Call Genie Inc.
TSX : GNE

Call Genie Inc.

November 16, 2009 08:30 ET

Call Genie Reports Third Quarter 2009 Financial Results and Completes $2.5 Million of Debt Financing

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2009) - Call Genie (TSX:GNE), a leading provider of mobile local search and advertising solutions, today announced financial results for the three and nine months ended September 30, 2009.

Year to Date and Third Quarter 2009 Results

- Deferred revenues increased to $2.6 million at September 30, 2009 from $0.9 million at the end the third quarter of 2008.

- Revenues recognized for the third quarter of $0.95 million compares to $0.88 million for Q3, 2008. For the nine months ended September 30, 2009 revenues of $2.7 million compares to $3.3 million for the same period in 2008.

- Net loss from Operations in the third quarter was $2.7 million compared to $4.8 million in 2008. Year to date 2009 net loss of $9.2 million ($0.11 per share) compares to $15.1 million ($0.18 per share) for the first nine months of 2008.

- At September 30, 2009 the Company had a cash balance of $0.8 million excluding $2.5 million of financing closed on November 10th, 2009.

Highlights

- On November 10, 2009, the Company completed a $2.5 million debt financing through the distribution of convertible debentures. The debentures will bear interest at a rate of 12% per annum, payable semi-annually, and will mature on October 31, 2012. Principal and accrued interest under the debentures is convertible into common shares of the Company, at the option of the debenture holder, based on a conversion price of $0.50 per share.

- Net loss from operations in Q3 is the lowest quarterly loss since the first quarter of 2007 and represents the 4th straight quarter of declining quarterly net loss from operations.

- Cash used in operations for the third quarter was $1.5 million compared to $4.3 million for the third quarter of 2008. This represents the lowest quarterly cash usage since the first quarter of 2007.

- The Company secured contracts for new business as well as additional projects with existing customers.

Mr. Michael Durance, the Company's Chief Executive Officer, remarked, "Despite the continued uncertain economic climate, the Company has successfully closed significant new business and secured additional working capital financing to help fund our growth. We are pleased with the trend of increasing deferred revenue and declining cash used to fund operations. We expect cash used from operations to be close to breakeven in the 4th quarter of 2009."

This news release Call Genie should be read in conjunction with Call Genie's unaudited financial statements and the accompanying notes as at and for the three and nine months ended September 30, 2009 and the related Management Discussion and Analysis ("MD&A"), which have been filed with certain securities regulatory authorities in Canada and available on SEDAR (www.sedar.com) and on the Call Genie website at www.callgenie.com

About Call Genie Inc.

Call Genie is a leading global provider of local mobile search and advertising solutions that connect ready to transact consumers directly with local merchants for local directory businesses, directory assistance services and local media publishers. Call Genie solutions offer an exceptional experience for both advertisers and consumers and are deployed in 11 countries around the world. Call Genie has been awarded the Excellence in Integrated Ad Management award by the Pelorus Group, has won the Yellow Page Association Industry Excellence Award for Marketing Innovation, the Whitaker Innovation Award, the 118 Tracker Awards for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. www.callgenie.com.

Certain statements included in this News Release are not historical facts, but rather are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations or opinions that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of Call Genie as at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include such things as, the inherent risks associated with research and development activities and commercialization of emerging technologies, timing of execution of various elements of the Company's business plan, the availability of human resources, the emergence or intensification of competition, the emergence of competing business models, the availability of financial resources (including third-party financing), prevailing interest and exchange rates, timely collection of A/R and new laws (domestic or foreign). Forward-looking information respecting the expected range of cash flow used in operations for the quarter ended December 31, 2009 is based upon the existing terms of the arrangements with customers, customer receipts to November 13, 2009, the historical pattern of timing of cash receipts, the Company's planned expenditure rate and contractual requirements with respect to existing cash payments. Call Genie Inc. does not assume responsibility for the accuracy and completeness of the forward-looking statements set out herein and, subject to applicable securities laws, does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Call Genie Inc.'s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Additional information relating to various risk factors to which Call Genie is exposed in the conduct of its business (and which may affect the expectations or outcomes reflected in the forward-looking statements contained in this news release) are described in the Company's annual MD&A for the year ended December 31, 2008, which has been filed with certain securities regulatory authorities in Canada and is available through SEDAR, at www.sedar.com.

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