Poynt Corporation

Poynt Corporation

April 07, 2011 18:54 ET

Poynt Corporation Reports Year End 2010 Results

CALGARY, ALBERTA--(Marketwire - April 7, 2011) - Poynt Corporation ("Poynt Corp." or the "Company") (TSX VENTURE:PYN), a leading provider of mobile local search services, today reported results for its fourth quarter and year ended December 31, 2010. A copy of the Company's annual report will be available on the Company's website at http://about.poynt.com in due course.

Revenues for the year and quarter ended December 31, 2010 were $927,419, and $319,808 respectively, compared to $289,185 and $65,778 for the same periods in 2009. The net loss for the year ended December 31, 2010 was $8,492,037 or $0.03 per basic share, compared to a net loss of $3,933,335, or $0.04 per basic share, in the same period of 2009.

Summary Results of Operations – For the Year Ended December 31, 2010
Total revenue$927,419$289,185
Net loss from operations($8,492,037)($3,933,335)
Loss per share – Basic($0.03)($0.04)
Total assets$13,875,568$1,631,922
Total liabilities$5,110,987$767,664
Outstanding Shares – Basic343,916,491145,997,346
Outstanding Shares – Fully Diluted474,154,804176,744,384

The Company strengthened its balance sheet at December 31, 2010 with a net working capital surplus (not including the non-cash future tax liability) of $1,105,418 compared to December 31, 2009 net working capital of $415,881. The Company saw revenue growth of over 220% in 2010.

The Poynt user base grew substantially throughout 2010, as follows:

Poynt quarterly user growth - 2010
DateUser Count 2010User Count 2009
January 11,655,98335,199
March 312,422,097106,898
June 303,155,430545,194
September 303,915,8891,099,041
December 314,854,0611,648,896

On October 20, 2010 at the Annual and Special General Meeting shareholders voted to approve the change in the Company's name from Multiplied Media Corporation to Poynt Corporation. Common shares of the Company began trading under the new symbol TSX-V: PYN on October 27, 2010. The Company's name change better reflects the Company's focus, as the creator of the Poynt application.

Additional milestones achieved in the year ended December 31, 2010 for the Poynt app included the addition of features such as gas prices in the United States and integrated weather homescreens; new geographies including Italy, France, Spain and Australia; and multiple device launches—Poynt for iPhone was launched in February; Android in July; and Windows Phone 7, a Canadian launch partner with Microsoft, in November. In May, the Company announced the availability of an enterprise build of Poynt for BlackBerry smartphone users on a BlackBerry Enterprise Server (BES) giving corporations full access to the benefits and features of the application.

Also in 2010, we furthered our breadth and depth to provide the most contextual and accurate information globally, by signing agreements with European data providers toptable, being Europe's number one online restaurant booking service and with FRANCE 118000 to provide enhanced local search service in France. Subsequent to an agreement signed in May with UK-based Thomson Local, additional business directory listing content was launched in August for Poynt in the United Kingdom.

In June, an agreement was signed with TELUS Corporation to enhance the Poynt app in Canada with the addition of live agents accessible by users when typing on their smartphone isn't possible or when additional business listing content is required. TELUS live agents have rich business data at their fingertips, which will augment the listings currently provided. TELUS live agent availability on the Poynt app is expected in the second quarter 2011.

Poynt received local and international accolades including winning the TechRev Innovators 2010 award; winning the Alberta Science & Technology Leadership Foundation's (ASTech) 2010 Innovation in Information and Communications Technology (ICT) award with Chairman, Stephen Lougheed, also being recognized for his outstanding contribution to the Alberta Science and Technology community; and winning the third annual BlackBerry Partners Fund "Super Apps" Developer Challenge for North America. EnvIO also named Poynt for iPhone as one of its top ten free downloaded apps. EnvIO measures user activity as well as the download and referral behaviors of its users to determine the most popular apps and trends.

In December, Poynt announced a deal with Times Internet Limited (TIL) to make the Poynt app available to over 730 million* mobile users in India. The new product will be known as timesPoynt and will provide relevant and local data to the users whenever and wherever they require it.

A mobile distribution agreement with Yellow Pages Group (YPG) was signed to provide Canadian business content to the Poynt mobile local search application for BlackBerry smartphones, iPhone, Android and Windows Phone 7 devices. The five-year agreement, which includes an annual licensing fee paid to Poynt Corp., uses YPG's public API (YellowAPI) to grant the Poynt app access to the 1.5 million business listings YPG currently holds.

Poynt Corp. and Ping Mobile, a leading provider of mobile marketing campaigns, completed the first mobile local search campaign on the Poynt app for Ping Mobile's premier client, the Days Business Alliance, a select group of Days Inn properties and part of Wyndham Worldwide (NYSE: WYN). 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.

An agreement was signed to engage Adfonic Limited, Europe's only global mobile advertising marketplace, as lead advertising supplier for the Poynt app in Europe. Adfonic's innovative technology platform enables advertisers to connect with Poynt users in a targeted and localized manner.

Also in 2010 two preload agreements were signed in North America and one in Europe. The first, with U.S.-based Cricket Communications Inc., provides a preloaded Poynt App icon for customers on the BlackBerry® Curve™. In August, the Company announced that WIND Mobile, provider of next-generation wireless services in Canada, would provide a preloaded icon to their subscribers on BlackBerry® smartphones. In November, a preload icon was announced to Vodafone UK's BlackBerry® smartphone customers.

At DEMO Fall 2010, Poynt Corp. announced the introduction of the Poynt Offer Engine (Offer Engine). The Offer Engine is an easy-to-use, location aware turnkey advertising service that merchants can utilize to set up just-in-time offers, specials and coupons to attract local consumers via their mobile phone.

Financing activities for the year consisted of a non-brokered private placement in March 2010 resulting in gross proceeds of $5,000,000 led by Dundee Capital; and a bought deal private placement in December led by Canaccord Genuity Securities Corporation yielding gross proceeds of $3,750,000.

Marketing and public relations activities in 2010 focused on user acquisition and retention, brand stewardship and positioning, along with strengthening stakeholder communications. Poynt Corp. executed a North American awareness campaign focused on attracting new iPhone users and as a result of this campaign the app jumped from #57 to #7 in the "travel" category on the iTunes App Store. Multiple targeted social media campaigns were also launched throughout the year. Public relations initiatives throughout the year earned Poynt Corp. its most reported-on-year-to-date in the media with coverage in USA Today, CNET, The National Post, LA Times, NY Times, Globe and Mail, CTV, Mobile Marketer & CNBC.

Subsequent to year-end 2010, activities have included the launch of a Research In Motion sponsored BlackBerry Super App television commercial airing in the United States & Canada and co-marketing opportunities with Windows Phone 7. Poynt grew by an average of 30,000 new users daily during the month of February 2011 and continues to see strong growth on all platforms. To date, Poynt's unique user base has grown from 4.85 million on December 31, 2010 to over 6.91 million currently.

On January 11, 2011 the Company added an Events vertical to the Poynt app to provide more relevant local content for North American BlackBerry smartphone and Android device users. The new Events feature displays current and upcoming local events, as well as detailed event information, including turn-by-turn directions. With this update, Poynt users on BlackBerry smartphones and Android devices have the added benefit of quick and accessible local event listings simply by selecting the Events icon displayed on the app's home screen. Poynt provides users with up to the minute event listings and details through its content partner, Eventful, the leading digital media company connecting 20 million consumers to local events. On February 15, 2011, the Company expanded this offering to Poynt users in the United Kingdom.

Capitalizing on the power of social media, the Company furthered app depth on February 14, 2011 by integrating the ability to share Poynt local search results on Facebook and Twitter. The feature is available across all geographic regions including Canada, the United States, the United Kingdom, France, Germany, Spain, Italy and Australia.

On March 11, 2011 the Company announced that over 1 billion consumer queries and resulting actions had been performed using Poynt. The data includes searches within the app's seven feature verticals: Businesses, People, Movies, Events, Gas, Restaurants and Weather as well as the behavioral data that indicates consumer intent such as clicking to call, clicking to browse and mapping directions.

Research and development surrounding the delivery of Poynt to additional mobile platforms continues; the launch of Poynt for Nokia QT occurring in March 2011. Global expansion of the Poynt application is also being furthered with the expected launch of our timesPoynt product in India during Q2-2011.

About Poynt Corporation

Poynt Corp. (about.poynt.com) is a global leader in the mobile local advertising space. Their location based search application, Poynt (www.poynt.com), enhances the consumers' ability to connect with the people, businesses and events most important to them. Poynt is available on BlackBerry smartphones, iPhone and iPod Touch, Android, Nokia and Windows Phone 7 devices in Canada, the United States, Europe and Australia. Poynt Corp. entered the mobile publishing space with the recent acquisition of an advertising publishing platform. Key contracts on both the supply and demand sides are in place to provide inventory into the platform and publishers to display the inventory. Whether through the Poynt local search app or the ad publishing platform, Poynt Corp. simplifies connecting consumers with businesses, retailers and events. Headquartered in Calgary, AB, Canada, Poynt Corp. trades on the TSX Venture Exchange under the symbol PYN.

Forward Looking Statements

This news release contains forward-looking statements relating to: the integration and development of TELUS live operator technology and any revenue associated with it; revenue potential relating to the YPG deal; release dates and potential user uptake of the TIL deal; revenues associated with the Adfonic agreement; revenues and timelines associated with preload deals with Cricket, WIND mobile, and Vodafone; timing of the Poynt Offer Engine release; continued user growth data; development for additional mobile platforms including Nokia; 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; the continued successful development, implementation and execution of the Company's Poynt application; 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.

*Telecom Regulatory Authority of India news release dated February 9, 2010: Telecom Subscription Data as on 31st December 2010. For more information visit: http://www.trai.gov.in/WriteReadData/trai/upload/PressReleases/798/prerdiv9feb11.pdf

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. Android is a registered trademark of Google Inc.

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

  • Financial Communications Contact:
    Trilogy Capital Partners
    Darren Minton
    Toll-free: 800-592-6067

    Poynt Corporation
    Andrew Osis
    President & CEO