SOURCE: Chalk Media Corp.

November 27, 2007 19:03 ET

Chalk Media Corp. Announces Third Quarter 2007 Financial Results

VANCOUVER, BC--(Marketwire - November 27, 2007) - Chalk Media Corp. (TSX-V: CMK) ("Chalk") today announced its unaudited interim consolidated financial results for the three and nine month periods ended September 30, 2007.

Third Quarter 2007 Corporate Significant Events:

* Convertible debenture holders converted US$150,000 of Chalk's convertible debentures to 1,000,000 common shares of the Company during the quarter ended September 30, 2007, reducing our long-term debt. A further US$2,730,000 of the convertible debentures was converted to 18,199,998 common shares of the Company between October 1, 2007 and the date of this press release. To date convertible debenture holders have converted a total of US$3,405,000 of Chalk's convertible debentures to 22,699,998 common shares of the Company. The remaining balance of convertible debentures outstanding is US$795,000.

* Earned revenues of $648,772 for the three months ended September 30, 2007 compared to $1,164,803 for the same period in 2006.

* Incurred loss of $2,609,684 or $0.02 per share for the three months ended September 30, 2007 compared to loss of $1,562,437 or $0.03 per share for the same period in 2006.

* Earned revenues from interactive media of $509,270 for the three months ended September 30, 2007 compared to $761,734 for the same period in 2006.

* Implemented restructuring by reducing content production-related personnel by 16.

Chalk earned revenues of $648,772 for the three months ended September 30, 2007, compared to $1,164,803 for the same period in 2006. Chalk earned revenues of $509,270 for interactive media and $89,917 for television and airline segment production for the three months ended September 30, 2007 and $761,734 and $382,555 respectively for the same period in 2006.

The net loss for the three months ended September 30, 2007 was $2,609,684, or $0.02 per share, compared to a net loss of $1,562,437, or $0.03 per share, for the same period in 2006. The increase in the net loss was due to the decreased revenues, higher cost of sales from increased production personnel prior to the restructuring and the placement fee for the Sympatico / MSN online video technology program, increased legal and accounting fees associated with preparing additional securities filings and tax work, higher stock-based compensation expense particularly in research and development and general and administrative expenses, the accretion expense associated with the convertible debentures, and the restructuring costs.

"With our first sale of Mobile chalkboard™, numerous Fortune 500 evaluations in progress, our $7.5 million financing closed, and the conversion of US$2,880,000 of convertible debentures into common shares since June 30, 2007, we believe we are well positioned to address the market for our mobile software," said Stewart Walchli, President & CEO. "With our restructuring near-complete, our focus is to build a strong customer base for Mobile chalkboard™ -- by targeting financial services, professional services, telecommunications, technology and pharmaceutical sectors."

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

                   Three Months ended       Nine Months ended
                    September 30,            September30,
                     2007       2006          2007      2006
Revenue              $649      $1,165        $2,033    $2,545
Gross margin        ($231)       $508          ($69)     $945
Operating loss    ($2,519)    ($1,505)      ($6,952)  ($4,963)
Net income
/ (loss)          ($2,610)    ($1,562)      ($7,348)  ($5,222)
Earnings / (loss)
per share          ($0.02)     ($0.03)       ($0.09)   ($0.10)

This press release should be read in conjunction with Chalk's unaudited consolidated financial statements for the nine months ended September 30, 2007, as well as its management discussion and analysis available at

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.

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. 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

About Chalk Media Corp.

Chalk is a leading provider of enterprise solutions that help organizations communicate more effectively with their employees, business partners and consumers. Chalk's new Mobile Content Deployment System, Mobile chalkboard™, allows rich media content to be pushed securely to BlackBerry® smartphones and tracked. For more information, please visit

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

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

To view additional Chalk press releases, please visit:

Contact Information

  • For more information, please contact:

    Chalk Media Corp.
    Kris Sutherland
    Executive Vice President
    Tel: 604.453.4424
    Email Contact