VANCOUVER, Aug. 27 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today announced its quarterly results for the three-month period ended June 30, 2009. For the three months ended June 30, 2009, revenue was $1,061,000, a decrease of 19% from $1,315,000 in the corresponding period in 2008. Although revenue was lower than the same period in 2008, gross margin in the quarter increased to $480,000 compared with $453,000 in the same quarter in 2008. The net loss increased 11% to $415,000 from $374,000.
John Jacobson, President and CEO said "We've increased our spending on marketing, sales and product development for our Software-as-a-Service ("SaaS") and Cloud billing services business because we believe that it is the dominant driver of future shareholder value. In terms of progress toward this goal, most of the first quarter's new customers are live on our application and one SaaS billing customer that signed a contract with us in the second quarter is already live. We also added a European-based reseller to extend the reach of our SaaS and Cloud Computing product marketing. Sustaining our sales and marketing investment to win new SaaS and Cloud Computing customers is a priority."
IP Applications Corp.
Consolidated Statements of Operations,
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Comprehensive Loss and Deficit (Unaudited)
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(prepared in accordance with Canadian
generally accepted accounting principles)
Six months ended Three months ended
June 30 June 30
2009 2008 2009 2008
Revenue $ 2,350,480 $ 3,000,178 $ 1,061,356 $ 1,315,172
Direct costs 1,258,194 1,898,364 581,147 862,533
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Gross Margin 1,092,286 1,101,814 480,209 452,639
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Operating expenses
Amortization of
property and
equipment 56,962 90,745 25,278 45,623
Foreign exchange
(gain)/loss 9,783 (5,264) 21,398 6,941
General and
administration 686,348 695,191 342,515 346,825
Interest on capital
lease obligations 2,648 8,308 984 3,807
Sales and marketing 313,508 172,610 174,419 91,532
Stock-based
compensation 37,908 60,580 13,530 40,692
Operations and
development 659,791 591,196 331,363 290,960
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1,766,948 1,613,366 909,487 826,380
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Loss before
the following (674,662) (511,552) (429,278) (373,741)
Leasehold
inducement income 14,726 - 14,726 -
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Net Loss and
Comprehensive Loss
for the period (659,936) (511,552) (414,552) (373,741)
Deficit - Beginning
of period (13,837,354) (12,883,705) (14,082,738) (13,021,516)
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Deficit - End
of period $(14,497,290) $(13,395,257) $(14,497,290) $(13,395,257)
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Loss per share
- basic (0.021) (0.016) (0.013) (0.012)
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Weighted average
number of common
shares used in the
calculation of
loss per share 31,365,562 31,753,238 31,365,562 31,753,238
About IP Applications Corp.
IP Applications Corp. (www.ipapplications.com) delivers subscription billing and recurring payments for online subscription businesses. The Company's billing software, recurring payments processing and technical support services support SaaS and Cloud Computing businesses as well as internet service providers. Established in 1998, the Company's client roster includes Sprint Nextel, Bell Mobility, Amway Corporation and AOL Canada. For more information on the Company and its services, see www.ipapplications.com.
Forward-Looking Statements
This press release may contain forward-looking statements. The Company cautions users of this forward-looking information that actual results or events may vary materially either favorably or unfavorably from those described due to a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to: the inability of the Company to accurately forecast the revenue from new and existing customers; the inability of the Company's customers to accurately forecast their own demand for the Company's products and service; changes in the relative value of the US and Canadian dollars; the possibility that one or more customers or suppliers might experience financial difficulties that could affect the Company's ability to deliver and get paid for its products and services; and changes in the growth rate of technology and telecommunications concerns. Refer to the Company's most recent management's discussion and analysis ("MD&A") for further discussion of these and other risks and uncertainties in relation to such forward-looking information.
Forward-looking information is based on management's current expectations, estimates and opinions. Please refer to the MD&A for a discussion of the events and circumstances which occur that cause, or are likely to cause, actual results to differ materially from such forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.