Apivio Systems Inc.

June 02, 2014 09:00 ET

Apivio Announces First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 2, 2014) - Apivio Systems Inc. (formerly Moimstone Corporation) ("Apivio" or the "Company") (TSX VENTURE:APV) reports its results of operations for the three months ended March 31, 2014.

For the full condensed consolidated interim financial statements and management discussion & analysis for the first quarter ended March 31, 2014, please see SEDAR at www.sedar.com.

In the first quarter of 2014, sales revenues increased by 20.5% to $9.3 million CAD compared to the same quarter in 2013. Gross margin for Q1 2014 was 16.8% compared to 15.6% for the same quarter a year ago. Net loss for the first quarter in 2014 and 2013 was $0.6 million CAD. In the first quarter of 2014, sales were mostly in South Korea just as in 2013, but currently the company is preparing for an international distribution of its voice-over-internet telephones.

"While I'm encouraged by our continued progress in sales and gross margin growth of our core business in Korea, it is important to remember that we are in expansion mode, both in terms of geography and product offerings and therefore these results are only part of the story", said Rob Bakshi CEO. "These consistent core business results are allowing us to invest in long term growth and profitability outside of the Korean market. Investments in market expansion (like our recently announced deals with NEC, Global Integrated Solutions and Dot Communications) as well as investments in the strengthening of our senior management, internal controls, research and development and product certifications for global markets, are some of our long-term growth initiatives which are starting to pay off".

About Apivio Systems

Apivio Systems Inc. (formerly Moimstone Corporation) 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 nine year history of supplying VoIP telephone equipment and other products to major Korean and international telecommunications carriers. For more information regarding the Company, please refer to its respective public filings available at www.sedar.com.

This press release has been prepared by Apivio Systems Inc. (formerly Moimstone Corporation). 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.

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