Business
In-Touch Survey Systems Ltd. announces Q1 2008 financial results and the closing of acquisition
OTTAWA, May 30 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleas...
About this update from Intouch Insight Ltd.
[{"type":"text","content":"\n\n\n\nOTTAWA, May 30 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"\nTSX-Venture: INX) is pleased to announce that revenue increased 21% to\n$1,159,999 in Q1 2008 compared to $961,238 in Q1 2007. Net loss increased to\n$240,806 compared to a net loss of $95,589 in Q1 2007. Cash flow from\noperations (adjusted EBITDA - see detailed financials) decreased to $(80,000)\nin Q1 2008 compared to $39,000 in Q1 2007. The Q1 FY 2008 gross margin was 57%\ncompared to 59% for Q1 2007.\n\n\n"While we achieved significant sales growth, compared to the same quarter\nlast year, sales growth was lower than expected due to a major US customer\ndelaying its purchases. We had ramped expenses with the understanding that\nthis customer would begin purchases in Q1 but have since pulled back on these\ncosts which will not reappear in Q2 2008. This customer, one of the largest\nfinancial institutions in the United States, continues to purchase at reduced\nlevels. We are pleased that during the quarter In-Touch completed several\nsoftware development projects that allow the company to scale significantly\nwithout adding employees. The benefits of this technology will be seen in the\nnext quarter with considerably improved margins and fewer employees - at\nhigher revenue levels," said Michael Gaffney, Chief Executive Officer.\n\n\n"In-Touch is also pleased to announce that the previously announced\nacquisition of MarketLine Research Corp., of Minneapolis Minnesota, has closed\nand is expected to make an immediate positive impact. Q2 2008 sales are also\nexpected to be higher than Q2 2007 and that the company will have positive\nEBITDA and close to positive Net Income," said Gaffney.\n\n\n 2008 2007 2007 2007 2007 2006 2006 2006\n Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2\nSales\n revenue $1,160 $1,455 $1,413 $1,232 $961 $863 $956 $925\nCost of\n services 499 591 579 529 391 418 349 362\nGross\n profit 661 864 834 703 570 445 607 563\nTotal\n operating\n expenses 895 760 634 694 617 544 579 529\nEarnings\n (loss)\n before\n undernoted\n items $(234) $104 $200 $9 $(47) ($99) $28 $34\nNet\n earnings\n (loss) $(241) $(269) $165 $(25) $(96) ($153) $1 $5\nCalculation\n of non-GAAP\n earnings\n from\n operations.\n To net\n earnings\n add:\nInterest\n expense 26 33 28 22 30 47 11 15\nAmorti-\n zation 86 150 79 70 58 55 61 55\nChange in\n f...