Business
In-Touch Survey Systems Ltd. announces Q2 2009 financial results
OTTAWA, Aug. 14 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is plea...
About this update from Intouch Insight Ltd.
[{"type":"text","content":"\n\n\n\nOTTAWA, Aug. 14 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"\nTSX-Venture: INX) is pleased to announce that revenue grew by 8% to $1,414,500\nin Q2 2009 compared to $1,313,120 in Q2 2008. Net loss for Q2 2009 was $89,267\nsimilar to a net loss of $86,263 in Q2 2008.\n\n\nThe strength of the Canadian dollar caused a foreign exchange loss of\n$28,500 in Q2 2009 compared to a gain of $1,000 in Q2 2008. FY 2008 Audit\ncosts were $23,000 higher because of the two acquisitions in 2008. Net income\nwas negatively affected because of the product mix as noted below. Also,\nMarket Research revenues were not as high as expected.\n\n\nCash flow from operations (adjusted EBITDA - see details in MD&A) was\n$27,000 in Q2 2009 compared to $30,000 in Q2 2008. The Q2 2009 gross margin\nwas 58% compared to 64% in Q2 2008. Manual Data Collection ('MDC') revenues\ngrew by 20% which accounted for most of the revenue increase. MDC gross\nmargins are typically 40% compared to 70% gross margins for Electronic Data\nCollection ('EDC'). The sales mix volume, favouring MDC products, was the main\nfactor in the gross margin decrease.\n\n\n"Even though over one million dollars worth of EDC orders for 2009 were\ncancelled due to the economic downturn, Electronic Data Collection ('EDC') Q2\n2009 revenues were flat compared to Q2 2008. Our acquisition strategy and hard\nwork by the sales team have largely mitigated the effects of a challenging\neconomic period and maintained Q2 EDC revenues at last year's levels. We are\nclosely monitoring Q3 sales as this is when the largest sales order\ncancellations occurred last year," said Michael Gaffney, Chief Executive\nOfficer.\n\n\nConsolidated Statements of Operations Q2 2009 Q2 2008\n ------------ ------------\n\nRevenue $ 1,414,500 $ 1,313,120\n\nCost of services and goods sold 600,409 473,922\n ------------ ------------\n\nGross profit 814,091 839,198\n\nTotal operating expenses 831,612 912,914\n ------------ ------------\nEarnings (loss) before undernoted items (17,521) (73,716)\n\nInterest expense (40,098) (20,332)\nAmortization of financing costs (2,670) (8,123)\nAmortization of discount on promissory note - (16,292)\nAmortization of intangible asset (2,682) (12,997)\nChange in fair value of derivative - 44,123\nGain (loss) on foreign exchange (28,491) 1,074\nGain on d...