OTTAWA, May 2 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to release its 2006 financial statements. Revenue increased 115.7% to $3,632,304 in 2006 compared to $1,684,290 in 2005. Net Losses were $145,542 in 2006 compared to a net loss of $234,050 in 2005. Net losses in 2006 included several significant non-cash share-issuance and stock-based compensation items, as well as amortization of a significant portion of the cost of acquisition of Tenox. Cash flow from operations in 2006 was positive at $249,682 compared to a cash flow deficit from operations in 2005 of $83,756. Gross margins were $2,132,622 in 2006 compared to $1,316,010 in 2005. In-Touch's income and cashflow also reflect the fact that In-Touch continues to expense R&D, while enhancing its technology.
"In-Touch continues to add new customers and diversify its product offering and 2006 put the company on a solid growth path. The acquisition of Tenox in 2005 had a significant effect in increasing revenue while lowering our overall gross margin as the Tenox services have higher variable costs compared to legacy In-Touch products. One of our 2007 goals is to move our consolidated gross margin above 60% in this fiscal year," said Michael Gaffney, Chief Executive Officer.
"We are very pleased with the 115% increase in revenue and increases in cash flow from operations for 2006. We also expect significant revenue growth in 2007 as we continue to sign up new large retail customers," said Gaffney.
FY 2006 FY 2005 FY 2004
Sales Revenue $3,632,304 $1,684,290 $1,449,023
Cost of Goods Sold 1,499,682 368,280 (367,891)
Gross Profit 2,132,622 1,316,010 1,081,132
Total Operating Expenses 2,145,690 1,477,089 (2,103,843)
Loss before undernoted items ($13,068) ($161,079) (1,022,711)
Interest Expense (80,249) (67,495) (41,362)
Amortization of discount on
convertible debenture - (22,878) (15,418)
Amortization of discount on
promissory note (38,044) (7,202) -
Amortization of intangible asset (18,940) (3,278) -
Gain (loss) on foreign exchange (1,299) (533) 18,399
Gain on settlement of leases - 28,415 -
Gain (loss) on disposal of assets 6,058 - (27,233)
Net loss ($145,542) ($234,050) ($1,088,325)
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 information 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