Chalk Media Corp.

Chalk Media Corp.

November 28, 2008 16:30 ET

Chalk Announces Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) -


Chalk Media Corp. ("Chalk" or the "Company")(TSX VENTURE:CKM) today announced its unaudited consolidated financial results for the three and nine month periods ended September 30, 2008.

Third Quarter Highlights:

- Signed software license agreements with:

- an international advertising agency

- a Fortune 200 defense contractor

- a Fortune 100 telecommunications provider

- a leading global investment management firm

- a Fortune 50 healthcare company

- a Financial Times Global 500 news agency

- a major North American municipality

- Signed reseller agreement with Schiffl Mobile for Europe

- Released Version 5.1 of Mobile chalkboard™

Chalk earned revenues of $238,098 for the three months ended September 30, 2008, compared to $599,187 for the same period in 2007. Chalk earned revenues of $174,464 for software and $42,018 for services for the three months ended September 30, 2008 and $193,434 and $394,604, respectively for the same period in 2007. The main reason for the decrease was Chalk's move away from content production to focus on its software products.

The net loss for the three months ended September 30, 2008 was $2,604,630, or $0.02 per common share, compared to a net loss of $2,609,684, or $0.02 per common share, for the same period in 2007. Lower cost of sales and general and administrative expenses were offset by lower sales revenue, higher research and development costs, and higher expenses for selling and marketing in the period.

"We signed licensing agreements with several Fortune / Global 500 companies during the third quarter," said Stewart Walchli, President and CEO of Chalk. "These deals demonstrate the demand for our software by blue-chip companies in a variety of industries. We believe that these referenceable accounts will help to accelerate our sales cycles going forward."

Selected Financial Data (in $'000's, except per share numbers):

Three Months ended Nine Months ended
September 30, September 30,
2008 2007 2008 2007
Revenue $238 $599 $1,137 $1,959
Gross margin ($3) ($280) ($38) ($142)
Operating loss ($2,580) ($2,569) ($7,721) ($7,025)
Net income / (loss) ($2,605) ($2,610) ($7,734) ($7,348)
Earnings / (loss) per share ($0.02) ($0.02) ($0.05) ($0.09)

This press release should be read in conjunction with Chalk's unaudited consolidated financial statements for the three and nine month periods ended September 30, 2008, as well as its management's discussion and analysis ("MD&A") dated November 29, 2008 available at

About Chalk Media Corp.

Chalk's mobile content deployment system, Mobile chalkboard™, allows multimedia content to be created, securely pushed and tracked on BlackBerry® smartphones. Our software and content help organizations communicate with their employees, business partners and customers. Additional information is available at

The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of RIM. RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products or services.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Chalk to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the speculative nature of the software industry, which is affected by numerous factors beyond Chalk's control; the existence of present and possible future government regulation; the significant and increasing competition that exists in the software industry; and risks associated with early stage companies such as Chalk, including uncertainty of revenues, markets and profitability and the need to raise additional funding as well as those factors discussed under the heading "Risk Factors " in Chalk's annual MD&A dated April 25, 2008.

Although Chalk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Certain material factors or assumptions are applied by Chalk in making forward-looking statements, including without limitation factors and assumptions regarding sales and acceptance of our products, collection of revenue, sales cycles, operating costs, taxes and fees. Accordingly, readers should not place undue reliance on forward-looking statements. Chalk does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Chalk Media Corp. is available at

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The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

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