AirIQ Inc.
TSX VENTURE : IQ

AirIQ Inc.

August 30, 2010 16:30 ET

AirIQ Announces Q2 2010 Interim Results

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2010) - AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE:IQ), a supplier of Wireless Location-Based Services (LBS) and telematics technology, today announced its financial results for the second quarter ended June 30, 2010.

Business Highlights for the Quarter:

The Company continues to focus on growing revenues and managing its costs through the following actions:

  • Built and grown a sales pipeline of qualified customer leads which has the potential to double the Company's installed base over the next year.

  • Launching a Personal Safety Device (Safety-IQ™) into an attractive market niche.

  • Re-launched MobileIQ®.

  • Reduced staff and infrastructure costs following the termination of a transition support agreement related to the sale of the Company's subsidiary, AirIQ Marine, Inc.

  • Economically settled two large contingent liabilities and paid out the majority of one of the settlements.

  • Negotiated a settlement of an outstanding legal bill.

  • Moving the Company's co-location premises which will reduce computer operating costs.

  • Terminated the Company's loss generating satellite operations.

The Company has introduced a new rental program to target customers who prefer not to commit to up front hardware costs and restrictive multi-year contracts. The Company is also in the process of launching a Personal Safety Device ("Safety-IQ™"), which is capable of alerting up to 5 people with GPS co- ordinates in the event of an emergency or personal safety threat.

"Our focus continues to be on growing our recurring revenue base and becoming cash flow positive", said Don Gibbs, President and Chief Executive Officer of AirIQ. "Adjusting for one time cash payments during the quarter, ongoing operational activities used approximately $60 thousand during the second quarter ended June 30, 2010, which is an improvement from the first quarter of 2010. We are very excited about the response we are getting for our rental program and the Personal Safety Device. Both of these markets have tremendous growth potential and the initial feedback from our customers and the markets in general have been exceptional" continued Mr. Gibbs.

Revenue for the quarter was $868 thousand compared to $1,472 thousand for the second quarter of 2009, a decrease of $604 thousand. The decrease is primarily a result of consumption of deferred revenue pools. The decrease in revenue in the second quarter of 2010 is $39 thousand from the first quarter of 2010.

Gross profit for the second quarter 2010 was $557 thousand compared to $775 thousand in the comparable second quarter of 2009. The gross margin percentage was 64% in the second quarter 2010 which was up from 53% in the comparable quarter of 2009.

Expenses (excluding foreign exchange gain (loss) and stock based compensation) for the three months ended June 30, 2010 were $782 thousand compared to $910 thousand in the same quarter of 2009, a decrease of $128 thousand. The decrease was comprised of approximately $194 thousand in General and Administrative expenses and $11 thousand in engineering and research. These expense reductions were partially offset by an increase in sales and marketing of approximately $77 thousand.

Net loss from continuing operations for the second quarter of 2010 was $298 thousand as compared to a loss of $562 thousand in the second quarter of 2009.

The Company's unaudited interim consolidated financial statements as at and for the three months and six months ended June 30, 2010, including notes thereto, and the accompanying Management's Discussion and Analysis were filed with the Canadian securities regulatory authorities today, August 30, 2010, and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval website (www.sedar.com).

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of location based services (LBS) that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.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, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and 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 future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

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.

Contact Information