IP Applications Corp. Reports Q2 2009 Results



    VANCOUVER, Aug. 27 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) today
announced its quarterly results for the three-month period ended June 30,
2009. For the three months ended June 30, 2009, revenue was $1,061,000, a
decrease of 19% from $1,315,000 in the corresponding period in 2008. Although
revenue was lower than the same period in 2008, gross margin in the quarter
increased to $480,000 compared with $453,000 in the same quarter in 2008. The
net loss increased 11% to $415,000 from $374,000.
    John Jacobson, President and CEO said "We've increased our spending on
marketing, sales and product development for our Software-as-a-Service
("SaaS") and Cloud billing services business because we believe that it is the
dominant driver of future shareholder value. In terms of progress toward this
goal, most of the first quarter's new customers are live on our application
and one SaaS billing customer that signed a contract with us in the second
quarter is already live. We also added a European-based reseller to extend the
reach of our SaaS and Cloud Computing product marketing. Sustaining our sales
and marketing investment to win new SaaS and Cloud Computing customers is a
priority."

    
                            IP Applications Corp.

                   Consolidated Statements of Operations,
                   --------------------------------------
                 Comprehensive Loss and Deficit (Unaudited)
                 ------------------------------------------
                    (prepared in accordance with Canadian
                  generally accepted accounting principles)


                            Six months ended           Three months ended
                                 June 30                     June 30
                           2009          2008          2009          2008

    Revenue           $  2,350,480  $  3,000,178  $  1,061,356  $  1,315,172
    Direct costs         1,258,194     1,898,364       581,147       862,533
                     --------------------------------------------------------
    Gross Margin         1,092,286     1,101,814       480,209       452,639
                     --------------------------------------------------------

    Operating expenses
    Amortization of
     property and
     equipment              56,962        90,745        25,278        45,623
    Foreign exchange
     (gain)/loss             9,783        (5,264)       21,398         6,941
    General and
     administration        686,348       695,191       342,515       346,825
    Interest on capital
     lease obligations       2,648         8,308           984         3,807
    Sales and marketing    313,508       172,610       174,419        91,532
    Stock-based
     compensation           37,908        60,580        13,530        40,692
    Operations and
     development           659,791       591,196       331,363       290,960
                     --------------------------------------------------------
                         1,766,948     1,613,366       909,487       826,380
                     --------------------------------------------------------
    Loss before
     the following        (674,662)     (511,552)     (429,278)     (373,741)
    Leasehold
     inducement income      14,726             -        14,726             -
                     --------------------------------------------------------
    Net Loss and
     Comprehensive Loss
     for the period       (659,936)     (511,552)     (414,552)     (373,741)
    Deficit - Beginning
     of period         (13,837,354)  (12,883,705)  (14,082,738)  (13,021,516)
                     --------------------------------------------------------
    Deficit - End
     of period        $(14,497,290) $(13,395,257) $(14,497,290) $(13,395,257)
                     --------------------------------------------------------
                     --------------------------------------------------------

    Loss per share
     - basic                (0.021)       (0.016)       (0.013)       (0.012)
                     --------------------------------------------------------

    Weighted average
     number of common
     shares used in the
     calculation of
     loss per share     31,365,562    31,753,238    31,365,562    31,753,238
    

    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. 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: John Bean, 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