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GNSY had an interesting earnings report. They earned .15/share (Euros) in Q1. That would translate into nearly .20/share in US Dollars. Stock is at $1.30! Quarter benefitted from a 1.2M swing in currency exchange. Also Yahoo has a higher number for shares O/S. Balance sheet is ugly. But this could run higher based on the big earnings number.



Genesys Conferencing Reports First Quarter Results for 2005
Thursday May 12, 1:00 am ET


RESTON, Va. & MONTPELLIER, France--(BUSINESS WIRE)--May 12, 2005--Genesys Conferencing (Euronext Eurolist:FR0004270270) (NASDAQ:GNSY - News), a global multimedia conferencing service leader, today reported financial results for the first quarter ended March 31, 2005. All results are reported under new International Financial Reporting Standards (IFRS). For purposes of comparison, financial results for the first quarter ended March 31, 2004, have been stated under IFRS and may differ from the results previously reported for this period under French GAAP.
First Quarter 2005 Operating Highlights

Total volume increased 28.5% to 464 million minutes
Genesys Meeting Center automated services volume increased 34.6% to 428 million minutes
Volume based on Multimedia Minute pricing increased to 80 million minutes, a 40.7% sequential growth rate from the fourth quarter of 2004
Revenue(1) was EUR 34.1 million, up 1.0% sequentially from the fourth quarter of 2004 and down 5.8% from the first quarter of 2004
Gross margin increased 200 basis points to 64.0%
EBITDA(2), excluding stock-based compensation, was EUR 6.3 million, an 18.4% EBITDA margin
Net Income was EUR 2.7 million or EUR 0.15 per share
"Genesys Meeting Center automated and multimedia conferencing services continue to gain significant penetration of the global and large enterprise market," stated Francois Legros, Chairman and Chief Executive Officer. "Volume is up, net profitability is up and we are successfully meeting the industry's challenges head-on."

First Quarter 2005 Operating Performance

In the first quarter of 2005, revenue(1) was EUR 34.1 million, down 5.8% compared with revenue of EUR 36.2 in the first quarter of 2004. In U.S. dollars, first quarter 2005 revenue was $44.8 million, down 1.1% compared to $45.3 million in the first quarter of 2004. Revenue from Genesys Meeting Center services was 78.0% of revenue. Revenue also reflects a greater percentage of global and large enterprise customers and the growing adoption of Multimedia Minute priced services.

Gross margin for the first quarter of 2005 was 64.0% compared to 62.0% for the first quarter of 2004, a 200 basis point increase despite the higher percentage of revenue from high-volume, large enterprise customers that traditionally have lower margins. Gross margin improvement largely reflects the company's migration of revenue from attended to automated services and the cost efficiency of the Genesys Meeting Center technology platform.

Selling, general and administrative expenses, excluding restructuring and non-recurring charges, were EUR 17.7 million in the first quarter of 2005, down 6.3% compared to EUR 18.9 million in the first quarter of 2004. Including restructuring and non-recurring charges, selling, general and administrative expenses were EUR 18.0 million in the first quarter of 2005 compared to EUR 20.8 million in the first quarter of 2004. The decline in operating expenses largely reflects the company's cost-reduction initiatives. Compared to the first quarter of 2004, general and administrative expenses of EUR 7.9 million were down EUR 0.9 million or 10.0%, while the company has increased its sales and marketing expenditures to EUR 9.2 million, up 2.2% compared to the first quarter of 2004 and up 15.0% compared to the fourth quarter of 2004.

Earnings before interest, taxes, depreciation and amortization (EBITDA(2)), excluding stock-based compensation expense, was EUR 6.3 million for the first quarter 2005, an 18.4% EBITDA margin compared to EUR 4.8 million and 13.3%, respectively, for the first quarter of 2004. EBITDA for the first quarter of 2005 includes charges of EUR 326,000 recorded in connection with the integration of the company's video conferencing division into its core sales, research & development and administrative functions. Stock-based compensation expense, as reported under newly adopted IFRS, was EUR 306,000 and EUR 386,000 for the first quarters of 2005 and 2004, respectively.

Net income was EUR 2.7 million, or EUR 0.15 per diluted share for the first quarter of 2005 compared to a net loss of EUR (3.2) million or EUR (0.18) per share in the first quarter of 2004. Net income improved partly due to the reduction in finance charges to EUR 584,000, down from EUR 2.3 million in the first quarter of 2004, and the reduction in amortization expense to EUR 701,000 down from EUR 1.7 million in the first quarter of 2004. Finance charges declined by EUR 1.7 million compared to the first quarter of 2004 as a result of a EUR 1.2 million improvement in foreign exchange gain/loss and a reduction in interest expense of EUR 444,000.

As of March 31, 2005, the company's cash(3)was EUR 7.5 million after deducting bank overdrafts. On April 30, 2005, the company made its semi-annual principal and interest expense payments of EUR 4.6 million and EUR 1.9 million, respectively, under its existing senior credit facility.

"The company is executing its plan of generating strong volume growth and optimizing operating expenses," stated Michael Savage, Executive Vice President, Chief Financial Officer. "As a result, cash flow from operations continues to enable the company to meet its obligations while providing the company the flexibility to increase sales activities, further penetrate global markets and expand our technological capabilities."

Conference Call and Webcast

Chief Executive Officer Francois Legros and Executive Vice President, Chief Financial Officer Michael E. Savage will host a conference call on Thursday, May 12, 2005, at 5:30 p.m. Central European Time or 11:30 a.m. Eastern Daylight Time to discuss first quarter 2005 financial results. The conference call will be webcast live and may be accessed at www.genesys.com. A replay of the call will be available at www.genesys.com.

(1) Please refer to the note "Impact of Exchange Rates" for
information regarding the calculation of U.S. dollar amounts.

(2) See attached note to consolidated statements of operations for
reconciliation of Operating Income and EBITDA. The company
believes that EBITDA is a meaningful measure of performance,
because it presents the company's results of operations without
the non-cash impact of depreciation and amortization. EBITDA is
reported excluding stock-based compensation expense.

(3) Cash includes cash and cash equivalents less bank overdrafts.

Financial Tables to Follow

Adoption of International Financial Reporting Standards

As previously reported, effective January 1, 2005, the company has adopted IFRS. The company previously reported under French Generally Accepted Accounting Principles (French GAAP). The company also continues to report in the United States under U.S. GAAP, and it files those statements with the Securities and Exchange Commission.

Impact of Exchange Rates

The company serves large enterprises on a worldwide basis. As a result, the company has extensive international operations and, thus, significant exposure to exchange rate fluctuations, in particular those of the U.S. dollar. In 2003, the U.S. dollar declined significantly compared to the euro, and its value further declined during 2004. As a result, the comparability of the company's revenues and results of operations expressed in euros were significantly impacted. The company prepares its consolidated financial statements in euros. In order to demonstrate the impact of the decline of the U.S. dollar on its revenues from the first quarter of 2004 to the first quarter of 2005, the company has recalculated its revenues as if its functional currency had been the U.S. dollar rather than the euro. For this purpose, the company has used the average for each quarter of the daily euro/U.S. dollar exchange rate for the first quarters of 2004 and 2005, respectively, which are the rates it used for translation purposes in its consolidated income statement.

Forward-Looking Statements

This release contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical information or statements of current condition. These statements appear in a number of places in this release and include statements concerning the parties' intent, belief or current expectations regarding future events and trends affecting the parties' financial condition or results of operations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Some of these factors are described in the Form 20-F that was filed by Genesys with the Securities and Exchange Commission on May 2, 2005. Although management of the parties believe that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of the date of this release. Except to the extent required by law, the parties undertake no obligation to revise or update any of them to reflect events or circumstances after the date of this release, or to reflect new information or the occurrence of unanticipated events.

About Genesys Conferencing

Genesys Conferencing is a leading provider of integrated Web, audio and video conferencing services to thousands of organizations worldwide, including more than 200 of the Fortune Global 500. The company's services are designed to meet the full range of communication needs within the large enterprise, from collaborative team meetings to high-profile online events. The company's flagship product, Genesys Meeting Center, provides a single-platform multimedia conferencing solution that is easy to use and available on demand. With offices in 24 countries across North America, Europe and Asia Pacific, the company offers an unmatched global presence and strong local support. Genesys Conferencing is publicly traded on Euronext in France (ISIN FR0004270270) and on the NASDAQ in the U.S. (GNSY). Additional information is available at www.genesys.com.

GENESYS CONFERENCING
Consolidated Balance Sheets
(In thousands of euros, except share data)


December 31, 2004 March 31, 2005
----------------------------- --------------
(Unaudited) (Unaudited)
French GAAP IFRS IFRS
-------------- -------------- --------------
ASSETS
Fixed assets
Goodwill, net EUR 16,608 EUR 21,042 EUR 21,345
Customer lists and
technology 14,404 13,029 12,945
Other intangible
assets, net 5,057 5,057 5,188
Tangible assets, net 17,097 17,097 16,624
Financial assets, net 1,215 1,215 1,257
Investments in
affiliated companies 212 212 215
-------------- -------------- --------------
Total non current assets 54,593 57,652 57,574
Current assets
Inventory 21 21 21
Accounts receivable,
less allowances (EUR
2,100 and EUR 2,189
at Dec. 31, 2004 and
March 31, 2005,
respectively) 27,783 27,783 30,722
Deferred tax assets 448 448 455
Other current assets 9,244 9,244 10,141
Marketable securities 15 15 9
Cash at bank 8,550 8,550 9,953
-------------- -------------- --------------
Total current assets 46,061 46,061 51,301
-------------- -------------- --------------
TOTAL ASSETS EUR 100,654 EUR 103,713 EUR 108,875
============== ============== ==============

LIABILITIES AND
SHAREHOLDERS' EQUITY
Shareholders' equity
Ordinary shares,
nominal value of EUR
1 per share
18,307,756 shares
issued and
outstanding at
December 31, 2004 and
March 31, 2005 EUR 18,308 EUR 18,308 EUR 18,308
Common shares to be
issued 139 139 139
Additional paid-in
capital 185,080 185,080 185,080
Additional paid-in
capital to be issued 3,852 3,852 3,852
Reserve for Stock-
based compensation - 1,433 1,739
Accumulated deficit (174,472) (167,510) (227,807)
Net income (loss) for
the period (67,416) (60,288) 2,723
Currency translation
adjustments 23,417 6,715 4,254
-------------- -------------- --------------
Total shareholders'
equity (deficit) (11,092) (12,271) (11,712)
Provisions for risks and
charges 3,520 3,534 3,424
Long-term portion of
deferred tax liabilities - 3,147 2,468
Long-term debt
Long-term portion of
long term debt 64,713 64,713 67,992
Long-term portion of
capitalized lease
obligations 61 61 56
-------------- -------------- --------------
Total non current debt 64,774 64,774 68,048
Current liabilities
Bank overdrafts 2,173 2,173 2,437
Accounts payable and
accrued liabilities 13,840 13,840 13,865
Tax payable and
deferred compensation 13,146 13,146 12,780
Current portion of
deferred tax
liabilities - 778 1,439
Current portion of
long-term debt 12,391 12,690 14,179
Current portion of
capitalized lease
obligations 407 407 218
Other current
liabilities 1,495 1,495 1,731
-------------- -------------- --------------
Total current liabilities 43,452 44,529 46,649
-------------- -------------- --------------
LIABILITIES AND
SHAREHOLDERS' EQUITY EUR 100,654 EUR 103,713 EUR 108,875
============== ============== ==============


GENESYS CONFERENCING
Consolidated Statements of Operations
(Unaudited, in thousands of euros, except share data)


Three months ended March 31,
--------------------------------------------
French GAAP IFRS IFRS
-------------- -------------- --------------
2004 2004 2005
-------------- -------------- --------------
Revenue
Services EUR 36,040 EUR 36,040 EUR 34,115
Products 178 178 7
-------------- -------------- --------------
36,218 36,218 34,122
Cost of Revenue
Services 13,730 13,730 12,258
Products 28 28 31
-------------- -------------- --------------
13,758 13,758 12,289
-------------- -------------- --------------
Gross Profit 22,460 22,460 21,833
Operating expenses
Research and
development 1,121 1,143 650
Selling and marketing 8,966 9,003 9,202
General and
administrative 10,051 10,144 7,867
Restructuring charge 539 539 326
Amortization of
intangibles 1,624 1,735 701
-------------- -------------- --------------
22,301 22,564 18,746
-------------- -------------- --------------
Operating income (loss) 159 (104) 3,087
Financial expense, net (2,033) (2,281) (588)
Equity in income of
affiliated companies 31 31 4
Income tax expense
(credit) (953) (861) 220
Amortization of goodwill (1,327) - -
-------------- -------------- --------------
Net income (loss) EUR (4,124) EUR (3,215) EUR 2,723
============== ============== ==============
Basic and diluted net
income (loss) per share (0.22) (0.18) 0.15
============== ============== ==============
Number of outstanding
shares used in computing
basic and diluted net
income (loss) per share 18,372,841 18,372,841 18,372,841


GENESYS CONFERENCING
Notes to the Consolidated Financial Statements
(Unaudited, in thousands of euros)


Three months ended March 31,
--------------------------------------------
French GAAP IFRS IFRS
-------------- -------------- --------------
NOTE A- EBITDA
calculation 2004 2004 2005
-------------- -------------- --------------
Operating income (loss) EUR 159 EUR (104) EUR 3,087
Amortization of deferred
acquisition and deferred
financing costs 247 - -
Amortization of
identifiable intangible
assets 1,624 1,735 701
Depreciation and
provisions 2,925 2,783 2,175
-------------- -------------- --------------
EBITDA (2) 4,955 4,414 5,963
-------------- -------------- --------------
Stock-based compensation - 386 306
EBITDA before stock-based
compensation EUR 4,955 EUR 4,800 EUR 6,269
============== ============== ==============


Three months ended March 31,
--------------------------------------------
French GAAP IFRS IFRS
-------------- -------------- --------------
NOTE B- DETAIL OF
FINANCIAL INCOME
(EXPENSE), NET 2004 2004 2005
-------------- -------------- --------------
Interest and other
financial income EUR 254 EUR 254 EUR 30
Foreign exchange gains 2,060 2,060 558
-------------- -------------- --------------
Total financial income 2,314 2,314 588

Interest and other
financial expenses (1,514) (1,762) (1,094)
Foreign exchange losses (2,833) (2,833) (82)
-------------- -------------- --------------
Total financial charges (4,347) (4,595) (1,176)
Financial expense, net EUR (2,033) EUR (2,281) EUR (588)
============== ============== ==============


Three months ended March 31,
--------------------------------------------
French GAAP IFRS IFRS
-------------- -------------- --------------
NOTE C - DETAIL OF INCOME
TAX EXPENSE 2004 2004 2005
-------------- -------------- --------------
Deferred tax credit
(expense) EUR (519) EUR (427) EUR 202
Income tax credit
(expense) (434) (434) 18
-------------- -------------- --------------
Total income tax credit
(expense) EUR (953) EUR (861) EUR 220
============== ============== ==============


At December 31, 2004 At March, 31
----------------------------- --------------
NOTE D - DETAIL OF
ACCOUNTS RECEIVABLE, NET French GAAP IFRS IFRS
-------------- -------------- --------------
2004 2004 2005
-------------- -------------- --------------

Billed portion of
accounts receivable, net EUR 21,523 EUR 21,523 EUR 20,620
Un-billed portion of
accounts receivable, net 6,260 6,260 9,580
-------------- -------------- --------------
Total accounts
receivable, net EUR 27,783 EUR 27,783 EUR 30,722
============== ============== ==============



--------------------------------------------------------------------------------
Contact:
Genesys Conferencing
Michael E. Savage, [phone]
[e-mail]
or
Marine Pouvreau, [phone]
[e-mail]



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Source: Genesys Conferencing