Symbol: GPS (TSX-V)
MISSISSAUGA, ON, Aug. 16 /CNW/ - BSM Technologies Inc, (GPS: TSXV)
(http://www.bsmtechnologies.com) a leading provider of high security vehicle
tracking and surveillance solutions, is pleased to report that Third Quarter
revenues for the three months ended June 30, 2006 increased by 156% to
$901,835, compared to $352,168 for the same period in 2005.
Revenue
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Revenue for the three months ended June 30, 2006 increased by 156% to
$901,835 from $352,168 for the three months ended June 30, 2005. Revenue for
the period was 47% higher than for the previous three months ended March 31,
2006. For the first nine months of 2006, BSM generated revenue of $1,988,119,
representing a 92.29% increase over the same period in 2005.
Gross Profit
------------
Gross profit for the three months ended June 30, 2006 was $419,594, an
increase of 130% compared to gross profit of $182,681 in the third quarter of
2005. As a percentage of revenues, gross profit was 46.53% compared to 51.87%
for the three months ended June 30, 2005.
Operating expenses
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Overall, operating expenses before SR & ED credit, stock based
compensation expenses, interest expenses and amortization of capital assets,
increased by $561,356 to $911,923 for the three months ended June 30, 2006,
from $350,567 for the three months ended June 30, 2005. The increased
operating expenses contained a number of one-time non operating expenses of
$80,991.
Loss from Operations
--------------------
Net loss for the three months ended June 30, 2006 was $526,447 or $0.01
per share on a diluted basis, compared with $140,461 or $0.01 per share on a
diluted basis, for the three months ended June 30, 2005. The net loss per
share for the period was also impacted by an increase in the weighted average
number of common shares from 10,517,344 to 41,774,349 for the three months
ended June 30, 2005 and 2006.
Liquidity and Capital Resources
--------------------------------
At June 30, 2006, the Company's working capital deficiency was $154,827
as compared to working capital of $16,078 at the same time last year.
Subsequent event:
In July 2006, the Company closed a debenture financing and issued
Convertible Debentures in the aggregate amount of $1,300,000.
In July 2006, Nick Cirella the President & CEO and a controlling
shareholder of the Company had agreed to settle $827,098.48 worth of debt owed
to him and companies under his control by BSM as a result of cash advances
made by Mr. Cirella and companies under his control, in exchange for 3,596,080
common shares priced at $0.23 per common share.
The Company's consolidated financial statements, accompanying notes and
Management's Discussion and Analysis will be available on the System for
Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com)
on or before August 16, 2006.
This press release is available on the company's official on-line
investor relations site for investor commentary, feedback and questions.
Investors are asked to visit http://www.agoracom.com/ir/bsm alternatively,
investors are asked to e-mail all questions and correspondence to
lmalcolm(at)bsmwireless.com where they can also request addition to the BSM
Technologies investor e-mail list to receive all future press releases and
updates directly.
About BSM Technologies (GPS:TSX-V) (http://www.bsmtechnologies.com)
BSM Technologies designs, manufactures and markets a comprehensive line
of AVSL (Automatic Vehicle Security and Tracking) solutions for Fleet
Management, Law Enforcement, and Consumer Vehicle Protection, through its
subsidiary BSM Wireless. The BSM line of products range from Fleet Management
and Consumer Vehicle Protection offerings to the full featured ''Stinger''
product featured in news media worldwide as the key technology behind the Bait
and Covert application used by hundreds of Law Enforcement agencies to deter
vehicular, trailer and heavy equipment theft.
Superior functionality, seamless switching between 2 separate footprints,
enhanced reliability, advanced security features, and excellent value
characterize BSM products. By incorporating advanced wireless locating and
mapping technology, and IP-based communications protocols, the BSM line of
products provides sophisticated real-time monitoring and control of commercial
and personal vehicle assets to meet the demanding needs and stringent
requirements of today's mobile environments. BSM's unique end-to-end solutions
feature sophisticated wireless hardware, firmware and software all developed
by and proprietary to BSM. The BSM product line can be easily adapted and
customized to match any customer user requirement while BSM's in-house support
infrastructure assures that all clients receive the premium AVSL solution in
the industry to meet their needs.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. No stock
exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein. This News Release may include
certain "forward-looking statements" that involve risks and uncertainties.
Actual results may differ materially from results indicated in any
forward-looking statements. The company cautions that, among other things, in
view of the rapid changes in communications markets and technologies, and
other risks including the cost and market acceptance of the company's new
products, the level of individual customer procurements and competitive
product offerings and pricing, and general economic circumstances, the
company's business prospects may be materially different from forward-looking
statements made by the company
%SEDAR: 00008990E
