Q1 Revenue for 2006 More Than Triples Revenue From Same Period Last Year CALGARY, Alberta, June 6 /PRNewswire-FirstCall/ -- Securac Corp. ("Securac") (OTC:SECU) (BULLETIN BOARD: SECU) , an enterprise governance, risk assessment and compliance software and services vendor and provider of Acertus(TM), the leading integrated software platform for governance, risk and compliance ("GRC"), announced financial results for the first quarter of its 2006 fiscal year. Financial Highlights (Dollar amounts are in Canadian Dollars) Total revenue for the first quarter was $613,579 up 231% from the same period last year. During the quarter, license revenue of $43,732 grew by 244% and services revenue increased 224% to $560,701. Revenue results were based on growth of professional services with new and existing customers, and a software licensing deal with a significant customer in the transportation industry. This is reflective of the strategy Securac is implementing to deliver complete GRC solutions to enterprise markets and achieve positive sales momentum through engagements with leading companies in key industry verticals. This complete solutions approach positions Securac to demonstrate its Acertus(TM) GRC software to clients with the opportunity to deliver higher-margin recurring services and shorten the sales cycle for software licensing opportunities. Total expenses for the quarter were $1,125,546, a decrease of 97% over the same period last year. This decrease was primarily attributable to reduced payroll and associated overhead as we focus on growing our business without substantive reliance on debt and equity financing, and achieving profitability. Stock-based compensation, a non-cash outlay, decreased significantly from $706,186 in Q1 last year to $149,615, together resulting in a Q1 loss from operations of $511,967 compared to $2,030,707 in the same period last year. Marketing and sales expenditures were $355,927 in the first quarter of 2006 compared to $613,429 in the same period in 2005. This 72% reduction is attributable to an internal reorganization whereby billable practice leaders are responsible for growing services and software revenue within their areas of specialization (physical risk, OH&S, BS7799, etc.) creating less reliance on direct sales professionals that created high payroll and travel costs in Q1 of last year. Our current sales team is focused on increasing distribution channels with our current partners, and are experiencing lower lead times in the sales cycle as the market for our software and services continues to mature, consistent with our 2006 business plan expectations. Terry Allen, Securac's chief executive officer, commented, "We are delighted to continue to achieve record revenue results since Q3 of last year, driven by strong professional services and license revenue growth. Securac today is a completely different company than it was a year ago, and remarkably different than just six months ago." Allen further explained, "Our Q1 revenue for the three months ended has already surpassed our total revenue for six months ended last year of $473,404 and, as we reported in our 10-KSB, our 2005 annual revenue was up 88% from 2004. While we recognize that revenue growth is key to securing market share in this rapidly expanding market, our bottom line results demonstrate that we have been successful in managing our costs, which we will continue to control. In addition, our channel partner strategy is beginning to bear results through a targeted campaign into the banking and insurance market that should yield returns by year end. We look forward to additional successes as we solidify and enhance our position in the GRC market for the remainder of 2006 and beyond." About Securac Securac is a vendor of corporate governance, risk assessment and compliance management software and services to corporate and public enterprises, consultants and regulated organizations. Acertus(TM), our integrated software platform for risk management and decision support, along with our professional services team of risk/governance experts and compliance specialists provide comprehensive governance, risk assessment and compliance programs from the boardroom to the operational level. Securac's principal office is located in Calgary, Alberta and it maintains a sales presence throughout North America. Statements in this Press Release that are not statements of historical fact, including statements regarding potential market size, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risk and uncertainties which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include but are not limited to changing market conditions, the successful and timely completion of financing, the establishment of corporate alliances, the impact of competitive products and pricing, new product development and uncertainties related to the regulatory environment. Reference is made to Securac's Annual Report on Form 10-KSB for the year ended December 31, 2005 for a description of these, as well as other, risks and uncertainties. Contact Terry W. Allen Chief Executive Officer Securac Corp. Tel: (403) 225-0403 DATASOURCE: Securac Corp. CONTACT: Terry W. Allen, Chief Executive Officer of Securac Corp., +1-403-225-0403, Web site: http://www.securac.net/

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