Symbol: GPS (TSX-V)
WOODBRIDGE, ON, Jan. 30 /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 year ended September 30, 2006 increased by 166% to $3,442,201, compared to $1,296,262 for the year ended September 30, 2005.
During the year the Company has achieved significant growth in its revenue while improving bottom-line performance. The following are significant highlights related thereto:
Financial highlights for the year
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- revenue for the year increased to $3.44 Million, an increase of 166%
year over year;
- Gross profit for the year increased to $1.65 Million, an increase of
133% year over year;
- revenue arising from Canadian customers for the year increased to
$2.06 Million, compared with $0.26 Million, an increase of 685%;
- Canadian revenues now account for 60% of total company revenue for
the year compared with 20% for the comparable prior year.
Operating highlights for the year
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During the year the company announced new contracts exceeding $4.7 Million
in value. The following are significant highlights related thereto:
- On January 5, 2006, the Company announced that that it was awarded a
sole source contract from Public Works and Government Services Canada
to supply equipment to enable the RCMP-administered Integrated
Municipal Provincial Auto Crime Team (IMPACT). Total value of the
contract is $100,000.
- On February 14, 2006, the Company announced receipt of a re-order of
its products and services in connection to a previously announced
merger between Bantek West, Inc and EFMARK Premium Armored, two
pioneers in servicing automated teller machines (ATMs). Total value
of the contract is $1,000,000 over its three year term.
- On April 18, 2006, the Company announced that it received an order
for phase 2 installation of SentinelFM from a major construction
company based out of Ontario. Total value of the contract is over
$800,000 over its three year term.
- On May 3, 2006, the Company announced that it completed a sale for
100 SentinelFM units to one of Canada's largest transportation
companies. Order worth over $200,000 over its three year term.
- On July 20, 2006, the Company announced that Koch Transport, a LTL
and TL drop off and pickup carrier located in Cambridge Ontario, has
completed the implementation of BSM's SentinelFM AVL and Vehicle
Location system for their entire fleet. This sale involves over 90
units and is valued at approximately $200,000 to BSM over its three
year term.
- On September 18, 2006, the Company announced receipt of a large order
from the Automotive Technology Group (ATG) for a Fortune 500 company
providing leading-edge transportation, logistics and supply chain
management solutions worldwide. Total value of the contract is
$900,000 over its three year term.
- On September 27, 2006, the Company announced receipt of a large order
from a major oil and gas services company located in Western Canada.
Total value of the contract is approximately $1,000,000 over its
three year term.
- On October 3, 2006, the Company announced that it received an order
from an unnamed transportation company (UTC) for $500,000 over its
three year term.
Results of operations
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Revenue
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Revenue for the year ended Sept. 30, 2006, increased by 166% to $3,442,201 from $1,296,232 for the year ended Sept. 30, 2005. The Company's focus on the Canadian market has shown positive acceptance and market demand due to the scalability and sophistication justifying the performance growth in sales year over year.
Revenues from its Canadian customer base have increased by 685% to $2,067,834 for the year ended Sept. 30, 2006, compared with $263,499 for the year ended Sept. 30, 2005. Revenues from its U.S. customer base have increased to $1,374,367 for the year ended Sept. 30, 2006, compared with $1,032,733 for the year ended Sept. 30, 2005. The Company continues to increase its revenue through new customer hardware sales, thereby increasing its monthly subscriber base in both Canada and the U.S. It has also endeavored to provide more comprehensive services to existing customers.
Gross profit
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The gross profit increased by $944,815 for the year ended September 30, 2006 to $1,654,304 from $709,489 for the year ended September 30, 2005. The increase in dollar amount of Gross profit is attributable to higher sales. As a percentage of revenues, gross profit was 48% compared to 55% for the year ended September 30, 2005.
Operating expenses
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Overall, operating expenses before interest expenses and gain on settlement increased by $1,558,395 to $3,096,600 for the year ended September 30, 2006, from $1,538,205 for the year ended September 30,2005. The expenditure to revenue ratio decreased to 90% for the year ended September 30, 2006 from 119% for the year ended September 30, 2005.
Income/loss from operations
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Net loss for the year ended September 30, 2006, was $1,619,744 or $0.03 per share on a diluted basis compared with a net loss of $933,542 or $0.08 per share on a diluted basis for the year ended September 30, 2005. The net loss per share for the year was also impacted by an increase in weighted average number of common shares from 11,013,180 to 47,812,019 for the years ended September 30, 2005 and 2006.
Liquidity and capital resources
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At September 30, 2006, the Company's working capital was $720,894 (September 30, 2005 - $122,660). 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 year ended September 30, 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 September 30, 2006 was $198,889 (September 30, 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 December 8, 2006, the Company announced signing a non-binding
Letter of Intent to acquire a European-based satellite telematics
distribution company for cash consideration of approximately
$2.5 million, of which approximately $0.5 Million is subject to
holdback. The acquisition, which is anticipated to close on or before
January 31, 2007, and is being funded pursuant to the private
placement described below. The name of the target company has been
withheld, pending formal documentation and closing. The acquisition
is 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 January 4, 2007, the Company also announced that it had completed
a private placement of 22,470,000 subscription receipts for gross
proceeds of $4,494,000. The gross proceeds from the private placement
are being held in escrow pending the closing of the acquisition
described above.
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 Jan. 29, 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.
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.