VANCOUVER, Feb. 1 /CNW/ - Ignition Point Technologies Corp.
(TSX-VEN:IPN), a Vancouver-based broadband communications company, today
announced financial results for its fourth quarter and fiscal year ended
September 30, 2007.
Total revenue for the fourth quarter ended September 30, 2007 was
$1,136,780 compared to $1,142,762 in the comparable quarter of fiscal 2006.
Total revenue for the year ended September 30, 2007 was $3,478,446 compared to
$3,745,230 in the prior fiscal year.
The net loss from continuing operations for the fourth quarter ended
September 30, 2007 was $1,197,934 ($0.16 per share) compared to $514,291
($0.07 per share) in the comparable quarter of fiscal 2006. The net loss from
continuing operations for the year ended September 30, 2007 was $3,217,541
($0.43 per share) compared to $2,438,943 ($0.33 per share) in the prior fiscal
year. The Company's net loss for the fourth quarter of 2007 was $1,210,847
($0.16 per share) compared to $518,756 ($0.07 per share) for the fourth
quarter of 2006. The Company completed the sale of FatPort Corporation and
recorded a gain of $1,279,700 on the transaction during the third quarter of
2007. Operating losses were higher in the fourth quarter of 2007 as compared
to the fourth quarter of 2006 due to one-time cost overruns on a large network
deployment project, extraordinary professional fees and increased spending on
sales and marketing activities.
At September 30, 2007 consolidated cash and cash equivalents totaled
$1,279,440 which represents a cash value of $0.17 per share. At September 30,
2006 consolidated cash and cash equivalents totaled $480,740, representing a
cash value of $0.06 per share. Ignition Point's working capital at
September 30, 2007 was $1,191,592, compared to $1,981,138 at June 30, 2007.
The Company's cash position improved over the course of fiscal 2007 as the
result of various initiatives, including a $2,500,000 debenture issuance and
the sale of its operating subsidiary, FatPort Corporation, for gross proceeds
of $1,292,800. These cash inflows were partially offset by the Company's
fiscal 2007 net loss from continuing operations of $3,217,541, which included
non-cash items of $424,564.
Neil McDonnell, Chief Executive Officer of Ignition Point commented,
"During the period, TeraSpan Networks entered into a record sales contract
with Shaw Cablesystems. We are also increasing product sales and investing in
key international markets while expanding our proprietary product portfolio.
While these investments have had a negative impact on fourth quarter earnings,
we are setting the stage for the future."
"The market potential is enormous. In the US alone, according to the
Fiber-to-the-Home (FTTH) Council, 2.14 million homes are now connected via
end-to-end fiber, representing 112 percent annual growth over last year. As we
have completed over 40 miles of network installations in regional US markets,
we are well positioned to capitalize on this market opportunity."
About TeraSpan Networks
TeraSpan is a product and services company which has developed and
commercialized a patent-pending "Vertical Inlaid Fiber" (VIF) system for the
rapid, non-disruptive, and low-cost deployment of fiber optic networks.
TeraSpan's cost effective last-mile solutions help companies and organizations
meet rapidly growing end user demand for "last mile" high-speed voice, video
and data communications applications.
About Ignition Point
Ignition Point Technologies Corp. (TSX-VEN:IPN) is a Vancouver-based
broadband communications company providing innovative solutions to expand
connectivity to public and private networks. Ignition Point's operating
subsidiary is TeraSpan Networks Inc. www.teraspan.com. For more information,
The Company's financial results 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 except as
required by law.
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