Business
IP Applications Corp. Achieves Positive EBITDA during the First Half of 2007
IP Applications Corp. Achieves Positive EBITDA during the First Half of 2007.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\nVANCOUVER, Aug. 22 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today\nannounced its quarterly and semi-annual results for the period ended June 30,\n2007.\n\n\nFor the first three months ended June 30, 2007 revenue was $1.9M compared\nto $2.3M in the corresponding period in 2006. The net loss decreased to $247K\nfrom $640K. EBITDA loss was $13K, a significant improvement from the loss of\n$221K in the corresponding quarter in 2006.\n\n\nFor the six months ended June 30, 2007 revenue was $4.0 million compared\nto $4.8 million in the corresponding period in 2006. The net loss decreased to\n$433K from $1.05M. EBITDA was $12K, as compared to the loss of $235K for the\nsix months ended June 30, 2006.\n\n\nJohn Jacobson, President and CEO said "The dramatic decline in the US\nDollar since 2005 has been a challenge for IP Applications. We estimate that\nfor every cent the Canadian Dollar rises against the US Dollar, the Company's\nannualized revenues would decline by approximately $73K. In the short term,\ncost control has improved our bottom line. Our long-term strategy is to shift\nmore of our costs to products and services we purchase with US Dollars and to\nreduce costs outright by shifting some of our labour expenses to lower cost\nlocations around the globe. This should make us more competitive and more\nefficient, and this competitiveness will support growth."\n\n\nAchievements during the first half of 2007:\n\n\n- During the first half of 2007, the Company achieved positive EBITDA of\n $12K compared to the loss of $235K in the same period in 2006; this is\n the result of our continued focus on operational efficiencies.\n- Gross margin improved to 42.6% in the second quarter, as compared to\n 37.6% in the comparable quarter in 2006.\n- Operating expenses declined 31% to $1.0M in the current quarter, as\n compared to $1.5M for the three month period ended June 30, 2006.\n- Operating expenses declined 26% to $2.2M for the six months ended\n June 30, 2007, down from $3.0M in the six months ended June 30, 2006.\n- Net loss for the six months ended June 30 improved 59% to $433K in\n 2007 from $1.05M in 2006. The second quarter loss also improved 61% to\n $247K from $640K in 2006.\n- In March 2007, the Company entered into a revolving line of credit\n facility with a major Canadian chartered bank. The maximum bo...