TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

November 29, 2010 09:05 ET

TrueContext Mobile Solutions Corporation Announces Q3 2010 Results

OTTAWA, ONTARIO--(Marketwire - Nov. 29, 2010) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or "the Company"), a mobile data solutions company today announced results for its three and nine months ended September 30, 2010. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three and Nine Months Ended September 30, 2010

Revenue for the third quarter of 2010 was $170,054 compared to $149,430 for the same period in 2009 and $152,446 for the second quarter of 2010. Included in the third quarter 2010 sales was license revenue of $115,725 compared to $93,146 for the second quarter of this year. The average number of subscribers increased to 2,374 (192 signed through operator channels) in the third quarter, up from 2,038 in the second quarter (17 coming through operator channels).

"The momentum is building in our operator sales channel as we continue to add new end-user organizations as customers. In our third quarter, we were prominent in new smartphone product launches with AT&T, including the BlackBerry® Torch™ 9800 launch. We are starting to see real subscriber growth as more and more organizations embrace smartphones into their business processes." said Alvaro Pombo, CEO of TrueContext. "By the end of September, we reached over 500 net subscriber activations through operator channels and for the three month period up to the date of this release, we have more than doubled our operator channel net subscriber activations and number of organizations. Subscriber growth provides a recurring revenue base for future quarters and the growth in the number of organizations indicates a broad base of subscribers. We remain focused on building operator channel sales momentum by adding new end-user organizations, new subscribers and expanding the number of subscribers within each organization as they take up the ProntoForms™solution."

Third quarter sales also included approximately $54,330 of services revenue which was relatively consistent with second quarter services revenue of $59,700.

The Company had a net loss of $494,427 for the third quarter of 2010 compared to net loss of $353,009 for the same period in 2009 and a net loss of $472,586 in the second quarter of 2010. The increased loss in the third quarter compared to the second quarter of 2010 relates mostly to additional spending in operations for product development and operator channel support. The Company had a loss of $1,390,063 for the nine months ended September 30, 2010 compared to a net loss of $732,923 for the same period in 2009. Loss from operations for the three and nine months ended September 30, 2010 was $492,442 and $1,385,612, respectively, compared to $351,735 and $975,965 for the same periods in 2009. The results for the first three quarters of 2009 include large foreign exchange gains and interest expense caused by US denominated preferred shares that were converted into common shares in mid 2009 and no longer impact results. Also in 2009, the Company realized a one-time gain of $83,810 on the settlement of various obligations and a large reduction in research and development expenses of $283,135 from investment tax credits as a private company compared to approximately $70,000 in the first three quarters of 2010 as a public company.

As at September 30, 2010, the Company had cash and cash equivalents of $967,596. On September 15, 2010, the Company closed a private placement of $1,250,000, from which proceeds of $875,000 were received prior to September 30, 2010 and $375,000 were received shortly after. As at September 30, 2010, the Company had net working capital of $537,305. 

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 BlackBerry, Windows Mobile, Web browsers and iPhone devices.

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, patent-pending 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. 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. 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.

Contact Information

  • TrueContext Mobile Solutions Corporation
    Alvaro Pombo
    Chief Executive Officer
    613.599.8288 ext. 1111
    apombo@truecontext.com