IP Applications Corp. Reports Q1 2009 Results



    VANCOUVER, May 27 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today
announced its quarterly results for the three-month period ended March 31,
2009.
    For the quarter ended March 31, 2009 revenue was $1.3M, a decrease of 23%
from $1.7M in the corresponding period in 2008. The net loss increased 78% to
$(245)K from $(138)K. EBITDA loss was $(213)K as compared to an EBITDA loss of
(99)K in the corresponding quarter in 2008.

    Overview of the three months ended March 31, 2009:

    
    -   Added five new SaaS subscription billing and recurring payments
        customers in the quarter
    -   Gross margin improved to 47% in the current quarter as compared to
        39% in 2008
    -   Operating expenses increased to $0.9M in the first quarter of 2009 as
        compared to $0.8M in 2008
    -   Realized the cost savings from the completed shutdown of the
        Vancouver call center and the migration of all technical support
        calls to our offshore call center partner in Q4 2008
    

    John Jacobson, President and CEO said "In the first quarter we won five
new online billing customers in competition with other recurring billing and
subscription payment solutions. Signing five new Software as a Service
("SaaS") billing customers in the quarter demonstrates the competitive
strengths of our recurring payments solution and the demand for our
subscription billing software.
    Our ongoing operations received the benefits of our major cost management
efforts last year and we continued to increase the sales and marketing costs
to win new customers for our SaaS and Cloud Computing recurring payment and
subscription billing solution. In terms of long-term value to IP Applications,
the lifetime value of a client's recurring revenue grows as our customer's
recurring payments' volume grows. We're making solid progress in establishing
our SaaS billing business as the dominant driver of future shareholder value."

    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 quarters ended March 31 and December 31, the
impact of realized and unrealized foreign exchange gains and loss are
excluded:

    
                              March 31   December 31  September 30   June 30
    (000's)                     2009         2008         2008         2008
    -------------------------------------------------------------------------

    Operating Loss        $     (245)  $     (238)  $     (204)  $     (374)

    Amortization                  32           47           46           46

    Stock-Based
     Compensation                 24           33           21           41

    Other                        (24)          (8)         (25)         (26)
    -------------------------------------------------------------------------
    EBITDA                $     (213)  $     (166)  $     (162)  $     (313)
    -------------------------------------------------------------------------
    

    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 Corp.

    IP Applications Corp. (www.ipapplications.com) delivers subscription
billing and recurring payments for online subscription businesses. The
Company's billing software, recurring payments processing and technical
support services support SaaS and Cloud Computing businesses as well as
internet service providers. Established in 1998, the Company's client roster
includes Sprint Nextel, Bell Mobility, Amway Corporation and AOL Canada, a
division of Time Warner. For more information on the Company and its services,
see www.ipapplications.com.

    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 most recent 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.

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    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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