TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

March 29, 2012 16:18 ET

TrueContext Mobile Solutions Corporation Announces 2011 Results

Highlights:

- FY'11 total revenue: $1,555,703 (increase of 113% year over year)

- Q4'11 total revenue: $504,694 representing sequential growth of 19% (120% growth over Q4'10)

- Q4'11 sequential subscription revenue growth of 23% (161% growth over Q4'10)

- Q4'11 sequential operator channel subscription revenue growth of 34%

OTTAWA, ONTARIO--(Marketwire - March 29, 2012) - 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, 2011. 2011 represents TrueContext's first financial reporting year under IFRS and 2010 comparable results have been adjusted to reflect IFRS treatment. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Year Ended December 31, 2011

Total revenue for the year ended December 31, 2011 of $1,555,703 represented an increase of 113% over total revenue for 2010 of $729,842.

  • 2011 subscription license revenue grew by 119% to $984,252 from $449,121 in 2010.
  • 2011 US operator channel subscription revenue grew to $492,061 from $34,662 in 2010.
  • 2011 services revenue grew by 104% to $571,451 from $280,721 in 2010. Professional services revenue increased by 183% to $498,391, while maintenance revenue from legacy perpetual licenses decreased by 30% to $73,060.
  • Company 2011 net loss was $2,767,984 compared to 2010 net loss of $2,027,632 with increased loss due to additional spending on product development and operator channel sales and marketing support.
  • Company December 31, 2011 cash and cash equivalents of $889,766 and net working capital of $179,385.

Operating Results for the Three Months Ended December 31, 2011

Total revenue for the fourth quarter of 2011 of $504,694 represented an increase of 19% over total revenue for the 2011 third quarter of $423,593 and 121% growth over total revenue of $228,905 for the comparable fourth quarter of 2010.

  • License revenue for the three months ended December 31, 2011 grew by 23% to $336,175 from $273,938 in the 2011 third quarter and by 161% from $128,793 for the comparable fourth quarter in 2010.
  • Services revenue was $168,519 for the 2011 fourth quarter compared to $149,655 in the third quarter of 2011 and $100,112 for the comparable fourth quarter of 2010.
  • Company Q4 2011 net loss was $748,856 compared to the Q3 2011 net loss of $747,157 and the comparable 2010 Q4 net loss of $605,127.

"Our 2011 results show steady growth in customers, subscribers and revenues. We continue to focus on maximizing subscriber growth primarily through our best operator channel partners. We have witnessed solid traction in the US and we are leveraging the same commercial tools and strategy to other geographies," said Alvaro Pombo, Chief Executive Officer, TrueContext.

Mr. Pombo added, "Our subscriber based software as a service ("SaaS") business requires investment in product development, sales and marketing resources upfront to gain a recurring base of fee revenue into the future. We are beginning to see the payoff from the investment in previous periods with a meaningful and growing base of subscriber proceeds. We will spend carefully in 2012 to maximize growth rates while maintaining sound SaaS fundamentals and controlling our costs."

ABOUT PRONTOFORMS™ AND TRUECONTEXT

ProntoForms, by TrueContext, revolutionizes how mobile workers and managers communicate and report, improving business productivity and efficiency. With the advent of mobile devices, digital mobile form submission is now a business reality - eliminating costly, slow and error prone paper form processes. ProntoForms is your business forms gone mobile, no changes to your process. Featuring portal reports and real-time business information from the field, ProntoForms works on your favorite mobile devices - iPhone and iPad, BlackBerry, Android, Windows Mobile and HP webOS.

TrueContext is traded on the TSXV under the symbol TMN. TrueContext has a powerful and proprietary patent portfolio, from which ProntoForms mobile App and Web reporting portal are developed. ProntoForms is the registered trademark of TrueContext Corporation, a wholly-owned subsidiary of TrueContext.

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 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.

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) intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xvi) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xvii) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xviii) 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 (xix) 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's discussion and analysis for a more complete discussion of these and other risks. Readers are cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company'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