TIO Networks reports 2007, Q2 financial results



    EBITDA(*) Positive for third consecutive quarter - Gross Profit Margin
    increases

    BURNABY, BC, March 21 /CNW/ - TIO Networks Corp. (TIO), North America's
leading automated bill payment and financial services network (TSX-V: TNC),
today announced operating results for the second quarter ended January 31,
2007.
    Quarterly revenue increased 37% to $3,147,674, from $2,289,874 one year
ago. EBITDA(*) was a positive $59,000 compared to a negative $366,000 one year
ago. Net income was a loss of $669,670 vs. a loss of $840,185 for the same
period one year ago. Contributing to the financial results for Q2 were: 1-
Amortization of property and equipment in the amount of $462,711 (compared to
$ 275,301 in Q2 2006), 2- Interest expenses of $ 165,212 compared to
$ 135,392in Q2 2006 and 3- Research and Development expenses of $ 180,544
compared to $ 126,655 in Q2 2006
    Total recurring revenue for the quarter, including transaction services
and maintenance/licensing services revenue, increased 25% and accounted for
$2,849,854 or 91% of total revenue, compared to $2,272,809 or 99% for the
quarter ended January 31, 2006. The gross profit for the quarter increased 87%
to $1,394,839 representing a gross margin of 44%, compared to gross profit of
$745,829 and gross margin of 33% one year ago.
    As at January 31, 2007, the Company had cash and cash equivalents of
$6,566,618 and net working capital of $5,095,368.
    Six month revenue increased 34% to $6,188,049, from $4,623,805 one year
ago. EBITDA(*) was a positive $103,000 compared to a negative $575,000 one year
ago. Net income was a loss of $1,207,038 vs. a loss of $1,472,913 for the six
month period one year ago.
    During the quarter the Company shipped 69 corporate and third party owned
kiosk and hybrid devices bringing the total number of devices deployed to
1,157 as of January 31, 2007. 1,061 of these devices and 460 TIO Express
locations were installed/activated and operational (all in the US), generating
a total of 966,748 transactions. This represented growth of 37% compared to
the previous year's figure of 669 kiosks generating 707,853 transactions in
the U.S. Transactional revenue for the quarter increased by $573,162 to
$2,767,462 representing an increase of 26% compared with the same period last
year.
    The following metrics are key measures on the Company's quarterly
performance in terms of deployments, transactions and profit margins:

    
    -------------------------------------------------------------------------
                           Q2 07      Q1 07      Q4 06      Q3 06      Q2 06
    -------------------------------------------------------------------------
    No. of TIO
     devices deployed
     or TIO Express
     locations signed      1,964      1,442      1,101        912        757
    -------------------------------------------------------------------------
    No. of TIO
     devices or TIO
     Express
     locations
     activated and
     capable of
     generating
     revenues              1,555      1,292        976        776        716
    -------------------------------------------------------------------------
    No. TIO kiosks
     deployed/owned
     by TIO          1,157/1,014  1,088/963  1,027/896    898/782    743/616
    -------------------------------------------------------------------------
    No. of TIO
     Express
     Locations
     Signed up/
     No. activated       760/460    327/248      60/60          -          -
    -------------------------------------------------------------------------
    No. of Devices
     where TIO
     generates
     revenue on a
     fixed fee basis
     per month                34         27         14         14         14
    -------------------------------------------------------------------------
    No. Transactions
     for the quarter     966,748    847,581    795,191    776,585    707,923
    -------------------------------------------------------------------------
    Gross
     Transactional
     revenue/
     Transactional
     Revenue Gross
     Margin ($'000)  2,767/1,144  2,471/961  2,344/857  2,359/729  2,194/701
    -------------------------------------------------------------------------
    Recurring Revenue
     (Transactional
     + Fixed fee)
     ($'000)               2,850      2,546      2,418      2,443      2,273
    -------------------------------------------------------------------------
    Quarter to
     quarter growth :
     No. transactions/
     gross margin from
     transactional
     revenue             14%/19%     7%/12%     2%/18%     10%/4%    10%/21%
    -------------------------------------------------------------------------
    Gross profit
     margin from
     transactional
     revenue               41.4%      38.9%      36.6%      30.9%      32.0%
    -------------------------------------------------------------------------
    

    "We had an excellent quarter; we materially increased 1- transactional
revenue, 2- gross margins on our transactional business and 3- the number of
new locations," stated Hamed Shahbazi, Chairman and CEO of TIO Networks.
"Despite growing our support structure materially in order to accommodate our
rapid pace of new deployments we achieved EBITDA(*) profitability, and further
reduced our dependence on one-time revenues."
    Conference Call: You are invited to attend a conference call on Thursday,
March 22 at 1:30pm Eastern Standard Time to review the 2007 Q2 financial
results. The dial-in numbers are 416-644-3414 in Toronto, or, Toll Free
1-800-732-6179. Callers should request the TIO Networks Conference.

    About TIO Networks Corp.
    TIO Networks Corp. is building the largest automated non-bank bill
payment and financial services network in North America. The network is
comprised of self-service and clerk assisted locations providing bill payment
services to the 'cash preferred' consumer marketplace. The TIO brand
symbolizes convenient access to key financial services.
    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, Email: Derek.Lai@tionetworks.com; John Lewis -
Bus/Dev - TIO Networks, Tel: (416) 364-2266, Email: jrlewis@tionetworks.com


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