Pay Linx Reports Second Quarter 2008 Results

    EDMONTON, Aug. 29 /CNW/ - Pay Linx Financial Corporation (TSX-V: PIN)
("Pay Linx" or the "Corporation") has filed its financial results for the
three and six month period ended June 30, 2008. All results are reported in
Canadian dollars.
    "We are proceeding as planned with our current projects, including the
pilot with the large Canadian insurer and our work with Palm Desert National
Bank (PDNB)," said Ian McNeill, President and CEO of Pay Linx. "The additional
resources we have added to our organization have enabled us to accelerate our
development activities in order to better capitalize on the available market

    Second Quarter 2008 Summary

    -   Revenues increased by 9% in the second quarter of 2008 to $65,279
        from $59,677 in Q2 2007. The increase was the result of slightly
        higher transaction processing volumes on the existing pilot project
        with the Government of Alberta. The Corporation anticipates much
        higher transaction volumes once the program is fully underway.

    -   Total operating expenses increased to $1,004,051 from $583,902 in the
        same quarter in 2007 as the Corporation ramped up to full operational
        mode this year. The majority of the increase was allocated to
        salaries, fees and benefits, processing and support, and professional
        fees to support growth.

    -   Net loss of $942,977 in Q2 2008, compared to a net loss of $527,869
        in Q2 2007. Net loss per share was $(0.02) in the quarter compared to
        $(0.01) a year earlier.

    -   Cash and equivalents were $20,237 at June 30, 2008, compared to
        $308,191 at March 31, 2008. Financing activities contributed
        $420,319 during the quarter, and utilized $323,154 for operating
        activities and $385,119 for investing activities. Subsequent to
        quarter-end, Pay Linx closed a public offering for gross proceeds of

    Operational Highlights

    -   Working in conjunction with Royal Bank of Canada ("RBC"),
        Pay Linx finalized product testing to be deployed to an unnamed
        government client. RBC continues to market the Pay Linx offering to
        provincial governments through its QuickLinx(TM) brand.

    -   During the quarter Pay Linx announced an agreement with a large
        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). The
        Corporation is executing on this pilot project and has completed the
        first level of product testing.

    -   Pay Linx began development of software that will integrate its e-fund
        applications into a single portal. The portal is expected to increase
        the speed of new customer deployments, increase processing capacity,
        and add a number of features and enhancements. The project,
        originally scheduled for completion in the second half of 2009, has
        been accelerated to accommodate a client wishing to implement the
        portal early in the new year.

    -   Pay Linx announced an agreement with PDNB 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.

    Complete financial statements and management's discussion and analysis
for the three and six month periods ended June 30, 2008 have been filed 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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