OTTAWA, Nov. 14, 2011 /CNW/ - ZIM Corporation (OTCBB: ZIMCF), a provider
of software products and services for the database and mobile markets,
today announced its financial results for its second quarter ended
September 30, 2011. All figures presented are calculated in accordance
with generally accepted accounting principles (GAAP) in the United
States and presented in US dollars.
Revenue for the quarter ended September 30, 2011 was $402,145, a
decrease from $499,593 for the same period last year. The decrease in
revenue is primarily attributable to a decrease in SMS messaging and
mobile content revenue combined with the delay in revenue recognition
of work in progress on consulting projects related to our migration
software and services.
Net loss for the quarter ended September 30, 2011 was $44,466 or a basic
and diluted loss per share of $0.000. The net income for the same
period last year was $152,197 or a basic and diluted income per share
of $0.001. The decrease in net income principally reflects a decrease
in sales, software revenue recognition, delayed receipt of income tax
credits related to research and development and a weakening US dollar.
"Minor project delays that did not allow us to recognize revenue in the
quarter combined with the timing of accounting recognition of
Scientific Research and Experimental Development tax credits resulted
in the decline of revenue and profit this quarter " said Dr. Michael
Cowpland, President and CEO of ZIM. " Given that the decline in overall
financial performance is mainly a timing issue, I remain pleased with
our operating performance and the interest that our customers continue
to show in our enterprise products and services."
ZIM had cash and cash equivalents of $1,317,406 at September 30, 2011 as
compared to cash and cash equivalents of $1,770,990 at March 31, 2011.
The decline in cash and cash equivalents includes a non-realized cash
loss of $169,561 related to the volatility of foreign exchange rates.
It also reflects lower revenues, increased research and development
expenditure and the investment in Connecting People for Health
ZIM is a provider of software products and services for the database and
mobile markets. ZIM products and services are used by enterprises in
the design, development and management of business, database and mobile
applications. Certain of ZIM's mobile products are also provided to the
consumer market. For more information on ZIM and its customers,
partners and products, visit: www.zim.biz.
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, with respect to ZIM's use of its cash
from operations. All forward-looking statements made in this press
release relating to expectations about future events or results are
made as of, and are based upon information available to ZIM as of, the
date hereof. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from
those described or implied by any forward-looking statements. New risks
can arise and it is not possible for management to predict all such
risks, nor can it assess the impact of all such risks on our business
or the extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. Given these risks and uncertainties,
investors should not place undue reliance on forward-looking statements
as a prediction of actual results. All forward-looking statements speak
only as of the date of this news release. We undertake no obligation to
revise or update publicly any forward-looking statements in order to
reflect any event or circumstance that may arise after the date of this
news release, other than as required by law. Please refer to ZIM's
filings with the SEC for additional information regarding risks and
uncertainties. Copies of these filings are available through the SEC's
website at www.sec.gov.
SOURCE ZIM CORPORATION
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