BSM Technologies Reports Third Quarter 2008 Revenues of $2.29 Million
Woodbridge, Ontario CANADA, August 29, 2008 /FSC/ - BSM Technologies Inc. (GPS - TSX Venture), (BSM)(http://www.bsmtechnologies.com) a leading provider of high security vehicle tracking and surveillance solutions today announced that revenues for the quarter ended June 30, 2008 were $ 2,287,695.
Results of operations
Revenue
Revenue for the quarter ended June 30, 2008 decreased by $71,476 or 3.03% to $2,287,695, compared to $2,359,171 for the quarter ended June 30, 2007. The decrease of $71,476 from June 30, 2007 quarterly revenues of $2,359,171 can be attributed to lower sales to South American customers.
Gross Profit
The gross profit for the quarter ended June 30, 2008 increased by $ 153,585 to $1,086,562 or 47.5% of the revenue from $932,977 or 39.55% of the revenue for the three months ended June 30, 2007. The increase in quarterly total gross profit was primarily due to increase in higher gross profit margin services revenue, a result of the growth of the services subscriber base and introduction of additional billable service features such as our new data bus integration offering. As a percentage of revenues, gross profit for the quarter ended June 30, 2008 was 47.5% compared to 39.55% for the quarter ended June 30, 2007. The increase in total gross profit margins was due primarily to reduction in cost of the hardware devices, and increased sales mix of higher gross profit margin services revenue.
Income/loss from operations
Net loss for the three months ended June 30, 2008 was $603,234 or $0.01 per share (basic and diluted) compared with a net loss of $780,348 or $0.01 per share (basic and diluted) for the for the three months ended June 30, 2007.
Operating expenses
Operating expenses before interest expenses decreased by $ 29,015 to $1,559,793 for the three months ended June 30, 2008 from $ 1,588,808 for the three months ended June 30, 2007. The quarter over quarter decrease in operating expenses was the result of overall costs reduction initiative despite additions that were made to the research and development, and operations functions caused by integration of Netistix staff.
Liquidity and capital resources
The Company used $77,460 to finance operating activities during the three months ended June 30, 2008 including $455,347 in operating losses offset by a decrease of $ 377,887 in non cash operating working capital. This compares with cash used in the three months ended June 30, 2007 of $ 628,881 - $707,627 to finance operating losses offset by a decrease of $78,746 in non cash operating working capital. Increased accounts payable, and lower Inventory relative to increase in Account Receivable accounted for the changes in the non-cash working capital.
At June 30, 2008 the working capital was $ 416,284 (June 30, 2007- Working capital $ 892,745). 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 relative to the immediately preceding quarter is caused by (i) completion of the private placement of the 2008 Convertible debentures financing of $2.35m and (ii) replacement of $800,000 of 2006 Convertible debenture with 2 year Reconstituted Debentures.
Subsequent events
As earlier press released:
On July 2, 2008, the Company closed $300,000 of the balance amount of the total $2,650,000 Convertible Debentures (the "2008 Convertible Debentures") financing, which was announced on July 3, 2008.
From the proceeds of the 2008 Convertible debenture financing, $500,000 was used to repay $500,000 of the 2006 Convertible Debentures with the balance used for working capital.
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 30, 2008.
The company also effected shares for debt settlement to settle $26,250 of services for 350,000 common shares priced at $0.075 per share. Shares issued are legended and restricted from trading until December 14, 2008.
This press release is available on the Company's official website at http://www.bsmtechnologies.com. Alternatively, investors are able to e-mail their questions to ir@bsmwireless.com where they can also request addition to the BSM investor e-mail list.
About BSM Technologies
BSM Technologies designs, manufactures and markets a comprehensive line of AVSL ("Automatic Vehicle Security and Tracking") solutions for Commercial and Government Fleet Management, including Law Enforcement, 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 two 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.
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
About Netistix Technologies
Incorporated in 2002, Netistix Technologies Corporation is headquartered in Ottawa, Canada and has developed a comprehensive and customizable wireless fleet management solution known as "FleetPulse". The Netistix "FleetPulse", Wireless Fleet Management System, delivers actionable information that reduces fleet operation and environmental costs, improves productivity and increases safety.
For more information, please visit
http://www.netistix.com
Company Contact
Mr. Aly Rahemtulla
President & CEO
BSM Technologies Inc.
1-(905) 265-1200
aly@bsmwireless.com
www.bsmwireless.com
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development.
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.
Source: BSM Technologies Inc. (TSX-V: GPS) http://www.bsmtechnologies.com
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