CloudBench Applications, Inc.
TSX VENTURE : CBH

CloudBench Applications, Inc.

August 17, 2009 17:17 ET

CloudBench Applications Announces Results for Second Quarter 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2009) - CloudBench Applications, Inc. (formerly Municipal Solutions Group, Inc, (TSX VENTURE:CBH) ("CloudBench" or the "Company") today announced its financial results for the three months ending June 30, 2009. Revenue related to BasicGov, the Company's web-based software, increased to $69,889 in the first quarter from $26,844 in the same quarter of the prior year.

David Roberts, President and Chief Executive Officer of CloudBench, commented, "We are excited by the growth in our revenues and we've increased our expenditures on marketing, sales and customer implementation to maintain this growth. We believe that our web-based BasicGov software has strong appeal to cost-conscious local governments. We expect the recent endorsement of cloud computing and e-government by the U.S. Federal Government will increase attention on Software-as-a-Service products like BasicGov that streamline government processes while cutting costs."

At June 30, 2009 the Company's cash position was $416,054. The Company has a net holdback receivable of $713,570 comprised of two holdback amounts that are related to the sale to Harris of the CityView business in 2008. Under the terms of the sale agreement, the Company may be required to make a payment of a material amount with respect to the first holdback before the second holdback is due in January 2010. If such a payment to Harris is required, management believes that with the continued financial support of our largest shareholder the Company will have sufficient capital resources to meet its operating requirements and to finance its projected growth in the near term.

Due to the sale of the on-premises business of CloudBench on July 18, 2008, comprising the CityView product offering, the comparison of operating results to the prior period is not meaningful since the operating results of the former business are no longer part of CloudBench's operations. Net loss for the quarter was $183,868 or ($0.01)/share compared to a loss for the same period in the prior year of $292,107 or $(0.01)/share.

The following is the Consolidated Statements of Operations, Comprehensive Earnings (Loss) and Deficit for the quarters ended June 30, 2009 and 2008. A complete set of financial statements and analysis is available at www.sedar.com.



CLOUDBENCH APPLICATIONS INC.
Consolidated Statements of Operations, Comprehensive Loss, and Deficit
(unaudited)

--------------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30 June 30 June 30
2009 2008 2009 2008
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Revenue $ 69,889 $ 1,086,849 $ 106,291 $ 2,257,365
Expenses:
Customer service 78,939 409,285 122,196 802,791
Sales and
marketing 56,548 124,568 91,621 291,881
Research and
development - 345,515 - 689,406
General and
administrative 135,424 368,932 302,441 724,283
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270,911 1,248,300 516,258 2,508,361
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Loss before
the following (201,022) (161,451) (409,967) (250,996)

Amortization 264 44,084 787 83,557
Interest expense 2,640 47,242 6,043 96,655
Interest income (22,769) - (35,842) -
Loss (gain) on
foreign exchange 2,711 23,976 2,635 (25,098)
Accreted interest
(note 6) - 15,354 - 20,305
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Net loss and
comprehensive
loss for the
period (183,868) (292,107) (383,590) (426,415)

Deficit,
beginning of
period (6,002,484) (10,007,981) (5,802,761) (9,873,673)

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Deficit, end of
period $(6,186,352) $(10,300,088) $(6,186,352) $(10,300,088)
--------------------------------------------------------------------------
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Loss per share:
Basic and
diluted $ (0.01) $ (0.02) $ (0.02) $ (0.02)
--------------------------------------------------------------------------
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Weighted
average
number of
shares
outstanding:
Basic and
diluted 19,724,809 18,584,646 19,724,809 18,584,646
--------------------------------------------------------------------------
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About CloudBench Applications, Inc.

CloudBench Applications, Inc. (TSX VENTURE:CBH) develops, sells and supports BasicGov web-based software for cities and local governments that streamlines permitting and inspections, code enforcement and planning. BasicGov is a reliable, secure solution delivered for an affordable price and the only web-based software for local governments built on the Force.com, the cloud computing platform from SalesForce.com used by more than 55,000 organizations worldwide. Unlike enterprise software that is expensive to acquire and difficult to implement, BasicGov requires no capital investment and is simple to set up. Users pay a monthly subscription fee of $119 per module and no capital investment is required. www.basicgov.com

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in market and competition, technological and competitive developments, cooperation and performance of strategic partners, potential downturns in economic conditions generally and the outcome of the negotiations with Harris as to the amount of the Holdbacks. Forward-looking statements are based upon management's estimates, beliefs and opinions. The Company assumes no obligation to update forward-looking statements, other than as required by applicable law.

Contacts

For more information about CloudBench Applications, Inc. and BasicGov visit www.basicgov.com, call +1 (877) 256-8385 or email info@basicgov.com.

Neither the 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.

Contact Information

  • CloudBench Applications, Inc.
    David Roberts
    President & CEO
    +1 (877) 256-8385
    www.basicgov.com