The world's leading provider of computer-aided design, business and manufacturing software solutions tailored for the interior design and furniture industries.

1. 2009 ANNUAL REPORT
THE POWER
VISUALIZE
Products used in this 20-20 Fusion rendering are available through Saint Gobain Building Distribution UK

2. Table of Contents
1 Financial Highlights 8 20-20’s Evolution and Future
2 Letter from the Executive Chairman 9 A New Era: 20-20’s Open Business
& Chief of Strategic Direction Software Platform
4 Message from the Chief Executive Officer 11 Management’s Discussion and Analysis
6 Understanding the Market 31 Consolidated Financial Statements
7 Showing the Way

3. FINANCIAL HIGHLIGHTS
(In thousands of U.S. dollars, except number of shares and per share data)
Fiscal years ended October 31, 2009 2008 2007 2006 2005
Operating Results
Revenues 63,107 78,602 67,627 60,461 40,475
Gross margin 47,004 56,992 49,188 45,607 32,483
% of revenues 74.5% 72.5% 72.7% 75.4% 80.3%
EBITDA (1) 9,349 4,326 12,734 11,832 9,374
% of revenues 14.8% 5.5% 18.8% 19.6% 23.2%
Operating income (loss) 5,616 (2,690) (7,493) 6,295 5,937
Net earnings (loss) 2,581 (2,297) (5,249) 5,869 4,262
Per Share
Earnings (loss)
Basic $0.14 $(0.12) $(0.28) $0.31 $0.24
Diluted $0.14 $(0.12) $(0.28) $0.31 $0.24
Book Value $3.53 $2.99 $4.01 $3.62 $3.13
Financial Position
Working capital 12,617 4,947 37,150 27,600 33,568
Total assets 117,236 103,060 104,063 96,105 78,964
Shareholders’ equity 66,903 56,667 75,635 68,088 58,729
Total common shares outstanding 18,926,692 18,947,792 18,850,302 18,805,037 18,749,102
(1) EBITDA is a Non-GAAP measure defined as operating income before restructuring and non-recuring charges plus amortization and depreciation expenses.
Revenues (millions of $) Net earnings (millions of $) EBITDA (millions of $)
12.7
78.6 11.8
67.6
60.5 63.1 5.9 9.4 9.4
4.3
40.5
2.6 4.3
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
(2.3)
(5.3)
1

4. Osnabruck São Paulo Grand Rapids, MI Ashford Shanghai Cary, NC
Germany Brasil U.S.A UK China U.S.A
LETTER FROM THE EXECUTIVE CHAIRMAN
& CHIEF OF STRATEGIC DIRECTION
When 20-20 Technologies first introduced its solutions to the which addresses the clearly identified needs of the whole industry,
interior design industry almost a quarter century ago, I intensely ensuring that we remain the indisputable standard for all players in the
felt the motivation of the entrepreneur, the optimism of the builder, industry.
and the passion of the founder. These many years later, it delights
me to say that the excitement about the future of 20-20 is as strong The interior design industry will change dramatically over the next few
as it ever was. years, to adjust to business and technology trends, and 20-20 will
be at the centre of that change. To meet this challenge, we intend to
While 20-20 enters a new phase that demands a bold extension leverage all the complementary players in the world, rather than attempt to
of its strategy and a makeover of its character, my enthusiasm “do everything by ourselves”, in a more open business model.
for breaking fresh trails is undiminished. Now that I have moved Accordingly, we will work with our partners to integrate their applications
from the CEO’s chair to the positions of Executive Chairman and on our platform in order to capture all industry revenues with them while
Chief of Strategic Direction, the crucial issues of the Company’s sharing risks, efforts and expenses.
future have become my main focus – and nothing could more
effectively inspire me. This major shift in our strategy is meant to attract talented people and
organizations to work with us, and thus to minimize the duplication of
The strategic plan discussed here represents both transformation efforts and bring together the otherwise disconnected parties serving our
in the sense of gearing 20-20’s approach to the latest trends in the industry, while enabling all of us to move faster toward our shared goals.
industry and technology; and continuity in the sense of providing
our clients with the best possible tools to advance their businesses. As our mastery of product data has long distinguished us, our platform
will both require and ensure that product and project data are built on a
The Single “Industry Standard” Platform: Consumers are common foundation. The cost efficiency afforded by such data
increasingly demanding personalized furniture, as well as the convergence and exploitation promises to be transformational.
ability to visualize, configure and order entire interior design
projects over the Web. To meet these challenges, all the industry’s The single software platform and open business model will serve as
participants must collaborate, leveraging mass customization 20-20’s signature destination over the next few years. The fact that
solutions, while sharing product and project data that is built and we have conceptualized the journey – and that we are the player best
managed on the same foundation. positioned to undertake it – is a measure of how far we have already
come. By taking such leaps, we are communicating our determination to
20-20 has developed and accumulated, in the course of mak- maintain our pre-eminence in the industry.
ing seventeen acquisitions, the knowledge, market position and
applications to achieve a seamless end-to-end solution. To maxi- Knowledge and relationships are the key drivers: If the history of
mize our solution’s ongoing growth and implementation, a further 20-20’s success could be distilled into a single component, the result-
evolution in strategy is required to coalesce all industry participants. ing rare element would doubtless be our market knowledge and deep
Up to now, 20-20 has succeeded and benefitted from establishing customer relationships. We have absorbed through acquisitions the
a single platform as the “industry standard” Point of Sales Design wisdom of entrepreneurs who built successful companies by serving
application in North America. diverse sectors of the same industry. Today, our insight into every facet
of interior design sales and manufacturing powers up our strategy and
20-20 has acquired the knowledge and reached the market ensures our influence.
position to create and leverage an industry standard platform,
2

5. “Consumers are increasingly demanding personalized
furniture, as well as the ability to visualize, configure
and order entire interior design projects over the Web.”
Jean Mignault
Executive Chairman
& Chief of Strategic Direction
Creating the platform while continuously delivering current value:
Concurrently with the development of the open platform, we envisage
continuous and systematic delivery of new value to our
CORPORATE GOVERNANCE
customers within our existing products, and hence greater value AT 20-20 TECHNOLOGIES
to our shareholders.
20-20 Technologies does more than invent, market and support
As an example, one of the current global trends is that everything is highly sophisticated information technology. We also effectively
going green. In the interior design and furniture industry, the
act as high-level advisors to our clients. Accordingly it is important
increased cost of energy translates into higher transportation costs
to ship materials and furniture over long distances. We feel that our that our Company be regarded as an exemplar of sound corporate
collaborative software platform can, for instance, empower multibrand/ governance.
multiplant organizations to manufacture their products in plants
closer to the end consumer, which saves energy and decreases The transition in 2009, at the highest levels of Company
pollution. management, has not altered the strength of our good governance
procedures – except in the sense of reinforcing them. My appoint-
I want to take this opportunity to congratulate Jean-François
Grou on his promotion to the position of Chief Executive Officer. ment as Executive Chairman of the Board and Chief of Strategic
Jean-François has demonstrated uncommon commitment and Direction has had the effect of involving 20-20’s Board even more
leadership skills through ten years of service, as our President and closely with the Company’s strategic mandate.
Chief Operating Officer. With the world class team of executives we
have assembled, 20-20’s future rests in supremely capable hands. The Board, working with Jocelyn Proteau, the company’s Lead
I also want to express sincere gratitude to our employees, whose
Director, has made the accountability of 20-20’s Directors to share-
dedication distinguished 20-20’s passage through a year of recession,
and to our shareholders for their unrelenting confidence and support. holders, the transparency of our reporting, and our determination to
protect our investors, the essential means to maintain shareholder
confidence and assure the achievement of our corporate objectives.
Jean Mignault
Executive Chairman &
Chief of Strategic Direction
3

6. “During difficult times, the success of a company
cannot depend on the behavior of the economy,
but rather on how high the company reaches to
offset its challenges.“
Jean-François Grou
Chief Executive Officer
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
Throughout 2009, severely impacted by the recession, the interior them on what to expect, while presenting the tools they require to master
design business remained in a fragile state. 20-20 Technologies, the next generation of demand.
entrenched as a key supplier to the industry in all major markets,
maintained profitability by consolidating its operation, reducing Revenue Performance: 20-20’s financial results in 2009 far exceeded
overhead and aligning costs to revenues. If such a humdrum report 2008 results as the Company’s EBITDA exceeded $2 million in every
told the whole story of 20-20’s year, however, I would not be writing quarter. Furthermore, we improved our results in net earnings over the
this message with an equal degree of satisfaction. previous year. This achievement in the face of abiding recession largely
reflected the benefits of our cost reduction initiatives and strict control over
In fact the year produced cause for candid optimism. Our proactive expenses. Thus 20-20’s cost structure grew more manageable and entails
measures in 2009 planted the seeds for substantial progress for great promise for our future financial performance.
years to come. During difficult times, the success of a company
cannot depend on the behavior of the economy, but rather on how Consolidation of Operations: At the beginning of 2009, the personnel
high the company reaches to offset its challenges. of 20-20 worldwide totaled approximately 600. At the end of the year,
we were some 500. However, we were surgical in our cuts. We did what
We addressed the demanding year by doing much more than was required at a difficult time, while keeping our eye fixed on a healthier
endure. We reached higher. While keeping 20-20’s bottom line future. In regions, where we did not anticipate achieving short- to mid-
healthy we created derivative versions of some of our products term significant gains, we closed offices. Where we could merge some
– applications for smaller projects such as bath and closet – that operations with our distributors and thereby gain greater flexibility, we did
required less significant investments on the part of our customers. so. While growing lean in structure, we preserved all our abilities to act.
Our value proposition increasingly involved specific solutions We have maintained the same geographic presence and the same lines
that addressed particular circumstances. We continued to invest, of business.
targeting new growth opportunities.
We took particular care, in the reconfiguration of the Company, to protect
Within 20-20, we also intelligently and selectively downsized. Our the means by which 20-20 addresses the market. After consolidating
reconfiguration of the executive team included a smooth transition operations in both North America and Europe, we feel that we have
to the new CEO. Most tellingly, in regard to our long-term outlook, enhanced 20-20’s ability to translate opportunity into revenues. The
we started work during the second quarter on a new strategic plan. nucleus of 20-20, fully preserved, has gained sharper focus. Moreover,
Its chief feature, the development by 20-20 of a single and open the compact efficiency we have established positions us to benefit
business software platform that places 20-20’s evolution squarely significantly as the market recuperates. Incremental volumes will not
within the frame of industry leadership and is set to be the industry require our current cost structure to increase commensurate to rising
standard, is outlined earlier in this Report in the letter from Jean revenues - our margins will benefit.
Mignault.
Looking Ahead: We expect market conditions to remain challenging
We accelerated our new strategy, even as we steered the through 2010, with the pace of recovery likely to be slow. Still, as we
Company through a difficult period, because 20-20’s role is to help develop our open business platform for the long-term and position it as
determine industry trends rather than follow them. Consumers will the industry standard, 20-20 is not waiting for the short-term market to
make new demands once the recovery takes hold, particularly with improve – and neither are most of our clients.
regard to the ever-growing strength, convenience and ubiquity
of the Web. Our strategy speaks to the most critical rule in the Our sense is that the difference between the year ahead and the year
supplier/customer relationship: stay close, but become indispensable past will be characterized by a general readying for the recovery. Accord-
by stepping ahead of your customers. Accordingly, we are educating ingly, our clients have signaled that they are poised to make targeted
4

7. investments. For example, dealers who must forgo additional In 2009, the founder of 20-20 Technologies, Jean Mignault, took the
expensive licenses for the time being may instead purchase lower- step of bowing out of the office of CEO and embracing the posts of
priced derivative products to enter new niches of the business or Executive Chairman and Chief of Strategic Direction. At the same time, I was
add-on products to improve their sales and better manage their honoured by my promotion to Jean’s former office.
business.
It is with humility that I sign this message above my new title. I succeed
Similarly, manufacturers who cannot invest at the moment in whole- the man who has been 20-20’s leading light since the Company’s birth and
factory solutions will instead enter or enhance ancillary channels of who has traced a path of relentless innovation which helped revolutionize
production with 20-20’s help. These are the types of events which will an industry. Jean has been my mentor and will remain so as he continues
make a difference in 2010. All industry players will be seeking to be to guide our expansion strategy for many years to come.
positioned for the upturn.
I join Jean in saluting our employees for their sacrifice and devotion, and
Meanwhile pent-up demand is building. As we go to press, our manu- our shareholders for their steady support.
facturing solutions have been selected by several manufacturers in
North America. Each of these manufacturers are awaiting an in-house
green light to close the contract. I mention this circumstance not only
because it typifies a number of similar potential sales, but because
it illustrates a notable change that is progressively taking place in
the market. Previously the manufacturers would not have taken the
contract process this far, since they knew funds for the purchase could
not be approved. Now such expenditures are becoming viable again. Jean-François Grou
Chief Executive Officer
We entered 2010 with confidence that the gates to business expan-
sion are re-opening, and that our Company is uniquely positioned to
benefit from a resumption of growth in our industry.
5

8. UNDERSTANDING THE MARKET
In 2009, the interior design business faced a number of challenges made more pressing by the recession,
and 20-20 Technologies was uniquely positioned to help its customers meet them. 20-20 brings to market best
business practices that are well supported and often embedded in our applications. Our experience, together
with our presence throughout the interior design industry, allows us to generate greater value than any other
software company in the retailing and manufacturing sectors. This key differentiator raises the bar for new
entrants and helps 20-20 maintain dominance in the market.
Challenges:
1 Identify New Opportunities in the Industry
Interior design retailers, in a recovering economy, require products that involve limited investment on their part and which in turn will
attract budget-conscious consumers to less costly remodelling options.
2 Migrate to the Web
Consumers are increasingly browsing and shopping online for products and even for whole interior design projects, and they will
naturally take their business to vendors who can provide them with the best Web experience. The equation is simple for dealers:
join the movement to the Web, or forfeit their share of ever-increasing online trade.
3 Simplify the Business Process
Considerable cost efficiencies can be gained in automating both sales and manufacturing processes by our customers once they adopt
cutting edge technology into their daily routines.
4 Help Dealers Increase their Closing Ratio
There is a trend towards one stop shopping for all products in a project. Furthermore, enabling consumers to finance their projects
literally “on the spot” at the point-of-sale constitutes a dramatic enhancement of the in-store sales process.
5 Reduce Barriers to Client Entry
In a difficult economic environment many small players cannot afford to pay for an outright purchase of a license; they require
versatile programs to help them optimize their resources.
Throughout the difficult period of the recession, in addition to being a technology and solution provider to its
clients, 20-20 carefully preserved its ability to also act as their advisor. The consultative dynamic has added to
the Company’s role as a true partner to its customers.
6

9. SHOWING THE WAY
20-20’s investment in research and development in 2009 was rigorously aimed to generate best value for
research dollars invested. We sought and implemented targeted improvements to meet current customer
requirements and deliver additional value. We developed means to sell existing products into new markets and
complementary products to existing customers. Our portfolio also evolved to make client innovations viable – we
adapted existing solutions to support diversification into adjacent markets of many of our customers at both the
point-of-sale and in manufacturing.
20-20 Solutions:
1 Applications for Complementary Projects
20-20 expanded its product portfolio by tapping into the bathroom, closet and countertop markets to become the interior design
industry’s prime source of solutions for these projects.
2 Web Tools and Expertise
We are helping our clients achieve a state-of-the-art Web presence. On their corporate websites in 2009 many retailers began the
roll-out of capabilities provided by 20-20 Virtual Planner, our 3D Web visualization space planning software. Our ability to integrate
Virtual Planner into their own e-commerce platform has generated wide industry interest. As our technology goes through its paces
in many showcase environments, we have every confidence that it will become the preferred choice of leading companies for their online
Web solution.
3 Unrivalled Product Line to Meet All Client Needs
20-20 launched the ShopWare suite of products to improve the business processes of cabinet makers, and rolled out for its office
furniture clients updated versions of 20-20 CAP Studio, 20-20 Worksheet, 20-20 Giza, and 20-20 Office Sales. This aggressive product
release program further highlighted 20-20’s matchless breadth of product and its reputation as a single supplier.
4 Complementary Financing
20-20 improved its product offering with a web-based Home Improvement Project Financing Application for the dealer market
which enables consumers to obtain finance approval on the spot.
5 New Business Models to Lower Cost of Purchase
To make our software affordable to buyers in untapped markets, 20-20 crafted new programs that had the effect of facilitating the
acquisition of our technology while creating more revenues and improved gross margins for 20-20.
These initiatives in 2009 all represented incremental investment to gain access to high-potential markets, and
they served to further cement 20-20’s position as the leading software and service provider to the global interior
design industry.
7

10. 20-20’S EVOLUTION AND FUTURE
20-20 Technologies has long been the world’s leading provider of design and computer-aided selling software
for the interior design and furniture manufacturing industries. The following provides an outline of the path we
took to reach this position, as well as the strategy we are now pursuing to extend, strengthen and perpetuate
our leadership.
Design and Sales Tools:
20-20, armed with extensive market knowledge of the interior design industry and driven to address its specific needs, introduced
design and sales tools for the point-of-sale which enabled consumers, with the support and guidance of professional designers, to
configure and visualize furniture and rooms. The perennial market leadership of the Company’s flagship design software products, 20-20
Design, Fusion and 20-20 Cap Studio, has been supported by the fact that 20-20 has always offered the greatest number of manufacturers’
catalogs.
Electronic Catalogs:
20-20 created catalogs for manufacturers that solved the complexity of how to present products at the point-of-sale with photo-realism for
the consumer, while equipping the dealer with all the information (specifications, pricing and manufacturer’s validation) required to close
the sale.
Order Entry and Factory Management:
20-20, demonstrating a strong ability to design innovative products, developed software to perform product configuration for the factory,
bringing a unique level of sophistication, speed and automation to the interface between dealer and manufacturer, and to the flow in the
plant of all parts to be created and assembled.
Administrative Systems:
20-20, acting with the knowledge and experience gained as a result of many years of close contact with its customers, provided dealers
with digital tools designed to manage each project and each customer in a manner distinctively tailored to the interior design business.
Web Resources:
20-20 enabled dealers and manufacturers to present to the prospective online consumer the full range and richness of their products, as
well as customized pricing.
End-To-End Enhancement:
20-20 accelerated the error-free pre-validated reception of orders on the factory floor and the handling of the entire business flow between
the point-of-sale and the manufacturer.
8

11. A NEW ERA: 20-20’S OPEN BUSINESS SOFTWARE PLATFORM
20-20’s business and product strategy will continue to lead the penetration of Web and mobile applications
and services, recognizing that all parties in the interior design industry must achieve a high level of
collaboration to satisfy a marketplace in historic transformation. 20-20 will therefore open its foundational
platform and render it a collaborative environment. Application developers, particularly smaller and niche
players, will be able to scale their skills, excel in what they do best, and reap their share of revenues. The common
infrastructure promises to allow for lower financial risk for all involved. We believe the open platform will
become a space for extraordinary innovation and a means for easier access to market, as dealers and
manufacturers increasingly regard it as the place to acquire answers to their needs.
9

13. MD&A – Year ended October 31, 2009
’
(Year ended October 31, 2009)
1. Introduction
The following report, dated January 21, 2010, is a discussion Readers are cautioned that the Company’s actual future
relating to the financial results and position of 20-20 operating results and economic performance are subject to a
Technologies Inc. (―20-20‖ or the ―Company‖) for the year ended number of risks and uncertainties, including general economic,
October 31, 2009. The discussion should be read in conjunction market and business conditions, and could differ materially from
with the selected consolidated financial information shown in what is currently expected.
this report, and our audited consolidated financial statements
For more exhaustive information on these risks and
and the accompanying notes. These financial statements have
uncertainties, please refer to our most recently filed Annual
been prepared in accordance with Canadian generally accepted
Information Form, which is available at www.sedar.com.
accounting principles (Canadian GAAP) and are presented in
Forward-looking information contained in this report is based on
US dollars as a significant proportion of the Company’s
management’s current estimates, expectations and projections,
revenues are recorded in US dollars. The Company’s financial
which management believes are reasonable as of the current
statements have been translated from the measurement
date. The reader should not place undue reliance on forward-
currency, the Canadian dollar, to the US dollar using the current
looking statements and should not rely upon this information as
rate method. Additional information relating to 20-20, including
of any other date. While the Company may elect to, it is under
the Company’s Annual Information Form, Annual Report and the
no obligation and does not undertake to update this information
audited financial statements for the year ended October 31,
at any particular time, unless required by applicable securities
2009, can be obtained from SEDAR at www.sedar.com as well
law. In addition to presenting an analysis of results for the fourth
as from the Company’s web site at www.2020technologies.com
quarter and years ended October 31, 2009 and 2008, this report
in the Investors section. Information contained in this report is
also discusses certain important events that occurred between
qualified by reference to the discussion concerning forward-
the fiscal year-end and January 21, 2010.
looking statements detailed below.
Forward-looking Statements Non- Canadian GAAP Measures
Certain statements contained in this report constitute forward-
EBITDA
looking information within the meaning of securities laws.
EBITDA is a non-Canadian GAAP measure related to cash
Implicit in this information, particularly in respect of the earnings and is defined for these purposes as operating income,
Company’s future operating results and economic performance adjusted for non-recurring items plus amortization expenses.
are assumptions regarding projected revenues and expenses.
These assumptions, although considered reasonable by the
Company at the time of preparation, may prove to be incorrect.
Unless otherwise noted or the context otherwise indicates, ―20-20‖, the ―Company‖, ―we‖, ―us‖ and ―our‖ refers to 20-20 Technologies Inc.
and its direct and indirect subsidiaries. Unless otherwise indicated, all dollar amounts in this report refer to US dollars. References to ―$‖ or
―US‖ are to US dollars and references to ―C$‖ are to Canadian dollars. Disclosure of information in this report has been limited to that
which management has determined to be ―material‖, on the basis that omitting or misstating such information would influence or change a
reasonable investor’s decision to purchase, hold or dispose of securities in the Company
11

14. MD&A – Year ended October 31, 2009
2. Financial Highlights
Net earnings at
EBITDA(1) rose to 9.3 million
Revenues down by 19.7% $2.6 million (4.1%)
or 14.8% of revenues
or $0.14 per share
Revenues EBITDA (1) Net earnings (Loss)
25,000 3,000 1,500
20,000 2,500 1,000
2,000 500
15,000
0
10,000 1,500
(500 )
1,000 (1,000 )
5,000
500 (1,500 )
0 (2,000 )
0
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
For the year ended October 31, 2009, reve- Considering the economic turmoil and Despite the economic conditions and
nues declined by $15.5 million (19.7 %), uncertainty, the Company introduced differ- unfavorable exchange rates the Compa-
due to unfavorable economic conditions in ent measures designed to align cost with ny’s net earnings rose to $2.6 million or
all regions as well as unfavorable exchange revenues. In this challenging economy the 4.1% during the year ended October 31,
rates that reduced revenues by $4.3 million Company’s EBITDA for the year ended 2009 compared to a net loss of $2.3 mil-
(5.5%). October 31, 2009 rose from $4.3 million or lion or (2.9 %) for the year ended October
5.5% in 2008 to $9.3 million or 14.8% in 31, 2008.
2009.
(1) EBITDA is a non-GAAP measure for which we provide reconciliation on page 18 and 25.
Selected Consolidated Financial Information
The selected consolidated financial information set out below for The following information should be read in conjunction with our
the three months and years ended October 31, 2009 and 2008 audited financial statements and accompanying notes for the
has been derived from our audited annual consolidated financial year ended October 31, 2009.
statements.
(In thousands of dollars, except for share and per-share data)
Three months ended October 31, Years ended October 31,
(Unaudited) (Audited)
2009 2008 2009 2008
Revenues 16,181 19,556 63,107 78,602
Profitability
Gross margin 12,149 14,435 47,004 56,992
Gross margin (%) 75.1% 73.8% 74.5% 72.5%
EBITDA1 2,426 2,021 9,349 4,326
EBITDA (%) 15.0% 10.3% 14.8% 5.5%
Net earnings (loss) 735 (1,272) 2,581 (2,297)
Net earnings (loss) (%) 4.5% (6.5)% 4.1% (2.9)%
Earnings per share2
Basic earnings (loss) per share 0.04 (0.07) 0.14 (0.12)
Diluted earnings per share 0.04 - 0.14 -
Balance sheet
Total assets 117,236 103,060 117,236 103,060
Total long-term liabilities 18,878 15,977 18,878 15,977
(1) EBITDA is a non-GAAP measures for which we provide reconciliations on page 18 and 25.
(2) Please refer to Note 7 to the annual audited consolidated financial statements for further details relating to the calculation of earnings (loss) per share.
12

15. MD&A – Year ended October 31, 2009
3. Corporate overview
Our mission success, giving the Company an edge over its competitors.
Making our customers more productive and competitive by Their understanding of the global industry and customer needs
providing software and services to integrate the entire sales, puts 20-20 Technologies in a unique position to address each
supply and manufacturing processes of the interior design and one.
furniture industries.
Competitive Environment
Our Company The Company currently faces competition from software
Interior design dealers and furniture manufacturers have made providers in both the CAD and the ERP markets. The interior
20-20 Technologies the world’s leading provider of computer- design software industry is highly fragmented and comprised
aided design, sales and manufacturing software for the interior generally of point solution (as opposed to end-to-end solution)
design industry. 20-20 Technologies is offering an integrated software providers that address specific aspects of design
software platform for industry-wide use from showroom to software or software providers that have limited geographic
factory floor that is tailored specifically to the interior design coverage. Accordingly, none of the Company’s competitors
business and employed across all environments, desktop and competes in all of its products and markets. Generally,
web. It not only represents a significant competitive advantage, competitors can be described as follows:
but is a critical element to the Company’s success.
CAD Software: Competitors include almost exclusively
20-20 products and services are marketed and sold worldwide smaller, privately-owned companies whose products
through a sales and marketing team in various locations are principally focused on specific aspects of design
complemented by a network of consultants and distributors. software, and compete generally in some of our
20-20 has operations throughout North America and Europe as markets but not all.
well as in Asian and Latin American markets.
ERP Software: As the Company increases the
Markets Served penetration of its ERP solution, it also faces
20-20 Technologies serves a variety of interior design-related competition from ERP software vendors which
professions that include architects, commercial furniture dealers generally offer less targeted design, specification,
and retailers, facility managers, residential furniture dealers and photo-realistic rendering or 3-D visualization
retailers, manufacturers, interior designers, homebuilders and capabilities.
remodelers. Each can choose the software that best suits their
needs and addresses their professional concerns and those of Large software providers typically find it more beneficial to form
their customers. While our focus has traditionally been on the alliances with specialized software providers that provide a
dealer channels and their respective furniture manufacturers, focused solution, like us, than to devote resources to developing
mostly for kitchen, office, we are actively increasing our sales and marketing their own specialized products.
and services activities for adjacent market such as remodelers, Our leading market position, global presence and single tech-
homebuilders, furniture retailers expanding our solutions nology platform, end-to-end solution, as well as the breadth and
coverage for product categories such as bathrooms, closets and size of the electronic catalog library that we have developed for
home furniture. our customers, are all significant competitive advantages that
The Company also believes in nurturing promising design talent. distinguish us from our existing competitors and would make it
This is why 20-20 Technologies offers an educational version of difficult for new entrants to compete with us effectively.
its 20-20 Design software to accredited design academic
institutions.
4. Corporate strategy
Market conditions
20-20 software is available in 23 languages, sold in more than
90 countries. Each is adapted for the specific measurement In our fourth quarter, market conditions in North America where
very similar to the ones experienced in our previous quarter i.e.
units and currency of the geographical area where the software
stable with no improvement or deterioration. Most existing and
is used. 20-20 solutions include applications for business-to-
client (design and sales) business-to-business (order new customers are seeking new market segments and even a
diversification of their offering where they anticipate that their
processing and e-procurement) and manufacturing facilities:
enterprise resource planning (ERP) systems as well as customers will eventually have demand which is mostly smaller
interior design projects requiring lower level of investment with
computer-aided engineering (CAE) and manufacturing (CAM)
little or no financing. In the residential sector, dealers continue
software.
to acquire our design solutions as well as complementary
Leadership Team solutions responding to our adapted sales programs. In general,
Hailing from various countries around the world, 20-20 our business in the Commercial sector is still down significantly
Technologies’ global reach is reflected in its leadership team. with recurring revenue holding, as they are in the residential
The Company’s executive team members’ know-how in the sector. Even though the mood in the industry is trending
interior design and software industries combined with their towards a more positive outlook, everyone remains prudent in
diversity of business and computer science education their investment decisions.
backgrounds have significantly contributed to 20-20’s continued
13

16. MD&A – Year ended October 31, 2009
In European markets conditions are very similar in general to times, thereby delivering some incremental results as indicated
North America, unchanged from our previous quarter. Foreign by our slight improvement in revenues.
exchange variations continue to create some fluctuations in our
Cost reduction
overall revenue. As in North America, it is too early to report any
Our cost reduction measures are still in line with global
signs of recovery. Our International business continues to show
economic conditions as they are key to protecting a reasonable
signs of improvements, mostly in Brazil and China as their
profitability on lower overall revenue. We also continue to
respective economies have recovered sooner than in North
restrict operating expenses in areas such as trade shows, travel
America or Europe while our distributors’ business in other
and other non-essential expenses.
smaller markets worldwide is still severely impacted by the
global downturn.
5. Financial Review
Strategic objectives
We managed to achieve our strategic objectives indicated in our Foreign exchange rates
last quarter’s report during this period of economic turmoil and As 20-20 operates in a global environment, foreign exchange
uncertainty by successfully protecting our EBITDA, cash rate assumptions and sensitivity analyses are particularly
position and our core human capital. We have also protected significant due to their potential impact on our results. In fact,
our recurring revenue and market share in all our key markets. all of our main currencies, the $US, $C, the Euro and the Pound
We continue to deliver on our selected strategic investment Sterling have fluctuated significantly in 2009 and are continuing
initiatives at the pace we can afford to improve our execution to do so.
capabilities preparing for the recovery.
Although the European currencies affect earnings to a lesser
Existing business and growth strategy extent as the exposure to fluctuations is limited to earnings in
We maintain our efforts on selected short term strategic the European currency, variations in the Canadian dollar versus
investment initiatives, each carefully validated with our the US dollar can have a significant impact on net earnings as
customers to ensure that we meet their current needs and revenues in North America are essentially in US dollars while a
expectations as soon as they begin to reinvest again. Also we significant component of expenses are in Canadian dollars.. The
continue to aggressively pursue all opportunities adjusting our Company uses forward exchange contracts to sell US dollars
sales programs, making it easier for our customers and forward on quarterly basis in order to partially offset this impact
prospects to acquire our technologies even in these difficult on earnings.
C$ - US$ Exchange Rates
Titre du graphique
1.05
1.02
0.99
0.96
Exchange Rates
0.93
0.90
0.87
0.84
0.81
0.78
0.75
Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09
Average Rate 1.0093 0.9941 0.9908 0.9185 0.808 0.8033 0.8784 0.93
Closing Rate 0.9978 0.9906 0.9749 0.822 0.8088 0.8375 0.9268 0.9282
14

17. MD&A – Year ended October 31, 2009
The following tables show the variations of the closing and Revenues
weighted average exchange rates for our primary operating Revenues from license sales are predominantly derived from
currencies against the US Dollar. licensing of the Company’s desktop and enterprise software.
Each software license, for which users pay a one-time fee, is
typically perpetual in nature. Each license is typically intended
Change for use by a single user and is non-transferable.
Closing rates 2009 2008 2009/2008 Revenues from maintenance and other recurring revenues are
C$ 0.9282 0.8220 12.9% generated by customer support, software and electronic catalog
Euro 1.4754 1.2681 16.3% updates, Web services and annual software usage fees. Typical
Sterling Pounds 1.6478 1.6156 2.0% maintenance and other recurring service agreements have a
twelve-month term and are renewable at the option of the
We used these closing foreign exchange rates to value our customer.
assets and liabilities in U.S. Dollars as at October 31.
Finally, revenues from professional services include revenues
derived from training, electronic catalog creation and mainten-
Change ance, and integration services such as consulting, application
Average rates 2009 2008 2009/2008 integration and hardware resale.
C$ 0.8570 0.8859 - 3.3%
Euro 1.2427 1.4967 - 17.0%
Sterling Pounds 1.5523 1.9743 - 21.4%
We used these weighted average foreign exchange rates to
value our revenues and expenses in U.S. Dollars for the two
years ended October 31.
Revenue Distribution
The following charts provide information regarding our revenue composition for the year ended October 31, 2009:
33,300 40,000 34,752 32,189
35,000 35,000
35,000
30,000 30,000
30,000 26,328
25,000 25,000 19,119
25,000 20,000
20,000 17,341
20,000 15,000 11,799
15,000 12,466
15,000 10,000
10,000 10,000
2,027 5,000
5,000 5,000 0
0 0
Type Geography Sectors
Licenses 27.5 % North America 55.1 % Residential 51.0 %
Maintenance and recurring 52.8 % Europe 41.7 % Commercial 18.7 %
Professional services 19.7 % International 3.2 % Manufacturing 30.3 %
15

18. MD&A – Year ended October 31, 2009
Revenue Analysis
The following table provides a summary of our revenue variances due to foreign currency exchange rate variations between 2009 and
2008.
Years ended October 31
(in thousands of dollars except percentages) Change
2009 2008 2009/2008
Revenues 63,107 78,602 (19.7 %)
Organic variance prior to foreign currency impact (17.4 %)
Acquisition 3.2%
Constant currency variance (14.2 %)
FX impact (5.5 %)
Variation over previous year (19.7%)
World economic difficulties affected our revenues throughout For the year ended October 31, 2009 revenues were $63 million
fiscal 2009. In North America revenues were mostly affected in a decrease of 19.7% or $15.5 million compared to the same
the first quarter and we saw slight increases in the last two period in 2008. On a constant currency basis, organic revenue
quarters of the year. In Europe the impact of the unfavorable decreased by 14.2% year over year. A decline of $4.3 million
currency rate and the economic conditions affected our (5.5%) was attributable to European currencies versus US dollar.
revenues until the end of the second quarter. In North America, most revenues, except for a portion of
maintenance and support revenues, are recorded in US dollars
During Fiscal 2009, some clients adopted a cautious approach,
so the Canadian dollar’s depreciation versus the US dollar had
conserving cash and reviewing their investment plans with a
almost no effect on revenues realized in North America.
focus on addressing near term profitability and cash flow
Acquisitions however, contributed to a 3.2% increase in
pressure resulting in the suspension of their projects, the
revenues overall. Organic revenues declined by $18.0 million
deferral of new projects or the re-evaluation of their operating
(22.9%) for year ended October 31, 2009, compared with the
budgets. These reactions have resulted in a reduction in our
same period in 2008. License sales accounted for 37.9% of this
short term revenues of license and professional services. Our
decline, with a decrease of $10.0 million. Organic recurring
maintenance and recurring revenue were also affected by this
revenues were less affected with 8.9% reduction or $3.2 million
downturn because many clients have reduced their personnel
and professional services decreased by 28.8% or $4.8 million.
resulting in fewer active licenses; hence lowering the number of
licenses they have under support and maintenance contracts.
The following tables provide a summary of variations in our revenue type and by sector showing the impact of foreign currency exchange
rates between 2009 and 2008 periods
Revenue Type
(in thousands of dollars except percentages) Years ended October 31
2009 2008 Changes
License revenue prior to FX impact 18,722 26,392 (29.1 %)
FX impact (1,381) -
License revenue 17,341 26,392 (34.3 %)
Maintenance and other recurring revenue prior to FX impact 35,229 35,368 (0.4%)
FX impact (1,929) -
Maintenance and other recurring revenue 33,300 35,368 (5.8%)
Professional services revenue prior to FX impact 13,498 16,842 (19.9%)
FX impact (1,032) -
Professional services revenue 12,466 16,842 (26.0%)
Total revenues 63,107 78,602 (19.7 %)
16

19. MD&A – Year ended October 31, 2009
Economic conditions have mostly affected negatively the sales respectively, while the manufacturing sector declined by $1.6
of new licenses and revenues from professional services million (20.2%), all excluding currency variation.
compared to 2008. Also, many clients have reduced their
personnel resulting in fewer active licenses. Revenues by Geography
Our revenues from license sales in all regions, prior to the effect
of foreign exchange, declined by 29.1% or $7.7 million for the 50,000
year ended October 31, 2009, compared with the same period 43,340
45,000
last year. Excluding the effect of currency variations, license 40,000
sales from North America declined by $5.9 million (42.2 %), 34,752 33,023
35,000
while Europe and the rest of the world declined by $1.7 million
30,000 26,328
(14.1%). License sales, excluding foreign exchange variations,
declined in the manufacturing sector by 25.0%, in the residential 25,000
sector by 34.7% and in the commercial sector by 46.9% during 20,000
Fiscal 2009 compared with the same period in 2008. 15,000
10,000
For the year ended October 31, 2009, maintenance and other 2,027 2,239
5,000
recurring revenues decreased by $2.1 million (5.8%), mostly
due to unfavorable foreign exchange rates amounting to $1.9 0
million (5.5%). On a constant currency basis, in North America, North America Europe International
recurring revenues declined by $0.7 million (3.5%), while in
Europe acquisitions made in 2008 contributed to a growth of 2009 2008
$0.6 million (4.6%). The residential sector saw a slight decrease,
prior to foreign exchange, in recurring revenues of $0.4 million
(2.0%) compared to year 2008. In the commercial and
manufacturing sectors we had a slight growth of $0.1 million During Fiscal 2009, there were no important variations in the
(1.1%) and $0.2 million (1.8%) respectively, mostly due to the distribution of revenues by geography. The variations shown are
license revenue in those sectors during the past year. before currency effect.
For the year ended October 31, 2009, revenues from North
Decreases in license sales had a direct impact on revenues America were $34.8 million, down $8.6 million or 19.8% when
from professional services that declined from $16.8 million in compared to the same period in 2008. In Europe revenues,
2008 to $12.5 million in Fiscal 2009. On a constant currency before exchange rate impact, ($30.7 million) decreased by $2.4
basis, revenues decreased by $3.3 million (19.9%). Europe and million compared to 2008. The exchange negative effect
North America had reduction prior to foreign exchange impact of amounted to $4.3 million leaving a total decrease of $6.7 million
respectively $1.4 million and $1.9 million, in their professional in European revenue for 2009 compared to Fiscal year 2008.
services revenues in the year ended October 31, 2009 We have seen cautious behavior from North American and
compared to the last year. During Fiscal 2009, the residential European clients as they have deferred new projects. Globally,
and commercial sector revenues from professional services, the decrease in revenues is primarily attributable to challenging
declined by $1.4 million (21.0%) and $0.3 million (15.3%) economic conditions.
Revenues by Sector
(in thousands of dollars except percentages) Years ended October 31
2009 2008 Changes
Residential sector revenues prior to FX impact 34,913 41,301 (15.5 %)
FX impact (2,724) -
Residential sector revenues 32,189 41,301 (22.1 %)
Commercial sector revenues prior to FX impact 11,799 14,047 (16.0%)
FX impact - -
Commercial sector revenues 11,799 14,047 (16.0%)
Manufacturing sector revenues prior to FX impact 20,737 23,255 (10.8%)
FX impact (1,618) -
Manufacturing sector revenues 19,119 23,255 (17.8 %)
Total revenues 63,107 78,602 (19.7 %)
17

20. MD&A – Year ended October 31, 2009
For the year ended October 31, 2009, residential sector reve- license and professional services revenues in the residential
nues decreased to $32.2 million down $9.1 million or 22.1%, and commercial sectors. During the same period, on a constant
compared to the same period last year. On a constant currency currency basis, the manufacturing sector decreased by 10.8%
basis, revenues from the residential sector were down by $6.4 or $2.5 million. Manufacturing projects need more financial
million or 15.5%. Again, on a constant currency basis, commer- resources and more time for the implementation of our software
cial sector revenues decreased by $2.2 million (16.0%) com- solutions, so the adoption of a cautious approach by our clients
pared with the year ended October 31, 2008. Reductions in by suspending or deferring the kick-off of new projects.
personnel for our clients contributed largely to the reduction in
Gross Margin
(in thousands of dollars except percentages) Years ended October 31,
2009 2008 Change
Licenses gross margin prior to FX impact 87.1% 89.2% (2.1 %)
FX impact 0.4%
Gross margin variation from previous year 87.5% 89.2% (1.7 %)
Maintenance and other recurring services and professional
services gross margin prior to FX impact 67.0% 64.1% 2.9%
FX impact 2.6%
Gross margin variation from previous year 69.6% 64.1% 5.5%
Overall Gross margin prior to FX impact 72.6% 72.5% 0.1%
FX impact 1.9%
Overall gross margin variation from previous year 74.5% 72.5% 2.0%
The growth in the overall gross margin prior to the foreign Various direct personnel costs have been reduced since the
exchange impact in Fiscal 2009 was 2.0 percentage points restructuring plan was put in place in the third quarter of 2008.
compared to the same period in 2008. The Company proactively In addition, the fluctuation of foreign exchange rates compared
managed its cost structure in response to prevailing economic with the year ended October 31, 2008 reduced the cost of
conditions, particularly with respect to costs relating to revenues for a total amount of $2.4 million.
professional service. For the year ended October 31, 2009, the
EBITDA
gross margin, prior to foreign exchange impact, on recurring and
(In thousands of dollars except percentages)
professional services revenue increased by 5.5 percentage
points whereas the gross margin on license sales slightly
decline by 1.7 points. The restructuring plan and the cost Years ended October 31
realignment program are mainly responsible for the growth in 2009 2008
the overall gross margin excluding the foreign exchange effect.
Operating income (loss) (GAAP) 5,616 (2,690)
Cost of Revenues Restructuring charge (228) 2,329
Cost of revenues from license sales primarily consists of:
Amortization of property and
Cost of actual software products, including duplication, equipment 1,389 1,733
manuals and inserts, as well as packaging Amortization of intangible assets 2,572 2,954
Resale costs of third party software
EBITDA 9,349 4,326
Royalties’ payable on certain license sales to third
parties whose technology is used by 20-20 software Margin (%) 14.8% 5.5%
Cost of revenues from maintenance and services primarily The Restructuring plan, with its various cost reduction and cost
consists of: realignment measures and favorable exchange rates with
Personnel costs and other related costs incurred for respect to costs are largely responsible for the growth in the
client support EBITDA. The restructuring plan consolidated Company’s
Costs of personnel assigned to electronic catalog worldwide operations into a leaner and better integrated
creation, update and maintenance organization. It also aims to restore profitability to acceptable
Costs of personnel assigned to Web services, training, levels, align the Company’s cost structure to the realities of
integration services and hardware current market conditions in North America and elsewhere in the
world, and benefit from cost synergies related to recent
acquisitions.
18

21. MD&A – Year ended October 31, 2009
For the year ended October 31, 2009, EBITDA grew from 5.5% purchases under the Employee Share Purchase Plan
to 14.8% compared with the same period in 2008. The ESPP), the cost of stock-based awards to employees
exchange rate variations generated an increase in the EBITDA expensed over the options’ vesting period, and the
of approximately $2.9 million compared with the year ended cost associated with the deferred share units issued
October 31, 2008. quarterly to the Company’s directors.
Operating Expenses
Restructuring Plans and Other Cost Reduction Measures
Operating expenses include:
In order to respond to the downturn in the economic conditions
Sales and marketing expenses, which primarily during 2008 and 2009, management implemented cost
consist of personnel costs relating to sales, marketing reduction plans combined with various restructuring plans,
and product management activities, commissions paid including both permanent and temporary measures aimed at
to our sales force, fees paid to our industry aligning our cost structure with declining revenues resulting from
consultants, fees related to shipping, advertising, current unfavorable economic conditions. For the year ended
telemarketing, trade shows and promotional items; October 31, 2009 these measures generated cost reductions
and savings amounted to $7.8 million in salaries and $2.7
Research and development costs primarily relate to million on other expenses.
personnel and subcontractors for new product
development, existing product enhancement, quality Effect of Foreign Exchange Rate Changes on Expenses
assurance and documentation activities and software The Company’s currency of measurement is the Canadian
development tools and equipment. Research and dollar while the presentation currency is the US dollar. The US
development costs are shown net of applicable tax dollar’s weighted average exchange rate of $0.8859 in Fiscal
credits; 2008 compared with a weighted average rate of $0.8570 for
Fiscal 2009. This variation (3.3%) in the exchange rate generat-
General and administrative expenses primarily consist ed a reduction in expenses denominated in Canadian dollars of
of costs relating to information technology, legal $3.2 million for Fiscal 2009. The strength of the US dollar in
services, financial functions, human resources, legal 2009 compared with European currencies, Euro (17.0%) and
and professional fees, insurance and other indirect British Pounds (21.4%) resulted in a reduction of $7.9 million in
corporate overhead; and expenses for Fiscal 2009 compared with the same period in
Stock-based compensation expense consists of the 2008.
Company contribution to the employee share
Effect of Foreign Exchange Rate Changes on Operating Expenses
(In thousands of dollars except percentages)
Years ended October 31,
Operating expenses 2009 2008 Change
Sales & marketing expenses prior to FX impact 18,748 26,015 (28.0%)
FX impact (2,161)
Sales & marketing expenses variation from previous year 16,587 26,015 (36.2%)
Research and development expenses prior to FX impact 13,095 16,945 (22.7%)
FX impact (1,080)
Research and development expenses variation from previous year 12,015 16,945 (29.1%)
General and administrative expenses prior to FX impact 14,700 14,420 1.9 %
FX impact (1,936)
General and administrative expenses variation from previous year 12,764 14,420 (11.5 %)
Stock-based compensation expenses prior to FX impact 293 (27)
FX impact (43)
Stock-based compensation expenses variation from previous year 250 (27)
Restructuring cost expenses prior to FX impact (228) 2,329
FX impact -
Restructuring cost expenses variation from previous year (228) 2,329
Operating expenses variation from previous year 41,388 59,682 (30.7 %)
19

22. MD&A – Year ended October 31, 2009
Sales and Marketing Expenses administrative expenses. They represent payments for
Sales and marketing expenses decreased by $9.4 million employees in Sales and marketing ($0.5 million), in research
(36.2%) for the year ended October 31, 2009, compared to the and development ($0.3 million), in direct cost of revenues
same period in 2008. As indicated above, exchange rates had a ($0.1 million) and in general and administrative expense
positive effect of $2.2 million on Sales and Marketing expenses ($0.1 million).
compared to Fiscal 2008. The restructuring plan resulted in a
Stock-Based Compensation Expenses
$3.4 million benefit on salaries and $0.8 million on traveling. The
Stock-based compensation expenses amounted to $250,000
cost reduction plan resulted in savings of $1.4 million on show
and ($27,000) respectively for the year ended October 31, 2009
and event expenses and consultant fees. Declining revenues
and 2008 representing an increase of $277,000. The Company
had a direct effect on variable compensation, reducing the
suspended its contributions to the Employees Share Purchase
expense by $1.6 million. Acquisitions completed in 2008 brought
Plan at the beginning of the second quarter as a part of the cost
$1.0 million of additional expense in 2009 compared to the fiscal
reduction plan bringing savings of $70,000.
year 2008. In 2008 the Company sold its Benelux operations
and closed its Japanese office, saving $0.4 million, for the year
ended October 31, 2009. Finally consultant and other expenses (In thousands of dollars)
Years ended October 31,
were reduced by $0.6 million in fiscal 2009 compared to the 2009 2008
same period in 2008. Stock option expenses 19 56
Research and Development (R&D) Expenses Deferred share unit plan
For the year ended October 31, 2009, research and Expense for the period 79 100
development expenses were down from $16.9 million in 2008 to Re-evaluation of units (1) 135 (270)
$12.0 million or by 29.1%. Acquisitions made earlier in 2008 233 (114)
increased expenses by $0.5 million compared to Fiscal 2008 Employee Share Purchase
while cost reduction initiatives brought savings of $2.6 million in Plan (ESPP) 17 87
2009. In addition foreign exchange accounted for a decrease of Stock-based compensation 250 (27)
$1.1 million compared to the same period in 2008. Amortization (1) The re-evaluation represents the impact of the market share price variation or
of software costs acquired (excluding the amortization included the deferred share unit’s obligation payable to directors which is based on the
in acquisitions) decreased by $0.2 million compared to 2008. share price.
Resources normally assigned to research and development
In the year ended October 31, 2009, stock options were issued
activities were assigned to systems integration work in cost of
for a total amount of $19,000 compared with a charge for stock
revenues, thereby accounting for lower R&D cost of $0.8 million
options of $56,000 in the same period of 2008. The DSU’s
in Fiscal year 2009 compared to the year ended October 31,
expense issued under the plan represented the most significant
2008. Expenses reallocated to other departments and lower
expense $79,000 for Fiscal 2009 compared to $100,000 for the
consultants fees represented a decrease of $0.5 million for the
same period in 2008. The largest variance came from the
year ended October 31, 2009 compared to 2008.
reevaluation of the DSU’s in Fiscal 2009. The increase of 30%
in the share market value brought a reevaluation increase of
Tax credits earned during year ended October 31 2009
$135,000 compared to a decrease of $270,000 in the same
increased by $0.2 million compared to last year.
period of 2008.
(In thousands of dollars) Years ended October 31, Human Resources
2009 2008 As at October 31, 2009, the Company had 505 active
Gross expenses 12,401 17,084 employees on a full-time and part-time basis in the following
Tax credits (1,731) (1,551) countries and regions, including employees of acquired
Software amortization 1,345 1,412 companies:
Expenses 12,015 16,945
As at
October 31, 2009 2008
General and Administrative Expenses Number of Number of
For the year ended October 31, 2009 general and administrative employees % employees %
expenses declined by $1.7 million or 11.5% compared to Fiscal Canada 178 35.2 206 34.3
2008. Favorable foreign exchange rates reduced these United States 84 16.6 113 18.9
expenses by $1.9 million and cost reduction measures added United Kingdom 65 12.9 74 12.3
savings of $0.5 million. Amortization and depreciation were Germany 53 10.5 57 9.5
lower versus the same period in 2008 by $0.5 million and the France 52 10.3 61 10.2
closing of Benelux and Japanese office resulted in savings of Rest of Europe 14 2.8 27 4.5
$0.4 million. Acquisition expenses represented additional cost of Rest of the
$0.5 million in 2009. All restructuring payments amounting to world 59 11.7 62 10.3
$1.0 million were accounted for as a reduction of general and 505 100 600 100
20