SOURCE: Apivio Systems Inc.

Apivio Systems Inc.

May 20, 2016 06:00 ET

Apivio Announces First Quarter Financial Results

VANCOUVER, BC --(Marketwired - May 20, 2016) - Apivio Systems Inc. ("Apivio" or the "Company") (TSX VENTURE: APV) reports its results of operations for the quarter ended March 31, 2016. All amounts are in Canadian dollars unless otherwise specified. For the full condensed consolidated interim financial statements and management discussion & analysis for the quarter ended March 31, 2016, please visit SEDAR at www.sedar.com.

First Quarter Highlights

  • Sales increased 13% to CAD $13,129,241 compared to Q1 2015, in part, due to continued strong sales in Korea;
  • Gross margins decreased to 16.2% compared to 19.0% in Q1 2015, primarily due to the effect of adverse foreign exchange rates;
  • Adjusted EBITDA of $70,014 compared to $88,961 in Q1 2015;
  • Net loss of $201,998 compared to $193,276 in Q1 2015. Adjusted EBITDA and Net Income were both lower as a result of lower gross margins as well as planned increases in R&D and SG&A expenses to fund growth and higher activity levels; and
  • Loss per share of ($0.00) compared to ($0.00) in Q1 2015.

[expressed in thousands of CAD$ except   Three Months Ended    
percentages and EPS]   March 31,    
    2016   2015
Total Revenues $ 13,129 $ 11,608
Gross Profit Margin   16.2 %   19.0 %
Net Income/(Loss) $ (202) $ (193)
Basic and Diluted Weighted Average Net        
Income/(Loss) per Share $ (0.00) $ (0.00)
Total Assets $ 19,430 $ 18,329

Rob Bakshi, President and CEO said, "We are pleased with the continued growth of the business in the first quarter compared to Q1 2015. The first quarter has historically been a weaker quarter due to the buying patterns of our enterprise customers in South Korea however, revenue from all our major customers in Korea was strong compared to the first quarter of 2015. We have now been EBITDA positive for the last eight quarters. We are moving quickly on a number of operational initiatives to grow our business and I look forward to providing updates on these initiatives as they are launched."

Conference Call

Apivio has scheduled a conference call to discuss these results on Friday, May 20th at 8:00 am Pacific Standard Time (11:00 am Eastern Standard Time). To access the live conference call dial 1-877-876-9177 (North America) or 785-424-1666. A replay of the call will be available for one week by dialing 844-488- 7474 or 862-902-0129; access code: 10559974.

About Apivio Systems Inc.

Apivio Systems Inc. ("Apivio" or the "Company") (TSX VENTURE: APV) is a Canadian technology company principally engaged in the design, development, marketing, and sale of communications equipment and software. It has a wholly-owned Korean subsidiary with a history of supplying VoIP telephone equipment and other products to major Korean and international telecommunications carriers. For more information regarding Apivio, please refer to its respective public filings available at www.sedar.com.

This press release has been prepared by Apivio Systems Inc. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities legislation. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, anticipated revenue, conditions or financial performance that is based on assumptions about future economic conditions and courses of action. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "plans", "expects" or "does not expect", "is expected", budget", "scheduled", "suggest", "optimize", "estimates", "forecasts", "intends", "anticipates", "potential" or "does not anticipate", believes", "anomalous" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Although Apivio has attempted to identify important factors that could affect Apivio and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Apivio does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For more information regarding the Company, please visit www.apivio.com.

Contact Information