ProntoForms Corporation

November 07, 2013 08:55 ET

ProntoForms Corporation Announces Q3 2013 Results


- Q3'13 total revenue of $1,149,111, an increase of 82% over comparable third quarter in 2012

- Q3'13 recurring subscription revenue of $874,990, an increase of 77% over comparable third quarter in 2012

- Q3'13 operating loss reduced to $142,667, a decrease of $175,929 or 55% from Q2'13

OTTAWA, ONTARIO--(Marketwired - Nov. 7, 2013) - ProntoForms® Corporation (TSX VENTURE:PFM) ("ProntoForms" or "the Company"), (formerly, TrueContext Mobile Solutions Corporation) a mobile data solutions company today announced results for its three and nine months ended September 30, 2013. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three Months Ended September 30, 2013

Total revenue for the third quarter of 2013 of $1,149,111 represented an increase of approximately 20.3% over the 2013 second quarter and 82% growth over the comparable third quarter of 2012.

Revenue details are as follows:

Three months ended
September 30, 2013 June 30,
September 30, 2012 Increase over Q2'13 Increase over Q3'12
Subscription revenue $ 874,990 $ 750,140 $ 494,889 16.6 % 76.8 %
Services revenue 274,121 204,912 136,422 33.8 % 100.9 %
Total revenue $ 1,149,111 $ 955,052 $ 631,311 20.3 % 82.0 %

Subscription revenue of $874,990 grew by 16.6% from the second quarter of 2013 and by 76.8% from the comparable third quarter of 2012.

Services revenue of $274,121 grew by 33.8% from the second quarter of 2013 and by 100.9% from the comparable third quarter of 2012. The 2013 third quarter professional services revenue included approximately $201,000 from large contracts with major operators and smartphone vendors compared to approximately $131,000 in the 2013 second quarter and $92,000 in the third quarter of 2012. Revenue from these larger contracts is recognized as the services are performed and is subject to variability due to the availability of contracts from customers and resources to perform the work.

The Company had a Q3 2013 net loss of $237,208 compared to a Q2 2013 net income of $535,485 and a comparable Q3 2012 net loss of $452,184.

  • The second quarter shift to profitability arose primarily from other income of approximately $875,000 realized through the sale of certain patents and a reduction in deferred revenue due to the reversal of the underlying obligation. Excluding the one-time other income items, the Company would have presented a pro forma net loss of $339,585 in the three month period ended June 30, 2013. The third quarter 2013 net loss represents an improvement of $102,377 (30.1%) over the pro forma second quarter loss and an improvement of $214,976 (47.5%) over the comparable third quarter in 2012.

Loss before other income (expenses) for the third quarter of 2013 was $142,667 compared to $318,596 in the second quarter of 2013 representing an improvement of $175,929 or 55% and an improvement of $281,974 or 66% over the loss before other income (expenses) of $424,641 in the third quarter of 2012.

As at September 30, 2013, the Company had cash and cash equivalents of $948,373 and net working capital of $846,468.

"We are pleased with our continued strong revenue and subscriber growth in the third quarter, particularly through our operator partners. Our third quarter financial results demonstrate a clear trend: eight continuous quarters of revenue growth combined with decreasing operating loss. It's the steady improvement in recurring revenue and operating results that drive value in our organization," said Alvaro Pombo, Chief Executive Officer, ProntoForms.

Mr. Pombo added: "ProntoForms continues to be a leading product in the marketplace and our relationships with top carriers and device brands demonstrate the strategic value of the application within the carrier ecosystem. The relationship with these partners has been deepening recently as evidenced by increased product development and marketing programs which have also positively contributed to increases in our services revenue. The ProntoForms product is deployed with more than 2,500 companies, mobilizing thousands of business processes - the product improvements and management expertise gained from this substantial achievement uniquely positions us to take our business to the next level."

Option Grant

Options to purchase up to 688,000 common shares of the Company were approved for grant by the Board of Directors, including 560,000 to certain directors and officers. The options were approved for grant to be effective as of November 12, 2013 pursuant to the terms of the Company's stock option plan and are exercisable for a period of five years from the effective date at an exercise price to the closing price of the common shares on November 11, 2013. Stock option grants are subject to necessary regulatory approvals.

About ProntoForms® and ProntoForms Corporation

ProntoForms is a mobile workflow solution used by over 2,500 business customers to collect, receive and submit data in the field. Available for smartphones and tablets, the ProntoForms solution incorporates a mobile device App, a Web portal to manage teams and data flow, and provides the ability to export or connect data to the back office, popular cloud services or other data destinations.

ProntoForms Corporation, formerly TrueContext Mobile Solutions Corporation, has a powerful and proprietary patent portfolio, from which the ProntoForms mobile App and Web reporting portal have been developed. The company trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly-owned subsidiary of ProntoForms Corporation.

Certain information in this press release may constitute forward-looking information. For example, statements about the Company's future growth or value are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

There are a number of risk factors that could cause future results to differ materially from those described herein, including but not limited to the following: (i) there can be no assurance that the Company will earn any profits in the future or that profitability, if achieved, will be sustained; (ii) if the Company is not able to achieve profitability, it will require additional equity or debt financing, and there can be no assurances that the Company will be able to obtain additional financial resources on favourable commercial terms or at all; (iii) the Company's quarterly revenues and operating results may fluctuate, which may harm its results of operations; (iv) the loss of business from a major customer, operator or other reseller could reduce the Company's sales and harm its business and prospects; (v) a portion of the Company's sales are through operators and other resellers, and an adverse change in the Company's relationship with any of such operators or other resellers may result in decreased sales; (vi) the market for software as a service is at a relatively early stage of development, and if it does not develop or develops more slowly than expected, the Company's business will be harmed; (vii) the Company faces competition from other software solution providers, which may reduce its market share or limit the prices it can charge for its software solutions; (viii) a global economic downturn or market volatility may adversely affect our business and/or our ability to complete new financings;
(ix) the business of the Company may be harmed if it does not continue to penetrate markets; (x) the success of the business depends on the Company's ability to develop new products and enhance its existing products; (xi) the Company's growth depends in part on the success of its strategic relationships with third parties; (xii) the financial condition of third parties may adversely affect the Company; (xiii) the US dollar may fluctuate significantly compared to the Canadian dollar, causing reduced revenue and cash flow as most of our revenues are received in US dollars while most of our expenses are payable in Canadian dollars; (xiv) subscription services which produce the majority of the Company's revenue are hosted by a third party service for the Company and any interruption in service could harm its results of operations; (xv) the Company may be liable to its customers or third parties if it is unable to collect data or it otherwise loses data; (xvi) the Company may be liable for the handling of personal information; (xvii) intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xviii) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xix) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xx) any significant changes in the technological paradigm utilized for building or delivering applications in Smartphone devices could harm the Company's business and prospects; and (xxi) if the Company loses any of its key personnel, its operations and business may suffer.
Please see "Risk Factors Affecting Future Results" in the Company's annual management discussion and analysis dated April 2, 2013 found at for a more complete discussion of these and other risks. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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