TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

March 31, 2011 08:30 ET

TrueContext Mobile Solutions Corporation Announces 2010 Results

Highlights:

- Q4'10 total revenue: $228,905 (increase of 35% over Q3'10)

- FY'10 total revenue: $729,842 (increase of 26% year over year)

- Q4'10 Operator subscription growth of over 300% over Q3'10

OTTAWA, ONTARIO--(Marketwire - March 31, 2011) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its year ended December 31, 2010. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Year Ended December 31, 2010

Revenue for the year ended December 31, 2010 was $729,842 compared to $579,105 for the year ended December 31, 2009 representing an increase of 26%. License revenue for the year ended December 31, 2010 was $449,121 compared to $335,362 in 2009, representing an increase of 34%, while services revenue was $280,721 in 2010 compared to $243,743 in 2009 representing an increase of 15%.

Total revenue for the fourth quarter of 2010 of $228,905 represented an increase of 35% over total revenue for the 2010 third quarter of $170,054. The 2010 fourth quarter revenue consisted of $128,793 of license revenue all earned through subscriptions compared to license subscription revenue of $115,725 earned in the third quarter of 2010. The 2010 fourth quarter subscription revenue represents an 11% increase over the 2010 third quarter subscription revenue as the average subscribers per month increased by 15% from 2,374 to 2,764. Subscription revenue from operator channels increased from $6,913 in the 2010 third quarter to $27,748 in the 2010 fourth quarter as the average subscribers per month for operators increased from 192 to 771 representing growth of over 300%.

"We are very pleased with our growth in 2010, and in particular with the momentum we experienced in the fourth quarter. We are seeing excellent traction with both operator and enterprise customers. In the fourth quarter we doubled our number of customers, with the vast majority coming through the operator channels. Our operator channel subscriber activations also more than tripled in the fourth quarter. We also introduced new sales, product and customer support initiatives to drive operator channel sales momentum. We expect this to add new end-user organizations, new subscribers and expand the number of subscribers within each organization as they take up the ProntoForms™ solution," said Alvaro Pombo, Chief Executive Officer, TrueContext.

"With each new quarter we see the convergence of devices, networks and applications (DNA), creating a new ecosystem that increases the power of smartphones for individuals and enterprises," added Mr. Pombo. "We have good early traction with leading operators who see the value that mobile enterprise applications provide to their business and customers. ProntoForms is strongly positioned with leading device vendors who are looking for valued applications to highlight the full range of device capabilities. We continue to expand ProntoForms' addressable market, with the recent addition of Android smartphones and tablets to our existing stable of iPhone, iPad, Blackberry, PC Mobile and Windows Mobile operating systems."

The 2010 fourth quarter revenue also included $100,112 of professional services and support, which increased from $59,700 in the 2010 third quarter. The fourth quarter professional services revenue included approximately $50,000 earned from a US$83,000 contract with a major operator. We expect the remainder of this contract to be completed in the first half of 2011.

The Company had a net loss of $1,990,541 for the year ended December 31, 2010 compared to a net loss of $1,107,734 for the year ended December 31, 2009. The results for the year ended December 31, 2009 include large foreign exchange gains and interest expense caused by US denominated preferred shares that were converted into common shares in mid 2009 and no longer impact results. Loss from operations for the year ended December 31, 2010 was $1,976,331 compared to $1,349,955 for the year ended December 31, 2009. The increased loss in 2010 compared to 2009 relates mostly to additional spending in operations for product development, operator channel support and increased sales activities.

ABOUT PRONTOFORMS™ AND TRUECONTEXT

TrueContext ProntoForms™ enables organizations to mobilize business processes in minutes, increasing productivity and eliminating the use of paper. Workgroups can create their own forms, capture data from the field, and then report and act on mission critical information, all in real time and in a secured and managed cloud environment. The data in the field is captured on commonly deployed mobile devices, such as Android, BlackBerry, Windows Mobile, Web browsers and iPhone devices.

ProntoForms™ is the trademark of TrueContext Corporation, a wholly-owned subsidiary of TrueContext.

Established in 2001, TrueContext is a pioneer in the creation and utilization of easy to use Mobile Data Collection applications. TrueContext's flagship product, ProntoForms™ (www.prontoforms.com) simplifies field data capture and extends the most powerful business applications to nearly any mobile device. This award-winning, patent-pending technology allows non-technical customers to securely build, manage and deploy a wide variety of forms for mobile workforce management. For questions or additional information, please contact TrueContext at sales@truecontext.com or at +1.877.668.6438.

Certain information in this press release may constitute 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 Corporation 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 Corporation. 

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 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 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; (vii) the business of the Company may be harmed if it does not continue to penetrate markets; (viii) the success of the business depends on the Company's ability to develop new products and enhance its existing products; (ix) intellectual property claims could be brought against the Company, which may be time consuming, costly to defend, and disruptive to the business; (x) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xi) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xii) the financial condition of third parties may adversely affect the Company; (xiii) any significant changes in the technological paradigm utilized for building or delivering applications in Smartphone devices could harm the Company's business and prospects; (xiv) if the Company loses any of its key personnel, its operations and business may suffer; and (xv) the Company will be obligated to adopt new accounting standards under IFRS for the years beginning on or after January 1, 2011, which could materially impact the Company's financial statements. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

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.

Contact Information

  • TrueContext Mobile Solutions Corporation
    Alvaro Pombo
    Chief Executive Officer
    613.599.8288 ext. 1111
    apombo@truecontext.com