OTTAWA, Feb. 14, 2012 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) announces unaudited financial results for Q4 2011. The Company expects to release its consolidated FY 2011 audited financial results by April 26 2012. These results are preliminary in nature, prepared by the Company without audit and could differ from our final audited results.
Q4 2011 revenue increased 91% to $3,016,534 compared to $1,578,627 in Q4 2010. The Company had net earnings of $184,200, an increase of 29% compared to net earnings of $143,139 in Q4 2010. The Company-defined adjusted EBITDA increased 18% to approximately $370,000 in Q4 2011, compared to an EBITDA of $315,000 in Q4 2010.
"We are extremely pleased with our superb revenue growth in Q4 and our 8th consecutive profitable quarter. We achieved growth in all our business segments while continuing to invest more resources in product development and marketing. Growth in 2012 will be dependent on a number of internal and external factors. We are targeting to grow revenues again by at least 25% from organic growth and we are searching for another 25% growth from acquisitions or joint ventures. In-Touch is forecasting revenues in 2012 in the $11,250,000 to $13,500,000 range", said Michael Gaffney, Chief Executive Officer.
The Company believes that there are substantial opportunities for continued revenue growth that it can seize if it continues to invest in both marketing and its proprietary In-Touch Apps software technology. While maintaining profitability, the Company intends to invest much of the contribution margin generated by current sales on product development and marketing on an on-going basis. Net earnings will be reduced accordingly by this continued investment in our potential to grow. The IMS division, in its first full year of operation, exceeded revenue targets of $1.25M and we are predicting 100% revenue growth for this division in 2012. The Service Intelligence ("SI") outsourcing agreement and subsequent acquisition of their customers has been a great success and the Company will complete full integration of the former customers of SI onto In-Touch technology by mid-year, which will result in significant gross margin improvement. In addition, the royalty that we are paying to SI of 10% of revenue from SI's former customers will reduce to 5% in August 2012 and disappear entirely in July 2013; this too will enhance our margins substantially.
In-Touch designs, develops and deploys data capture software technology and data capture services - especially for mobile or offsite applications. It was one of the first companies in the world to develop HTML 5 applications to solve the non-persistent nature of wireless networks to enable customers to continue working without connectivity. The Company's vision of "Perfect Information. Instantly." resonates powerfully with our customers' needs. In-Touch's customers range from United States and Canadian governments to some of the worlds largest auto and insurance brands to numerous Fortune 1,000 retail companies. The Company's overall strategy is to continue to invest in and search for market verticals needing onsite mobile data capture and real time business intelligence.
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.
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