CloudBench Applications, Inc.
TSX VENTURE : CBH

CloudBench Applications, Inc.

November 27, 2009 14:36 ET

CloudBench Applications Reports Q3 2009 Results and Business Highlights

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2009) - CloudBench Applications, Inc. (TSX VENTURE:CBH) ("CloudBench" or the "Company") today announced its financial results for the three months and nine months ending September 30, 2009. All amounts are stated in Canadian dollars unless otherwise noted.

Revenues from BasicGov, the Company's cloud computing solution for local government, grew to $66,649 in the third quarter, a 140% increase from $27,822 in the same quarter of the prior year. The Company's annualized committed recurring revenues, a non-GAAP measure, increased 220% to US$288,000 compared to US$90,000 for the same period last year.

"Our revenues grew significantly as local governments switched from traditional, on-premise software to our BasicGov cloud computing modules. To accelerate revenue recognition we streamlined our implementation process so new customers go live quickly," said David Roberts, President and Chief Executive Officer of CloudBench. "We think we're in a great position to grow. Our partnership with Salesforce.com and the Force.com cloud computing platform ensures that BasicGov is scalable, reliable and secure; our recently launched Citizen Portal opens BasicGov to citizen access; we've added an experienced Vice President of Marketing and Sales; and, we've received additional equity financing. We believe we can make BasicGov the natural choice for cost-conscious cities and counties across North America."

At September 30, 2009 the total value of the Company's cash position and net holdback receivable was $739,193. Of this amount $215,119 was cash and $524,074 was net holdback receivable related to the sale of the Company's CityView business to N. Harris Computer Corporation in 2008. On October 21, 2009, the Company increased its cash position through a private placement of 250,000 Series 1 7% Convertible Retractable Preferred Shares each with 12.5 common share purchase warrants attached that raised gross proceeds of $500,000.

A comparison of operating results to the prior period is not meaningful since the Company sold CityView, its on-premises business, on July 18, 2008. Net loss for the quarter was $420,030 or ($0.02)/share compared to a loss for the second quarter of $183,868 $(0.01)/share.

A complete set of financial statements and analysis is available at www.sedar.com.

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 (604) 729-5142 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.
    Ian Power
    CFO
    +1 (604) 729-5142
    www.basicgov.com