VANCOUVER, Feb. 29 /CNW/ - Ignition Point Technologies Corp.
(TSX-V: IPN), a Vancouver-based broadband communications company, today
announced financial results for its first quarter ended December 31, 2007.
Total revenue for the first quarter ended December 31, 2007 was $842,090
compared to $790,146 in the comparable quarter of fiscal 2007.
The company anticipates delivering and receiving acceptance for a
significant portion the dark fiber network assets sold to Shaw Cablesystems as
part of the $2.5M contract entered into in July 2007 during the second quarter
of fiscal 2008. The company recognized revenue of approximately $600,000
relating to this contract in fiscal 2007 and did not recognize any revenue
related to this contract in the current quarter. Network deployment revenues
were also restricted in the current period by the civic strike in Greater
"We are seeing rapid growth in the worldwide deployment of fiber
networks, and are evolving our business strategy to emphasize developing
product sales in markets that are leading the way in fiber deployment. As a
result, we are investing in developing international sales and distribution
channels and will be pursuing financing strategies to support these
initiatives as well as current operations." commented Neil McDonnell, CEO of
The Company's net loss for the first quarter of 2007 was $1,021,295
($0.14 per share) compared to $604,450 ($0.08 per share) for the first quarter
of 2007. Operating losses were higher in the first quarter of 2008 as compared
to the first quarter of 2007 due primarily to increased general and
administrative expenses and reduced gross margins. The reduced gross margins
resulted primarily from a specific network deployment cost overrun and costs
related to the maintenance and repair of installed networks.
At December 31, 2007 consolidated cash and cash equivalents totaled
$114,754 which represents a cash value of $0.02 per share. At September 30,
2007 consolidated cash and cash equivalents totaled $1,279,440, representing a
cash value of $0.17 per share. The Company's working capital at December 31,
2007 was $424,409, compared to $1,191,592 at September 30, 2007. The Company's
working capital decreased during the first quarter of 2008 due primarily to
the Company's net loss $1,021,295, which included non-cash items of $179,683.
Cash resources at Ignition Point are currently limited and net cash
generated from operations in the current and previous periods has not been
sufficient to cover operating costs. The Company will likely require
additional debt or equity financing to meet its near term liquidity
requirements, including the repayment of debentures and convertible debentures
that mature in March 2009 and March 2010. The Company is currently exploring
financing alternatives and believes it will be able to obtain the additional
financial resources it requires to meet its obligations as they come due.
However, there can be no assurance that such financing will be available or
that it will be available on reasonable terms that would not negatively impact
the Company's shareholders.
About Ignition Point
Ignition Point Technologies Corp. (TSX-V:IPN) is a Vancouver-based
broadband communications company providing innovative solutions to expand
connectivity to public and private networks. Ignition Point's 68.6% owned
operating subsidiary is TeraSpan Networks Inc. www.teraspan.com. For more
information, visit www.ignitionpoint.ca.
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: Elena Kinakin, Chief Financial
Officer, Ignition Point Technologies Corp., Phone: (604) 638-5484