Call Genie Inc.
TSX : GNE

Call Genie Inc.

November 12, 2010 17:31 ET

Call Genie Reports Third Quarter 2010 Financial Results

Recently Completed Financing Provides $1.5 Million of Working Capital

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - Call Genie (TSX:GNE), a leading provider of mobile local search and advertising solutions, today announced financial results for the three and nine months ended September 30, 2010.

Third Quarter 2010 Results

  • Revenues recognized of $1.3 million compares to $1.3 million for the second quarter of 2010 and $1.0 million for same period in 2009.
  • Net loss for the three months ended September 30, 2010 was $1.3 million ($0.02 per share) compares to $3.0 million for the second quarter of 2010 ($0.04 per share) and $2.8 million for the same period in 2009 ($0.03 per share).
  • Cash used in operations was $1.6 million compares to $1.8 million for the second quarter of 2010 and $1.5 million for the third quarter of 2009.

Year to Date 2010 Results

  • Revenues recognized of $3.2 million compares to $2.7 million for the nine months ended September 30, 2009.
  • Net loss for the nine months ended September 30, 2010 was $7.3 million ($0.09 per share) compares to $9.1 million for the nine months ended September 30, 2009 ($0.11 per share).
  • Cash used in operations of $5.7 million compares to $6.6 million for the first nine months of 2009.
  • At September 30, 2010, the Company had a cash balance of $0.5 million compared to $3.5 million at December 31, 2009.
  • Deferred revenues of $3.9 million compares to $4.7 million at December 31, 2009.

$1.5 Million Debt Financing Announced

On November 5, 2010, Call Genie announced that it had distributed a $1.5 million aggregate principal amount of non-convertible debentures (the "Debentures"). Under the terms of the Debentures, outstanding principal will bear interest at a rate of 10% per annum payable at maturity. The Debentures will mature six months after issuance. The Company has the option to repay the debt prior to maturity without penalty. The Company has granted a security interest to Debenture holders under a general security agreement covering all of the assets of the Company and other assets provided by the Company's Chairman of the Board. In addition, each Debenture holder acquired 1,000 common shares of the Company per $1,000 principal amount of Debentures.

FINANCIAL OUTLOOK

Mr. Michael Durance, the Company's Chief Executive Officer, noted, "Call Genie continues to be well positioned in an active and emerging space as evidenced by our recently announced contract with France Telecom." Durance continued, "Some major projects, however, that were expected to move into the commercialization phase starting in the middle of the third quarter of 2010 have been delayed for various reasons outside of our direct control. As a result of these timing issues the Company is withdrawing all previously issued financial guidance at this time. Notwithstanding this, we are extremely pleased that these long anticipated key projects have recently moved into production and can begin to generate usage-based revenue."

This news release should be read in conjunction with Call Genie's unaudited interim financial statements and the accompanying notes as at and for the three and nine months ended September 30, 2010 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.

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, the 118 Tracker Awards for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. www.callgenie.com.

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