Business
In-Touch Survey Systems Ltd. Announces Record Q3 2013 Financial Results and Executive Changes
OTTAWA , Nov. 21, 2013 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) today...
About this update from Intouch Insight Ltd.
[{"type":"text","content":"\n\n\nOTTAWA, Nov. 21, 2013 /CNW/ - In-Touch Survey Systems Ltd. (\"In-Touch\")\n (TSXV: INX) today announced its operating and financial results for the\n quarter ended September 30, 2013.\n\n\nRevenue for the third quarter was $3,323,330, which was 20% higher than\n revenue of $2,763,145 in the same quarter in 2012. Net income before\n taxes for the third quarter were $505,307 compared to $353,915 reported\n in the same quarter in 2013 - a 43% increase. Additional revenue from\n the new GCS product line and an increase in the gross margin were the\n main contributors to the higher income. The higher income was attained\n even with the Company keeping Product Development and Marketing\n spending at its higher than previous year's levels. G&A expenses were\n also higher with additional expenses related to the acquisition of GCS\n Field Research (\"FR\") in Q2 2013.\n\n\nGross Margin increased to 55% in the third quarter compared to 53% for\n the same quarter in 2012. Company-defined adjusted EBITDA increased to\n $679,000 for the third quarter, compared to an EBITDA of $468,000 for\n the same quarter in 2012. The improvement in Gross Margin resulted from\n a concerted effort over the past two years to return our margins to\n historical levels.\n\n\n\"We are pleased to report the highest quarterly revenues, quarterly net\n income and quarterly EBITDA in the Company's history. Q3 is\n historically our best quarter. Over the past several quarters the\n Company has focused on developing and enhancing its product lines and\n operational processes with significant investments in software. The\n Company will continue to invest in product development and marketing\n because we expect significant changes in our current markets with\n historical customers dropping off older programs and moving to newer\n solutions. We expect at least 25% churn in our revenues and anticipate\n that our investment in new technologies will replace the lost revenue\n in fiscal year 2014. As previously reported, the acquisition of FR on\n April 1, 2013 opened important new compliance markets for the Company.\n We expect the compliance market to expand with increasing government\n regulation in food, education, pharmaceutical and financial services.\n The acquisition, integration and transition of FR into In-Touch was\n relatively seamless,\" said Michael G...