OTTAWA, May 21 /CNW/ - TrueContext Mobile Solutions Corporation (TSXV:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three months ended March 31, 2010. All amounts are stated in Canadian dollars unless otherwise noted.
Operating Results for the Three Months Ended March 31, 2010
The following is a summary of the operating results for TrueContext for the three months ended March 31, 2010.
Revenue for the three months ended March 31, 2010 was $178,437 compared to $103,516 for the same period in 2009 and $186,834 for the fourth quarter of 2009. First quarter 2010 license revenue of $111,500 consisted of $85,100 subscription revenue plus $26,400 of perpetual license revenue. The first quarter subscription revenue of $85,100 decreased slightly from $88,000 in the fourth quarter of 2009; however, the average number of subscribers increased from 1,925 in the fourth quarter to 1,967 in the first quarter.
"We recently completed our private placement to fund our operations and specifically fuel our expansion with operators. Our relationship has grown with AT&T Services Inc. since we announced our resale agreement on March 3, 2010. We have been working with the AT&T sales and technical teams to drive demand and we have recently been involved in many regional launches and blitzes which have already led to customer activations," said Alvaro Pombo, Chief Executive Officer. "Earlier in 2010, we began to concentrate on operator sales channels as AT&T and other opportunities have become more tangible. Our revenue from direct subscriptions and perpetual licenses decreased in our 2010 first quarter as we shifted focus but we have made significant progress in building new operator channels in North America and Europe. We continue to focus on growing subscriptions by using our leverage with partners like AT&T."
The decrease in subscription revenue primarily relates to the cancellation of subscriptions in legacy programs with higher subscription rates. The average number of subscribers per month increased only slightly as we shifted focus from direct sales to concentrate on building our operator channels. First quarter revenue also included approximately $66,900 of services revenue which increased from fourth quarter services revenue of $50,690.
The Company had a net loss of $423,050 for the three months ended March 31, 2010 compared to a net loss of $1,107,714 for the same period in 2009. Loss from operations for the three months ended March 31, 2010 decreased to $419,984 compared to $494,773 for the three months ended March 31, 2009. In 2009, we re-focused the Company to concentrate on Software as a service (SaaS) and implemented cost cutting measures to decrease our operating expenses. The reduction in net loss was also affected by the elimination of the foreign exchange loss on US denominated preferred shares. The preferred shares were converted into common shares in the second quarter of 2009, so results are no longer impacted by foreign exchange gains and losses or interest expense on redeemable preferred shares.
As at March 31, 2010, the Company had cash and cash equivalents of $225,508 and a working capital deficit of $347,326. On May 3, 2010, the Company completed a non-brokered private placement resulting in gross proceeds of $750,000. The private placement involved the sale of units at $0.20 per unit. Each unit consisted of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder thereof to acquire one common share of TrueContext at an additional purchase price of $0.40 per share at any time up to two years from the closing date. We believe that our cash on hand, including the private placement proceeds, is sufficient to fund our operations through the fourth quarter of 2010.
ABOUT PRONTOFORMS(TM) AND TRUECONTEXT
TrueContext ProntoForms(TM) enables organizations to mobilize business processes in minutes, increasing productivity and eliminating the use of paper. Workgroups can create their own forms, capture data from the field, and then report and act on mission critical information, all in real time and in a secured and managed cloud environment. The data in the field is captured on commonly deployed mobile devices, such as Blackberry, Windows Mobile, Web browsers and iPhone devices.
ProntoForms(TM) is the trademark of TrueContext Corporation, a wholly-owned subsidiary of TrueContext.
Established in 2001, TrueContext is a pioneer in the creation and utilization of easy to use Mobile Data Collection applications. TrueContext's flagship product, ProntoForms(TM) (www.prontoforms.com) simplifies field data capture and extends the most powerful business applications to nearly any mobile device. This award-winning, patent-pending technology allows non-technical customers to securely build, manage and deploy a wide variety of forms for mobile workforce management. For questions or additional information, please contact TrueContext at email@example.com or at +1.877.668.6438.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
SOURCE TRUECONTEXT MOBILE SOLUTIONS CORPORATION
For further information: For further information: Alvaro Pombo, Chief Executive Officer, TrueContext Mobile Solutions Corporation, t: (613) 599-8288 ext. 1111, e: firstname.lastname@example.org