Business
In-Touch Survey Systems Ltd. announces acquisition of MarketLine Research Inc. of Minneapolis and revised revenue guidance
OTTAWA, April 14 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announ...
About this update from Intouch Insight Ltd.
[{"type":"text","content":"\n\n\n\nOTTAWA, April 14 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"\nTSX-Venture: INX) announces that it will acquire MarketLine Research Inc.\n("MarketLine") and that Q1 Revenues are up 20% over Q1 2006 but short of\nprevious guidance estimates.\n\n\nMarketLine was founded in Minneapolis by a team of market research\nexperts in 1995. The company's products and services are primarily founded on\nan internally developed call centre and software technology called MarketVU.\nMarketVU is a proprietary computer aided telephone interviewing (CATI) system\nplus a tabulation and reporting engine which provides a significant\ncompetitive advantage over rivals that have to outsource this requirement.\n\n\nMarketLine will be acquired for cash and a promissory note - payable over\nfive years. In-Touch will internally fund the acquisition. In calendar 2007,\nMarketLine revenues exceeded $750,000.\n\n\n"We expect to close this transaction in the next several weeks pending\nboard and regulatory approvals. MarketLine provides In-Touch with a new\ncomplimentary data collection technology, which strengthens and broadens our\nproduct line, along with new customers and a sales and service hub for the\nMidwest USA. The addition of the MarketVu technology moves In-Touch closer to\nour strategic goal of being the leading supplier of real-time, mobile, data\ncollection and reporting technology to Fortune 1000 marketing and operations\ndepartments. We are looking forward to the immediate positive impact from\nMarketLine to increase In-Touch revenues", said Michael Gaffney, Chief\nExecutive Officer.\n\n\nFirst quarter In-Touch revenues will increase 20% over the same quarter\nlast year but will fall short of the expected growth in sales because of\ndelays in orders from one major customer. In-Touch is scaling back on cost and\ninfrastructure that had been put in place to manage this large customer to\nensure that the company meets its annual cash flow and profitability targets.\nIn-Touch does expect negative earnings, only in the first quarter, because of\nthis customer's reduced level of purchases.\n\n\n"One major US customer, a financial company, has delayed their planned\nprogram and purchases for the first quarter and most likely the second\nquarter. In-Touch continues to sell a small amount of product ...