TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

TrueContext Mobile Solutions Corporation

May 30, 2013 08:30 ET

TrueContext Mobile Solutions Corporation Announces Q1 2013 Results

OTTAWA, ONTARIO--(Marketwired - May 30, 2013) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) -

Highlights:

  • Q1'13 recurring subscription revenue growth of 105% over Q1'12
  • Five consecutive quarters of net loss reduction
  • Liquidity strengthened through sale of non-core patents for net proceeds of US$570,000

TrueContext Mobile Solutions Corporation ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three months ended March 31, 2013. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three Months Ended March 31, 2013

Three months ended
March 31,
2013
December 31,
2012
March 31,
2012
Increase
over
Q4'12
Increase
over
Q1'12
Total revenue $ 893,013 $ 704,504 $ 558,437 26.8% 59.9%
Subscription revenue $ 735,838 $ 585,490 $ 359,090 25.7% 104.9%
Operator subscription revenue $ 491,253 $ 367,413 $ 218,630 33.7% 124.7%

Total revenue for the first quarter of 2013 represented a sequential increase of approximately 27% over the 2012 fourth quarter and 60% growth over the comparable first quarter of 2012.

  • Subscription revenue for the three months ended March 31, 2013 grew sequentially by 26% and by 105% from the comparable 2012 first quarter, while subscription revenue from operator channels increased sequentially by 34% and by 125% from the comparable 2012 first quarter. Subscription revenue growth for the first quarter of 2013 was unusually high as the Company realized approximately $90,000 related to subscription usage that occurred in prior periods for which agreement was received from a large reseller in the first quarter of 2013.
  • Services revenue was $157,175 for the 2013 first quarter compared to $119,014 in the fourth quarter of 2012 and $199,347 for the comparable first quarter of 2012.

The Company's Q1 2013 net loss was $356,453 compared to the Q4 2012 net loss of $378,051 and the comparable Q1 2012 net loss of $585,975.

As at March 31, 2013, the Company had cash and cash equivalents of $615,792 and net working capital of $195,606. Subsequent to March 31, 2013, the Company received the remaining BDC loan tranche of $250,000 and approximately US$570,000 of net proceeds from the sale of certain non-core patents.

"We are pleased that our 2013 first quarter results continue the trend towards profitability by balancing spending with strong subscriber and revenue growth. Throughout 2012 and now into 2013, we established a steady trend; subscriber and revenue base growth, particularly through our operator partners, while at the same time reducing our net loss. In addition, the proceeds from our recent sale of non-core patents provide us with the liquidity to continue our plan and enhance our opportunities for growth," said Alvaro Pombo, Chief Executive Officer, TrueContext.

Mr. Pombo added: "TrueContext's foundation is based on innovation. After the successful sale of two of our non-core patent families, we have nine families in various stages of completion. ProntoForms® continues to be a leading product in the marketplace and our relationships with top carriers and device vendors demonstrate the strategic value of the application within the carrier ecosystem. The ProntoForms product is deployed with more than 2,500 companies and we have been able to track product adoption and use trends to adjust our strategy to maximize the appeal of our product features for SMB and Enterprise businesses. This broad customer and industry appeal, and ease of deployment helps operators improve sales of related voice and data plans, as well as smartphones and tablets, while reducing customer churn."

About ProntoForms® and TrueContext

ProntoForms is a mobile workflow solution used by over 2,500 business customers to collect, receive and submit data in the field. Available for smartphones and tablets, the ProntoForms solution incorporates a mobile device App, a Web management portal to manage teams and data flow, and provides the ability to export or connect data to the back office or to popular cloud services.

TrueContext, traded on the TSXV under the symbol TMN, has a powerful and proprietary patent portfolio, from which the ProntoForms mobile App and Web reporting portal have been 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) the Company may be liable to its customers or third parties if it is unable to collect data or it otherwise loses data; (xvi) the Company may be liable for the handling of personal information; (xvii) intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xviii) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xix) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xx) 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 (xxi) 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 discussion and analysis dated April 2, 2013 found at www.sedar.com 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.

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