Google Übersetzer
VANCOUVER, April 29 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today announced its quarterly and financial results for the year ended December 31, 2007.
For the year ended December 31, 2007 revenue was $7.7 million, a 17% decrease compared to $9.3 million for the twelve-month period ended December 31, 2006, and the net loss improved 69% to $(910)K from $(2.9) million. Significantly, the EBITDA loss for 2007 narrowed to $(126)K, a 79% improvement from the previous year.
For the quarter ended December 31, 2007 revenue was $1.8 million compared to $2.1 million in the corresponding period in 2006. The net loss decreased 79% to $(280)K from $(1.4) million. EBITDA loss was $(132)K, a 57% decrease from $(307)K in the corresponding quarter in 2006.
John Jacobson, President and CEO said "We were pleased with the progress made in 2007 even though the year was very challenging due to the rapid decline in the value of the US dollar and the fact we receive approximately 83% of our revenue in US dollars. While the Company delivered 17% more billable hours of technical support services in 2007 than in 2006, the decline in the value of the US Dollar over the year reduced the effect of this growth on financial performance.
In line with our goal to find new opportunities for the capabilities and technologies at IP Applications, we are pursuing new opportunities working with companies delivering software by subscription over the Internet, a delivery model called "Software as a Service" or "SaaS". The extensive expertise and technology that IP Applications' built over the last decade gives it unique capabilities to enable and support software delivery over the Internet. The market research firm Gartner, Inc. has forecast an annual growth rate of 22.1% for SaaS software demand, more than double the growth rate of the enterprise software market as a whole. It's a very interesting new application area for the Company's technology."
Achievements in 2007:
- We operated at substantially break-even for the year
- Gross margin for the year improved relative to 2006
- We settled our outstanding debt and added $1.2 million in new cash
through an equity financing in November 2007
- We released a new online commerce service to Melaleuca, Inc., a long-
time customer
- We were successful in expanding our volume of business with several
other long-term customers
Non-GAAP measures
EBITDA is a key measure used by management to evaluate the Company's
performance. Management believes that EBITDA is useful as it provides an
indication of the results generated by the Company's business activities prior
to taking into consideration how those activities are financed and taxed and
also prior to taking into consideration asset depreciation and other non-cash
expenditures. EBITDA is not a recognized measure under Canadian GAAP, and
accordingly, investors are cautioned that EBITDA should not be construed as an
alternative to net earnings or loss determined in accordance with GAAP as an
indicator of the financial performance of the Company or as a measure of the
Company's liquidity and cash flows. EBITDA may not be comparable to similar
measures presented by other issuers. The schedule below details how IP
Applications reconciles its net loss per GAAP to EBITDA for the most recent
four quarters:
December September June March
(000's) 31 2007 30 2007 30 2007 31 2007
-------------------------------------------------------------------------
Operating Loss $(280) $(197) $(247) $(186)
Amortization 111 107 122 122
Stock-Based Compensation 37 31 60 37
Other - 52 52 52
-------------------------------------------------------------------------
EBITDA $(132) $ (7) $ (13) $ 25
-------------------------------------------------------------------------
Additional details on the quarterly and year end results, including the audited Consolidated Financial Statements and Management Discussion and Analysis, are available at www.sedar.com under IP Applications Corp.
About IP Applications Corp.
IP Applications delivers hosting, business process automation and customer care for companies in the rapidly expanding Software-as-a-Service (SaaS") market. IP Applications' customers use the Company's data center and staff instead of developing their own infrastructure and administrative software. Customers are free to focus on their product technology while IP Applications solves the end user satisfaction and delivery management issues for them.
Forward-Looking Statements
This press release may contain forward-looking statements. The Company cautions users of this forward-looking information that actual results or events may vary materially either favorably or unfavorably from those described due to a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to: the inability of the Company to accurately forecast the revenue from new and existing customers; the inability of the Company's customers to accurately forecast their own demand for the Company's products and service; changes in the relative value of the US and Canadian dollars; the possibility that one or more customers or suppliers might experience financial difficulties that could affect the Company's ability to deliver and get paid for its products and services; and changes in the growth rate of technology and telecommunications concerns. Refer to the Company's management's discussion and analysis ("MD&A") for further discussion of these and other risks and uncertainties in relation to such forward-looking information.
Forward-looking information is based on management's current expectations, estimates and opinions. Please refer to the MD&A for a discussion of the events and circumstances which occur that cause, or are likely to cause, actual results to differ materially from such forward-looking information.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.