TSX Venture Exchange: VSI
VANCOUVER, March 30, 2012 /CNW/ - VendTek Systems Inc. (TSXV: VSI) (the "Company"), a developer and licensor of software for the global prepaid and financial services markets, today reported its financial results for the first quarter ended January 31, 2012.
Selected First Quarter Operational Highlights
- Signed agreement with Multipla in Brazil to offer recharge services to Multipla's 500 merchants.
- Expansion of the Now Prepay Network in Brazil to 1,865 locations
- Completed the initial development of the mobile commerce platform
Selected Financial Information for the Three Months ended January 31, 2012
- Revenues for the three months ended January 31, 2012, decreased $2.2 million to $24.3 million from $26.5 million for the corresponding period in 2011;
- Gross margin increased to 5.7% for the three months ended January 31, 2012, from 5.2% for the first three months of 2011;
- Adjusted EBITDA1 decreased to a loss of $639,000 for the first quarter of 2012 from $305,000 for the first quarter of 2011;
- Net loss of $939,058 for 2012, compared to $451,421 for 2011.
"We have seen steady growth in our Brazilian network," said Doug Buchanan, President and Chief Executive Officer of VendTek. "We invested approximately $630,000 during the quarter to expand our network in Brazil. We continue to explore opportunities to accelerate our expansion in Brazil while controlling our costs."
"We are also pleased that we have improved our margins in our North American operations. Our focus on expanding our product portfolio to include financial products has a positive impact on our gross profits and has diversified our product offering," continued Mr. Buchanan.
Nurez Khimji, Secretary and Chief Financial Officer of the Company, says the Company reached an important milestone with the successful completion of the first phase of the mobile commerce platform. "We can now connect any mobile wallet account or bank account to each other. This will allow for increased financial inclusion in the developing world. This will also allow for people in the developing world to receive their pay, top-up their phone, or pay for their utility bill directly from their mobile phone. We expect that our first deployment will be in Afghanistan," said Khimji.
VendTek management will host a conference call on Monday April 2nd at 8:30 AM EDT (5:30 AM PDT) to discuss its financial results and operational highlights for the first quarter of fiscal 2012.
To access the conference call by telephone, dial 1-647-427-7450 or 1-888-231-8191 and reference the company name, VendTek Systems Inc., or the conference code 67866258.
A live audio webcast of the conference call will be available at http://www.newswire.ca/en/webcast/detail/946771/1013503 Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.
1 Management defines Adjusted EBITDA as net income adjusted for financing, taxes, depreciation, amortization expenses, foreign exchange differences and stock based compensation expense. Please see the Management Discussion and Analysis for more details.
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