In-Touch Survey Systems Ltd. announces 13% increase in revenue and Q2 2008 financial results



    OTTAWA, Aug. 29 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"
TSX-Venture: INX) is pleased to announce that revenue increased 13% to
$1,313,120 in Q2 2008 compared to $1,231,836 in Q2 2007. Net loss increased to
$86,263 compared to a net loss of $25,202 in Q2 2007. Cash flow from
operations (adjusted EBITDA - see detailed financials) decreased to $30,000 in
Q2 2008 compared to $90,000 in Q2 2007. The Q2 FY 2008 gross margin was 64%
compared to 57% for Q2 2007.
    "We continued our revenue growth in Q2 2008 over Q2 2007 and we expect
Q3 2008 to meet or exceed Q2 2008 in percentage revenue growth with even
stronger positive cash flows in terms of adjusted EBITDA. I am pleased with
our margin improvement - a positive reflection on our significant investment
in software development over the past three years. Several of our Fortune
1000 customers have told us that 'In-Touch has the best technology for data
collection and data integration' of all their electronic data collection
suppliers," said Michael Gaffney, Chief Executive Officer.
    "Thursday's announcement of the planned acquisition of NCI Mobility of
Chicago also bodes well for future revenue growth and operational scalability.
We expect NCI to add over $1.25 million in annual revenues with no additional
operational staff. We acquired their sales staff and assets and eliminated all
other operational costs", said Gaffney.

    
    (000,s)     2008    2008    2007    2007    2007    2007    2006    2006
                  Q2      Q1      Q4      Q3      Q2      Q1      Q4      Q3
    Sales
     revenue  $1,313  $1,160  $1,455  $1,413  $1,232    $961    $863    $956
    Cost of
     services    474     499     591     579     529     391     418     349
    Gross
     profit      839     661     864     834     703     570     445     607
    Total
     operating
     expenses    913     895     760     634     694     617     544     579
    Earnings
     (loss)
     before
     under-
     noted
     items      $(74)  $(234)   $104    $200      $9    $(47)   ($99)    $28
    Net
     earnings
     (loss)     $(86)  $(241)  $(269)   $165    $(25)   $(96)  ($153)     $1
    Calculation
     of
     non-GAAP
     earnings
     from
     operations.
     To net
     earnings
     add:
    Interest
     expense      20      26      33      28      22      30      47      11
    Amorti-
     zation      105      86     150      79      70      58      55      61
    Change in
     fair
     value of
     derivative  (44)      4      60       -       -       -       -       -
    Stock-based
     compen-
     sation and
     shares
     released
     from
     escrow       35      45      27      23      23      47      81      21
    Adjusted
     EBITDA      $30    $(80)     $1    $295     $90     $39     $30     $94
    

    Certain statements included in this news release contain forward looking
statements, which by their nature are necessarily subject to risks and
uncertainties and other factors that may cause actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such statements reflect the Company's current
views with respect to future events, and are based on information currently
available to the Company and on hypotheses which it considers to be
reasonable; however, management warns the reader that hypotheses relative to
future events which are beyond the control of management could prove to be
false, given that they are subject to certain risks and uncertainties.
    Detailed financial statements and Management's Discussion and Analysis
can be found on www.sedar.com.

    The TSX Venture Exchange has not reviewed the foregoing and has neither
    approved or disapproved the contents of this press release.
    %SEDAR: 00007687E




For further information:

For further information: Michael J. Gaffney, Chief Executive Officer,
(613) 270-7911, mgaffney@intouchsurvey.com

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In-Touch Survey Systems Ltd.

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