Ivrnet Inc. Reports Third Quarter Results

    
    (TSX Venture Exchange: "IVI")
    Issued Common Shares: 29,044,062
    

CALGARY, Dec. 7 /CNW/ - Ivrnet Inc. (TSX Venture: IVI) is pleased to report financial results for the quarter ended September 30, 2009. The Company generated revenues of $696,489 during the quarter. This represents an 18% increase over the equivalent quarter of 2008, and a greater than 10% increase over reported revenues in Q2 of 2009. This also constitutes the best quarterly top line performance in the Company's history. Dave Snell, Ivrnet's President and CEO noted: 'We are very pleased with these results, both because it occurred during a time of generally weak economic conditions, and because it appears to validate the strategic direction that the Company has taken."

The gross margin in Q3 of 2009, amounted to $536,835, or 77% of revenues. This compares to a gross margin of only $467,913 in the third quarter of the previous fiscal year, comprising 79% of that quarters' revenues. Operationally, the Company generated a profit of $1,075 in Q3 of 2009. But with adjustments for other non-operating expenses, a net loss of $98,925 was recorded, compared to a net income of $13,236 in the third quarter of the previous fiscal year.

As can be seen in the table below, the loss in Q3 of 2009, is almost entirely attributable to a $100,000 expense allocation for stock based compensation. During the quarter, a $500,000 term loan was obtained to provide Ivrnet with additional working capital and to fund capacity expansions at the Company's data center. The stock based compensation was issued to a Director of the Company, in exchange for a personal guarantee on the $500,000 loan. This guarantee made it possible for Ivrnet to negotiate the loan at a much more favorable rate, than would otherwise be achievable.

A comparative summary of recent financial results is presented below.

    
                    Summary of Selected Financial Results

                                                2009       2008
    -------------------------------------------------------------------------
    $ CAD                  Q3         Q2         Q1         Q4         Q3
    -------------------------------------------------------------------------
    Revenues             696,489    630,501    625,232    534,259    591,145

    Cost of Sales       (159,654)  (128,822)  (106,308)   (73,779)  (123,232)

    Gross Margin         536,835    501,679    518,924    460,480    467,913

    Expenses            (347,939)  (413,459)  (442,963)  (431,612)  (367,973)

    Stock based
     compensation       (100,000)         -          -          -          -

    EBITDA(1)             88,896     88,220     75,961     28,868     99,940

    Net Income (Loss)    (98,925)     1,616      1,596    (63,944)    13,236

    Earnings (Loss)
     Per Share             (0.00)      0.00      (0.00)      0.00       0.00

    Total Assets       1,660,086  1,326,751  1,065,405    995,573  1,105,416

    (1) EBITDA is defined as earnings before interest, taxes, depreciation
        and amortization. Also excluded in Q3 of 2009 is $100,000 of non-cash
        financing costs. EBITDA is not a recognized measure under Canadian
        generally accepted accounting principles. Management believes however
        that EBITDA is a useful supplementary measure as it provides
        indication of the results of Ivrnet's business operations without
        regard to how these activities were financed or how these results
        were taxed.
    

A more complete analysis of the Company's financial results can be found by visiting www.sedar.ca.

About Ivrnet Inc. - Ivrnet is a communications company that develops and operates intelligent software applications, delivered through traditional phone networks and over the Internet. These applications facilitate automated interaction; personalized communication between people; mass communication for disseminating information to thousands of people concurrently; and personalized communication between people and automated systems. Ivrnet's applications are accessible through nearly any form of communication technology, at anytime from anywhere in North America via voice, phone, fax, email, texting and the Internet.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release may contain certain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence the actual results are described in documents filed with regulatory authorities.

%SEDAR: 00013393E

SOURCE Ivrnet Inc.

For further information: For further information: please visit our website at www.ivrnet.com, or contact: David L. Snell, Ivrnet Inc., President and CEO, (403) 538-4540, eMail: d.snell@ivrnet.com

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