OTTAWA, Aug. 29 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to announce that revenue increased 13% to $1,313,120 in Q2 2008 compared to $1,231,836 in Q2 2007. Net loss increased to $86,263 compared to a net loss of $25,202 in Q2 2007. Cash flow from operations (adjusted EBITDA - see detailed financials) decreased to $30,000 in Q2 2008 compared to $90,000 in Q2 2007. The Q2 FY 2008 gross margin was 64% compared to 57% for Q2 2007.
"We continued our revenue growth in Q2 2008 over Q2 2007 and we expect Q3 2008 to meet or exceed Q2 2008 in percentage revenue growth with even stronger positive cash flows in terms of adjusted EBITDA. I am pleased with our margin improvement - a positive reflection on our significant investment in software development over the past three years. Several of our Fortune 1000 customers have told us that 'In-Touch has the best technology for data collection and data integration' of all their electronic data collection suppliers," said Michael Gaffney, Chief Executive Officer.
"Thursday's announcement of the planned acquisition of NCI Mobility of Chicago also bodes well for future revenue growth and operational scalability. We expect NCI to add over $1.25 million in annual revenues with no additional operational staff. We acquired their sales staff and assets and eliminated all other operational costs", said Gaffney.
(000,s) 2008 2008 2007 2007 2007 2007 2006 2006
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
Sales
revenue $1,313 $1,160 $1,455 $1,413 $1,232 $961 $863 $956
Cost of
services 474 499 591 579 529 391 418 349
Gross
profit 839 661 864 834 703 570 445 607
Total
operating
expenses 913 895 760 634 694 617 544 579
Earnings
(loss)
before
under-
noted
items $(74) $(234) $104 $200 $9 $(47) ($99) $28
Net
earnings
(loss) $(86) $(241) $(269) $165 $(25) $(96) ($153) $1
Calculation
of
non-GAAP
earnings
from
operations.
To net
earnings
add:
Interest
expense 20 26 33 28 22 30 47 11
Amorti-
zation 105 86 150 79 70 58 55 61
Change in
fair
value of
derivative (44) 4 60 - - - - -
Stock-based
compen-
sation and
shares
released
from
escrow 35 45 27 23 23 47 81 21
Adjusted
EBITDA $30 $(80) $1 $295 $90 $39 $30 $94
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
Detailed financial statements and Management's Discussion and Analysis can be found on www.sedar.com.
The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.
%SEDAR: 00007687E