SOURCE: Apivio Systems Inc.

Apivio Systems Inc.

March 31, 2016 07:00 ET

Apivio Announces Fourth Quarter and Year-End Financial Results

43% Year-over-Year Increase in Q4 Sales; FY Revenue up 29%

VANCOUVER, BC--(Marketwired - March 31, 2016) - Apivio Systems Inc. ("Apivio" or the "Company") (TSX VENTURE: APV) reports its results of operations for the quarter and year ended December 31, 2015.

For the full-consolidated financial statements and management discussion & analysis for the quarter and twelve months ended December 31, 2015, please see SEDAR at http://www.sedar.com. All Dollar amounts are in Canadian Dollars unless otherwise noted.

Fourth Quarter Highlights:

  • Sales increased 43% to CAD $16,358,704, in part, due to continued strong sales in Korea;
  • Gross margins decreased to 16.6% compared to 19.2% in Q4 2014, primarily due to the effect of adverse foreign exchange rates on cost of sales;
  • Adjusted EBITDA of $630,054 compared to $683,058 in Q4 2014;
  • Net Income of $337,189 compared to $374,465 in Q4 2014. Adjusted EBITDA and Net Income were both lower as a result of planned increases in R&D and SG&A expenses to fund growth and higher activity levels; and
  • Earnings per share of $0.01 ($0.01 in Q4 2014).

Year-End 2015 Highlights:

  • Sales increased 28.9% to CAD $59,990,409 compared to $46,553,304 in 2014;
  • Gross margins decreased from 17.6% to 18.3% of revenues, primarily as a result of adverse foreign exchange rates and product mix;
  • Adjusted EBITDA of $2,119,783 in 2015 compared to $1,419,727 in 2014;
  • Net Income of $981,504 in 2015 compared to Net Loss of ($13,715) in 2014;
  • Earnings per share of $0.02 compared to ($0.00) in 2014; and
  • The Company sold more than one million phones in Korea this year, an all-time record.

The fourth quarter has historically been weaker due to the buying patterns of our enterprise customers in Korea. However, demand from our major customers in South Korea was much stronger this quarter compared to previous years. In particular, one customer purchased additional inventory at the end of the year -- a one-time gain that may not repeat next year. Consequently, revenue increased from $11.4 million in Q4 2014 to $16.4 million in this quarter.

The South Korean business delivered exceptionally strong results during the year. In North America, Apivio achieved its forecasted sales of 10,000 units of the UT880 Android phones to NEC Corporation of North America. Sales of the Wi-Fi phone and related cloud based provisioning systems were delayed due to ongoing development to conform to North American deployments. Apivio has sold more than 100,000 of these phones in the Korean market and will enhance efforts to bring this visionary product to the North American market in 2016.

Rob Bakshi, President and CEO said, "I am pleased with our results for the year ended December 31, 2015. I would like to extend my thanks to our entire team for their hard work and dedication. I look forward to our continued success in 2016 and beyond."

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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