IP Applications Corp. Reports Q3 2007 Results and Continuing Progress

About this update from Santa Rosa Resources Corp.

[{"type":"text","content":"\n\n\n\nVANCOUVER, Nov. 29 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today\nannounced its quarterly and year-to-date results for the period ended\nSeptember 30, 2007.\n\n\nFor the three months ended September 30, 2007 revenue was $1.9M compared\nto $2.4M in the corresponding period in 2006. The net loss decreased to $197K\nfrom $472K. EBITDA loss was $6K, an improvement over the loss of $49K in the\ncorresponding quarter in 2006.\n\n\nFor the nine months ended September 30, 2007 revenue was $5.9M compared\nto $7.2M in the corresponding period in 2006. The net loss decreased\nsubstantially to $630K from $1.52M. EBITDA was $6K, as compared to the loss of\n$284K in the corresponding period in 2006.\n\n\nJohn Jacobson, President and CEO said, "For a company in a turn-around\nsituation, IP Applications is showing positive progress - the third quarter\nresults show that revenue has stabilized and EBITDA remains near cash\nbreak-even levels. However, approximately 84% of IP Applications' revenue is\ninvoiced in US dollars and the continued decline in the dollar's value has\nmasked the very real operational improvements we've accomplished over the past\nyear and that we continue to work on. Had the exchange rate remained at Q1\nlevels through Q2 and Q3, we would've reported an increase in Q3 revenue over\nQ2, positive cash flow and operating results trending toward profitability in\nthe fourth quarter. We haven't experienced any impact from the credit crisis\nor from slowing consumer spending that might affect our customers, although\nseveral new contracts signed in the early fall have taken longer to begin\ndelivering revenue than was expected. We have no reason to believe that these\ncontracts won't soon perform as originally budgeted."\n\n\nAchievements through the first nine months of 2007:\n\n\n- Fiscal year-to-date, the Company achieved positive EBITDA of $6K\n compared to the loss of $284K over the same nine-month period in\n 2006. This despite the negative impact of the rapidly depreciating\n US$ which has resulted in a foreign exchange loss of $103K\n year-to-date.\n\n- Gross margin improved to 44.7% year-to-date, as compared to 40.3% in\n the comparable nine-month period in 2006.\n\n- Operating expenses declined 26% to $3.3M year-to-date, as compared to\n $4.4M for the same nine-month period in 2006.\n\n- Net ...

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