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VANCOUVER, Jan. 18 /CNW/ - IP Applications Corporation (TSX-Venture: IPX) announces that late in December 2006, as anticipated, two of the Company's largest and fastest growing customers renewed their contracts. Combined revenue from these contracts was 24 per cent of the Company's 2006 Q3 revenue.
"These renewals are consistent with the Company's plan to concentrate on profitable growth opportunities with existing customers as it introduces new products." said Jacobson. "Stabilizing our existing business is a key objective as we work through this challenging mix of growth, churn and change in our customer contracts. Over the long term, we expect that growing revenue streams will outpace the shrinking ones as new revenue from new products generates sales growth."
The Company experienced an expected seasonal slowdown in the fourth quarter because of the United States Thanksgiving holiday and Christmas break.
In 2007, IP Applications plans to release three new products via its existing customer channels. These existing channels allow the company to market its products and services to more than a million retail members of the channel organizations.
In respect of administrative matters, effective January 1, 2007, the Company completed a horizontal short-form amalgamation to simplify its corporate structure and reduce administrative workload and costs. The wholly-owned subsidiaries of IP Applications Remote Services Ltd. and IP Applications Soft Tracks Ltd. were amalgamated with IP Applications (Canada) Inc., which is continued into British Columbia in order to complete the amalgamation. The subsidiary was renamed IP Applications Solutions Inc., which is now the sole operating subsidiary of the Company.
About IP Applications
IP Applications Corp. serves companies bringing online products, services, content, and internet access to market. IP Applications provides a flexible combination of technology, systems and expertise for customers who have channels and products but who lack the delivery and support capabilities. IP Applications' integrated Operational Support System and contract Help Desk services dramatically reduce the cost, complexity and time to market for online products and services.
Forward-Looking Statements
This press release may contain forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs, and opinions. The company assumes no obligation to update forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.