TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

June 14, 2011 09:50 ET

TrueContext Mobile Solutions Corporation Announces Q1 2011 Results

Highlights:

- Q1'11 total revenue of $288,788 (increase of 26% over Q4'10)

- Q1'11 Operator subscription growth of over 110% over Q4'10

- ProntoForms 2.0 release, to improve scalable growth

OTTAWA, ONTARIO--(Marketwire - June 14, 2011) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three months ended March 31, 2011. The first quarter of 2011 represents TrueContext's first financial reporting period under IFRS. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three Months Ended March 31, 2011

Total revenue for the first quarter of 2011 of $288,788 represented an increase of 26% over total revenue for the 2010 fourth quarter of $228,905 and 62% growth over total revenue of $178,437 for the three months ended March 31, 2010.

  • License revenue for the three months ended March 31, 2011 was $153,869 compared to $128,793 in the fourth quarter of 2010 and $111,457 for the comparable first quarter in 2010.
  • License revenue earned in the first quarter of 2011 and fourth quarter of 2010 consisted solely of subscription revenue while revenue for the first quarter of 2010 consisted of subscription revenue of $85,081 and perpetual license revenue of $26,376.
  • The total average number of subscribers per month increased by 40% from 3,016 in the fourth quarter to 4,209 in the first quarter.
  • Subscription revenue from operator channels increased from $27,748 in the 2010 fourth quarter to $52,429 in the 2011 first quarter.
  • The average subscribers per month for operators increased from 771 to 1,646, representing operator average subscriber growth of 114%.
  • Services revenue was $134,919 for the first three months of 2011 compared to $110,112 in the fourth quarter of 2010 and $66,980 for the comparable first quarter in 2010.

"In the first quarter of 2011 we grew our operator channel customers by over half our existing base and operator channel subscriber activations more than doubled. While subscriptions do not provide immediate revenue impact and profitability, they have enormous value in providing significant and predictable revenue and cash flows for many periods to come. We are very pleased with our customer and subscriber growth in the last few quarters as our operator channel subscriber base continues to expand to provide the recurring revenue base for the future and increased value to the Company," said Alvaro Pombo, Chief Executive Officer, TrueContext.

Mr. Pombo added, "Just as important, we have released ProntoForms 2.0, which improves product performance, usability and most importantly scalability to increase the rate of adoption with potential customers. Our recent releases and product improvements continue to be covered by patent IP with two new important patents providing barrier to entry to competing solutions and providing us with future licensing opportunities."

The Company had a net loss of $582,146 for the three months ended March 31, 2011 compared to a net loss of $439,557 for the three months ended March 31, 2010. The increased loss in the first quarter of 2011 compared to 2010 relates mostly to additional spending in operations to expand operator channels to increase subscriber growth. As at March 31, 2011, the Company had cash and cash equivalents of $153,805 and a working capital deficit of $488,142. On April 26, 2011, the Company completed a non-brokered private placement resulting in gross proceeds of $1,900,000.

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, iPhone, iPad, BlackBerry, Windows Mobile, and Web browsers.

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, patented 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) 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 (x) intellectual property claims could be brought against the Company, which may be time consuming, costly to defend, and disruptive to the business; (xi) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xii) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xiii) the financial condition of third parties may adversely affect the Company; (xiv) 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 (xv) if the Company loses any of its key personnel, its operations and business may suffer. Please refer to our Filing Statement for a full discussion of these risk factors. 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