Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

August 09, 2006 09:30 ET

Call Genie Announces Second Quarter Results For Fiscal 2006

CALGARY, ALBERTA--(CCNMatthews - Aug. 9, 2006) - Call Genie Inc. (TSX VENTURE:GNE), a provider of enhanced voice directory services, today reported second quarter results for the three months ended June 30, 2006.

Revenues for the three-month period ended June 30, 2006 increased to $144,188 from $30,641 for the same three-month period in 2005. Revenues for the six-month period ended June 30, 2006 increased to $259,234 from $43,815 for the same six-month period in 2005. The increase in revenue is attributable to an increase in the number of merchants subscribing for the Hello Yellow service in the Greater Toronto Area through the Company's arrangement with Yellow Pages Group Co. Second quarter revenues increased 25% over the previous quarter.

"Call Genie is continuing to work successfully with YPG in two primary areas", according to Michael Durance, Chief Executive Officer. "First, we are refining the most effective way to maximize penetration rates with YPG's advertising merchants. Second, we are focusing on increasing call volume to those merchants through continued external media programs and through the progress we are making with TELUS to implement a national rollout integrating HelloYellow™ with the Telus 411 directory assistance services. Outside of Canada, we have made significant progress in our efforts to expand into the U.S. and Europe as well as other areas of the world. The recent announcement of our trial with Verizon is an exciting example as it brings together an industry leading 411 provider and an industry leading Yellow Pages provider."

Call Genie's net loss for the second quarter of 2006 was $1,368,011 compared to $505,839 for the same period in 2005. The net loss for the Company for the six months ended June 30, 2006 was $2,538,951 compared to $1,002,897 for the same period in 2005. For the quarter ended June 30, 2006, the cash used in operating activities was $1,320,443 compared to cash used in operating activities of $431,916 for the second quarter of the previous year. The increase in cash flows used in operating activities is primarily attributable to increased personnel and operating costs associated with business development activities and research and development activities.

As at June 30, 2006, Call Genie had a positive working capital of $9,350,667.

The preceding Quarterly Results for Call Genie should be read in conjunction with Call Genie's unaudited financial statements and the accompanying notes for the period ended June 30, 2006 and the related Management Discussion and Analysis ("MD&A"), which have been filed on with certain securities regulatory authorities in Canada and are available on the SEDAR website at 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

Call Genie is a provider of enhanced voice directory services. Call Genie's services include the development of interactive voice recognition applications, marketing and sales planning, operational support, as well as management of related technologies and network operations center components. Call Genie is a leader in the voice sector of the interactive, local directory services market -- the business of bringing together consumers and merchants. Please visit our website at www.callgenie.com.

Contact Information