VANCOUVER, March 1 /CNW/ - Ignition Point Technologies Corp.
(TSX-VEN:IPN), a Vancouver-based broadband communications company, today
announced its financial results for the quarter ended December 31, 2006, the
first quarter of its 2007 fiscal year.
Total revenue for the first quarter ended December 31, 2006 was $905,566
compared to $1,030,472 in the comparable quarter of fiscal 2006. The net loss
for the first quarter ended December 31, 2006 was $604,450 ($0.08 per share)
compared to $704,734 ($0.10 per share) in the comparable quarter of fiscal
At December 31, 2006 consolidated cash and cash equivalents totaled
$121,678, and negative working capital in the amount of $488,813. Cash
resources are currently extremely limited and net cash contributions from
billable sales are not producing adequate cash to cover operating costs.
Accordingly, management has been actively working to secure new financing.
To this end, the company announced a $2.5 million debenture financing on
January 30, 2007. Assuming the completion of this offering, existing
agreements, sales projections, and margins, management believes that Ignition
Point Technologies will be able to operate as a going concern for the
foreseeable future. Additionally, as FatPort continues to make progress
towards profitability, it will require increasingly less cash from financing
sources for its ongoing operations. Achieving these expected results is
dependent upon the accuracy of sales projections and margin calculations.
Although management is optimistic that financing will close, there can be no
assurance of success. Should the additional operating funds not be available
the company will be forced to undertake material operational changes up to and
including suspension of operations.
TeraSpan has developed and commercialized an innovative "Vertical Inlaid
Fiber" system for the rapid, non-disruptive, and low-cost deployment of fiber
optic networks. During the quarter TeraSpan's results were hampered due to a
customer requested rescheduling of fiber deployment for the Winnipeg project
and a slowing of deployment due to seasonal factors. Management anticipates a
resumption of fiber deployment soon as weather conditions permit.
FatPort is a significant operator of public Wi-Fi Hotspots in Canada.
During the quarter FatPort maintained gross margin and recurring sales volumes
despite tight budget restrictions on spending in all areas, including sales
and marketing. FatPort achieved its goal of profitability during the month of
December 2006 by controlling expenses while maintaining recurring revenues
through ongoing marketing initiatives, customer referrals, and a general
increase in wireless adoption by both business users and consumers.
About Ignition Point
Ignition Point Technologies Corp. (TSX-VEN:IPN), a Vancouver-based
broadband technology company, provides unique access and applications
solutions to wired and wireless network service providers. Ignition Point
subsidiaries include TeraSpan Networks Inc. www.teraspan.com and FatPort
Corporation www.fatport.com. For more information, visit www.ignitionpoint.ca.
The company's financial results for the quarter ended December 31, 2006
and all comparable periods are stated in Canadian dollars and are prepared in
accordance with Canadian generally accepted accounting standards. Complete
financials are available at www.sedar.com.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
company expects to occur, are forward looking statements.
Forward looking statements are statements that are not historical facts
and are generally, but not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Although the company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results may differ materially from those in forward looking statements.
Factors that could cause the actual results to differ materially from those in
forward-looking statements include market prices, continued availability of
capital and financing and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from
those projected in the forward-looking statements. Forward looking statements
are based on the beliefs, estimates and opinions of the company's management
on the date the statements are made. The Company undertakes no obligation to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors, should change.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: Press Contact: Stephen Majlath, Chief Financial
Officer, Ignition Point Technologies Corp., Phone: (604) 633-9090