Grey Island Systems International Inc.
TSX VENTURE : GIS

Grey Island Systems International Inc.

September 01, 2009 06:00 ET

Grey Island Announces Third Quarter Fiscal 2009 Financial Results

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2009) - Grey Island Systems International Inc. (TSX VENTURE:GIS) is a leading provider of real-time vehicle tracking, fleet management and predictive arrival systems, marketed under the InterFleet and NextBus brands, for government and related fleets in North America. GIS is pleased to announce today the financial results for the third quarter of fiscal 2009 ended June 30.

Third quarter revenue was $5.46 million for the 3 months ending June 30, 2009 and $16.62 million for the 9 months ending June 30, 2009, representing a 6 percent decrease and 4 percent increase year over year, while recurring revenues were $2.37 million, a 25.9% increase year over year. The company incurred a net loss of $292K or $0.003 for the third quarter ending June 30, 2009 driven primarily by a large foreign exchange expense of approximately $0.5 million due to the rising Canadian currency. Excluding amortization, interest, taxation and foreign exchange, the company generated operating income of $35K in the quarter ended June 30, 2009.

"Despite a severe economic downturn which occurred at the beginning of our fiscal year, Grey Island has managed to grow its revenues and client base, land significant contracts and continues to maintain a strong balance sheet" said Owen Moore, President of Grey Island, "with the string of recent contract announcements, and pending revenues associated with the close-out of historic contracts, Grey Island is poised for significant growth in the near and long term".

"Grey Island's products and services continue to dominate the public sector vehicle tracking, telematics and predictive arrival systems market" said Andrew Moore, CEO of Grey Island "the company continues to see large public sector opportunities and benefits from a strong sector backlog which will continue to position the company well".

The current results are a reflection of the Company's previously stated objectives to grow organically and through acquisition. The following are significant highlights related thereto.

- Revenue for the 9-month year to date increased to $16.62 million

- The Company had net operating income before other income, expenses and taxes for the third quarter of $35K

- Revenue arising from Canadian customers for the third quarter increased by 53.7% to $1.95 million

- US revenues account for $3.51 million of total Company revenue of $5.46 million for the current quarter

- As at June 30, 2009, the Company had $11.1 million in cash and short-term investments compared to $11.3 million for the comparable period a year ago

The Company's consolidated financial statements, accompanying notes and Management's Discussion and Analysis are available on the System for Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com).

About Grey Island

Grey Island Systems International Inc. (TSX VENTURE:GIS), together with its subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New York, New York is a leading provider of custom real-time GPS/AVL, security and Telematics solutions as well as real-time passenger information systems to government and related fleets. To find out more about our products and services, visit our websites at www.interfleet.com or www.nextbus.com.

Forward Looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, Grey Island's operations, anticipated financial performance, business prospects and strategies. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, business risks, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, there can be no assurance that the expectations of the management of Grey Island will prove to be correct.

Neither 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.

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