TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

August 26, 2010 19:31 ET

TrueContext Mobile Solutions Corporation Announces Q2 2010 Results

OTTAWA, ONTARIO--(Marketwire - Aug. 26, 2010) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three and six months ended June 30, 2010. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three and Six Months Ended June 30, 2010

Revenue for the second quarter of 2010 was $152,446 compared to $103,516 for the same period in 2009 and $178,437 for the first quarter of 2010. Second quarter 2010 license revenue of $92,747 consisted of subscription revenue only compared to first quarter license revenue of $111,457 consisting of $85,057 subscription sales and $26,400 perpetual license sales. The second quarter subscription revenue of $92,747 increased from $85,057 in the first quarter of 2010 and the average number of subscribers increased from 1,967 in the first quarter to 2,038 in the second quarter.

"Our objective in the first half of Fiscal 2010 has been to leverage our operator channels to build broad based subscriptions by continuing the momentum in adding organizations and growing our subscriber base within those organizations. We feel that we have achieved good penetration and mindshare with operator sales forces and we will continue to provide operator direct sales forces with the best support we can," said Alvaro Pombo, Chief Executive Officer. "This shift in focus has resulted in lower revenues in our non-carrier channels in the first half of this year; however we feel that we are starting to see signs that the shift is working. We recently marked the activation of our 100th new organization from our newest operator channel on the ProntoForms™ platform. We have been active in many regional AT&T sales blitzes and ProntoForms™ have been featured in new smartphone product launches with AT&T and leading smartphone manufacturers, including the new BlackBerry® Torch™ 9800 launch this August." 

The average number of subscribers per month increased only moderately as we shifted focus from direct sales to concentrate on building our operator channels. Second quarter revenue also included approximately $59,700 of services revenue which decreased moderately from first quarter services revenue of $66,900.

The Company had a net loss of $472,686 for the second quarter of 2010 compared to net income of $727,800 for the same period in 2009 and a net loss of $423,050 for the first quarter of 2010. The increased loss in the second quarter compared to the first quarter of 2010 relates mostly to additional spending in operations for operator channel support. The Company had a loss of $895,636 for the six months ended June 30, 2010 compared to a net loss of $379,914 for the same period in 2009. Loss from operations for the three and six months ended June 30, 2010 was $473,186 and $893,170 respectively compared to $129,457 and $624,230 for the same periods in 2009. The results for the first half of 2009 include large foreign exchange gains and interest expense caused by US denominated preferred shares that were converted into common shares before June 30, 2009 and no longer impact results. Also in the first half of 2009, the Company realized a one-time gain of $83,810 on the settlement of various obligations and a large reduction in research and development expenses of $333,135 from investment tax credits as a private company compared to $50,000 in the first half of 2010 as a public company.

As at June 30, 2010, the Company had cash and cash equivalents of $517,975 and a working capital deficit of $183,377. On May 3, 2010, the Company completed a non-brokered private placement resulting in gross proceeds of $750,000 to fund our operations and specifically fuel our expansion with operators. We are pursuing additional equity and/or debt proceeds to fund operations and continue the expansion of our support infrastructure for our operator channels.

Option Grants

Options to purchase up to 490,000 common shares of the Company were approved for grant by the Board of Directors, including 480,000 to certain directors and officers. The options were granted effective as of September 1, 2010 pursuant to the terms of the Company's stock option plan and are exercisable for a period of five years from the effective date at an exercise price to be equal to the closing price of common shares on August 31, 2010. These grants form part of a total remuneration package. Stock option grants are subject to necessary regulatory approvals.

ABOUT PRONTOFORMS™AND TRUECONTEXT

TrueContext ProntoForms™ enables organizations to mobilize business processes in minutes, increasing productivity and eliminating the use of paper. Workgroups can create their own forms, capture data from the field, and then report and act on mission critical information, all in real time and in a secured and managed cloud environment. The data in the field is captured on commonly deployed mobile devices, such as BlackBerry, Windows Mobile, Web browsers and iPhone devices.

ProntoForms™ is the trademark of TrueContext Corporation, a wholly-owned subsidiary of TrueContext.

Established in 2001, TrueContext is a pioneer in the creation and utilization of easy to use Mobile Data Collection applications. TrueContext's flagship product, ProntoForms™ (www.prontoforms.com) simplifies field data capture and extends the most powerful business applications to nearly any mobile device. This award-winning, patent-pending technology allows non-technical customers to securely build, manage and deploy a wide variety of forms for mobile workforce management. For questions or additional information, please contact TrueContext at sales@truecontext.com or at +1.877.668.6438.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • TrueContext Mobile Solutions Corporation
    Alvaro Pombo
    Chief Executive Officer
    613.599.8288 ext. 1111
    apombo@truecontext.com