GuestLogix Reports Q3 Fiscal 2007 Financial Results



    TORONTO, Oct. 30 /CNW/ - GuestLogix Inc. (TSX-V:GXI), the leading
provider of on-board retail solutions to the airline industry, today announced
its third quarter fiscal 2007 financial results for the three and nine months
ended August 31, 2007.

    
    -------------------------------------------------------------------------
                Three months ended August 31     Nine months ended August 31
    -------------------------------------------------------------------------
                           2007         2006               2007         2006
    -------------------------------------------------------------------------
    Revenue          $1,455,755     $225,187         $3,852,329     $499,617
    EBIT Loss(*)       $586,690     $455,655           $680,445   $1,087,096
    Net Loss         $1,178,091     $769,693         $2,669,182   $1,461,406
    -------------------------------------------------------------------------

     (*) Earnings before interest and taxes
    

    For the three months ended August 31, 2007, revenues increased by 546% to
$1,455,755, compared to $225,187 for the comparable three months in 2006. For
the nine months ended August 31, 2007, revenue was $3,852,329, compared to
$499,617 for the comparable nine months in 2006.
    "We expect quarterly recurring revenues to steadily increase on a
go-forward basis," said Tom Douramakos, President and CEO, GuestLogix. "Given
that certain customers will opt to purchase our on-board handheld devices
outright our total revenue stream will experience fluctuations from quarter to
quarter."
    Operating expenses for the three months ended August 31, 2007 increased
to $1,239,911 from $493,666 in the comparable period in 2006. The increase in
operating expenses was due to non-cash stock compensation charges of $150,543,
and an increase in staff to deliver on key customer implementations, increased
sales and marketing, and the building of the infrastructure to support a
growing customer base.
    Net loss, including non-cash interest accretion charges and stock based
compensation expenses totaling $506,170, was $1,178,091 or $0.04 per share,
compared to a net loss of $769,693 or $0.03 per share in the three months
ended August 31, 2006. Net loss for the nine months ended August 31, 2007,
including non-cash interest accretion charges and stock based compensation
expenses totaling $1,702,486, was $2,669,182 or $0.09 per share, compared to a
net loss of $1,461,406, or $0.05 per share in the nine months ended August 31,
2006.
    As at August 31, 2007, the Company's cash and cash equivalents were
$7,296,278 million. During the quarter GuestLogix completed its reverse
takeover of Growthgen Equity II and private placement financing of $9,000,040.
The weighted average number of shares issued and outstanding was 33,595,349.

    Executive Personnel and Board of Directors Changes

    Coincident with the third quarter report GuestLogix also announced the
appointment of Brian Reddy as the Company's new chief financial officer
effective November 1, 2007. Mr. Reddy returns to GuestLogix after a brief
hiatus. Previously he was chief operating officer of Honda Canada Finance Inc.
and vice president finance at Hyundai Auto Canada Inc. Mr. Reddy is a member
of the Canadian and Ontario Institute of Chartered Accountants. David Campbell
will continue in an advisory capacity.
    GuestLogix also announced changes to its Board of Directors to adhere to
industry corporate governance standards and add to its executive bench
strength. Craig Leon with Redwood Asset Management will resign from the Board
effective October 31, 2007. The Company plans to fill the vacancy and add an
additional board member for a total of four seats.
    "On behalf of the Board of Directors and Shareholders I would like to
acknowledge David Campbell and Craig Leon for their dedicated and successful
efforts in helping us complete our RTO and recent financing," said Douramakos.
"These executive changes are designed to leverage our strong financial footing
as we continue to build out our global leadership position in on-board
retail."
    Additional information about GuestLogix' Q3 Fiscal 2007 financial results
and other Company filings are available at www.sedar.com.

    About GuestLogix

    GuestLogix is a leading provider of on-board retail solutions to the
passenger travel industry. Its mission is to deliver innovative, end-to-end
solutions that create new revenue growth while enhancing service in the
world's guest services supply chain. The Company's customers include the
world's leading airlines, railways, ferries, hotels, caterers, and
commissaries. GuestLogix is publicly traded on the TSX Venture Exchange in
Toronto (Symbol GXI). For more information please visit www.guestlogix.com.

    (C) 2007 GuestLogix. All Rights Reserved.

    The TSX Venture Exchange has neither approved nor disapproved the content
    of this news release. The TSX Venture Exchange does not accept
    responsibility for the adequacy or accuracy of this release.

    Forward-Looking Statements

    This news release includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with our business and the environment in which the business
operates. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking, including those
identified by the expressions "anticipate", "believe", "plan", "estimate",
"expect", "intend", and similar expressions to the extent they relate to the
Company or its management. The forward-looking statements are not historical
facts, but reflect GuestLogix' current expectations regarding future results
or events. These forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results or events to differ
materially from current expectations, including the matters discussed under
"Risks and Uncertainties" in the Filing Statement filed on July 24, 2007 with
the regulatory authorities. GuestLogix 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.

    %SEDAR: 00024725E




For further information:

For further information: Josef Zankowicz for GuestLogix, (647) 500-1563,
josef.jta@gmail.com

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