Business
In-Touch Survey Systems Ltd. announces revenue up 33% and major new US customers
In-Touch Survey Systems Ltd. announces revenue up 33% and major new US customers.
About this update from Intouch Insight Ltd.
[{"type":"text","content":"\n\n\n\nOTTAWA, Aug. 23 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"\nTSX-Venture: INX) is pleased to announce that revenue increased 33% to\n$1,231,836 in Q2 2007 compared to $925,479 in Q2 2006. Net loss was ($25,202)\ncompared to a net income of $5,028 in Q2 2006. Cash flow from operations in Q2\n2007 used cash of $78,480 compared to negative cash flows from operations in\nQ2 2006 of $126,250. The gross margin decreased to 57% in Q2 2007 compared to\n61% in Q2 2006 and the decrease was largely attributed to the higher costs of\nthe US pilot programs. Management expects future gross margins to return to\nhistorical levels in the next two quarters.\n\n\nCapital expenditures increased to $380,682 for the first six months of\n2007 compared to $132,785 for the same period in 2006 to support new\ncustomers.\n\n\n"In-Touch successfully completed pilot programs for two major United\nStates based companies. As a result of these pilot programs, both customers\nhave issued major purchase orders for Q3 and Q4. These new customers will add\nsubstantial revenue to the company," said Michael Gaffney, Chief Executive\nOfficer.\n\n\nGuidance\n\n\nQ3 Revenue in the range of $1.35 million to $1.45 million CDN\n\n\nAnnual Revenue in the range of $4.5 million to $4.7 million CDN\n\n\n"We are very pleased with the 33% increase for Q2 and we also expect\nsignificant revenue growth in Q3 2007 compared to the same period in 2006. Our\nstrong revenue growth will continue for the remainder of the fiscal year and\ninto 2008," said Gaffney.\n\n\n 2nd Quarter 2nd Quarter $ %\n 2007 2006 Change Change\nSales Revenue $1,231,836 $925,479 $306,357 33.1%\n\nCost of Goods Sold 529,059 362,260 (166,799) -46.0%\n\nGross Profit 702,777 563,219 139,558 24.8%\n\nTotal Operating\n Expenses 693,729 529,155 (164,574) -31.1%\n\nEarnings (loss) before\n undernoted items $9,048 $34,064 (25,016)\n\nInterest Expense (21,795) (15,003) (6,792)\n\nAmortization of\n discount on\n promissory note (12,475) (9,551) (2,924)\nAmortization of\n intangible asset (4,761) (4,761) 0\n\nGain (loss) on foreign\n exchange (10,993) 279 (11,272)\n\nGain on disposal of\n assets 15,774 0 15,774\n\nNet earnings (loss) $(25,202) $5,028 $(30,230)\n\n\nCertain statements included in this news release contain forward looking\nstatements, which by their nature...