OTTAWA, May 1 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-
Venture: INX) is pleased to announce that revenue increased more than 16% to
$1,684,290 in FY 2005 compared to $1,449,023 in FY 2004. The net loss
decreased to $234,050 in FY 2005 compared to a net loss of $1,088,325 in
FY 2004. The negative cash flow from operations in FY 2005 was $83,756,
significantly lower than the negative cash flows from operations in FY 2004 of
$652,274. In-Touch was cash flow positive in FY 2005 after subtracting non
cash expenses for the amortization of capital assets and stock based
compensation. Detailed financial information of In-Touch can be found on
www.sedar.com.
"In-Touch was close to bankruptcy in August 2004. We began the turnaround
of In-Touch in Q4 2004. I congratulate the team for increasing revenue by 16%
and reducing expenses by 78% to make In-Touch cash flow positive in FY 2005,"
said Michael Gaffney, Chief Executive Officer.
"Revenue for Fiscal Year 2006 continues to be encouraging. In Q4 2004,
when we began the turnaround, In-Touch quarterly revenues had dropped to
$162,143. Six quarters later, in Q1 2006 we expect a five fold increase in
revenue compared to Q4 2004. We also expect revenues for FY 2006 to increase
by at least 60% over FY 2005. However, despite the improved performance of In-
Touch, the company continues to have limited operating capital and is
searching for investment and acquisition opportunities that will improve our
balance sheet," said Gaffney.
<<
$ %
FY 2005 FY 2004 Change Change
Sales Revenue $ 1,684,290 $ 1,449,023 $ 235,267 16.2%
Cost of Goods
Sold 368,280 367,891 389 0.1%
Gross Profit 1,316,010 1,081,132 234,878 21.7%
Total Operating
Expenses 1,477,089 2,103,843 (656,754) -29.8%
Income (loss) before
undernoted items $ (161,079) $(1,022,711) 861,632
Interest Expense (67,495) (41,362) (26,133)
Amortization of
discount on
convertible
debenture (22,878) (15,418) (7,460)
Amortization of
discount on
promissory note (7,202) 0 (7,202)
Amortization of
intangible asset (3,278) 0 (3,278)
Gain (loss) on
foreign exchange (533) 18,399 (18,932)
Gain on settlement
of leases 28,415 0 28,415
Gain on disposal of
assets 0 (27,233) 27,233
Net loss $ (234,050) $(1,088,325) $ 854,275 78%
>>
The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.
%SEDAR: 00007687E
