IP Applications Corp. Reports Q2 2008 Results



    VANCOUVER, Aug. 29 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today
announced its quarterly results for the three and six-month periods ended
June 30, 2008.
    For the quarter ended June 30, 2008 revenue was $1.3M, a decrease of 30%
from $1.9M in the corresponding period in 2007. The net loss increased 51% to
$(374)K from $(247)K. EBITDA loss was $(313)K as compared to an EBITDA loss of
(13)K in the corresponding quarter in 2007.
    For the six-months ended June 30, 2008 revenue was $3.0M, a decrease of
25% from $4.0M in the corresponding period in 2007. The net loss increased 18%
to $(512)K from $(433)K. EBITDA loss was $(412)K as compared to EBITDA of 12K
in the corresponding period in 2007.
    John Jacobson, President and CEO said "Despite a challenging quarter in
the technical support and Internet Service segment of our business, we're
making solid progress establishing our Software as a Service ("SaaS") business
as the dominant driver of future shareholder value. Multiples and valuations
of successful SaaS companies are many times greater than conventional help
desk and hosted applications providers.
    In the second quarter we committed significant staff and cash resources
to begin marketing our billing and subscriber management services into the
fast growing SaaS and Cloud Computing markets. Early efforts yielded our first
contract for these services with Logistica Solutions Inc. of Anaheim,
California. Our updated www.SaaSAutomation.com website and online marketing
campaigns are also generating new leads. Market research commissioned by the
Company shows that companies in the enterprise software space are searching
for technical solutions to billing and subscriber management problems. Our
intention is to expand and focus IP Applications' business into this
fast-growing high-value market."


    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:

    
                             June 30   March 31   December 31   September 30
    (000's)                    2008      2008        2007           2007
    -------------------------------------------------------------------------

    Operating Loss            $(374)    $(138)      $(280)         $(197)
    Amortization                 46        45         111            107
    Stock-Based Compensation     41        20          37             31
    Other                       (26)      (26)          -             52
    ---------------------------------------------------------------------
    EBITDA                    $(313)    $ (99)      $(132)         $  (7)
    ---------------------------------------------------------------------
    

    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.

    The Company delivers business process automation, customer care and
hosting for companies in SaaS and cloud computing, telecom, internet services
and electronic commerce markets. Customers can focus on their product
marketing while IP Applications provides critical billing, administrative and
marketing support capabilities.

    More product information is available on its corporate website
(www.IPApplications.com) and on its product-specific website
(www.SaaSAutomation.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 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.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890