Call Genie Inc.
TSX : GNE

Call Genie Inc.

March 17, 2008 07:30 ET

Call Genie Announces Fourth Quarter and Year-end Results for Fiscal 2007

TORONTO, ONTARIO--(Marketwire - March 17, 2008) - Call Genie Inc. (TSX:GNE), a leading provider of mobile local search and advertising solutions, today reported fourth quarter results for the three months and fiscal year ended December 31, 2007.

Revenues for the three month period ended December 31, 2007 increased to $757,829 from $261,171 for the same three month period in 2006. Revenues for the fiscal year ended December 31, 2007 increased to $1,811,176 from $698,246 in the fiscal year ended December 31, 2006. The annual increase in revenues was attributed to the amended and extended relationship with the Yellow Pages Group and, to a lesser degree, the revenues sourced from customers acquired from BTS Logic Europe ApS. During the fourth quarter, the Company determined that certain implementation revenues should be deferred and recognized ratably over the term of the hosted arrangement. As a result, revenues in fiscal 2007 are $238,000 less than what would have been reported had the implementation fees not been recorded as deferred revenues.

"Fiscal 2007 marked another significant step in the evolution of Call Genie. The Company continues to execute on its strategy of international expansion. With our recent acquisitions of PhoneSpots Inc. and BTS Logic, we now have 30 customers and a broader product offering, which provides further differentiation in the marketplace. Call Genie is now capable of offering a seamless, multi-modal mobile local search solution for consumers, which may be monetized through our advertising engine/exchange technologies in a wide array of business models. Call Genie acquired these companies with the intention of expanding our market opportunities and increasing our deal throughput in 2008," said Mr. Michael Durance, the company's Chief Executive Officer.

The net loss for the Company for the fourth quarter of 2007 was $4,202,921 compared to $2,259,330 for the same period in 2006. The net loss for Call Genie for the fiscal year ending December 31, 2007 was $12,636,466 compared to $6,451,062 for the same period in 2006.

For the fourth quarter ended December 31, 2007, the cash used in operating activities was approximately $2.9 million compared to cash used in operating activities of $1.8 million for the fourth quarter of the previous year. For the year ended December 31, 2007, cash used in operating activities was approximately $11.3 million compared to approximately $5.6 million for the same period in 2006. The increase in cash flows used in operating activities for the year ended December 31, 2007 is primarily attributable to increased personnel and operating costs incurred in the build-out of the Global Sales and Client Delivery team and further investments in the technology development.

As at December 31, 2007, Call Genie had a positive working capital of $21,432,584.

The preceding Annual Results for Call Genie should be read in conjunction with Call Genie's audited financial statements and the accompanying notes for the year ended December 31, 2007 and the related Management Discussion and Analysis ("MD&A"), which have been filed with certain securities regulatory authorities in Canada and available on SEDAR (www.sedar.com) and on the Call Genie website at www.callgenie.com.

For a report on Call Genie's progress, refer to the Outlook section of the MD&A.

About Call Genie Inc.

Call Genie Inc. is a leading provider of local search and advertising solutions to Yellow Pages publishers, directory assistance providers, and wireless carriers. These solutions enable companies to offer an exceptional experience for both advertisers and consumers. Call Genie won the Yellow Page Association Industry Excellence Award for Marketing Innovation in North America, the Whitaker Innovation Award in Europe, and the 118 Tracker Award for Technology Innovation in the UK. Call Genie has over 30 customers in 11 countries. For more information, visit www.callgenie.com.

The TSX Exchange has neither approved nor disapproved the contents of this news release.

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