In-Touch Survey Systems Ltd. announces highest quarterly revenue, profits and cashflow in the company's history

    OTTAWA, Nov. 6 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"
TSX-Venture: INX) is pleased to announce that revenue increased 48% to
$1,413,081 in Q3 2007 compared to $925,479 in Q3 2006. Net income increased
significantly to $164,749 compared to a net income of $1,037 in Q3 2006. Cash
flow from operations (adjusted EBITDA - see detailed financials) increased
227% to $295,000 in Q3 2007 compared to $94,000 in Q3 2006. The Q3 FY 2007
gross margin was 59% (58% YTD 2007) compared to 64% for Q3 (61% YTD 2006).
Management is encouraged with the fiscal performance, given the lower margins,
and anticipates margins moving back to historical levels in the future.
    Q4 revenues are typically lower than previous quarters as In-Touch
customers' focus on the annual holiday sales cycle. Management expects
Q4 Revenue in the range of $1.25 million to $1.4 million CDN and expectations
for FY 2007 revenue in the range of $4.8 million and $5.0 million. Revenues
are also expected to grow 40% in fiscal 2008.
    "New US-based customers were a major reason for the strong sales growth.
These customers provide a significant opportunity for In-Touch to grow sales
over the next few years. Becoming a major supplier to these Fortune
50 customers also validates our investment in our software and hardware
technology," said Michael Gaffney, Chief Executive Officer.
    "Over the past three years, we have significantly changed the strategy of
the company from being just a market research company to a software and
hardware solutions company that provides products directly to the marketing
and operations divisions of Fortune 1000 business to consumer companies. Our
customers want more than just market research. We provide our customers with
highly secure real-time data collection along with one-to-one marketing
capabilities, a robust real-time reporting system and digital signage
capabilities. We continue to enhance our software technology and services by
adding user friendly, leading edge, business intelligence tools for managers
and executives - helping our customers sell to their customers," said Gaffney.

    Consolidated statements
     of comprehensive
    Three months ended             Three months to          Nine Months to
     September 30, 2007              September 30             September 30
     and 2006 (unaudited)          2007       2006         2007         2006

    Revenue                 $ 1,413,081  $ 956,307  $ 3,606,155  $ 2,769,109

    Cost of goods sold          579,213    348,955    1,499,066    1,081,132
                            ----------------------- -------------------------

    Gross profit                833,868    607,352    2,107,089    1,687,977

    Total operating
     expenses                   634,318    579,294    1,945,991    1,601,629
                            ----------------------- -------------------------
    Earnings before
     undernoted items           199,550     28,058      161,098       86,348

    Interest expense            (28,378)   (11,201)     (79,855)     (33,045)
    Amortization of
     discount on
     promissory note            (13,335)   (10,211)     (37,479)     (27,128)
    Amortization of
     intangible asset            (4,761)    (4,761)     (14,283)     (14,179)
    Loss on foreign
     exchange                    (4,650)      -848      (17,621)      (4,657)
    Gain on disposal of
     assets                      16,323          -       32,098            -
                            ----------------------- -------------------------
    Net comprehensive
     earnings               $   164,749  $   1,037  $    43,958  $     7,339
                            ----------------------- -------------------------

    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.

    Detailed financial statements and Management's Discussion and Analysis
can be found on

    The TSX Venture Exchange has not reviewed the foregoing and has neither
    approved or disapproved the contents of this press release.
    %SEDAR: 00007687E

For further information:

For further information: Michael J. Gaffney, Chief Executive Officer,
(613) 270-7911,

Organization Profile

In-Touch Survey Systems Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890