PRESS RELEASE: In-Touch Survey Systems Ltd. announces 91% growth in revenues in
Q4 2011
OTTAWA, Feb. 14, 2012 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch")
(TSXV: INX) announces unaudited financial results for Q4 2011. The Company
expects to release its consolidated FY 2011 audited financial results by
April 26 2012. These results are preliminary in nature, prepared by the
Company without audit and could differ from our final audited results.
Q4 2011 revenue increased 91% to $3,016,534 compared to $1,578,627 in Q4
2010. The Company had net earnings of $184,200, an increase of 29% compared
to net earnings of $143,139 in Q4 2010. The Company-defined adjusted EBITDA
increased 18% to approximately $370,000 in Q4 2011, compared to an EBITDA of
$315,000 in Q4 2010.
"We are extremely pleased with our superb revenue growth in Q4 and our 8(th)
consecutive profitable quarter. We achieved growth in all our business
segments while continuing to invest more resources in product development
and marketing. Growth in 2012 will be dependent on a number of internal and
external factors. We are targeting to grow revenues again by at least 25%
from organic growth and we are searching for another 25% growth from
acquisitions or joint ventures. In-Touch is forecasting revenues in 2012 in
the $11,250,000 to $13,500,000 range", said Michael Gaffney, Chief Executive
Officer.
The Company believes that there are substantial opportunities for continued
revenue growth that it can seize if it continues to invest in both marketing
and its proprietary In-Touch Apps software technology. While maintaining
profitability, the Company intends to invest much of the contribution margin
generated by current sales on product development and marketing on an
on-going basis. Net earnings will be reduced accordingly by this continued
investment in our potential to grow. The IMS division, in its first full
year of operation, exceeded revenue targets of $1.25M and we are predicting
100% revenue growth for this division in 2012. The Service Intelligence
("SI") outsourcing agreement and subsequent acquisition of their customers
has been a great success and the Company will complete full integration of
the former customers of SI onto In-Touch technology by mid-year, which will
result in significant gross margin improvement. In addition, the royalty
that we are paying to SI of 10% of revenue from SI's former customers will
reduce to 5% in August 2012 and disappear entirely in July 2013; this too
will enhance our margins substantially.
In-Touch designs, develops and deploys data capture software technology and
data capture services - especially for mobile or offsite applications. It
was one of the first companies in the world to develop HTML 5 applications
to solve the non-persistent nature of wireless networks to enable customers
to continue working without connectivity. The Company's vision of "Perfect
Information. Instantly." resonates powerfully with our customers' needs.
In-Touch's customers range from United States and Canadian governments to
some of the worlds largest auto and insurance brands to numerous Fortune
1,000 retail companies. The Company's overall strategy is to continue to
invest in and search for market verticals needing onsite mobile data capture
and real time business intelligence.
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.
/CONTACT: George Pretli gpretli@intouchsurvey.com Controller and
Corporate Secretary 613-270-7916
Copyright CNW Group 2012
