Apivio Systems Inc.

November 23, 2015 09:00 ET

Apivio Announces Third Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 23, 2015) - Apivio Systems Inc. ("Apivio" or the "Company") (TSX VENTURE:APV) reports its results of operations for the nine months ended September 30, 2015.

For the full condensed consolidated interim financial statements and management discussion & analysis for the quarter and nine months ended September 30, 2015, please see SEDAR at www.sedar.com.

Third Quarter Highlights:

  • Sales increased 52% to CAD $16,866,440 from $11,072,064 in Q3 2014, largely due to sales promotional activities undertaken by our key customers in South Korea;
  • Sales for the nine months ended September 30, 2015 increased 24% to CAD $43,631,705 from $35,135,436 in 2014;
  • Gross margins lower at 17.4% compared to 18.9% in Q3 2014, primarily due to adverse foreign exchange rates on components;
  • Adjusted EBITDA increased 632% to $802,687 compared to $109,555 in Q3 2014;
  • Net Income of $516,529 compared to a loss of $(201,548) in Q3 2014; and
  • Earnings per share of $0.01 ($0.00 in Q3 2014).
[expressed in thousands of CAD$
except percentages and EPS]
Three Months Ended
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
Total Revenues $ 16,867 $ 11,072 $ 43,632 $ 35,135
Gross Profit Margin 17.4 % 18.9 % 17.9 % 18.0 %
Net Income/(Loss) $ 516 $ (201 ) $ 644 $ (388 )
Basic and Diluted Weighted Average
Net Income/(Loss) per Share $ 0.01 $ 0.00 $ 0.01 $ (0.01 )
Total Assets $ 20,457 $ 13,967 $ 20,457 $ 13,967

Apivio is pleased to report a quarter with significant growth in revenue and positive earnings. The third quarter is traditionally slower than the second quarter due to seasonal trends in our market in South Korea. This quarter was different as our major customers continued with sales promotional activities designed to stimulate revenue growth; and Apivio benefited from the resulting strong demand for its VoIP phones in that market. In addition, Apivio shipped $1 million of UT880 android desk phones to NEC in the quarter. Consequently revenue increased 52% from $11.1 million in Q3 2014 to $16.9 million this quarter.

Rob Bakshi, President and CEO said "We are pleased with the unexpectedly high performance of the last quarter. Our South Korean subsidiary continues to grow and provide the engine for business development activities in the North American market. Despite some short delays, the NEC relationship is expected to enhance and accelerate. Business development efforts in North America for our L2 Wi-Fi phone are underway as we continue to perfect the technology".

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.

Contact Information

  • Apivio Systems Inc.
    Rob Bakshi
    President and Chief Executive Officer

    Sean Peasgood
    Investor Relations