Business
IP Applications Corp. reports 68% revenue increase in fiscal period ended December 2005
IP Applications Corp. reports 68% revenue increase in fiscal period ended December 2005.
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, April 28 /CNW/ - IP Applications Corp. (TSX-Venture: IPX)\ntoday announced its quarterly and financial year-end results for the \nnine-month period ended December 31, 2005. The Company changed its fiscal year\nend from March 31 to December 31 in 2005.\nRevenue grew substantially by 68% to $6.3 million for the nine month\nperiod ended December 31, 2005 compared to the corresponding period in 2004.\nThe Company held a cash balance of $434,690 at December 31, 2005. For the\nquarter, revenue increased 46% to $2.34 million compared with $1.60 million\nfor the same period in 2004. The loss for the nine months was $2.9 million or\n$0.21 per share (basic) and the loss for the quarter was $1.54 million or\n$0.10 per share (basic).\nThe Company absorbed significant expenses related to acquisitions,\nfacilities and other non-recurring items during the quarter as it brought its\ncost structure into line with revenues to enable it to generate positive cash\nflows from operations in 2006.\n\nAchievements in 2005:\n\n - Increased revenue by 68%\n\n - Raised gross proceeds of $2.2 million from three private\n placements during the period\n\n - Acquired and successfully migrated over 40,000 subscribers from\n two customer contract acquisitions\n\n - Consolidated multiple Greater Vancouver office locations into one\n location\n\n - Made significant progress in aligning our cost structure towards\n generating positive cash flows from operations\n\nBackground:\n\nRevenues include fees for back office, technical support, and channel\nservices billed to clients. These fees are primarily recurring monthly and are\nearned on a per end-user basis. The Company also charges additional fees to\nclients for the provisioning of end users and new services onto the Company's\nplatform.\nApproximately 70% of the increase in revenues for the nine months\nresulted from increases in billings to two existing customers and from five\nnew customers, two of which were acquired in capital transactions during the\nyear.\nThe company's costs for the period also increased. Some of the increased\ncosts were a result of one-time events and unusual circumstances. The\nCompany's Gross Margin improved from 36% to 37% as compared to the comparable\nperiod a year earlier.\nDirect costs include expenses related to the provisioning of back office,\nchannel ser...