Poynt Corporation

Poynt Corporation

November 29, 2010 20:24 ET

Poynt Corporation Reports Third Quarter 2010 Results

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) - Poynt Corporation (formerly Multiplied Media) (the "Company" or "Poynt Corp.") (TSX VENTURE:PYN), an award-winning, Calgary-based provider of mobile local search services, today reported results for its third quarter ended September 30, 2010.

Total revenues for the quarter ended September 30, 2010, were $236,625 compared to $105,389 for the same period in 2009. The net loss for the quarter ended September 30, 2010, was $2,625,619, or $0.01 per basic share, compared to a net loss of $1,677,676, or $0.01 per basic share, in the same period of 2009.

Summary of Quarterly Results of Operations - For Quarters Ended
September 30
2010 2009
Total Revenue $ 236,625 $ 105,389
Net loss from operations $ (2,625,619) $ (1,677,676)
Loss per share - Basic $ (0.01) $ (0.01)
Total assets $ 12,896,310 $ 2,251,118
Total liabilities
(Excluding non-cash Future Income
Tax) $ 1,239,195 $ 427,907
Outstanding Shares - Basic 267,916,491 143,326,013
Outstanding Shares - Fully Diluted 307,196,471 174,249,384

The Company experienced revenue growth of 172% for the nine months ended September 30, 2010, compared to the same period in 2009. The Company also experienced growth in the user base by over 2.2 million in the nine months ended September 30, 2010.

On July 19, 2010, Poynt Corp. and Ping Mobile announced the successful results of their first mobile local search advertising campaign with the Days Inn Alliance (part of Wyndham Worldwide). The highly targeted campaign performed well above industry norms, and has led to further ad campaigns by Days Inn.

Dr. Amit Monga joined the Company's Board of Directors on July 20, 2010. 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. His diverse experience adds to the existing strength of the Company's Board and provides additional depth of experience in the capital markets arena.

The Company announced an agreement with Cricket Communications in the U.S. to preload its Poynt application on select smartphones.

Poynt for Android was launched on July 29, 2010, making the application available to a third device platform.

On July 30, 2010, an aggregate of 6.91 million stock options were granted to officers, directors and employees at an exercise price of $0.105 per share on July 30. The options were granted under the terms and conditions of the Company's approved stock option plan.

On August 3, 2010, it was announced that Globe Telecom in the Philippines launched the Company's Email to SMS product (branded Email-on-the-go or EGO) to over 20 million customers.

Also on August 3, 2010, the popular gas price search vertical was added to Poynt for iPhone. Additional functionality included with the latest version of the application was the ability to add events such as restaurant reservations and movie times directly to the calendar from within Poynt.

On August 17, 2010, it was announced that WIND Mobile in Canada selected Poynt as the Location-Based Search App for their BlackBerry smartphone customers.

The Company added Thomson Local content to the business and restaurant verticals within Poynt in the United Kingdom on August 23, 2010.

Pursuant to the previously announced agreement, Cricket Communications launched Poynt as a preloaded icon on the BlackBerry Curve 8530 on August 26, 2010.

On September 8, 2010, Poynt and toptable announced a partnership to bring restaurant reservations to the Poynt application in Europe.

The Company unveiled the Poynt Offer Engine - a timely and simple way for local businesses to promote specials and offers to mobile users within the vicinity of their business. The launch occurred at DEMO Fall 2010, a well-respected technology launching pad.

The Company was honoured as a TechRev Innovator on September 16, 2010. TechRev is an initiative funded by Calgary Technologies Inc. with a mandate to increase awareness of, and investment activity in, the technology sector in the Calgary region. The selection process concluded with an evaluation of the selected companies on a variety of elements, including those related to financial performance, operational growth, and market viability.

Subsequent to September 30, 2010, the Company announced an option grant of 765,000 options to employees of the Company. The options were granted at an exercise price of $0.10 per share under the terms of the Company's approved option plan.

On October 14, 2010, the Company announced an agreement with Trilogy Capital Partners to lead financial marketing and investor relations' activities in the United States.

The Company launched the Poynt application for BlackBerry smartphones in Australia on October 20, 2010. The Company partnered with Sensis, the publisher of the Yellow Pages® in Australia to provide business and restaurant search results.

The Company became Poynt Corporation on October 25, 2010, after the name change was approved at the Annual and Special General Meeting on October 20, 2010.

On November 2, 2010, the Company announced a $3,000,000 convertible debt financing led by Canaccord Genuity Corp. ("Canaccord Genuity"), to sell on a commercially reasonable basis private placement of $3,000,000 principal amount of unsecured subordinated convertible debentures. On November 24, 2010, the Company announced that it had terminated this offering and entered into an agreement with Canaccord Genuity respecting a private placement of up to 40,000,000 common shares (the "Common Shares") of the Company at a price of $0.075 per Common Share for gross proceeds of up to $3,000,000 (the "Offering"). The Company has also granted Canaccord Genuity an option to sell, on a private placement basis, up to an additional 13,333,333 Common Shares at a price of $0.075 per Common Share for additional gross proceeds of up to $1,000,000, which option is exercisable at any time prior to closing of the Offering.

Microsoft launched Windows Mobile 7 on November 8, 2010, and Poynt was selected as a launch partner in the Canadian market. Poynt for Windows Phone 7 is now available in both Canada and the United States.

On November 9, 2010, Poynt for Android launched in Italy, France and Spain. The application is now available in each country's respective language, making the Android version of Poynt available in five countries.

Poynt for the iPhone also became available in Italy, France and Spain on November 10, 2010. New features on both Android and iPhone included the addition of movie ratings and saved favourite searches, making the application even more convenient to the user base.

On November 15, 2010, the Company announced it had selected Adfonic as its lead advertising supplier for Poynt's mobile local search application in Europe. Adfonic's innovative technology platform enables advertisers to connect with Poynt users in a targeted and localized manner.

Poynt Corp. was recognized by Alberta Science & Technology Leadership Foundation (ASTech) as the winner of the 2010 Innovation in Information and Communications Technology (ICT) award. Poynt Corp.'s Chairman, Stephen Lougheed, was also recognized for his outstanding contribution to the Alberta Science and Technology community.

On November 18, 2010, Poynt's continued international expansion was announced as Poynt for Windows Phone 7 was revealed in the United Kingdom.

Also on November 18, 2010, the Company announced they are providing a preloaded icon for the award-winning Poynt mobile local search application to Vodafone UK's BlackBerry® smartphone customers.

Poynt was named as the North American winner of the third annual BlackBerry Partners Fund "Super Apps" Developer Challenge on November 22, 2010.

On November 29, 2010, the Company announced the addition of gas prices to Poynt for Windows Phone 7, bringing content parity to all platforms in the U.S.

Increased user growth continues through preload agreements in Canada, the US and Europe, new device launches, launching in new geographies and continued marketing and public relations activities. As critical mass is achieved and surpassed in major markets, these increased user numbers are attracting merchants who realize the potential of advertising directly to a consumer who is looking for their product.

The recent launch of Poynt in Australia, Poynt for Android and iPhone having launched internationally and Poynt for Windows Phone 7 launching in Canada and the United States, it is expected that the user base will continue to grow, thereby increasing the mass audience that will attract advertisers.

Evolution of the Company's advertising sales is progressing well with a solid foundation of trial campaigns including two successful standalone mobile advertising campaigns within Poynt. The results far exceed industry norms: one campaign generated $2 in revenue for every $1 spent. Interaction with the ads is achieving 10x industry standards in click through rates, and trackable actions. These success stories are also part of the foundation for attracting additional advertising dollars into the Poynt platform.

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. Results continue to be very encouraging.

The development team is focused on delivering additional vertical content and functionality to users that will increase user's affinity toward the app as well as increase the overall usability and "stickiness" of Poynt in consumers' daily lives. Additional platforms are in development for release in 2011.

The Company continues to evaluate the many high quality opportunities brought forward by business development. Evaluations are based upon three pillars: can it be built; do users want it; and, will it result in revenue.

The cumulative user base increased 137% from 1,648,896 on December 31, 2009 to 3,913,728 on September 30, 2010. For the three months ended September 30, 2010, there was an average of 8,242 new users added per day, increasing the number of users from 3,155,431 to 3,913,728. As of November 28, 2010, Poynt's unique user base totaled 4.5 Million across all platforms.

About Poynt Corporation

Poynt Corporation (about.poynt.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 Poynt application (www.poynt.com) is a mobile local search service available over BlackBerry smartphones, iPhone and iPod Touch, Android devices and Windows Phone 7. Through agreements with directory and vertical content providers in Canada, the United States, Europe and Australia, 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, Poynt Corporation trades on the TSX Venture Exchange under the symbol PYN.

Forward-looking Statements

This news release contains forward-looking statements relating to: attracting and retaining new users; securing and increasing advertising revenues from new ad campaigns, both through direct sales and advertising network partners; continued development for vertical content and functionality; 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

  • Poynt Corporation
    Andrew Osis
    CEO & Director
    Poynt Corporation
    Margaret Glover-Campbell
    Vice President, Marketing & Public Relations
    Poynt Corporation
    Raymond Ng
    Director, Investor Relations