VANCOUVER, Aug. 30 /CNW/ - Ignition Point Technologies Corp.
(TSX-VEN:IPN), a Vancouver-based broadband communications company, today
announced its financial results for the quarter ended June 30, 2007, the third
quarter of its 2007 fiscal year.
Total revenue for the third quarter ended June 30, 2007 was $936,373
compared to $982,026 in the comparable quarter of fiscal 2006.
Net Gain / Loss
The net gain for the third quarter ended June 30, 2007 was $633,612
($0.08 per share) compared to a net loss $769,537 ($0.10 per share) in the
comparable quarter of fiscal 2006. The gain in the third quarter ended June
30, 2007 is attributable to a one-time gain on the sale of FatPort Corporation
for gross proceeds of $1,292,800 as reported on June 28, 2007.
At June 30, 2007 consolidated cash and cash equivalents totaled $514,025
($0.07 per share), and working capital in the amount of $1,981,138, an
increase from $693,862 as at March 31, 2007. This increase includes funds due
on the sale of FatPort Corporation in the amount of $1,292,801 that was
received on July 2, 2007.
Ignition Point closed the first tranche of a $2.5 million debenture unit
financing on March 15, 2007, and the second tranche on April 10, 2007,
resulting in aggregate gross proceeds of $2.5 million. Each of the 2500
debenture units issued consists of $1,000 principal amount 15% secured
debentures of Ignition Point and 2500 non-transferable warrants. Each warrant
has a term of two years and entitles the holder to acquire one common share of
Ignition Point at a price per share of $0.20. The debentures mature two years
from issuance and are secured by a general
On June 28, 2007 Ignition Point Technologies completed the sale of
FatPort Corporation for gross cash proceeds to of $1,292,801.
On July 26, 2007, TeraSpan Networks Inc. entered into a binding agreement
with Shaw Cablesystems Limited to sell inventory of fibre network assets (the
"Assets") and related network assets. The agreement provides for the sale of
$2,500,000 in Assets of which $1,200,000 has been closed and $1,000,000
balance of Assets will be transferred to Shaw Cablesystems over a six month
period as segments pass acceptance testing and $300,000 is to be received in
one year. Additionally, in support of these Assets, TeraSpan has agreed to
provide preventative and ongoing maintenance services.
The parties have also entered into a Construction Services Agreement
calling for Teraspan to deploy additional fibre networks for Shaw, using its
patented vertical inlaid system, having a minimum value of $2,000,000 of
revenue per year for a period of three years.
Based on existing agreements, sales projections, and margins, management
is of the opinion that Ignition Point Technologies will continue to operate
for the foreseeable future without requiring additional cash resources.
TeraSpan has developed and commercialized an innovative "Vertical Inlaid
Fiber" system for the rapid, non-disruptive, and low-cost deployment of fiber
optic networks. Network revenue has been hampered firstly by extreme weather
condition that prevent the deployment of fiber optics and restrict
implementation to in-building work; and secondly by a customer requested
rescheduling of fibre deployment for the Winnipeg project to address internal
procedural requirements. The gap in product delivery resulting from this
rescheduling will be rectified as the project draws to a conclusion over the
next few weeks. TeraSpan is making a concerted effort to increase higher
margin product sales which is reflected in increased sales volumes. Product
sales revenue for the three months ended June 30, 2007 of $550,817 exceeded
the comparable three month period in the prior year by $491,873 or 835%.
About Ignition Point
Ignition Point Technologies Corp. (TSX-VEN:IPN), a Vancouver-based
broadband technology company, provides unique access and applications
solutions to wired service providers. Ignition Point subsidiaries include
TeraSpan Networks Inc. www.teraspan.com. For more information, visit
The company's financial results for the quarter ended June 30, 2007 and
all comparable periods are stated in Canadian dollars and are prepared in
accordance with Canadian generally accepted accounting standards. Complete
financials are available at www.sedar.com.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
company expects to occur, are forward looking statements.
Forward looking statements are statements that are not historical facts
and are generally, but not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Although the company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results may differ materially from those in forward looking statements.
Factors that could cause the actual results to differ materially from those in
forward-looking statements include market prices, continued availability of
capital and financing and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from
those projected in the forward-looking statements. Forward-looking statements
are based on the beliefs, estimates and opinions of the company's management
on the date the statements are made. The Company undertakes no obligation to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors, should change.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: Stephen Majlath, Chief Financial Officer,
Ignition Point Technologies Corp., Phone:(604) 633-9090