SOURCE: 3 Tier Logic

3TL Logo

December 01, 2015 08:25 ET

3TL Technologies Corp. Announces Financial Results for the Quarter Ended September 30, 2015

VANCOUVER, BC--(Marketwired - December 01, 2015) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

3TL Technologies Corp. (TSX VENTURE: TTM) ("3TL" or the "Company"), is pleased to announce its financial results for the three month and nine month periods ended September 30, 2015.

3TL's core product is Platform3, a Software as a Service ("SaaS") consumer marketing platform which enables consumer packaged goods companies and consumer brands to engage consumers and influence purchasing decisions through their mobile devices and online. Platform3 encompasses proprietary consumer engagement strategies and technology modules including Snap3 (purchase receipt scanning), Social Portal (consumer-to-consumer content sharing), Rewards and Gamification, Data and Analytics, and Customer Relationship Management ("CRM").

Highlights for the three and nine months ended September 30, 2015:

  • Signed an agreement with a large USA based fashion retailer to use Platform3 to accelerate e-commerce transactions. This agreement included the development of a new Style Board and Outfit module of Platform3 that will enable consumers to create their own virtual outfits using the retailer's merchandise and share this content on social media channels.
  • Signed a major regional shopping mall to a renewal for an annual subscription to Platform3, validating 3TL's SaaS model. The customer used Platform3 as part of a marketing campaign that lead to significant increases in foot traffic, sales per square foot and gift card sales.
  • Launched Snap3 as an additional module to Platform3, a mobile shopper marketing technology that encompasses proprietary technology and modules including Optical Character Recognition ("OCR"), Image Processing, Security and Fraud Detection, Rules Engine and Management Dashboard. Brands use Snap3 to run shopper marketing promotions designed to engage consumers, influence their purchasing decisions and track their purchasing behaviours.
  • In Q2 of 2015, 3TL created and activated a strategic sales program designed to engage and sell shopper marketing solutions to CPG companies. As part of this initiative, the Company implemented a program to partner with advertising and promotional agencies that service CPG companies. The goal of the sales program is to generate immediate sales to major CPG brands that have large annual budgets for shopper marketing promotions.
  • Since focusing its resources on the shopper marketing target markets at the end of Q2 of 2015, management of 3TL believes 3TL is gaining strong traction in this sector by establishing relationships with major advertising agencies including a movie ticket rewards agency, a Toronto based activation agency, and a marketing and sales promotion agency based in Los Angeles and New York. This sales program has enabled 3TL to sign contracts, directly and with advertising agencies, to provide Snap3 and Platform3 to major global brands based in the United States.
  • Brands which have been served through license agreements signed with advertising agencies include, a global interactive entertainment software company, a chocolate bar manufacturer, and a baby care product manufacturer in the United States. 3TL also provided its shopper marketing platform to a digital agency for a promotion in a grocery chain in the United States on a free trial basis under which three consumer packaged goods companies participated.
  • Subsequent to the period ended September 30, 2015 license agreements were signed with an advertising agency to provide 3TL's shopper marketing platform for promotions to be commenced in December, 2015 for a brand of disposable diaper, and a manufacturer and distributor of household items.

"The launch of our Snap3 technology as module of Platform3 has allowed us to offer a compelling shopper marketing solution for consumer packaged goods companies to influence consumers at the point of sale, collect valuable data about who, when and where their products are purchased and maintain ongoing consumer engagement by rewarding consumers to interact with the brand and share content via social channels," said Rob Craig, CEO of 3TL Technologies Corp. "We believe that 3TL is now well positioned to grow sales significantly into 2016 by focusing our resources on the shopper marketing vertical through direct sales and working with aligned advertising agencies."

Revenue for the three months ended September 30, 2015 decreased to $34,991, compared to $120,097 for the three months ended September, 2014. The decrease was due to the refocusing of sales and marketing resources to target major CPG companies that have large annual budgets for shopper marketing promotions.

Revenue for the nine months ended September 30, 2015 slightly increased to $270,935, compared to $243,997 for the nine months ended September 30, 2014.

Gross loss for the three months ended September 30, 2015 was $13,930 compared to a gross profit of $13,903 for the three months ended September 30, 2014. The gross loss was mostly due to lower revenues in the quarter and certain costs of goods sold related to web hosting and customer service. The web hosting and customer service costs can support a significantly larger customer base and revenues. Accordingly, as revenues increase gross margin is expected to increase due to economies of scale.

Gross profit for the nine months ended September 30, 2015 was $55,558, equal to 21% of revenue of $270,935, compared to $68,857, representing 28% for the nine months ended September, 2014. The decrease of gross margin was due to increased web hosting and data collection costs included in the cost of sales.

The Company expects gross margin as a percentage of sales will improve over time due to growth of high margin SaaS revenues from Platform3 and Snap3 and by attaining efficiencies through economies of scale.

Net and comprehensive loss for the three and nine months ended September 30, 2015 was $633,495 and $2,213,681 compared to $507,291 and $1,455,451 for the three and nine months ended September 30, 2014. This increase is due to overall increase in general and administrative, sales and marketing, and research and development related to additional headcounts for growth of the Company's operations as well as public company costs related to the Company's Qualifying Transaction in October 2014.

About 3TL Technologies Corp.

Platform3 is a Software as a Service (SaaS) consumer marketing platform. It enables Consumer Packaged Goods (CPG) companies and consumer brands to engage shoppers through their mobile device and influence their purchasing decisions. Platform3 encompasses proprietary consumer engagement strategies and technology modules including Snap3 (purchase receipt scanning), digital promotions, purchase data mining, loyalty and rewards. Consumer Packaged Goods (CPG) companies and major retail brands use Platform3 to influence and incentivize shoppers to interact with their brand and make purchases in-store and online.

For more information, visit 3tltechcorp.com.

For additional information about the company please visit www.sedar.com. The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. 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 contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds and the results of financing efforts, -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • For further information, please contact:
    3 Tier Logic
    Robert Craig
    Chief Executive Officer
    (604) 639-5441
    rcraig@3tierlogic.com