Pay Linx Reports First Quarter 2008 Results

    EDMONTON, June 3 /CNW/ - Pay Linx Financial Corporation (TSX-V: PIN)
("Pay Linx" or the "Corporation") has filed its financial results for the
three month period ended March 31, 2008. All results are reported in Canadian
    "In 2008 we have continued to build on the momentum we have established,"
said Ian McNeill, President and CEO of Pay Linx. "We are making solid progress
in building both the partner and customer relationships that will enable us to
execute our growth strategy. This year we expect to launch a pilot with a
major Canadian insurer, as well as proceed to full production mode on the
initial pilot we completed in Alberta."

    First Quarter 2008 Summary

    -   Revenues increased by 31% in the first quarter of 2008 to $61,522
        from $47,034 in Q1 2007. The increase was comprised entirely of
        revenue from successfully completed pilot projects.

    -   Total operating expenses increased to $828,291 from $468,907 in the
        same quarter in 2007 as the Corporation expanded its internal
        operations to enable it to execute its growth strategy. The majority
        of the increase was due to processing and support costs associated
        with ongoing pilot projects, and to salaries and benefits to support

    -   Net loss of $762,724, in Q1 2008 compared to a net loss of $430,663
        in Q1 2007. Net loss per share was the same at $(0.02) per share.

    -   Cash and equivalents were $308,191 at March 31, 2008, compared to
        $809,321 at December 31, 2007. Subsequent to quarter-end, Pay Linx
        closed a non-brokered private placement with Royal Bank of Canada
        ("RBC") of a convertible, unsecured debenture in the principal amount
        of $400,000.

    Operational Highlights

    -   In March, 2008 Pay Linx announced a business relationship with RBC
        under which RBC provides Pay Linx with marketing services to
        provincial governments through RBC's recently announced QuickLinx(TM)

    -   Pay Linx established a second development team in Beijing, China to
        continue to develop the Corporation's product line in a cost-
        effective manner.

    -   Subsequent to quarter-end, Pay Linx announced an agreement with Palm
        Desert National Bank that allows Pay Linx to issue a MasterCard
        branded prepaid card in the United States and to become a third party
        processor of these transactions.

    -   Also subsequent to quarter-end, Pay Linx announced an agreement with
        a Canadian insurer to pilot a payment card to manage the real-time
        payment of health benefits provided under what is commonly known by
        insurance companies as a Health Care Spending Account (HCSA).

    Complete financial statements and management's discussion and analysis
for the three month period ended March 31, 2008 are available at

    About Pay Linx

    Pay Linx Financial Corporation (TSX-V: PIN) delivers affordable,
accessible and contemporary payment processing services that integrate
seamlessly into the Interac and MasterCard financial networks in North
America. Pay Linx, which is 27% owned by Royal Bank of Canada ("RBC"),
provides services to RBC for Canadian governments through QuickLinx(TM)
replacing cheque and voucher payments. Pay Linx, through Bank West, a Canadian
financial institution, and Palm Desert National Bank, a United States
financial institution, also delivers new and innovative financial payment
solutions for corporations to better serve their customers. Pay Linx services
support governments and corporations to replace cash and cheque payments based
on services and infrastructure provided by Pay Linx. Pay Linx instant issuing
services allow corporations to issue and fund a Pre-Paid Interac or MasterCard
in real time allowing the beneficiary to select their own PIN number using a
Pay Linx PIN and Card Activation terminal. This allows the beneficiary to have
instant access to funds that can be reloaded by the corporation.

    Forward-Looking Statements

    The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. Certain statements contained herein may
constitute forward-looking statements. These statements relate to future
events or our future performance. All statements other than Statements of
historical fact may be forward-looking statements. Forward looking statements
are often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements involve known
and unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements. We believe that the expectations reflected in the
forward-looking statements are reasonable based upon management's current
views but no assurance can be given that these expectations will prove to be
correct and such forward-looking statements should not be unduly relied upon.
No assurance can be given that actual results, performance or achievement
expressed in, or implied by these forward-looking statements will occur, or if
they do, that any benefits may be derived from them. Past results have been
applied in drawing a conclusion or making a forecast or projection set out in
the forward-looking information.

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release

For further information:

For further information: Ian McNeill, President and CEO, Pay Linx
Financial Corporation, Tel: (780) 702-4710, Email:,; Marshall Rosichuk, CMA, CFO, Pay Linx Financial Corporation, 
Tel: (780) 702-4702, Email:,

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