TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

August 23, 2012 08:49 ET

TrueContext Mobile Solutions Corporation Announces Q2 2012 Results

Highlights:

- Q2'12 total revenue: $593,646 representing 75.3% growth over Q2'11 (6.3% sequential growth over Q1'12)

- Q2'12 net loss decreased to $564,897 from $585,975 in Q1'12 and from $689,813 in Q2'11

- Q2'12 operator channel subscription revenue growth of 124.8% over Q2'11 (11.8% sequential growth over Q1'12)

- Resell agreements commenced with Rogers Communications and Bell Mobility

OTTAWA, ONTARIO--(Marketwire - Aug. 23, 2012) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three and six months ended June 30, 2012. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three Months Ended June 30, 2012

Total revenue for the three months ended June 30, 2012 of $593,646 represented an increase of 75.3% over total revenue for the second quarter of 2011 of $338,628.

  • Second quarter 2012 subscription license revenue grew by 89.3% to $416,931 from $359,090 in the second quarter of 2011, while second quarter 2012 operator channel subscription revenue grew to $244,432 from $108,714 in the second quarter of 2011 representing growth of 124.8%.

  • Second quarter 2012 services revenue grew by 49% to $176,715 from $118,358 in the second quarter of 2011.

  • Second quarter 2012 net loss was $564,897 compared to second quarter 2011 net loss of $689,813 and first quarter 2012 net loss of $585,975.

  • As at June 30, 2012, the Company had cash and cash equivalents of $1,064,899 and net working capital of $551,095.

"Our second quarter 2012 results show continued steady growth in customers, subscribers and revenues with operator channel subscription revenue growing by 125% over last year. We are pleased that we obtained this growth while also achieving our second consecutive quarter of reduced net loss for the Company," said Alvaro Pombo, Chief Executive Officer, TrueContext.

Mr. Pombo added: "Our primary goal is subscriber growth through established and new channels and we are focusing our efforts in optimizing the sales process with these partners. We have built a solid customer engagement and deployment engine that funnels new operator and direct customers through our web portal and allows us to equip our customers with the ProntoForms® solution in a quick and easy fashion."

"We are actively diversifying and expanding our channel subscriber base and we have recently announced important new relationships with Rogers Communications and Bell in Canada. Additionally, we are experiencing significant interest from carriers globally. Carriers introduce ProntoForms because it's a strategic subscriber service that helps improve sales of related voice and data plans, smartphones and helps reduce customer churn. The marketing and sales processes that we have built with AT&T are being deployed to achieve success with new partners. Furthermore, our secured co-marketing partnerships with the global top four mobile smartphone brands help expand awareness and representation of our products through the mobile operator channels globally."

ABOUT PRONTOFORMS® AND TRUECONTEXT

ProntoForms is a mobile workflow solution used by 1,800 business customers. Available for any smartphone or tablet, ProntoForms 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) 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
    apombo@truecontext.com