IN-TOUCH SURVEY SYSTEMS LTD. ANNOUNCES ANNUAL FINANCIAL RESULTS WITH SIGIFICANTLY IMPROVED PROFITS AND CASH FLOW

OTTAWA, April 12 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announces that revenue increased 8% to $5,893,125 in FY 2010 compared to $5,479,081 in FY 2009. Net income for 2010 was $736,692 compared to a net loss of $440,377 in 2009. Operating income was $970,567 in 2010 compared to $15,477 in 2009. The non-GAAP Company-defined adjusted EBITDA, as described in the Company's Management Discussion and Analysis public filings, was $1,222,000 in FY 2010, compared to $293,000 in FY 2009. Earnings per share for 2011 were $0.05 compared to a loss of $0.03 for 2010.

"The Company has successfully managed its way out of the recession and is now poised for significant revenue growth. The Company's Mobile Web technology will become the foundation for all products and services in 2011. At the Event Marketing Summit, May 16-18 in Chicago the company will launch "In-Touch Apps for Events" - the world's first hardware independent, mobile-web solution, for the marketing departments of Fortune 1,000 firms and their Agencies of Record", said Michael Gaffney, Chief Executive Officer.

"The new IMS division, which sells In-Touch Mobile-Web solutions into Government, is close to achieving its 2011 bookings targets, and expected revenues are $1,000,000 this year. We are actively searching for additional sales opportunities from American and Canadian governments and believe that our technology, already in use by large private sector enterprises, has significant value for governments. A pilot data-capture project just completed with the Canadian Military, looks very promising, in terms of growth, and will provide an excellent reference customer. In addition to significant growth in Canadian Government revenues, our revenues from the US military (Army, Air Force and Navy) will increase in 2011 compared to 2010", said Gaffney.

The company continues to forecast 2011 revenue growth of at least 25% compared to 2010. Most of the growth will occur in Q2, Q3 and Q4. The company expects 2011 bookings to exceed 2010 revenue by the end of April 2011. Q1 2011 revenues are expected to be 5-8% higher than Q1 2010. The Company has increased its spending in product development and marketing, given its revenue growth expectations, and breakeven is approximately $1.4M per quarter.

Consolidated Statements of Operations                 2010         2009
Revenue                 $ 5,893,125         $ 5,479,081
Cost of services and goods sold                 2,125,290         2,200,533
Gross profit                 3,767,835         3,278,548
Total operating expenses                 2,798,530         3,263,071
Earnings before undernoted items                 969,305         15,477
Interest expense on short term debt                 (24,048)         (23,996)
Interest expense on long term debt                 (70,077)         (109,300)
\Interest on capital leases                 (842)         (21,465)
Amortization of financing costs                 -         (10,682)
Amortization of intangible asset                 -         (9,596)
Change in fair value of derivative                 (97,109)         (33,956)
Gain (loss) on foreign exchange                 (45,235)         (85,422)
Gain on disposal of property and equipment                 4,698         12,745
Impairment of franchise                 -         (31,193)
Impairment of intangible assets and goodwill                 -         (142,989)
Net earnings (loss)                 $ 736,692         $ (440,377)

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 Insight Systems Inc.

For further information:

mgaffney@intouchsurvey.com
Chief Executive Officer
613-270-7911


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