Multiplied Media Corporation
TSX VENTURE : MMC

Multiplied Media Corporation

August 30, 2010 22:50 ET

Multiplied Media Reports Second Quarter 2010 Results

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2010) - Multiplied Media Corporation (the "Company" or "Multiplied")(TSX VENTURE:MMC), an award-winning, Calgary-based provider of mobile local search services, today reported results for its second quarter ended June 30, 2010.

Total revenues for the quarter ended June 30, 2010 were $196,635 compared to $101,200 for the same period in 2009. The net loss for the quarter ended June 30, 2010 was $1,848,222, or $0.01 per basic share, compared to a net loss of $523,205, or $0.01 per basic share, in the same period of 2009.

Summary of Quarterly Results of Operations – For Quarters Ended June 30  
  2010   2009  
Total Revenue $ 196,635   $ 101,200  
Net loss from operations $ (1,848,222 ) $ (523,205 )
Loss per share – Basic $ (0.01 ) $ (0.01 )
Total assets $ 14,729,553   $ 814,185  
Total liabilities $ 4,760,753   $ 659,775  
Outstanding Shares – Basic   265,816,846     95,182,296  
Outstanding Shares – Fully Diluted   297,461,826     114,341,296  

On May 3, 2010 Poynt for iPhone was listed by EnvIO as a top free app as recommended and downloaded by users. EnvIO, a leading social networking software development company, released the results from its latest report that covers the top recommended apps, free apps and paid apps for the month of March. Poynt was named number ten on the free app list in its first month in the iTunes App Store.

A reseller's agreement with PT BIMA was announced on May 11, 2010 to begin selling the Email-to-SMS product to mobile operators in Indonesia.

Poynt 360, Poynt's augmented reality feature for the iPhone, was introduced on May 12, 2010. The feature utilizes the iPhone's GPS, compass and camera to display search results as clickable tags over a live view of the surrounding environment.

A version of Poynt for BlackBerry® Enterprise Server clients was introduced on May 18, 2010, providing large companies the ability to download and install Poynt on corporate devices, providing access to large numbers of previously inaccessible BlackBerry users.

An agreement with UK-based local business search company, Thomson Local, was announced on May 19, 2010 to deliver their local business listings within the business and restaurant sections of Poynt in the United Kingdom. Subsequently, Multiplied and Thomson Local announced the implementation and consumer availability of the listings on August 23, 2010.

On June 3, 2010 the Company announced that over 22.8 million search queries were conducted using Poynt during the month of May. On June 22, 2010 the Company also announced that Poynt had been downloaded and used on more than 3 million unique devices in Canada, the United States, France, Italy, Spain, Germany and the United Kingdom.

An agreement with Telus Communications was announced on June 17, 2010 to augment Poynt's listings with TELUS live operators. This service is particularly valuable for users when typing on the smartphone isn't possible or when additional business listing content is required.

The addition of local weather to Poynt for the iPhone and iPod Touch was announced on June 22, 2010. The new weather feature includes the current local temperature and displays the physical look of the weather and time of day in the background of the application.

Subsequent to June 30, 2010, the Company announced itself as the presenting sponsor of the "From Dusk til Con" event to be held at San Diego Comic-Con. The successful event attracted several executives from Hollywood studios, introducing them to the Poynt brand and demonstrating its capabilities as an advertising publishing platform. The activities surrounding the event also brought awareness of Poynt to the general public and a key user demographic as demonstrated in increased user numbers during that time frame.

From the previously announced agreement with Ping Mobile to sell location-based advertising on Poynt came the first successful trial program with the Days Business Alliance, a select group of Days Inn properties and part of Wyndham Worldwide. The highly targeted campaign, which delivered Days Inn text and banner ads based upon the users' keyword search and location, performed well above industry standards. The campaign, which offered a discount on hotel stays within the United States, provided valuable information to Poynt users who were searching for travel accommodations, while increasing the profile of the Days Inn brand and furthering Poynt as a location-based search advertising platform. The group has since renewed the advertising agreement for an additional two months.

On July 20, 2010, the Company announced the addition of Dr. Amit Monga to the Board of Directors. Dr. Monga brings experience in technology and life sciences as an angel investor and venture capitalist, has successfully launched a technology start-up, and has spent a number of years in investment banking covering the Canadian technology sector. His diverse experience adds to the existing strength of the Company's Board and provides additional expertise in the capital markets arena. Among other endeavours, Dr. Monga currently holds a board position with Alberta Innovates - Technology Futures, serves on the Campaign Committee of the Toronto International Film Festival and is a member of the Business Advisory Council of the University of Alberta School of Business.

On July 20, 2010, an agreement to preload Poynt on US-based Cricket Wireless smartphones was announced. Since that time, Cricket Communications has launched the BlackBerry® Curve™ 8530 which includes a preload icon for Poynt. On August 17, 2010, the Company announced that WIND Mobile, provider of next-generation wireless services in Canada, chose to provide a preloaded icon for Poynt on subscribers' BlackBerry® smartphones. The inclusion of Poynt on carrier devices aids in the discovery and download of the application, thereby increasing user numbers at minimal cost.

On July 29, 2010, the Company launched Poynt for Android devices in Canada, the United States and the United Kingdom. Poynt for Android offers the features and benefits of multiple individual local search applications in one. By entering search terms, the user is able to find and discover nearby people, businesses, restaurants and movies, as well as find the lowest local gas prices and view an integrated five-day weather forecast. Poynt allows users to find phone numbers, addresses, maps and directions, as well as utilize offers enhanced features such as the ability to read movie reviews, view trailers and even purchase movie tickets and book dining reservations.

Stock options were granted by the Company to officers, directors and employees as recognition of their commitment during the past 12 months and to provide incentive for future growth. The Board granted an aggregate of 6.91 million options on July 30, 2010 at an exercise price of $0.105 per share, which includes 0.635 million options granted to employees and 6.275 million options granted to directors of Multiplied. The options have been granted under the terms and conditions of the Company's approved option plan. The Company has 10% "rolling" option plan which reserves for issuance on exercise of options a maximum of 10% of the number of common shares of the Company outstanding from time to time.

On August 3, 2010, the Company announced the first implementation of their Email-on-the-Go (EGO) product with Philippines-based Globe Telecom. EGO, which offers consumers the most advanced and easiest to use clientless push email service available on the market today, was launched to over 20 million Globe customers.

Also on August 3, 2010, a gas price feature was added to Poynt for iPhone. The popular feature on Poynt for BlackBerry in the US, which offers users the ability to search for nearest gas stations or by best price by grade, was heavily requested by iPhone users.

On August 23, the Company announced that, following the previously announced May 19 agreement, business and restaurant listings from UK-based Thomson Local were now available to Poynt users in the United Kingdom.

The Company also launched a six-week online and mobile advertising campaign aimed at increasing user numbers. The campaign has succeeded in increasing user numbers, specifically on the iPhone platform, and is now among the Top 10 travel apps on the iTunes store in the U.S. The campaign continues to be optimized to ensure the greatest possible success.

Growth of the Company's user base continues to happen each and every day and remains a major priority which is being pursued on a four-prong strategy: development for additional platforms; distribution through pre-load agreements, such as those with Cricket Communications and WIND Mobile, are being negotiated with several other carriers across all geographic regions; marketing and advertising to attract and retain new users; and, business development deals in new geographies and for additional content.

The focus on achieving advertising revenue continues to be at the forefront of the Company's efforts, which are starting to gain traction and resulting revenues are being seen. The direct advertising channel has resulted in two signed campaigns. The first, a four-week trial campaign by Days Inn resulted in a renewed campaign for an additional two months. The second, from an advertiser in the Quick Serve Restaurant (QSR) industry, is scheduled to run in the coming weeks. The advertising team continues to build relationships with brand advertisers and additional campaigns are expected.

The indirect advertising channel, primarily consisting of advertising networks, is providing additional ad revenue with ads aggregated from advertisers wishing to participate in ad campaigns across multiple ad publishers. The team continues to manage those relationships and work towards a higher fill rate. Early results have been very encouraging and have exceeded internal expectations.

Development of Poynt for J2ME is complete and is now in testing. Upon completion of testing, Poynt will be delivered to two US carriers for certification on their networks, following which, the application will be available for subscribers on non-smartphone devices, which make up approximately 80 percent* of cellular customers in the United States. Development also continues for Windows Mobile and both platforms are expected to be available to consumers during Q4.

The development team continues to work towards creating feature parity among the platforms. This includes a localized version of Poynt for iPhone and Android in Germany, Italy, France and Spain and the addition of augmented reality to Poynt on the Android. In addition, the development team has been working on upgrading Poynt in response to the introduction of new devices and operating systems for existing platforms.

The Company has been approached with several opportunities relating to platform, content and geographic expansion. The management team is evaluating these opportunities for future growth, taking into consideration costs, revenue opportunities and user growth.

The cumulative user base increased 91% from 1,648,896 on December 31, 2009 to 3,155,431 on June 30, 2010. For the three months ended June 30, 2010, there was an average of 8,224 new users added per day, increasing the number of users from 2,407,023 to 3,155,431. As of August 29, 2010, Poynt's unique user base totaled 3,678,340 across all three platforms.

* ComScore MobiLens December 2009

About Multiplied Media Corporation

Multiplied Media (www.multiplied.com) develops and operates mobile applications that enhance the consumers' ability to connect with the people and businesses most important to them. Their multi-award-winning application Poynt (www.poynt.com) is a mobile local search service available over BlackBerry smartphones, iPhone and iPod Touch as well as Android devices. Through agreements with directory and vertical content providers in Canada, the United States and Europe, Poynt simplifies finding and connecting with businesses, retailers and events wherever and whenever it is most convenient for the consumer. The MyInboxNow offering enables low-end feature phones to behave like smartphones for email access. MyInboxNow is available to mobile operators as a private label solution. Headquartered in Calgary, AB, Canada, Multiplied Media trades on the TSX Venture Exchange under the symbol MMC.

Forward-looking Statements

This news release contains forward-looking statements relating to: development for additional platforms; distribution through pre-load agreements; business development in new geographies and for additional content; attracting and retaining new users; securing and increasing advertising revenues from new ad campaigns; delivery of Poynt for J2ME and Windows Mobile; achieving feature parity amongst platforms; continued content and geographic expansion; and other statements that are not historical facts. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicated in these forward-looking statements may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on these forward-looking statements.

These forward-looking statements are based on certain key assumptions regarding, among other things: future technological developments; the cost of expanding product lines; the impact of increasing competition; the continuity of existing business relationships; conditions in general economic and financial markets; the ability to complete previously announced transactions; ability to obtain all necessary regulatory approvals; and our ability to obtain financing on acceptable terms. Material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products; and the success of the Company's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; failure to obtain necessary regulatory approvals; potential product defects; our ability to hire and retain qualified employees and key management personnel; and risks associated with changes in domestic and international market conditions and the entry into and development of new markets for the Company's products.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of the forward-looking statements identified above.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. Apple App Store and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. Windows is a registered trademark of Microsoft Corporation in the United States and other countries.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Multiplied Media Corporation
    Andrew Osis
    CEO & Director
    403-444-4102
    andrew.osis(at)multiplied.com
    or
    Multiplied Media Corporation
    Margaret Glover-Campbell
    Vice President, Marketing & Public Relations
    403-444-4105
    margaret.glover-campbell(at)multiplied.com
    or
    Multiplied Media Corporation
    Raymon Ng
    Director, Investor Relations
    403-444-4113
    raymond.ng(at)multiplied.com
    www.multiplied.com