Call Genie Inc.
TSX : GNE

Call Genie Inc.

November 10, 2011 08:30 ET

Call Genie Reports Record Financial Results for Q3 2011

Q3 Revenues of $2.0 Million and Positive EBITDA

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2011) - Call Genie Inc. ("Call Genie") (TSX:GNE), a leading provider of mobile local search and advertising solutions, today announced its financial results for the three and nine months ended September 30, 2011.

Third Quarter Results

  • Revenues recognized of $2.0 million compares to $1.3 million for the third quarter of 2010.
  • Earnings Before Interest Depreciation and Amortization ("EBITDA") of positive $0.3 million compares to negative $0.6 million for the third quarter of 2010.
  • Net loss for the quarter ended September 30, 2011 was $0.7 million ($0.01 per share) compared to $1.3 million for the same period in 2010 ($0.02 per share).

Year to Date Results

  • Revenues recognized of $5.2 million compares to $3.2 million for the first nine months of 2010.
  • EBITDA of positive $0.1 million compares to negative $5.1 million for the first nine months of 2010.
  • Net loss for the nine months ended September 30, 2011 was $2.7 million ($0.03 per share) compared to $7.4 million for the same period in 2010 ($0.09 per share).
  • At September 30, 2011, the Company had a cash balance of $0.5 million compared to $0.4 million at December 31, 2010 (the September 30, 2011 cash balance did not include $1.2 million of aggregate gross proceeds from the financing transaction noted below).

HIGHLIGHTS

  • The third quarter of 2011 was the second consecutive quarter in which the Company generated revenues in excess of $2.0 million and positive EBITDA.
  • Transaction fees represented 46% of the $5.2 million of revenues reported for the nine months ended September 30, 2011. This compares to the 9% for the same period in 2010.
  • On October 25, 2011, the Company completed a brokered private placement involving the distribution of 12,000,000 units ("Units"), at a price of $0.10 per Unit, for aggregate gross proceeds of $1.2 million. Each Unit consisted of one common share of the Company and 1/2 of a common share purchase warrant. Each full purchase warrant entitles the holder to acquire one common share of the Company, at an exercise price of $0.12, at any time and from time to time until expiry on October 25, 2014.

OUTLOOK

During the third quarter of 2011, the Company introduced its Cloud based Software as a Service platform. Under this initiative, the Company integrated many of its existing customer relationships with its own hosted platform to provide a comprehensive advertising network to various sources of call-based and web-based consumer traffic. Subsequent to the quarter end, the Company completed the acquisition of the assets of UpSnap Services, LLC ("UpSnap"). Call Genie expects to merge operations with UpSnap in Q4, 2011 and brand the combined suite of mobile advertising services "UpSnap Mobile".

Michael Durance, CEO of the Company, remarked, "We are pleased with the third quarter financial performance and look forward to expanding our mobile advertising platform through the integration of UpSnap's operations."

This news release should be read in conjunction with Call Genie's condensed interim consolidated financial statements and the accompanying notes as at and for the three and nine months ended September 30, 2011 and the related Management Discussion and Analysis, which have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the Call Genie website at www.callgenie.com.

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 technologies 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. In particular, this news release includes forward-looking information respecting the anticipated merger of the UpSnap operations and the branding of combined mobile advertising platform as UpSnap Mobile.

Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company 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. These factors include such things as the Company's reliance on third parties and third party technology, 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, new laws (domestic or foreign), management's estimates of project requirements being incorrect, a lack of advertising sources for integration into the platform and management's understanding of the competitive and regulatory environment being incorrect. Accordingly, readers should not place undue reliance upon the forward-looking information contained herein and the forward-looking statements contained in this news release should not be considered or interpreted as guarantees of future outcomes or results.

Forward-looking information respecting the anticipated merger of the UpSnap assets in Q4 of 2011 and the anticipated branding of the combined assets as "UpSnap Mobile" are based upon various assumptions and factors, including the progress made to date in the deployment of Call Genie and UpSNAP technologies, estimations of additional time required to complete the implementation and the availability of resources to complete the merger, branding and deployment activities.

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 interim MD&A for the three and nine months ended September 30, 2011, which has been filed with certain securities regulatory authorities in Canada and is available through SEDAR, at www.sedar.com.

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

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