IP Applications Corp. Reports 2008 Operating Results



    VANCOUVER, April 30 /CNW/ - IP Applications Corp. (TSX-Venture: IPX)
today announced its quarterly and annual financial results for the year ended
December 31, 2008.
    For the year ended December 31, 2008 revenue was $5.7 million, a 26%
decrease compared to $7.7 million for the year ended December 31, 2007, and
the net loss increased marginally to $(954)K from $(910)K.
    For the quarter ended December 31, 2008 revenue was $1.4 million compared
to $1.8 million in the corresponding period in 2007. The net loss decreased
15% to $(238)K from $(280)K. EBITDA loss was $(166)K , a 26% increase from
$(132)K in the corresponding quarter in 2007.
    John Jacobson, President and CEO said "In 2008 we started investing in
the emerging Cloud Computing and Software-as-a-Service ("SaaS") markets as a
way to create shareholder value. In the fourth quarter of 2008 we gained one
new customer, and in the first quarter of 2009 we signed five more. To fund
this investment in our future, we raised additional capital in 2008 and we
continued to improve the cost-effectiveness of our legacy business
operations."

    
    Achievements in 2008:

    -   In Q3 2008, closed a non-brokered private placement of of 3.9M shares
        for total net proceeds of $716K
    -   Achieved certification to Payment Card Industry Data Security
        Standard (PCI)
    -   With a goal to further improve margins, completed an orderly shutdown
        of our Vancouver call center and migrated all technical support calls
        to our offshore call center partner
    -   Engaged specialist SaaS market and business strategy consultants to
        assist in clarifying and validating the Company's product positioning
        and value proposition
    -   Repurposed already developed products and services to address the
        emerging, high value SaaS and Cloud computing markets
    

    Non-GAAP measures

    EBITDA is a key measure used by management to evaluate the Company's
performance. Management believes that EBITDA is useful as it provides an
indication of the results generated by the Company's business activities prior
to taking into consideration how those activities are financed and taxed and
also prior to taking into consideration asset depreciation and other non-cash
expenditures. EBITDA is not a recognized measure under Canadian GAAP, and
accordingly, investors are cautioned that EBITDA should not be construed as an
alternative to net earnings or loss determined in accordance with GAAP as an
indicator of the financial performance of the Company or as a measure of the
Company's liquidity and cash flows. EBITDA may not be comparable to similar
measures presented by other issuers. The schedule below details how IP
Applications reconciles its net loss per GAAP to EBITDA for the most recent
four quarters. Note: for the quarter ended December 31, the impact of realized
and unrealized foreign exchange gains and loss are excluded.

    
                             December 31  September 30   June 30    March 31
    (000's)                      2008         2008         2008       2008
    -------------------------------------------------------------------------
    Operating Loss              $(238)       $(204)       $(374)     $(138)
    Amortization                   47           46           46         45
    Stock-Based Compensation       33           21           41         20
    Other                          (8)         (25)         (26)       (26)
    -------------------------------------------------------------------------
    EBITDA                      $(166)       $(162)       $(313)      $(99)
    -------------------------------------------------------------------------
    

    Additional details on the quarterly and year end results, including the
audited Consolidated Financial Statements and Management Discussion and
Analysis, are available at www.sedar.com under IP Applications Corp.

    About IP Applications

    IP Applications Corp. (www.ipapplications.com) delivers billing, payments
processing and technical support services for online businesses. The Company's
on-demand billing and payments application delivers variable recurring
payments processing and subscriber lifecycle management for
Software-as-a-Service (SaaS) and Cloud computing companies. Established in
1998, the Company has a client roster that includes Sprint Nextel, Bell
Mobility, Amway Corporation and AOL Canada, a division of Time Warner.

    Forward-Looking Statements

    This press release may contain forward-looking statements. The Company
cautions users of this forward-looking information that actual results or
events may vary materially either favorably or unfavorably from those
described due to a number of risks and uncertainties. Such risks and
uncertainties include, but are not limited to: the inability of the Company to
accurately forecast the revenue from new and existing customers; the inability
of the Company's customers to accurately forecast their own demand for the
Company's products and service; changes in the relative value of the US and
Canadian dollars; the possibility that one or more customers or suppliers
might experience financial difficulties that could affect the Company's
ability to deliver and get paid for its products and services; and changes in
the growth rate of technology and telecommunications concerns. Refer to the
Company's management's discussion and analysis ("MD&A") for further discussion
of these and other risks and uncertainties in relation to such forward-looking
information.
    Forward-looking information is based on management's current
expectations, estimates and opinions. Please refer to the MD&A for a
discussion of the events and circumstances which occur that cause, or are
likely to cause, actual results to differ materially from such forward-looking
information.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    





For further information:

For further information: Richard Topham, CFO, D (604) 630-5657, E
ir@ipapplications.com

Organization Profile

IP APPLICATIONS CORP.

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