TIO Networks Corp. 2007, Q3 financial results



    Quarterly Revenue increases 40%

    BURNABY, BC, June 21 /CNW/ - TIO Networks Corp., owner of North America's
leading automated bill payment and financial services network, (TSX-V: TNC),
today announced operating results for the third quarter ended April 30, 2007.
    Total recurring revenue for the quarter including transaction services
and maintenance/licensing services revenue, increased 37% and accounted for
$3,355,835 or 92% of total revenue, compared to $2,442,746 or 94% for the
quarter ended April 30, 2006. The gross profit for the quarter ended April 30,
2007 was $1,585,721 translating into a gross margin of 44%, this represents an
increase of $724,083 or 84% as compared to the gross profit of $861,638 and
gross margin of 33% for the quarter ended April 30, 2006.
    Quarterly revenue increased 40% to $3,639,693, from $2,606,949 one year
ago. EBITDA(*) loss for the period was ($146,000) compared to a loss of
($380,000) one year ago. Net income was a loss of $1,119,695 compared to a
loss of $ 880,588 one year ago. Contributing to the financial results for Q3
were 1- Amortization of property and equipment of $597,269 (compared with
$315,278 in Q3 2006), 2- Interest expenses of $235,135 compared to $138,500 in
Q3 2006, 3- Research and Development expenses of $ 192,656 compared to
$131,977 in Q3 2006 and 4- Foreign exchange loss of $113,938 compared to a
loss of $5,952 in Q3 2006 and 5- severance payment to a departed officer of
the company in the amount of $60,000.
    The following metrics are key measures on the Company's quarterly
performance in terms of deployments, transactions and profit margins:

    
    -------------------------------------------------------------------------
                      Q3 07        Q2 07       Q1 07       Q4 06       Q3 06
    -------------------------------------------------------------------------
    No. of TIO
     devices deployed
     or TIO Express
     locations
     signed(1)        2,409        1,964       1,442       1,101         912
    -------------------------------------------------------------------------
    No. of TIO
     devices or
     TIO Express
     locations
     activated
     on TIO's
     processing
     system(1)        2,235          n/a         n/a         n/a         n/a
    -------------------------------------------------------------------------
    No. of TIO
     devices or
     TIO Express
     locations
     transacting
     and
     generating
     income(1)      1,883(2)       1,555       1,292         976         776
    -------------------------------------------------------------------------
    No. TIO
     kiosks(3)
     deployed/
     owned
     by TIO     1,283/1,029  1,204/1,014   1,115/963   1,041/896     912/782
    -------------------------------------------------------------------------
    No. of TIO
     Express
     Locations
     Signed
     up/No.
     transacting  1,126/748      760/460     327/248       60/60           -
    -------------------------------------------------------------------------
    No. of
     Devices
     where TIO
     generates
     revenue on
     a fixed fee
     basis per
     month(4)
     deployed/
     generating
     revenue          49/43        47/34       27/27       14/14       14/14
    -------------------------------------------------------------------------
    No. revenue-
     generating
     transactions
     for the
     quarter      1,114,860      966,748     847,581     795,191     776,585
    -------------------------------------------------------------------------
    Gross
     Transac-
     tional
     revenue/
     Transac-
     tional
     Revenue
     Gross
     Margin
     ($'000)    3,260/1,282  2,767/1,144   2,471/961   2,344/857   2,359/729
    -------------------------------------------------------------------------
    Recurring
     Revenue
     (Transac-
     tional +
     Fixed fee)   3,356,000    2,850,000   2,546,000   2,418,000   2,443,000
    -------------------------------------------------------------------------
    Quarter to
     quarter
     growth: No.
     transactions/
     gross margin
     from
     transactional
     revenue         15%/12%      14%/19%      7%/12%      2%/18%      10%/4%
    -------------------------------------------------------------------------
    Gross profit
     margin from
     transactional
     revenue           39.3%        41.4%       38.9%       36.6%       30.9%
    -------------------------------------------------------------------------
    Same Terminal
     sales
     ($'000)(5)/
     no of        2,273,000/   1,982,000/
     terminals      661,000      578,000         n/a         n/a         n/a
    -------------------------------------------------------------------------
    (1)  This includes standalone kiosks and hybrid ATM devices in addition
         to TIO Express locations (transactional + fixed fee).
    (2)  This includes all locations that have transacted within last
         6 months (transactional + fixed fee)
    (3)  This includes kiosks on monthly fixed fees
    (4)  This only includes kiosks that provide payment services (i.e., not
         pure pay per use Internet terminals)
    (5)  Transactional revenue derived from devices that had been in service
         for more than one year.
    

    "New lines of distribution are accelerating TIO's growth potential,"
stated Hamed Shahbazi, Chairman and Chief Executive Officer of TIO Networks.
"TIO has been successful in and remains focused on taking market share at a
critical time in the development of the self-service automated bill payment
and financial services marketplace and at the same time establishing a robust
operational foundation that will ensure the success of its growing client
initiatives"

    Conference Call:

    You are invited to attend a conference call on Friday June 22 at
10:00am EST to review the Q3 2007 financial results. The dial-in numbers are
(416) 644-3414 in Toronto, or, Toll Free 1-800-733-7571. Callers should
request the TIO Networks Conference.

    About TIO Networks Corp.

    TIO Networks Corp. is North America's largest multi-retailer network of
non bank financial services for the 'cash preferred' consumer marketplace. The
Company operates in more than 2000 locations and provides safe secure access
to bill payment and other key financial services. For more information, please
visit www.TIOnetworks.com

    The TSX Venture Exchange has not reviewed this news release and does not
    accept responsibility for its adequacy and accuracy.

    
    (*) EBITDA: Earnings before interest, tax, depreciation, amortization &
        stock-based compensation
    

    EBITDA is not a defined term under Canadian generally accepted accounting
principles, nor does it have a standard, agreed upon meaning. Accordingly, the
Company's EBITDA may not be directly comparable to EBITDA reported by other
issuers. Management had determined EBITDA is a useful supplemental measure in
evaluating the Company's performance as it provides investors with an
indication of cash available for debt service, working capital needs and
capital expenditures. This non-GAAP measure is intended to provide additional
information on the Company's performance and should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with GAAP.

    %SEDAR: 00010068E




For further information:

For further information: Derek Lai - Acting CFO - TIO Networks, Tel:
(604) 298-4636, Ext. 269, Toll Free: 1-888-679-3322, Email:
Derek.Lai@tionetworks.com; John Lewis, Business Development - TIO Networks,
Tel: (416) 364-2266, Email: jrlewis@TIOnetworks.com


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