OTTAWA, May 23 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"
TSX-Venture: INX) is pleased to announce that revenue increased 173% to
$887,322 in Q1 2006 compared to $324,491 in Q1 2001. Net income was slightly
positive at $1,274 compared to a net lost of $59,682 in Q1 2005. Cash flow
from operations in Q1 2006 was positive at $65,281 compared to negative cash
flows from operations in Q1 2005 of $133,523.
"In-Touch was close to bankruptcy in August 2004. We began the turnaround
of In-Touch in Q4 2004 with a new cost structure and a new product strategy
that were developed and implemented throughout 2005" said Michael Gaffney,
Chief Executive Officer.
"Our focus for 2006 is to significantly increase revenue compared to
2005. We are very pleased with the 173% increase for Q1 and we also expect
significant revenue growth in Q2 2006 compared to the same period in 2005.
While we expect strong revenue growth in 2006 compared to 2005, the quarterly
numbers will be variable - reflecting normal variability in the selling cycle
and the size and mix of orders," said Gaffney.
"We anticipate closing the previously announced $1,000,000 in financing
in the next few months. The effective share price for this transaction is
$0.36 - conditional upon In-Touch increasing its revenue by approximate 110%
over 2005 to revenues of $3,500,000 in 2006. If 2006 revenues do not reach the
$3,500,000 target, then the effective share price for the investment may be
decreased, to no lower than $0.22 per share. This investment by the Madison
Grant Fund Inc. will greatly strengthen our balance sheet," said Gaffney.
<<
1st Quarter 1st Quarter $ %
2006 2005 Change Change
Sales Revenue $887,322 $324,491 $562,831 173.5%
Cost of Goods Sold 369,917 30,442 (339,475) 1115.2%
Gross Profit 517,405 294,049 223,356 45.5%
Total Operating
Expenses 493,181 329,460 (163,721) 76.0%
Earnings (loss)
before undernoted
items $24,224 ($35,411) 59,635
Interest Expense (6,841) (16,067) 9,226
Amortization of
discount on
convertible
debenture 0 (7,736) 7,736
Amortization of
discount on
promissory note (7,366) 0 (7,366)
Amortization of
intangible asset (4,657) 0 (4,657)
Loss on foreign
exchange (4,086) (468) (3,618)
Net earnings (loss) $1,274 ($59,682) $60,956
>>
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.
The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.
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