HRSoft Inc. (fka WSTM)

[optimus203]

MAITLAND, Fla., Jan. 14, 2010 (GLOBE NEWSWIRE) -- Workstream Inc. (OTCBB:WSTM), a leading provider of on-demand compensation, performance and talent management software that helps companies manage the entire employee lifecycle, today announced financial results for the second quarter ended November 30, 2009.

Highlights of the Second Quarter Include:


-- Increase of $818,000, or 19%, in revenues to $5,030,000 during the second quarter of fiscal 2010 in comparison to $4,212,000 during the first quarter of fiscal 2010;

-- Operating income of $139,000 for the three months ended November 30, 2009;

-- Second consecutive quarter of positive EBITDA, as adjusted, of $475,000 during the second quarter of fiscal 2010 compared to $50,000 for the first quarter of fiscal 2010;

-- Reduction in net loss to ($341,000) from ($1,350,000) and to
($701,000) from ($3,401,000) as well as a reduction in net loss per share (basic and diluted) to ($0.01) from ($0.02) and to ($0.01)
from ($0.06) for the three and six months ended November 30, 2009,
respectively, in comparison to the same periods of prior year;

-- Subsequent to quarter end, closing of note exchange and restructuring of senior secured notes; and,

-- Changes in Workstream's executive management team, as follows:
- Executive Chairman Mr. Michael Mullarkey assuming the duties of
President and Chief Executive Officer;
- Mr. Andrew Hinchliff joining as Senior Vice President of North
American Sales; and,
- Mr. Jerome P. Kelliher joining as Chief Financial Officer.

"The second quarter results and overall operational improvements reflect Workstream's determined march towards stability and profitability," said President and Chief Executive Officer, Michael Mullarkey. "With the restructuring of the notes and new members of management in place, the Company can implement a new, more targeted approach during the second half of fiscal 2010 to grow revenues organically and better align our financial position with our operational requirements."

Workstream delivered the following results for the three and six months ended November 30, 2009:

Total revenues were $5,030,000 and $9,242,000 for the three and six months ended November 30, 2009, respectively, compared to $5,144,000 and $10,697,000 for the three and six months ended November 30, 2008, respectively.

Total operating expenses decrease to $3,160,000 and $6,349,000 for the three and six months ended November 30, 2009, respectively, from $4,612,000 and $10,623,000 for the three and six months ended November 30, 2008, respectively.

Operating income / (loss) were $139,000 and ($129,000) for the three and six months ended November 30, 2009, respectively, compared to ($967,000) and ($3,028,000) for the three and six months ended November 30, 2008, respectively.

Net loss was ($341,000) and ($701,000) for the three and six months ended November 30, 2009, respectively, compared to ($1,350,000) and ($3,401,000) for the three and six months ended November 30, 2008, respectively.

Net loss per share (basic and diluted) were ($0.01) and ($0.01) for the three and six months ended November 30, 2009, respectively, compared to ($0.02) and ($0.06) for the three and six months ended November 30, 2008, respectively.

EBITDA, as adjusted, was $475,000 and $524,000 for the three and six months ended November 30, 2009, respectively, compared to ($482,000) and ($1,968,000) for the three and six months ended November 30, 2008, respectively.

Total assets increased to $23,305,000 at November 30, 2009 from $23,076,000 at May 31, 2009.

Working capital, which represents current assets less current liabilities, was ($3.5) million at November 30, 2009 compared to ($24.2) million at May 31, 2009.

Cash flows used in operating activities decreased to ($26,000) for the six months ended November 30, 2009 compared to ($2,396,000) for the six months ended November 30, 2008. Further, the overall net decrease in cash and cash equivalents was reduced to ($450,000) for the six months ended November 30, 2009 compared to ($2,552,000) for the six months ended November 30, 2008.

Conference Call

Management will host a conference call at 9:00 a.m. EST on Friday, January 15, 2010 to discuss Workstream's second quarter fiscal 2010 operating results. Interested participants may listen to the call by dialing toll free 877-627-6582 (or 719-325-4834 for international callers) and referencing code 5408129. For those unable to participate in the live call, a replay will be available after 12 noon EST on the same day, until midnight EST January 29, 2010, by calling 888-203-1112 utilizing access code 5408129.

About Workstream Inc.

Workstream provides enterprise workforce management solutions and services that help companies manage the entire employee lifecycle -- from recruitment to retirement. Workstream's TalentCenter provides a unified view of all Workstream products and services including Recruitment, Benefits, Performance, Compensation, Rewards, Development and Transition. Access to TalentCenter is offered on a monthly subscription basis under an on-demand software delivery model to help companies build high performing workforces, while controlling costs. Workstream services customers with offices across North America. Workstream services such customers as Kaiser, Marshfield Clinic, Chevron, The Gap, and Nordstrom and several government agencies. For more information visit www.workstreaminc.com or call toll free 866-953-8800.

The Workstream, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6175

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Workstream's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: failure to negotiate the final terms of definitive agreements giving effect to the proposed note restructuring; in the event a restructuring of our indebtedness is not consummated, if an event of default should occur and be continuing with respect to such indebtedness; inability to grow our client base and revenue because of the number of competitors and the variety of sources of competition we face; client attrition; inability to offer services that are superior and cost effective when compared to the services being offered by our competitors; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to enter into successful strategic relationships and other risks detailed from time to time in filings with the Securities and Exchange Commission.