces Second Quarter 2009 Financial Results

CALGARY, ALBERTA--(Marketwire - Aug. 10, 2009) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for Q2 of 2009. "In spite of extremely challenging industry conditions, Zedi continued its trend of generating positive earnings before interest, taxes, depreciation and amortization ("EBITDA") and generated $4.25 million in cash flow from operations during the quarter. Although reporting our first net loss since Q2 2007, the current results are encouraging in light of both the current economic climate and the fact that Q2 is traditionally the slowest quarter of the year for Zedi," said Matthew Heffernan, Zedi President & CEO. The second quarter 2009 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca. Revenues for the Q2 of 2009 were $9,155,000, compared to $10,033,000 in 2008, a decrease of approximately 9%. Although new drilling activity was very low throughout the quarter, the Company generated net new revenue through services that appeal to producers facing increased cost pressures, and the recurring revenue base remains strong. Zedi maintained its strong balance sheet position with end of period working capital of $10,871,000. The net loss for Q2 2009 was $691,000 compared to net income of $91,000 for Q2 2008. A stock-based compensation expense of $294,000 was recognized in Q2 2009 compared to $458,000 for Q2 2008. Although these are non-cash expenses, with no actual impact on the Company's operations, generally accepted accounting principles require that they be recognized in the calculation of net income. Earnings before interest, taxes, depreciation, amortization and stock-based compensation expense ("EBITDAS") for Q2 2009 was $363,000 compared to $1,448,000 for Q2 2008. While both EBITDA and EBITDAS are non- GAAP measures, they are common measures used by industry to normalize non-operating factors that are included in the net income results. Zedi continues to focus and execute against a strategy of delivering value through data and to that end is continuing to invest in the development of new technologies and markets. The Company expects to introduce new products and services as well as enhancements to existing products and services throughout 2009, necessary to respond to international opportunities and to penetrate the oil market. Zedi's business model that is based on recurring revenues and its strong balance sheet continue to fund these development activities, which the Company believes are important for long term viability and success. Zedi Inc. (TSX VENTURE: ZED) specializes in the end-to-end management of oil and gas production operations. Zedi arms producers from the field to head office with accurate, timely and centralized data to help them make better business decisions. Using technology to gather highly accurate data from well sites, Zedi automatically moves it through critical work processes including web-based field data capture and production accounting systems. Zedi technology is continually evolving in the control and optimization of wells to ensure maximum production and cost reduction. Established in 1987, Zedi has enhanced the operational performance of more than 400 upstream, midstream and oilfield service customers.