TrueContext Mobile Solutions Corporation

May 28, 2012 07:30 ET

TrueContext Mobile Solutions Corporation Announces Q1 2012 Results


- Q1'12 total revenue: $558,437 representing 93% growth over Q1'11 (11% sequential growth over Q4'11)

- Q1'12 net loss decreased to $585,975 from $748,856 in Q4'11

- Q1'12 subscription revenue growth of 133% over Q1'11 (7% sequential growth over Q4'11)

- Q1'12 operator channel subscription revenue growth of 317% over Q1'11 (16% sequential growth over Q4'11)

OTTAWA, ONTARIO--(Marketwire - May 28, 2012) - 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, 2012. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three Months Ended March 31, 2012

Total revenue for the three months ended March 31, 2012 of $558,437 represented an increase of 93% over total revenue for the first quarter of 2011 of $288,788.

  • First quarter 2012 subscription license revenue grew by 133% to $359,090 from $153,869 in the first quarter of 2011.
  • First quarter 2012 operator channel subscription revenue grew to $218,630 from $52,429 in the first quarter of 2011.
  • First quarter 2012 services revenue grew by 48% to $199,347 from $134,919 in the first quarter of 2011. Professional services revenue increased by 64% to $182,965, while maintenance revenue from legacy perpetual licenses decreased by 31% to $16,382.
  • First quarter 2012 net loss was $585,975 compared to first quarter 2011 net loss of $582,158 and fourth quarter 2011 net loss of $748,856.
  • As at March 31, 2012, the Company had cash and cash equivalents of $642,057 and net working capital of $104,404.
  • The Company completed a private placement on May 24, 2012 providing additional gross proceeds of $1,000,000.

"Our first quarter 2012 results show continued growth in customers, subscribers and revenues. In our 2012 first quarter, we made significant strides in reducing our cost structure by transitioning from our legacy 4.8 services and infrastructure. While this caused some small turbulence in our subscriber growth, we were able to achieve significant savings in cost of sales and research and development and provide long term value for scaling our offering in a cost effective manner. We also recently modified our sales process to increasingly funnel customer activity through our web portal providing better access to customer information and we introduced product improvements such as standardized data destinations and dispatch functionality intended to improve and simplify ProntoForms and shorten the sales cycle," said Alvaro Pombo, Chief Executive Officer, TrueContext.

Mr. Pombo added: "We continue to focus on maximizing subscriber growth primarily through our mobile operator channel partners. We have witnessed solid traction in the US and we recently announced a resell arrangement with Rogers Communications in Canada. In addition, we have made significant progress in other geographies and intend to continue building a diversified base of subscribers. In the last two quarters we have also secured co-marketing partnerships with the global top four mobile device brands, which help expand awareness and representation of our products through the mobile operator channel."

Option Grant

Options to purchase up to 1,410,000 common shares of the Company were approved for grant by the Board of Directors, including 1,200,000 to certain directors and officers. The options were approved for grant to be effective as of May 31, 2012 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 be equal to the greater of $0.18 and the closing price of the common shares on May 30, 2012. Stock option grants are subject to necessary regulatory approvals.


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 TSX Venture Exchange ("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 the year ended December 31, 2011, 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.

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