Verb Exchange Inc.

Verb Exchange Inc.

June 01, 2009 18:13 ET

Verb Exchange Announces First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - Verb Exchange Inc. (TSX VENTURE:VEI), a leader in digital media, announces that it has released its interim financial statements for the first quarter ended March 31, 2009. Verb is pleased to report revenues of $6,910,176 compared to $4,495,641 in the same period of the prior year.

Increased traffic on its Carrier Services routes led to a 53.7% ($2,414,535) increase in overall revenue. As a result of the costs associated with the launch of the Tabrio™ product and the increased marketing efforts to grow its Carrier Services revenue, overall gross profit of the Verb group decreased to $13,546. Q1 - 2009 costs associated with the Tabrio™ platform included increased marketing costs, amortization of development costs, and the expensing of costs previously capitalized to Tabrio™ development costs.

"During the quarter, we invested in a new routing and billing system which allows the Company to pursue sales across a wider geographic area including a focus on specialty routes that should contribute to higher margin sales going forward. All new carrier service customers are being enrolled in this new system and existing customers and vendors are being migrated throughout the course of 2009," stated the Company's CEO, Craig Goldenberger. "We have invested in people and technology to grow the business and expand our margins, the results of which are anticipated to be realized in the later part of the year."

Comparative figures for summarized interim and annual financial information are as follows (all figures in Canadian dollars and in accordance with Canadian GAAP):

Three months Three months Fiscal year
ended ended ended
March 31, March 31, December 31,
2009 2008 2008
Revenue $ 6,910,176 $ 4,495,641 $ 26,350,630
Cost of Sales $ 6,896,630 $ 4,301,311 $ 25,655,095
Gross Margin $ 13,546 $ 194,330 $ 695,535
Expenses $ 994,725 $ 559,236 $ 3,695,724
Net loss $ (980,470) $ (361,319) $ (2,989,827)
Total Assets $ 1,607,276 $ 2,068,988 $ 2,717,307
Total Liabilities $ 414,501 $ 356,273 $ 562,586
Weighted Average Shares
Outstanding 78,064,060 57,022,831 64,630,997
Net loss per share $ (0.01) $ (0.01) $ (0.05)

Forward Outlook Statement:

While telecommunications continues to dominate our revenue column, new revenue streams are expected to emerge from our Tabrio™ user base and technology. During the second quarter of 2009, the Company is adding a new component to its existing suite of products with the release of Tabrio™ Business Services. We will partner with businesses and marketing organizations to provide instant contact with their customers. Tabrio™ Business Services provides high value to business subscribers and commands a significant premium to simple telecommunications needs.

During the remainder of the year, management anticipates expanding its existing revenue base with the roll out of Tabrio™ Business Services and the expansion of its carrier sales through specialty routes.


Verb Exchange (TSX VENTURE:VEI) is a digital communications and media company delivering high quality, low-cost, talk and text around the world. Through its two wholly owned subsidiaries, Eurotel and Tabrio™, the Company has three distinct revenue streams:

1) Sales of digital communications to major telecom providers (Eurotel);

2) Retail sales of Tabrio™ talk and text;

3) Highly Targeted Online, Desktop and Mobile Advertising through Tabrio™

Eurotel's global network infrastructure and cash flow compliments our rapidly growing Tabrio™ subscriber base. Tabrio™ is a high quality, low-cost talk and text application that works from any desktop, web browser or mobile phone with ease. Tabrio™ generates revenue through talk and text sales, coupled with permission-based marketing. The complementary service offerings of Eurotel and Tabrio™ position the Company to build a valuable subscriber base in the rapidly expanding digital and mobile advertising industry.

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Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.

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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