Call Genie Inc.

Call Genie Inc.

March 28, 2011 08:30 ET

Call Genie Reports Fiscal 2010 Financial Results

2011 Debt Financing Provides $5.0 Million of Working Capital

TORONTO, ONTARIO--(Marketwire - March 28, 2011) - Call Genie (TSX:GNE), a leading provider of mobile local search and advertising solutions, today announced its financial results for the year ended December 31, 2010 and the three months ended December 31, 2010.

2010 Annual Results

  • Revenues recognized for 2010 of $4.2 million compares to $3.5 million for 2009.
  • Net loss for the year ended December 31, 2010 was $8.5 million ($0.10 per share) compared to $12.4 million in 2009 ($0.15 per share).
  • At December 31, 2010 the Company had a cash balance of $0.4 million (excluding proceeds from the $5.0 million debenture financing noted below) compared to $3.5 million at December 31, 2009.
  • Deferred revenues decreased to $3.4 million at December 31, 2010 from $4.7 million at December 31, 2009.
  • During the year ended December 31, 2010, the Company completed $4.0 million of debenture financing.

Fourth Quarter 2010 Results

  • Deferred revenues decreased to $3.4 million at December 31, 2010 from $3.5 million at the end the third quarter of 2010.
  • Revenues recognized for the fourth quarter of $1.1 million compares to $0.8 million for Q4, 2009.
  • Net loss from Operations in the fourth quarter was $1.0 million compared to $2.7 million in Q4 of 2009.

Subsequent to December 31, 2010, the Company completed a $5.0 million debt financing in the form of convertible secured debentures. The debentures bear interest at a rate of 12% per annum, payable semi-annually, and mature on March 2, 2015. Principal of the debentures is convertible into common shares of the Company, at the option of the debenture holder, based on a conversion price of $0.25 per share (subject to adjustment).


Mr. Michael Durance, the Company's Chief Executive Officer, remarked, "2010 was a significant year, in that the Company successfully delivered a number of customer projects while reducing expenses. In addition, developments in the fourth quarter of 2010 laid the groundwork for a shift in the Company's revenue mix. In 2011, the Company expects its revenue mix to shift from predominantly implementation and maintenance fees to recurring transaction revenues. In the fourth quarter of 2010, a yellow pages provider in the USA under contract with the Company began the implementation of a new source of call volume for which Call Genie is paid a transaction fee. The customer plans to complete the rollout by April 2011 and, as a result of this new call volume, total revenues for the second quarter of 2011 are expected to increase to a range of $2.0 million to $2.5 million."

This news release should be read in conjunction with Call Genie's audited financial statements and the accompanying notes as at and for the year ended December 31, 2010 and the related Management Discussion and Analysis, which have been filed with certain securities regulatory authorities in Canada and available on SEDAR ( and on the Call Genie website at

About Call Genie Inc.

Call Genie is a leading global solutions provider in mobile local search and mobile digital interactive advertising. Call Genie enables traditional industries to move to new business models that support the connection of mobile consumers and local merchants. Solutions provided include search and advertising serving technology and services that utilize advanced wireless networks as well as the mobile internet to enable a "mobile ecosystem" that encompasses advertisers, service providers (e.g., internet yellow pages, carriers, network broadcasters) and mobile users. Currently, Call Genie solutions are deployed in 12 countries around the world.

Certain statements included in this News Release are not historical facts, but rather are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "hope", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "scheduled", "believe" and similar expressions. The forward-looking information set out in this News Release under the heading "Financial Outlook" was approved by management and the Board of Directors of the Company on March 24, 2011 and such information has been included to provide readers with an estimate of certain financial results that may be generated by the Company as it moves into a new phase with the commercialization of various technologies. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements are based upon the opinions, expectations and estimates of management and, in some cases, information received from or disseminated by third parties, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Generally, these factors include such things as the Company's current stage of development, the lack of a corporate track record with respect to the generation of revenues from performance-based arrangements with customers, the Company's reliance on third parties and third party technology, the existence of competition, the availability of external financing, the inherent risks associated with research and development activities and commercialization of emerging technologies (such as lack of market acceptance), timing of execution of various elements of the Company's business plan, the availability of human resources, the emergence of competing business models, and new laws (domestic or foreign). In respect of the range of revenue that is expected to be reported for the three months ending June 30, 2011, those risks, uncertainties and factors include, but are not limited to, such things as the level of transactions causing deferred revenue to be recognized not increasing as expected, the ability of the Company to obtain the necessary documentation required under International Financial Reporting Standards ("IFRS") to permit the recognition of revenue, material changes in the business terms agreed to by the Company and one or more of its existing customers, changes in IFRS or the Company's application of IFRS.

Forward-looking information respecting the range of anticipated revenues for the quarter ending June 30, 2011 is based upon management's estimates of revenues to be derived from existing customer arrangements, the terms of the agreements entered into with those customers, information received from customers with respect to anticipated call volumes for Call Genie enabled services (upon which performance-based compensation is dependent), customers devoting sufficient resources to the advertising of Call Genie-enabled services to effectively promote awareness and usage of such services (which is necessary to permit the Company to earn performance-based revenues in accordance with business plan expectations), the Company generating between $1.4 and $1.9 million of revenue from performance-based arrangements with customers during the quarter, management estimates respecting the timing of execution and delivery of services to be performed, the historical pattern of timing of cash receipts, amounts invoiced to customers to March 24, 2011, customer receipts to March 24, 2011, the Company's revenue recognition policy and management's understanding of IFRS;

Call Genie Inc. does not assume responsibility for the accuracy and completeness of the forward-looking statements set out in this News Release and, subject to applicable securities laws, does not undertake any obligation to publicly revise such forward-looking statements to reflect subsequent events or circumstances. Call Genie Inc.'s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Additional information relating to various risk factors to which Call Genie is exposed in the conduct of its business (and which may affect the expectations or outcomes reflected in the forward-looking statements contained in this News Release) are described in the Company's annual MD&A for the year ended December 31, 2010, which has been filed with certain securities regulatory authorities in Canada and is available through SEDAR, at

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

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