SOURCE: Single Touch Systems

Single Touch Systems

May 15, 2013 20:00 ET

Single Touch Reports Second Quarter Fiscal 2013 Results

Conference Call Scheduled for 8:30 am ET on May 16

JERSEY CITY, NJ--(Marketwired - May 15, 2013) - Single Touch Systems, Inc. (OTCBB: SITO), a technology based mobile media solutions provider, today reported financial results for the three and six months ended March 31, 2013.

Financial Highlights:

  • Revenue: For the second quarter of fiscal 2013, revenue increased to $1.8 million from $1.6 million for the second quarter of fiscal 2012, representing a year-over-year increase of 16%. For the six months ended March 31, 2013, revenues increased to $3.8 million from $3.1 million for the same period of the prior year, representing a year-over-year increase of 19%. Because a majority of the Company's revenues are currently derived from mobile messaging for retailers, Single Touch's business peaks during the holidays and then reflects a return to normalized growth in its third fiscal quarter beginning in April.

  • Gross Margin: For the second quarter of fiscal 2013, gross margin was 57%. In the six months ended March 31, 2013 gross margins improved to 56% from 55% in the same period of 2012.

  • Adjusted EBITDA: For the second quarter of fiscal 2013, adjusted EBITDA, a non-GAAP financial measure, was $(443,000) compared to adjusted EBITDA of $(305,000) for the second quarter of fiscal 2012. For the six months ended March 31, 2013, adjusted EBITDA was $(804,000) as compared to $(709,000) for the same period of the prior year.

  • Net Income (Loss): For the second quarter of fiscal 2013, net loss, on a GAAP basis, was $(1.1) million or $(0.01) per basic and dilute share, compared to a net loss of $(665,000) or $(0.01) per basic and diluted share for the second quarter of fiscal 2012. For the six months ended March 31, 2013, net loss was $(3.3) million or $(0.02) per basic and diluted share, compared to $(1.3) million or $(0.01) per basic and diluted share for the same period in 2012.

  • Messaging Volume: In the second quarter of fiscal 2013, Single Touch sent 66 million marketing message to mobile phone users. This is up 15% from 56 million messages sent in the second quarter of fiscal 2012. Messaging volume is a key business metric for the Company.

"With continued double digit year-over-year revenue growth and gross margin improvement for the first two quarters of fiscal 2013, we continue to progress towards our goals for revenue growth and profitability in our operating business. We are focused on ramping recurring revenue streams through both existing and new clients," stated Single Touch President and CEO James Orsini.

"For marketers and advertisers there is a realization that consumers don't use desktop and mobile in the same way when they are searching to shop. The numbers are very compelling. Ninety percent of people conducting a mobile search act within 1 day, and 70% act within 1 hour according to data published on sparksheet.com. We believe Single Touch is well positioned to capitalize on the seismic shift towards mobile media consumption and corresponding action. We provide the ROI, the patent protected technologies, and services that deliver results for our customers," Orsini added.

Single Touch Chairman and Chief Technology Officer Anthony Macaluso commented, "During the second quarter of fiscal 2013, we continued our efforts to unlock value in our IP portfolio. In the quarter our Single Touch Interactive subsidiary was also granted a patent from the United States Patent and Trademark Office for a key invention addressing mobile data transfer functions that happen nearly every time a new mobile device is purchased in the U.S. With this latest patent, Single Touch's IP position in the mobile ecosystem is now comprised of 49 patents issued and pending applications."

Conference Call Dial-In Information:

Date: Thursday, May 16, 2013

Time: 8:30 A.M. Eastern Time (ET)

Dial in Number for U.S. & Canadian Callers: 877-407-8629

Dial in Number for International Callers (Outside of the U.S. & Canada): 201-493-6715

To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time. A live webcast and archive of the call will also be available on Single Touch's website at: http://singletouch.equisolvewebcast.com/q2-2013.

If you are unable to participate in the call at this time, a replay will be available for 7 days starting on May 16 at approximately 11:00 A.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 414392.

About Single Touch Systems, Inc.

Single Touch Systems, Inc. is a technology based mobile solutions provider serving businesses, advertisers and brands. Through patented technologies and a modular, adaptable platform, Single Touch's multi-channel messaging gateway enables marketers to reach consumers on all types of connected devices, with information that engages interest, drives transactions and strengthens relationships and loyalty. For more information about Single Touch Systems, Inc. visit: www.singletouch.net

Forward-Looking Statements

This news release may contain forward-looking statements that involve risks and uncertainties and reflect Single Touch's judgment as of the date of this release. These statements may include those regarding strategy, growth and future operations. Actual events or results may differ from Single Touch's expectations. The risks and uncertainties include reliance on brand owners and wireless carriers, the possible need for additional capital, as well as other risks identified in Single Touch's filings with the SEC. Single Touch disclaims any intent or obligation to update these forward-looking statements beyond the date of this press release, except as may be required by law.

   
   
SINGLE TOUCH SYSTEMS, INC  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
                         
                         
                         
    For the Three Months Ended     For the Six Months Ended  
    March 31,     March 31,  
    2013     2012     2013     2012  
                                 
Revenue                                
  Wireless applications   $ 1,808,836     $ 1,554,823     $ 3,756,114     $ 3,144,496  
                                 
Operating Expenses                                
  Royalties and application costs     776,540       654,310       1,660,333       1,417,631  
  Research and development     24,050       16,050       32,756       53,250  
  Compensation expense (including stock based compensation) *    
635,203
     
679,961
     
2,390,541
     
1,373,784
 
  Depreciation and amortization     160,148       163,604       314,934       319,075  
  General and administrative (including stock based compensation) *    
1,006,158
     
577,778
     
2,073,682
     
1,108,448
 
      2,602,099       2,091,703       6,472,246       4,272,188  
                                 
    Loss from operations     (793,263 )     (536,880 )     (2,716,132 )     (1,127,692 )
                                 
Other Income (Expenses)                                
  Interest income     20       11       41       36  
  Interest expense     (279,046 )     (128,468 )     (587,553 )     (166,077 )
                                 
    Net (loss) before income taxes     (1,072,289 )     (665,337 )     (3,303,644 )     (1,293,733 )
                                 
    Provision for income taxes     -       -       (800 )     (800 )
                                 
      Net income (loss)   $ (1,072,289 )   $ (665,337 )   $ (3,304,444 )   $ (1,294,533 )
                                 
  Basic and diluted loss per share   $ (0.01 )   $ (0.01 )   $ (0.02 )   $ (0.01 )
                                 
  Weighted average shares outstanding     132,646,727       130,182,392       132,558,602       130,316,818  
                                 
                                 
  * Details of stock based compensation included within:                             
                                 
    Compensation Expense   $ -     $       $ 1,109,720     $ 9,960  
    General and administrative   $ 190,421     $ 68,606     $ 487,243     $ 89,753  
    Total   $ 190,421     $ 68,606     $ 1,596,963     $ 99,713  
                                     
                                     
 
 
SINGLE TOUCH SYSTEMS, INC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
         
    March 31,   September 30,
    2013   2012
             
Assets            
  Current assets            
    Cash and cash equivalents   $ 924,350   $ 2,157,707
    Accounts receivable - trade     1,182,697     1,085,840
    Employee advances     3,188     -
    Prepaid expenses     827,604     129,290
             
      Total current assets     2,937,839     3,372,837
             
  Property and equipment, net     183,430     228,499
             
  Other assets            
    Capitalized software development costs, net     383,768     383,227
    Intangible assets:            
      Patents     534,946     602,056
      Patent applications cost     740,214     667,858
      Software license     831,000     76,000
    Deposit - related party     -     155,000
    Other assets including security deposits     84,278     84,278
             
      Total other assets     2,574,206     1,968,419
             
      Total assets   $ 5,695,475   $ 5,569,755
                   
                   
   
   
SINGLE TOUCH SYSTEMS, INC  
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  
             
    March 31,     September 30,  
    2013     2012  
                 
                 
Liabilities and Stockholders' Equity                
  Current liabilities                
    Accounts payable   $ 1,078,653     $ 768,263  
    Accrued expenses     211,020       200,591  
    Accrued compensation - related party     75,253       72,730  
    Current obligation on patent acquisitions     -       87,500  
    Convertible debentures - unrelated parties     -       294,241  
      Total current liabilities     1,364,926       1,423,325  
                 
  Long-term liabilities                
    Deferred revenue     -       25,000  
    Convertible debenture - related party     556,439       527,512  
    Convertible debentures - unrelated parties     3,544,773       2,685,280  
      Total long-term liabilities     4,101,212       3,237,792  
                 
      Total liabilities     5,466,138       4,661,117  
                 
                 
  Stockholders' Equity                
    Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding    
-
     
-
 
    Common stock, $.001 par value; 200,000,000 shares authorized, 132,945,480 shares issued and outstanding as of March 31, 2013 and 132,472,392 shares issued and outstanding as of September 30, 2012    

132,945
     

132,472
 
    Additional paid-in capital     128,050,287       125,425,617  
    Accumulated deficit     (127,953,895 )     (124,649,451 )
                 
      Total stockholders' equity     229,337       908,638  
                 
      Total liabilities and stockholders' equity   $ 5,695,475     $ 5,569,755  
                       
                       

Reconciliation of Non-GAAP Measures

                               
                               
    For the Three Months Ended March 31,                          
                                                             
    2013     2012     GAAP     Adjusted EBITDA  
          Adjust-     Adjusted           Adjust-     Adjusted     Change     Change  
    GAAP     ments     EBITDA     GAAP     ments     EBITDA     $     %     $     %  
                                                                             
Revenue                                                                            
  Wireless Applications   $ 1,808,836             $ 1,808,836     $ 1,554,823             $ 1,554,823     $ 254,013     16 %   $ 254,013     16 %
                                                                             
Operating Expenses                                                                            
  Royalties and Application Costs   $ 776,540             $ 776,540     $ 654,310             $ 654,310     $ 122,230     19 %   $ 122,230     19 %
  Research and Development   $ 24,050             $ 24,050     $ 16,050             $ 16,050     $ 8,000     50 %   $ 8,000     50 %
  Compensation expense (including stock-based compensation)    $
 635,203
             $
635,203
     $
 679,961
             $
679,961
     $
 (44,758
)  
-7
%    $
(44,758
)  
-7
%
  Depreciation and amortization   $ 160,148     $ (160,148 )   $ -     $ 163,604     $ (163,604 )   $ -     $ (3,456 )   -2 %              
  General and administrative (including stock-based compensation)    $
1,006,158
     $
(190,421
)    $
815,737
     $
 577,778
     $
(68,606
)    $
509,172
     $
428,380
   
74
%    $
 306,565
   
60
%
    $ 2,602,099     $ (350,569 )   $ 2,251,530     $ 2,091,703     $ (232,210 )   $ 1,859,493     $ 510,396     24 %   $ 392,037     21 %
                                                                             
Loss from Operations/Adjusted EBITDA   $ (793,263 )   $ 350,569     $ (442,694 )   $ (536,880 )   $ 232,210     $ (304,670 )   $ (256,383 )   48 %   $ (138,024 )   45 %
                                                                             
                                                                             
    For the Three Months Ended March 31,                          
                                                             
    2013     2012     GAAP     Adjusted EBITDA  
          Adjust-     Adjusted           Adjust-     Adjusted     Change     Change  
    GAAP     ments     EBITDA     GAAP     ments     EBITDA     $     %     $     %  
                                                                             
  Professional Fees   $ 439,859             $ 439,859     $ 181,818     $ (15,006 )   $ 166,812     $ 258,041     142 %   $ 273,047     164 %
  Travel   $ 81,044             $ 81,044     $ 80,386             $ 80,386     $ 658     1 %   $ 658     1 %
  Consulting expense   $ 323,865     $ (190,421 )   $ 133,444     $ 166,895     $ (53,600 )   $ 113,295     $ 156,970     94 %   $ 20,149     18 %
  Office rent   $ 53,820             $ 53,820     $ 53,145             $ 53,145     $ 675     1 %   $ 675     1 %
  Insurance expense   $ 46,230             $ 46,230     $ 31,894             $ 31,894     $ 14,336     45 %   $ 14,336     45 %
  Equipment lease   $ -             $ -                     $ -     $ -           $ -        
  Trade shows   $ 17,537             $ 17,537     $ 3,995             $ 3,995     $ 13,542     339 %   $ 13,542     339 %
  Telephone   $ 15,220             $ 15,220     $ 19,419             $ 19,419     $ (4,199 )   -22 %   $ (4,199 )   -22 %
  Office expense   $ 13,118             $ 13,118     $ 9,862             $ 9,862     $ 3,256     33 %   $ 3,256     33 %
  Other   $ 15,465             $ 15,465     $ 30,364             $ 30,364     $ (14,899 )   -49 %   $ (14,899 )   -49 %
Total General and Administrative Expenses   $ 1,006,158     $ (190,421 )   $ 815,737     $ 577,778     $ (68,606 )   $ 509,172     $ 428,380     74 %   $ 306,565     60 %
                                                                             
                                                                             

Reconciliation of Non-GAAP Measures

                               
                               
    For the Six Months Ended March 31,                          
                                                             
    2013     2012     GAAP     Adjusted EBITDA  
          Adjust-     Adjusted           Adjust-     Adjusted     Change     Change  
    GAAP     ments     EBITDA     GAAP     ments     EBITDA     $     %     $     %  
                                                                             
Revenue                                                                            
  Wireless Applications   $ 3,756,114     $ -     $ 3,756,114     $ 3,144,496     $ -     $ 3,144,496     $ 611,618     19 %   $ 611,618     19 %
                                                                             
Operating Expenses                                                                            
  Royalties and Application Costs   $ 1,660,333     $ -     $ 1,660,333     $ 1,417,631     $ -     $ 1,417,631     $ 242,702     17 %   $ 242,702     17 %
  Research and Development   $ 32,756     $ -     $ 32,756     $ 53,250     $ -     $ 53,250     $ (20,494 )   -38 %   $ (20,494 )   -38 %
  Compensation expense (including stock-based compensation)    $ 2,390,541      $
(1,109,720
)    $
1,280,821
     $ 1,373,784      $ (9,690 )    $
  1,364,094
   $ 1,016,757    
74
%    $ (83,273 )  
-6
%
  Depreciation and amortization   $ 314,934     $ (314,934 )   $ -     $ 319,075     $ (319,075 )   $ -     $ (4,141 )   -1 %              
  General and administrative (including stock-based compensation)    $
2,073,682
     $
 (487,243
)    $
1,586,439
     $ 1,108,448      $ (89,753 )    $
1,018,695
   $ 965,234    
87
%    $ 567,744    
56
%
    $ 6,472,246     $ (1,911,897 )   $ 4,560,349     $ 4,272,188     $ (418,518 )   $ 3,853,670     $ 2,200,058     51 %   $ 706,679     18 %
                                                                             
Loss from Operations/Adjusted EBITDA   $ (2,716,132 )   $ 1,911,897     $ (804,235 )   $ (1,127,692 )   $ 418,518     $ (709,174 )   $ (1,588,440 )   141 %   $ (95,061 )   13 %
                                                                             
                                                                             
    For the Six Months Ended March 31,                          
                                                             
    2013     2012     GAAP           Adjusted EBITDA        
          Adjust-     Adjusted           Adjust-     Adjusted     Change           Change        
    GAAP     ments     EBITDA     GAAP     ments     EBITDA     $     %     $     %  
                                                                             
  Professional Fees   $ 777,492     $ (1,894 )   $ 775,598   $ 348,778     $ (30,012 )   $ 318,766   $ 428,714     123 %   $ 456,832     143 %
  Travel   $ 248,887     $ -     $ 248,887     $ 219,227     $ -     $ 219,227     $ 29,660     14 %   $ 29,660     14 %
  Consulting expense   $ 761,344     $ (485,349 )   $ 275,995   $ 273,820     $ (59,741 )   $ 214,079   $ 487,524     178 %   $ 61,916     29 %
  Office rent   $ 107,640     $ -     $ 107,640     $ 98,436     $ -     $ 98,436     $ 9,204     9 %   $ 9,204     9 %
  Insurance expense   $ 75,199     $ -     $ 75,199     $ 60,050     $ -     $ 60,050     $ 15,149     25 %   $ 15,149     25 %
  Equipment lease   $ -     $ -     $ -     $ -     $ -     $ -     $ -           $ -        
  Trade shows   $ 18,327     $ -     $ 18,327     $ 15,995     $ -     $ 15,995     $ 2,332     15 %   $ 2,332     15 %
  Telephone   $ 27,945     $ -     $ 27,945     $ 31,029     $ -     $ 31,029     $ (3,084 )   -10 %   $ (3,084 )   -10 %
  Office expense   $ 24,837     $ -     $ 24,837     $ 17,918     $ -     $ 17,918     $ 6,919     39 %   $ 6,919     39 %
  Other   $ 32,011     $ -     $ 32,011     $ 43,195     $ -     $ 43,195     $ (11,184 )   -26 %   $ (11,184 )   -26 %
Total General and Administrative Expenses   $ 2,073,682     $ (487,243 )   $ 1,586,439     $ 1,108,448     $ (89,753 )   $ 1,018,695     $ 965,234     87 %   $ 567,744     56 %
                                                                             
* Adjustment represents the elimination of stock-based compensation recorded in accordance with GAAP but not considered in the calculation of Adjusted EBITDA.  
   

Contact Information

  • Investor and Media Contact:
    Robert Haag
    Hampton Growth IR
    877-368-3566
    Email Contact