GTX Corp Second Quarter 2017 Results
LOS ANGELES, CA , Aug. 17, 2017 (GLOBE NEWSWIRE) -- GTX Corp Second Quarter 2017 Results
LOS ANGELES, CA - GTX Corp (GTXO), an IoT platform and provider of personal location GPS wearable technology and wandering assistive technology, announces financial summary for the second quarter ending June 30, 2017.
Second Quarter and Six Month Highlights
Product revenues increased by 28% over 2016 comparable period
International subscribers increased by 37% over 2016 comparable period
Combined total revenues increased 8% over 2016 comparable 6 month period
Net service income increased 97% over 2016 comparable period
Gross margins increased 23% over 2016 comparable 6 month period
Net loss decreased 21% over 2016 comparable 6 month period
Overall product revenues were up 28%, however total revenues and product revenues were lower than expected this quarter due to a technical issue with the Company’s first production run of version 1.5 SmartSole. GTX Corp was able to resolve the issue; however not until after the quarter ended, hence 300 units which were expected to ship before June 30th shipped after the quarter ended, lowering the Company’s product and overall revenues for the second quarter. The issue has been completely resolved and is not expected to have any further impact on future production runs.
On the R&D front, the Company began several new projects and made significant progress on current projects. First being a CDMA version of the SmartSole that is being developed to operate on the Verizon network throughout North America. The Company is in the final phase of development and pre-production testing both internally and with evaluation units in the field with sales representatives, customers and potential new customers. The second R&D project is a “SmartSole lite,” which will have a lower selling price with perhaps as much as 50% lower cost and be available in children sizes. This “lite” product is being created for lower disposable income markets and for individuals that are not just “at risk” of wandering due to Alzheimer’s or autism, but rather more for general population use. Think moms that want to keep track of their kids.
GTX Corp is also continuing to invest in R&D with sensor technology and predictive analytics and has begun working on bio–metric technology which will monitor gait, activity, weight and heart rate. The Company has been in discussion with customers, strategic partners, academia and the senior housing and caregiving communities all of which have confirmed there is a need for a smart wearable technology to combine location monitoring with bio-metrics into one non-invasive wearable product such as the SmartSole. The Company has also filed a patent for these combined technologies and continues to work on expanding its IP portfolio by adding more patents and working with its strategic partner, Inventergy, on monetizing three of its patents in the Comm protocol 286 family.
During the second quarter, the Company continued expanding its sales channels internationally and domestically, signing up new distributors and exploring opportunities in Japan, Hong Kong, Chile, Spain and the Middle East and attended several large trade shows in the U.S. and Europe. GTX hired two additional account representatives to manage the Company’s reseller programs in the U.S., Latin America and the Caribbean.
This quarter GTX also launched the SoleProtector which keeps the SmartSole hygienically clean, covers logos or markings making the GPS SmartSole more stealth and discrete, and adds some comfort and overall protection. All of these features have been requested by many of the Company’s B2B customers and consumers. As the Company plans to launch more wearable technology footwear, the SoleProtectors are a high margin accessory product extension. GTX Corp has also began shipping its Take-Along Tracker 3G GPS, SOS and voice-activated tracking device to its international distributors, which are introducing this solution for the lone worker government mandates in many European countries.
As the trend to use technological innovations to help seniors live longer and more fulfilling lives continues to grow around the world (generally referred to as the Aging 2.0 movement), GTX continues to look ahead on creating new products and solutions and working with partners that will help the Company grow in the future. One such partner, George Mason University, completed the first phase of wandering predictive research utilizing the GTX IoT platform and data, and a two-stage spatiotemporal clustering algorithm which correctly predicted a users’ location 87% of the time. This high level of initial success in accurate wandering prediction has enabled George Mason University to file for a much larger phase II grant. The preliminary research will be made available to GTX Corp, which will consider deploying the prediction algorithms into its backend monitoring platform, adding yet another layer of technology and overall value to the Company’s IoT tracking platform and monitoring services. As mass numbers of Baby Boomers who need care begin to outnumber those able to help them, the need for research and technology solutions will continue to grow, hence GTX is also exploring developing a data collection only SmartSole, that would be much lower in cost and could be used on wide scale research programs and clinical trials.
