VANCOUVER, July 12 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) is pleased to provide this business update to inform shareholders about developments at the company. During the second quarter of the year, IP Applications continued to focus on the profitability of the business. While the underlying trend in the company's recurring revenues has been relatively flat for the last nine months, the mix of business has changed. IP Applications has a core of fast growing customers whose contributions to the company's revenues have increased more than fifty percent since December 2005. These customers now make up forty percent of IP Applications' revenue base. These growing revenue streams are also creating the opportunity for the company to achieve better economies of scale. The shift in the revenue mix and the ongoing focus on cost management supports the company's goal of achieving positive cash flow from operations. Previously announced contracts that were expected to add recurring revenue starting in the second quarter were substantially in place by the end of June, and are expected to affect results beginning in the third quarter. Two contracts also ended during the quarter reducing monthly recurring revenue by approximately $20,000. The company also experienced lower one-time development revenue. John Jacobson, President and CEO of IP Applications Corp., said "We're pleased with the development of the business and of course we're very encouraged by the growth that some of our customers are experiencing. Some represent new business models that are changing the way their industries work, while others are taking a new approach to more traditional markets like dial-up internet services. The common factor is that they're building fast-growing businesses around IP Applications core services and products." About IP Applications IP Applications Corp. is uniquely positioned to serve companies that are bringing online products, services, content, and internet access to market. IP Applications provides a flexible combination of technology, systems and expertise for customers who have identified channels and products but who lack the delivery and support capabilities. IP Applications' integrated Operational Support System, Help Desk and Network Monitoring Systems dramatically reduce the cost, complexity and time to market for online products and services. Forward-Looking Statements This press release may contain forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs, and opinions. The company assumes no obligation to update forward-looking statements. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.