Grey Island Announces 3rd Quarter Financial Results Posts Record Revenue and Record Income



    TORONTO, Aug. 25 /CNW Telbec/ - Grey Island Systems International Inc.
(TSX-V: GIS) has released financial results for the third quarter of fiscal
2008 ended June 30, 2008.
    Record revenue of $5.82-million in the third quarter of fiscal 2008
represented an increase of 50 percent as compared with revenue of
$3.88-million in the third quarter of fiscal 2007 and represented an increase
of 31 percent quarter over quarter with the second quarter of fiscal 2008
revenue of $4.44-million. Concurrently, the company posted record income of
$0.44-million during the third quarter of fiscal 2008 compared with a net loss
of $0.33-million for the third quarter of 2007 and net income of $0.06-million
in the second quarter of 2008, an increase of 700 percent quarter over
quarter. The company's stated future goal is to maintain only moderate
increases in operating expenses on a quarter-by-quarter basis when compared
with expected revenue increases.
    As described in more detail below, key financial highlights for Grey
Island in fiscal 2008 third quarter included:

    
        - Record Revenues of $5.82-million, up $1.94-million or 50 per cent
          from third quarter of fiscal 2007 and up 31 percent from the
          previous quarter;

        - Gross margin of 51 per cent of revenues, up from 49 percent in
          third quarter of fiscal 2007 and down 3 percent from the previous
          quarter;

        - Income of $0.44-million, up from a net loss of $0.33-million in
          third quarter of fiscal 2007 and compared with $0.06-million in the
          previous quarter;

        - Recurring revenues increased by 37 percent to $1.88-million for the
          quarter ended June 30, 2008 compared to the third quarter of 2007;

        - US revenue increased by 85 percent to $4.55-million for the third
          quarter 2008 from $2.46-million for the third quarter of 2007
    

    "Our results this quarter is indicative of successful execution of our
corporate strategy. The company illustrated significant organic growth through
new client acquisition while limiting operating expense expansion thereby
demonstrating operating leverage in our in our software as a service business
model," said Owen Moore, President at Grey Island "Further, we have a solid
balance sheet with a healthy cash position that will allow us to continue to
capitalize on future opportunities".
    "Factors such as increasing fuel prices, increased funding for public
transit, a need for improved mobile work force accountability in government
fleets will continue to drive demand for our products and services," said
Andrew Moore, CEO at Grey Island.

    
    Consolidated statements of operations, comprehensive income and deficit

                                                       Three months ended
                                                             June 30
                                                      2008              2007

    Revenue                                    $ 5,819,264       $ 3,876,918
    Cost of revenue                              2,837,907         1,981,184
                                              ---------------  --------------
    Gross profit                                 2,981,357         1,895,734

    Expenses
      General and administrative                 1,083,198           841,617
      Sales and marketing                          398,691           316,384
      Engineering, development and
       research                                    725,340           545,819
      Datacentre operations                        106,767           100,162
      Stock-based compensation                      12,882            29,565
                                              ---------------  --------------
                                                 2,326,878         1,833,547
                                              ---------------  --------------

    Income before the following                    654,479            62,187

    Other income and expenses
      Other (income) expenses                      (91,633)         (136,504)
      Amortization of intangible assets            229,034           229,034
      Amortization of tangible assets               66,301            45,375
      Foreign exchange (gain) loss                   9,982           257,375
                                              ---------------  --------------
                                                   213,684           395,280
                                              ---------------  --------------
    Net income before income taxes                 440,795          (333,093)
    Taxation expense
      Current                                            -             3,589
      Future                                             -                 -
                                              ---------------  --------------
                                                         -             3,589
                                              ---------------  --------------

    Net income and comprehensive income            440,795          (336,682)
    

    The company's consolidated financial statements, accompanying notes and
management's discussion and analysis will be available on SEDAR.

    About Grey Island

    Grey Island Systems International Inc. (TSX-V: GIS), together with its
subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New
York, New York is a leading provider of custom real-time GPS/AVL, security and
Telematics solutions as well as real-time passenger information systems to
government and related fleets. To find out more about our products and
services, visit our websites at www.interfleet.com or www.nextbus.com.

    Forward Looking Statements

    This news release contains forward-looking information based on
management's best estimates and the current operating environment. These
forward-looking statements are related to, but not limited to, Grey Island's
operations, anticipated financial performance, business prospects and
strategies. Such forward-looking statements are subject to a number of known
and unknown risks, uncertainties and other factors which could cause actual
results or events to differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things, business risks, changes in market and competition, technological and
competitive developments and potential downturns in economic conditions
generally. Therefore, there can be no assurance that the expectations of the
management of Grey Island will prove to be correct.

    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE.




For further information:

For further information: Grey Island Systems Inc.: Owen Moore, (416)
348-9991, (416) 348-9993 (FAX), information@interfleet.com; Renmark Financial
Communications Inc., John Boidman : jboidman@renmarkfinancial.com; Maurice
Dagenais : mdagenais@renmarkfinancial.com, Tel.: (514) 939-3989, Fax: (514)
939-3717; www.renmarkfinancial.com

Organization Profile

GREY ISLAND SYSTEMS INTERNATIONAL INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890