Apivio Systems Inc.

TSX VENTURE : APV


August 28, 2014 08:00 ET

Apivio Announces Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 28, 2014) - Apivio Systems Inc. (formerly Moimstone Corporation) ("Apivio" or the "Company") (TSX VENTURE:APV) reports its results of operations for the six months ended June 30, 2014.

For the full condensed consolidated interim financial statements and management discussion & analysis for the second quarter ended June 30, 2014, please see SEDAR at www.sedar.com.

Second Quarter 2014 Highlights:

  • Sales increase of 45.6% to CAD $14,732,316;
  • Gross margin increase from 15.2% to 18.2%;
  • Net income of CAD $440,277;
  • Earnings per share of $0.01;
  • Android-based product for NEC America passed regulatory testing - expected to ship pre-production units this year;
  • WiFi phones received UL certification - initial shipments to North American customers expected in Q4 2014;
  • WiFi phones received ANATEL certification for Central and South American markets.
[expressed in $CAD] Three Months Ended
June 30, 2014
Six Months Ended
June 30, 2014
2014 2013 2014 2013
Total Revenues $14,732,316 $10,120,631 $24,063,372 $17,862,075
Gross Profit Margin 18.2% 15.2% 17.7% 15.4%
Net Income (Loss) $440,277 $33,884 ($186,632) ($570,924)
Basic and Diluted Weighted Average Income (Loss) per Share $0.01 $0.00 ($0.00) ($0.01)
Total Assets $13,435,294 $12,232,302 $13,435,294 $12,232,302

In the second quarter of 2014, sales revenue increased by 45.6% to CAD $14,732,316 compared to the same quarter in 2013 due to higher demand from key customers for IP phones. Gross margin for Q2 2014 was 18.2% compared to 15.2% for the same quarter a year ago due to improved margins on new products released in South Korea. Net income for the second quarter in 2014 was CAD $440,277 compared to net income of CAD $33,884 in 2013, an increase of CAD $406,393.

"Historically the second quarter has been the strongest quarter financially for the Company however Q2 2014 was particularly strong. Our new business strategy in the South Korean market continues to pay dividends in terms of sales and gross margin growth and I'm proud of our team for continuous performance improvements", says Rob Bakshi, President and CEO.

"Although in the initial stages", continues Mr. Bakshi, "markets outside of South Korea are beginning to get seeded with our Android platform phone as well as our new WiFi mobile technology. Efforts to capitalize on the hardware business strengths of the Company and to develop software to work seamlessly with the current lineup of products continues. The marriage of hardware and software is expected to enhance the customer experience, differentiate us in the market place and serve to deliver improved revenue and margin growth."

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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