Apivio Systems Inc.
TSX VENTURE : APV

April 23, 2015 09:00 ET

Apivio Announces Fourth Quarter and Year-End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 23, 2015) - Apivio Systems Inc. ("Apivio" or the "Company") (TSX VENTURE:APV) reports its results of operations for the quarter and year ended December 31, 2014.

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

Fourth Quarter Highlights:

  • Sales increased 19.8% to CAD $11,417,868 for the quarter;
  • Gross margins increased from 15% to 19.2%;
  • Adjusted EBITDA of $683,058 in Q4 compared to ($954) in Q4 2013;
  • Achieved Net Income of $374,465 in the quarter compared to Net Loss of ($290,501) in Q4 2014;
  • Earnings per share of $0.01 compared to ($0.01) in Q4 2013; and
  • Initial success with the launch of the Android-based phone for NEC America as well as the controlled launch of the Liberty series Wi-Fi phone developed for the North American market

Year-End 2014 Highlights:

  • Sales increased 32.68% to CAD $46,553,304 compared to $35,038,876 in 2013;
  • Gross margins increased from 15.5% to 18.3% of revenues;
  • Adjusted EBITDA of $1,419,727 in 2014 compared to ($66,210) in 2013;
  • Net Loss reduced from ($2,412,424) in 2013 to ($13,715) in 2014; and
  • Earnings per share of $0.00 compared to ($0.06) in 2013;
[expressed in thousands of CAD$ except percentages and EPS] Three Months Ended
December 31,
Year Ended
December 31,
2014 2013 2014 2013
Total Revenues $ 11,418 $ 9,451 $ 46,455 $ 35,039
Gross Profit Margin 19.2 % 15.0 % 18.3 % 15.5 %
Net Income/(Loss) $ 375 $ (291 ) $ (14 ) $ (2,412 )
Basic and Diluted Weighted Average Net Income/(Loss) per Share $ 0.01 $ (0.01 ) $ 0.00 $ (0.06 )
Total Assets $ 14,315 $ 11,255 $ 14,315 $ 11,255

The Company's Korean subsidiary ("Moimstone Co. Ltd." or "Moimstone") reported revenue of $10,507,771 in the fourth quarter ($9,451,078 in 2013) and $45,616,325 for the year ended December 31, 2014 ($35,036,238 in 2013). R&D expenses increased from $2,287,084 in 2013 to $3,260,386 in 2014.

Rob Bakshi, President and CEO said, "Our focus in 2014 was:

  • Innovate for entry into the North American market. We developed the UT880 Android desk phone for the enterprise market and delivered it to NEC America on time and on budget. To date, Apivio has received purchase orders for 10,000 units.
  • Test market the Liberty series Wi-Fi phones in the USA. Our distribution relationship with TeleDynamics has given us tremendous market insight.
  • Streamline operations and product mix of our wholly owned subsidiary in South Korea and achieve gross margins of 20% plus or minus 2% based on product mix.
  • Invest heavily in R&D to develop products for North American and Korean markets.

"I'm excited about our new vision and encouraged by market feedback. I'd like to thank our employees for their hard work and loyalty. I look forward to their continued teamwork and creativity."

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.

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