Call Genie Inc.
TSX : GNE

Call Genie Inc.

May 19, 2009 08:30 ET

Call Genie Reports First Quarter 2009 Financial Results and Enters Into Financing Agreement

Debt Financing provides $1.5 million of working capital

TORONTO, ONTARIO--(Marketwire - May 19, 2009) - Call Genie (TSX:GNE), a leading provider of mobile local search and advertising solutions, today announced financial results for the three months ended March 31, 2009.

First Quarter 2009 Results

- Deferred Revenues of $1.1 million compares to $0.7 million in Q1, 2008.

- Recognized revenues of $0.9 million compares to $1.0 million for Q1, 2008.

- Net loss excluding stock based compensation expense was $3.2 million compared to $4.6 million in 2008.

- Net loss of $3.2 million ($0.04 per share) compares to $5.0 million ($0.06 per share) for the first quarter in 2008.

- Cash used in operations was $2.8 million compared to $4.2 million for the first quarter of 2008.

- At March 31, 2009 the Company had a cash balance of $2.0 million. The cash balance does not include the additional working capital secured in the debt financing.

Highlights

- Subsequent to March 31, 2009, the Company entered into an agreement to obtain $1.5 million of debt financing. The debt, structured as a convertible debenture, provides that the principal amount of the debentures will bear interest at a rate of 10% per annum, payable semi-annually, and that the debentures will mature on May 30, 2012. Principal and accrued interest under the debentures will be convertible into common shares of the Company based on a conversion price of $0.50 per share. Completion of the debenture financing is subject to the receipt of all necessary regulatory approvals.

- Net loss excluding stock based compensation expense of $3.2 million represents the lowest quarterly loss since the second quarter of 2007 and represents the 4th straight quarter of declining quarter net loss excluding stock based compensation expense.

- Total Cash used in the quarter was $3.0 million compared to $4.9 million for the first quarter of 2008.

- The Days Sales Outstanding (DSO) improved to 89 days at March 31, 2009 compared to 134 days on March 31, 2008. Accounts Receivable at March 31, 2009 totaled approximately $0.9 million compared to $1.5 million at March 31, 2008.

Mr. Michael Durance, the Company's Chief Executive Officer, remarked, "Despite the extremely poor economic climate, the company has successfully secured additional working capital financing. The financing will be used to support the growing number of customer projects for which the Company has been engaged."

This news release Call Genie should be read in conjunction with Call Genie's audited financial statements and the accompanying notes as at and for the three months ended March 31, 2009 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.

"Net Loss before stock compensation expense", a non-GAAP measure as defined by the Company, means Net Loss without the inclusion of any stock-based compensation expense and is derived from the Company's consolidated statement of operations. Readers are cautioned that non-GAAP measures do not have standardized meanings prescribed by GAAP. Net loss before stock compensation expense should not be construed to be an alternative to net income determined in accordance with GAAP or an indicator of performance or liquidity or cash flows. The Company's method of calculating non-GAAP measures may differ from methods used by other entities and accordingly our measures may not be comparable to similarly titled measures used by other entities. The Company uses net loss before stock compensation expense because it believes the measure provides useful information to both management and investors with respect to the operating and financial performance of the Company.

About Call Genie Inc.

Call Genie is a leading global provider of local mobile search and advertising solutions that connect ready to transact consumers directly with local merchants for local directory businesses, directory assistance services and local media publishers. Call Genie solutions offer an exceptional experience for both advertisers and consumers and are deployed in 11 countries around the world. Call Genie has been awarded the Excellence in Integrated Ad Management award by the Pelorus Group, has won the Yellow Page Association Industry Excellence Award for Marketing Innovation, the Whitaker Innovation Award, and the 118 Tracker Awards for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. www.callgenie.com.

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

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