TrueContext Mobile Solutions Corporation
TSX VENTURE : TMN

November 01, 2011 17:31 ET

TrueContext Mobile Solutions Corporation Announces Q3 2011 Results

Highlights:

- Q3'11 total revenue of $423,593 representing sequential growth of 25% (increase of 149% over Q3'10)

- Q3'11 sequential subscription revenue growth of 24% (137% growth over Q3'10)

- Q3'11 sequential operator channel subscription revenue growth of 30%

OTTAWA, ONTARIO--(Marketwire - Nov. 1, 2011) - 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, 2011. 2011 represents TrueContext's first financial reporting year under IFRS and 2010 comparable results have been adjusted to reflect IFRS treatment. All amounts are stated in Canadian dollars unless otherwise noted.

Operating Results for the Three Months Ended September 30, 2011

Total revenue for the third quarter of 2011 of $423,593 represented an increase of 25% over total revenue for the 2011 second quarter of $338,628 and 149% growth over total revenue of $170,054 for the comparable third quarter of 2010.

  • License revenue for the three months ended September 30, 2011 grew by 24% to $273,938 from $220,270 in the 2011 second quarter and by 137% from $115,725 for the comparable third quarter in 2010.
  • The total average number of subscribers per month increased by 19% from 6,641 in the 2011 second quarter to 7,887 in the third quarter.
  • Services revenue was $149,655 for the 2011 third quarter compared to $118,358 in the second quarter of 2011 and $54,329 for the comparable third quarter of 2010.
  • Company Q3 net loss of $747,157 (Q3'10 - $499,982) and Q3YTD net loss of $2,019,128 (Q3'10YTD - $1,422,491) with increased loss due to additional spending on product development and operator channel sales and marketing support.
  • Company September 30, 2011 cash and cash equivalents of $522,443 and working capital deficit of $77,440.

"Our third quarter results show that we are achieving strong revenue and subscriber growth and recently we passed the mark of activating 10,000 paying subscribers. Additionally, we exceeded 1,200 customers, demonstrating to us that our operator channels are working effectively. With our solid customer acquisition rates, we are increasing our focus on maximizing adoption and usage within our customer organizations to provide growth in our subscriber base and the resulting recurring source of cash," said Alvaro Pombo, Chief Executive Officer, TrueContext.

Mr. Pombo added "In addition to achieving the 10,000 target, we have learned a great deal about delivery of our product through operator channels and the end customers' use of our product. These advancements will be put to use as we set our sights on achieving 100,000 subscribers and more.

Our operator channels are key to our success and we continue to drive subscriber growth with these partners as well as exploring additional channels in new markets."

ABOUT PRONTOFORMS™ AND TRUECONTEXT

ProntoForms, by TrueContext, revolutionizes how mobile workers & managers communicate and report, improving business productivity and efficiency.

With the recent widespread availability of smartphones and tablet devices, digital mobile form submission is now a business reality - eliminating the costly, slow and error prone paper form business process.

Why is ProntoForms unique as a mobile forms solution?

  • Your business forms gone mobile, no changes to your process
  • Portal reports, real time business information from the field
  • Works on your favorite mobile device – iPhone &iPad, Blackberry, Android, Windows Mobile & HP webOS.

TrueContext is traded on the 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 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 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)a global economic downturn or market volatility may adversely affect our business and/or our ability to complete new financings (viii) the business of the Company may be harmed if it does not continue to penetrate markets; (ix) the success of the business depends on the Company's ability to develop new products and enhance its existing products; (x) 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; (xi) 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; (xii)intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xiii) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xiv) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xv) the financial condition of third parties may adversely affect the Company; (xvi) 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 (xvii) 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