CALGARY, Nov. 27, 2015 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio"), today announced its third quarter (Q3) financial results for the three and nine month periods ended September 30, 2015.
"During the quarter, we successfully integrated the operations of Valuation Vision into Zaio, focusing on selling our BPO family of products to our well-established customer base of over 100 asset management, private equity, and national mortgage services firms that currently buy our innovative BPO products," said Shane Copeland, CEO of Zaio. "The entire team understands that our immediate task is to drive revenue growth from existing Valuation Vision products, while aggressively managing expenses to maximize shareholder value. We believe we have just started to scratch the surface of the market that will accept BPOMerge as a core valuation product."
"Subsequent to the quarter end we also announced that the Company is terminating the acquisition of Axis Appraisal Management," continued Shane Copeland. "After carefully reviewing the strategic synergies among the two companies, and the trends in the valuation marketplace, the board decided that the acquisition of Axis Appraisal was not a strategic fit for the primary focus of our business. While we intend to continue to work and collaborate with Axis as a business partner on various products in the future, we are now well positioned to do business with all appraisal management companies, which in our view is a much better opportunity to get our proprietary technology into the greater real estate valuation market."
- Total revenue was $1,130,924 for the three months ended September 30, 2015, compared to nil for the same period in 2014. Total revenue was $1,668,330 for the nine months ended September 30, 2015, compared to nil for the same period in 2014.
- Total expenses were $2,906,811 for the three month ended September 30, 2015, compared to $1,164,367 for the same period in 2014. Total expenses were $7,236,546 for the nine month ended September 30, 2015, compared to $4,412,067 for the same period in 2014.
- Net loss and comprehensive loss of $4,484,361 ($0.03 per share) for the three months ended September 30, 2015, compared to loss of $1,148,457 ($0.02 per share) for the same period in 2014. Net loss and comprehensive loss of $10,212,168 ($0.06 per share) for the nine months ended September 30, 2015, compared to loss of $4,330,347 ($0.06 per share) for the same period in 2014. Note that that loss for the three and nine months ended September 30, 2015 includes the $2.0 million and $3.7 million expenses respectively related to terminating the ZDS agreement.
- As at September 30, 2015, the Company's cash position was $480,958, compared to a cash position of $1,583,311 on June 30, 2015.
- During the quarter, the Company:
- Achieved significant revenue from sales of valuation products to over 100 clients.
- Subsequent to the quarter, Zaio:
- Accepted the resignation of David Gregory from the Board.
- Selected Shane Copeland as the new Chief Executive Officer, and Phil Wazonek as President and Chief Operating Officer of the Company.
- Announced the termination of the Axis Appraisal Management (Axis) merger.
- Materially reduced operating costs at its Calgary office by eliminating staff and contractor positions saving the Company $1,110,677 in annualized personnel costs (approximately 70%), and reviewed and adjusted costs in Carlsbad, while preserving the core technology assets in Calgary as we focus on growth opportunities for our Valuation Vision BPO products.
- Reviewed and adjusted contracts with the intention of minimizing fixed costs.
- Transferred company-wide financial reporting to the Calgary office.
About Zaio Corporation
Zaio Corporation was founded on the simple premise, that current real estate valuation technologies lacked the information necessary to deal with today's dynamic housing market. Zaio is disrupting what was thought possible by building powerful data and technology solutions that leverages the expertise of real estate and appraisal professionals at a massive scale. Every day our GSE, banking, and investor clients rely on our proprietary solutions to fund loans and value assets. At Zaio, our mission is to ensure that our solutions provide businesses and consumers unparalleled insight into their real estate assets. For more information, visit www.zaio.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy and of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended the U.S. Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act
Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.
Forward-looking information in this press release, includes, among other things, information relating to the business relationship with Axis through the marketing of shared products.
These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to maintaining the business relationship with Axis and the ability to market shared products."
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Zaio does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Zaio's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE Zaio Corporation
For further information: visit www.zaio.com or contact: Shane Copeland, President & CEO, Zaio Corporation, 760-208-6460, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]