IN-TOUCH SURVEY SYSTEMS LTD. ANNOUNCES Q1 2011 FINANCIAL RESULTS WITH 5th CONSECUTIVE PROFITABLE QUARTER
On Tuesday May 31, 2011, 5:18 pm EDT
OTTAWA, May 31, 2011 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announces revenue of $1,428,242 in Q1 2011 compared to $1,321,745 in Q1 2011. Net Income for Q1 2011 was $28,685 compared to $158,332 in Q1 2010. The Company-defined adjusted EBITDA was $161,000 in Q1 2011, compared to an EBITDA of $246,000 in Q1 2010.
"Our Q1 2011 financial results and revenue performance met expectations. We increased our investment in product development and sales and marketing in Q1 2011 by $115,000 relative to Q1 2010 to support the expected revenue growth during last three quarters of the year. G&A expenditures did not increase. Net income was reduced by a $55,920 loss on foreign exchange and an increase of $45,369 on the present value of our derivative given the significant increase in our share pricing over recent months. We continue to forecast 25% revenue growth for 2011 over 2010," said Michael Gaffney, Chief Executive Officer.
The company launched the Beta Version of In-Touch Apps at the Event Marketing Summit in Chicago in May. In-Touch Apps is the first self-service mobile data capture web software application to be introduced to the market that is designed to work on any hardware platform and will work online or offline which is a tremendous benefit for customers for use in locations where connectivity may be intermittent.
Consolidated Statements of Operations Q1 2011 Q1 2010
Revenue $ 1,428,242 $ 1,321,745
Cost of services and goods sold 479,105 439,940
Gross profit 949,137 881,805
Expenses
Selling 115,205 74,587
General and administrative 503,334 506,613
Product development 119,086 45,153
Amortization of property and equipment 67,599 67,173
Total operating expenses 805,224 693,526
Earnings (loss) before undernoted items 143,913 188,279
Interest expense (15,943) (20,255)
Change in fair value of derivative (45,369) -
Gain (loss) on foreign exchange (55,920) (9,692)
Gain on disposal of property and equipment 2,004 -
Net loss $ 28,685 $ 158,332
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.
The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.
