WOODBRIDGE, ON, March 2 /CNW/ - BSM Technologies Inc, (GPS: TSXV) (http://www.bsmtechnologies.com)(the "Company") a leading provider of high security vehicle tracking and surveillance solutions, is pleased to report that revenues for the Quarter ended December 31, 2006 increased by 196% to $1,400,410, compared to $472,327 for the quarter ended December 31, 2005.
Financial highlights for the quarter ended December 31, 2006
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- revenue for the quarter increased to $1,400,410, an increase of 196%
quarter over quarter;
- gross profit for the quarter increased to $ 733,918, an increase of
220% quarter over quarter;
- revenue arising from Canadian customers for the quarter ended
December 31, 2006 increased to $1,205,032, compared with $353,954 for
the quarter ended December 31, 2005, an increase of 241% quarter over
quarter;
Operating highlights for the Quarter
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The following are significant highlights related to the quarter:
- On October 5, 2006, the Company announced that it received a
follow-up order from a Fortune 500 Canadian Transportation company.
Total value of the contract is $200,000.
- On November 16, 2006, the Company announced an order with an
anonymous oil and gas company. Total value of the contract is
$450,000.
- On December 8, 2006, the Company announced that it has signed a
non-binding Letter of Intent ("LOI") to acquire a European-based
satellite telematics distribution company (the "Telematics
Distributor") for cash consideration of approximately $2.5 million,
of which approximately $0.5 million is subject to holdback.
- On December 8, 2006, the company also announced that it has engaged a
syndicate of agents, led by Clarus Securities Inc., in connection
with a proposed private placement of subscription receipts for
expected gross proceeds of between $3 million and $5 million.
Subsequent to the quarter end, on January 4, 2007 the company announced closing the private placement for gross proceeds of $ 4,494,000 and on February 2, 2007, announced closing the acquisition of SecTrack NV ("SecTrack"), a European-based satellite telematics distribution company.
Results of operations
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Revenue
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Revenue for the quarter ended Dec. 31, 2006, increased by 196% to $1,400,410 from $472,327 for the quarter ended Dec. 31, 2005.
Gross profit
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The gross profit increased by $504,391 for the quarter ended December 31, 2006 to $733,918 from $229,527 for the quarter ended December 31, 2005. The increase in dollar amount of Gross profit is attributable to higher sales. As a percentage of revenues, gross profit was 52% compared to 49% for the quarter ended December 31, 2005.
Operating expenses
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Overall, operating expenses before interest expenses and amortization increased by $474,202 to $979,260 for the quarter ended December 31, 2006, from $505,058 for the quarter ended December 31, 2005. The expenditure to revenue ratio decreased to 69.9% for the quarter ended December 31, 2006 from 106.9% for the quarter ended December 31, 2005.
Income/loss from operations
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Net loss for the quarter ended December 31, 2006, was $368,417 or $0.01 per share on a diluted basis compared with a net loss of $311,270 or $0.02 per share on a diluted basis for the quarter ended December 31, 2005. The net loss per share for the quarter was also impacted by an increase in weighted average number of common shares from 18,967,798 to 49,170,735 for the quarters ended December 31, 2005 and 2006.
Liquidity and capital resources
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At December 30, 2006, the Company's working capital was $ 526,787 (December 31, 2005- $ 815). Working Capital has been calculated by netting current assets and current liabilities, and excluding deferred revenue which is a non cash item. The increase in working capital is caused by the equity and convertible debenture financing completed during the period January 2006 to September 2006 and the exercise of warrants during the three months ended December 31, 2006. The Company intends to use these funds for expanding its marketing efforts in both Canada and the U.S., and for general working capital. As with most growth enterprises, depending on the pace of the anticipated expansion of the company's operations additional financing may be contemplated in the future.
The Company has a credit facility with a Canadian Chartered Bank for $200,000, which allows for a borrowing limit of up to $ 200,000. The balance of advances outstanding at December 31, 2006 was $198,889 (December 31, 2005: Nil). Security for the borrowings of the Company has been provided to the bank in the form of cash collateral agreement assigning GIC in the amount of $200,000.
Subsequent events
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As earlier press released:
On January 4, 2007, the company announced closing the private placement of subscription receipts (the "Subscription Receipts"). The Private Placement consisted of 22,470,000, Subscription Receipts at a price of $0.20 per Subscription Receipt for gross proceeds of $4,494,000. The gross proceeds from the private placement were to be held in escrow pending the closing of the acquisition of Sectrack NV("SecTrack"), a European-based satellite telematics distribution company. Each subscription receipt was to be automatically exchanged for one unit (the "Unit") of BSM, without payment of additional consideration, on the date of the closing of the Acquisition. Each Unit consisted of one common share of BSM and a partial common share purchase warrant, each whole warrant being exercisable to acquire an additional common share of BSM at a price of $0.25 per Common Share for a period of 24 months following the closing of the private placement.
The acquisition of Sectrack was for cash consideration of approximately $2.5 million, of which approximately $0.5 million is subject to holdback. The acquisition was subject to due diligence by BSM, negotiation of all definitive documentation, completion of the necessary financing, approval by the BSM board, approval of the TSX Venture Exchange and other customary conditions. The TSX venture Exchange's conditional approval was obtained on January 2, 2007. On February 1, 2007, the company announced closing the acquisition of SecTrack.
The syndicate of agents, led by Clarus Securities Inc.("Agents") were paid a cash commission of 7% of the gross proceeds of the private placement, and in addition were granted a number of compensation options (the "Compensation Options") equal to 10% of the total number of Units sold pursuant to the private placement. Each Compensation Option entitled the holder to acquire one Unit under the same terms and conditions as the Offering, for a period of 24 months following the closing of the private placement.
Immediately following the closing of the acquisition of SecTrack, the 22,470,000 subscription receipts issued on the closing of the Company's previously completed $4,494,000 private placement of January 4, 2007 were automatically converted into units (each, a "Unit") of the Company. Each Unit consists of one common share of BSM (the "Common Shares") and one-half of one common share purchase warrant (the "Warrants"), with each whole Warrant being exercisable to acquire an additional Common Share of BSM at a price of $0.25 per Common Share until January 4, 2009. These securities remain subject to a four month hold period until May 5, 2007.
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 after March 1, 2007.
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 GPS@agoracom.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, features 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.
About SecTrack
SecTrack sells Inmarsat D+ transceivers and airtime subscription to value added resellers around the world. These VARs are typically local companies who have built a proper monitoring and tracking service for end-users in a multitude of maritime and land based sectors including nuclear transport monitoring, mining, security tracking of trucks, trailers and other vehicles and tracking of airplanes and rescue helicopters. The company's customer base is spread over Europe, Asia, Africa and Central and South America
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