Intouch Insight Ltd (INXSF)

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In-Touch Survey Systems Ltd. announces Q2 2013 financial results


OTTAWA, Aug. 29, 2013, 2013 (Canada NewsWire via COMTEX) -- In-Touch Survey
Systems Ltd. ("In-Touch") (TSXV: INX) today announced its operating and
financial results for the quarter ended June 30, 2013.

Revenue for the second quarter was $2,815,598, which was 5% lower than revenue
of $2,947,069 in the same quarter in 2012. The Company previously announced that
it had lost several major customers in 2012 that would negatively impact
revenues in 2013. The Company is pleased to report that the Company has
successfully replaced and exceeded the customers lost in 2012 and that Q3 2013
revenues are expected to exceed Q3 2012 revenues.

Net loss before taxes for the second quarter was $139,964 compared to net income
of $351,933 reported in the same quarter in 2012. Product Development and
Marketing spending was the main contributor to the loss but was an important
strategic investment decision for revenue and product line growth in 2013 and
2014. G&A expenses were also higher with additional expenses related to the
acquisition. While the management team is not happy with the net loss in Q2 the
Company is pleased to report that it expects to return to profitability in Q3
2013.

Gross Margin increased to 53.6% in the second quarter compared to 49.6% for the
same quarter in 2012. Company-defined adjusted EBITDA decreased to ($52,000) for
the second quarter, compared to an EBITDA of $279,000 for the same quarter in
2012. The improvement in Gross Margin resulted from a concerted effort over the
past two years to return our margins to historical levels. Additionally, the
Company is currently implementing an expense review program and again is pleased
to report that it expects to have significant positive EBITDA in Q3 2013

"Replacing the lost customers and their associated revenue from 2012 and
improving the gross margins were two of our successful strategic initiatives.
Currently, the Company's sales forecast puts 2013 revenues slightly ahead of
2012 revenues, which would be a major achievement for the Company. The Company
continues to invest heavily in new product development and marketing and we have
a cost optimization plan being implemented in Q3 and Q4," said Michael Gaffney,
Chief Executive Officer.

"The acquisition of GCS Field Research ("FR") on April 1, 2013 opened important
new compliance markets for the Company. We expect the compliance market to
expand with increasing government regulation in food, education, pharmaceutical
and financial services. We were very pleased with the smooth acquisition and
integration of FR into In-Touch.," said Gaffney.







Consolidated Statements of Operations Q2 2013 Q2 2012







Revenue $ 2,815,598 $ 2,947,069







Cost of services 1,305,721 1,485,070







Gross profit 1,509,877 1,461,999







Total operating expenses 1,641,953 1,082,570



Earnings (loss) from operating activities (132,076) 379,429



Finance costs (2,610) (28,226)



Change in fair value of contingent

consideration (5,278) 730



Net earnings (loss) before income taxes $ (139,964) $ 351,933









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.

SOURCE: In-Touch Survey Systems Ltd.

To view this news release in HTML formatting, please use the following URL:
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SOURCE: In-Touch Survey Systems Ltd.



CONTACT: George Pretli [e-mail] Controller 613-270-7916




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