OTTAWA, ONTARIO--(Marketwire - Aug. 25, 2011) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three and six months ended June 30, 2011. 2011 represents TrueContext's first financial reporting year under IFRS and 2010 comparable results have been adjusted to reflect IFRS treatment. All amounts are stated in Canadian dollars unless otherwise noted.
Operating Results for the Three Months Ended June 30, 2011
Total revenue for the second quarter of 2011 of $338,628 represented an increase of 17% over total revenue for the 2011 first quarter of $288,788 and 122% growth over total revenue of $152,446 for the comparable second quarter of 2010.
- License revenue for the three months ended June 30, 2011 was $220,720 compared to $153,869 in the first quarter of 2011 and $92,747 for the comparable second quarter in 2010.
- 2011 second quarter license revenue consisted solely of subscriptions which grew by 43% over the 2011 first quarter and by 138% over the 2010 second quarter.
- The total average number of subscribers per month increased by 58% from 4,209 in the 2011 first quarter to 6,641 in the second quarter.
- Subscription revenue from operator channels increased from $52,429 in the 2011 first quarter to $108,714 in the second quarter representing growth of 107%.
- The average subscribers per month for operators increased from 1,646 to 3,620, representing operator average subscriber growth of 120%.
- Services revenue was $118,358 for the 2011 second quarter compared to $134,919 in the first quarter of 2011 and $59,699 for the comparable second quarter of 2010.
- Company Q2 net loss of $689,813 (Q2'10 - $482,967) and Q2YTD net loss of $1,271,971 (Q2'10YTD - $922,524) with increased loss due to additional spending on product development and operator channel sales and marketing support.
- Company June 30, 2011 cash and cash equivalents of $1,207,833 and working capital of $665,031.
"In the first half of 2011, we have more than doubled our operator channel customers. More importantly, we doubled our operator channel subscribers in the first quarter of 2011 and again in the second quarter. We see this as a natural progression as we increase our operator channel penetration and accelerate our strategy of growing our subscriber base. Building the subscriber base provides a growing, predictable and recurring source of cash and we are already beginning to see the benefits including meaningful top line growth," said Alvaro Pombo, Chief Executive Officer, TrueContext.
Mr. Pombo added, "Our operator channels are key to our success and we are focused on driving subscriber growth with these partners as well as exploring additional channels in new markets. New channel opportunities have developed since the release of ProntoForms™ 2.0, which improves product performance, usability and most importantly scalability to increase the rate of adoption with potential customers. We also feel that our long-standing commitment to intellectual property provides strength to our core business and opens up incremental licensing opportunities."
ABOUT PRONTOFORMS™ AND TRUECONTEXT
ProntoForms, by TrueContext, revolutionizes how mobile workers & managers communicate and report, improving business productivity and efficiency.
With the recent widespread availability of smartphones and tablet devices, digital mobile form submission is now a business reality - eliminating the costly, slow and error prone paper form business process.
Why is ProntoForms unique as a mobile forms solution?
- Your business forms gone mobile, no changes to your process
- Portal reports, real time business information from the field
- Works on your favorite mobile device – iPhone & iPad, BlackBerry, Android, Windows Mobile & HP webOS.
TrueContext is traded on the TSXV under the symbol TMN. TrueContext has a powerful and proprietary patent portfolio, from which ProntoForms mobile app and Web reporting portal are developed. ProntoFroms is the trademark of TrueContext Corporation, a wholly-owned subsidiary of TrueContext.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation.
There are a number of risk factors that could cause future results to differ materially from those described herein, including but not limited to the following: (i) there can be no assurance that the Company will earn any profits in the future or that profitability, if achieved, will be sustained; (ii) if the Company is not able to achieve profitability, it will require additional equity or debt financing, and there can be no assurances that the Company will be able to obtain additional financial resources on favourable commercial terms or at all; (iii) the Company's quarterly revenues and operating results may fluctuate, which may harm its results of operations; (iv) the loss of business from a major customer could reduce the Company's sales and harm its business and prospects; (v) a portion of the Company's sales are through operators and other resellers, and an adverse change in the Company's relationship with any of such operators or other resellers may result in decreased sales; (vi) the Company faces competition from other software solution providers, which may reduce its market share or limit the prices it can charge for its software solutions; (vii) a global economic downturn or market volatility may adversely affect our business and/or our ability to complete new financings; (viii) the business of the Company may be harmed if it does not continue to penetrate markets; (ix) the success of the business depends on the Company's ability to develop new products and enhance its existing products; (x) the US dollar may fluctuate significantly compared to the Canadian dollar, causing reduced revenue and cash flow as most of our revenues are received in US dollars while most of our expenses are payable in Canadian dollars; (xi) intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xii) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xiii) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xiv) the financial condition of third parties may adversely affect the Company; (xv) any significant changes in the technological paradigm utilized for building or delivering applications in Smartphone devices could harm the Company's business and prospects; and (xvi) if the Company loses any of its key personnel, its operations and business may suffer. Please refer to our Filing Statement for a full discussion of these risk factors. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
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