VoodooVox Inc.
CNSX : VVX

VoodooVox Inc.

May 30, 2013 18:15 ET

VoodooVox Reports First Quarter 2013 Financial Results

TORONTO, ONTARIO--(Marketwired - May 30, 2013) - VoodooVox Inc. (CNSX:VVX) -

This news release does not constitute, and the subject matter hereof is not, an offer for sale, or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of VoodooVox Inc. The securities of VoodooVox Inc. have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

VoodooVox Inc. ("VoodooVox" or the "Company") (CNSX:VVX), a leading provider of mobile advertising solutions, today announced its financial results for the quarter ended March 31, 2013.

FIRST QUARTER RESULTS

  • Revenues recognized for the quarter ended March 31, 2013 of $0.8 million compared to $1.0 million for Q1 2012. Revenues from legacy voice and data search products totaled $0.2 million compared to $0.4 million in Q1 2012, which accounted for the difference.
  • Operating loss of $1.0 million compared to an operating loss of $2.0 million in Q1 2012.
  • Net loss for the quarter ended March 31, 2013 of $1.7 million ($0.01 per share) compared to $2.5 million for Q1 2012 ($0.01 per share).
  • At March 31, 2013, the Company had a cash balance of $0.1 million, unchanged from the balance at December 31, 2012.

HIGHLIGHTS

  • The Company's restructuring efforts resulted in a significant reduction in fixed costs.
  • The introduction of the Company's new mobile advertising and analytics platform to premiere national advertising agencies resulted in new contracts. Revenues from the
  • Company's mobile advertising products increased 24% from the fourth quarter of
    2012.
  • Evaluation of the Company's financing alternatives resulted in the engagement of a private placement agent for a proposed financing.

OUTLOOK

In the prior year, VoodooVox initiated a rebranding of the Company as "VoodooVox - Smarter Mobile Advertising". The amount of revenue generated from the Smarter Mobile Advertising platform will depend, to a significant degree, on the Company's ability to source relevant traffic and ads that prompt consumers to act in a manner that generates a measurable sales lead to a merchant. Mobile Advertising arrangements with customers are determined based on the number and type of leads generated. In addition, the Company's analytics solutions (acquired from Old VoodooVox) generate revenues based on the number of monthly subscribers licensed to use this solution.

Management believes that the application of new capital will enable the Company to source new publishing inventory and advertising contracts and monetize secured advertising campaigns at a faster rate.

On May 21, 2013, the Company announced that it entered into an agreement with an investment dealer respecting a private placement of Company securities. Closing of the offering is subject to the satisfaction or waiver of a number of conditions, including approval of the Company's shareholders for a proposed share consolidation and approval of the Company's debtholders for a proposed conversion of outstanding principal and interest under various debentures previously distributed by the Company. Management believes the financing, if completed, will dramatically transform the balance sheet and capital structure of VoodooVox and provide the Company with the capital it requires to take advantage of the growth opportunities in the mobile advertising market.

George Cooney, CEO of the Company, noted, "We are pleased with the reactions that we have received from the market to the key strategic elements of our mobile advertising and analytics solutions. We believe that the Company has the potential to succeed in this exciting, rapidly expanding market and our position will be strengthened by the proposed financing."

This news release should be read in conjunction with VoodooVox's unaudited condensed interim consolidated financial statements, and the accompanying notes, as at and for the quarter ended March 31, 2013, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the VoodooVox website at www.voodoovox.com.

About VoodooVox Inc.

VoodooVox uses consumer analytics to provide smarter mobile advertising services via the cloud to publishers, advertisers and operators. VoodooVox, which represents the combined assets and knowledge base of three companies, namely Call Genie Inc., UpSnap Services, LLC and VoodooVox, now processes billions of advertising transactions for a marquee list of global clients and partners. Currently, VoodooVox solutions are deployed in 11 countries around the world. www.voodoovox.com.

Forward-Looking Cautionary Statement

Certain information set out in this News Release constitutes forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "hope", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "scheduled", "believe" and similar expressions. The forward-looking information set out in this News Release relates to future events or our future performance and includes: (i) information concerning the effect of new capital on the ability of the Company to source new publishing inventory and advertising contracts, to monetize secured advertising campaigns at a faster rate and to take advantage of growth opportunities in the mobile advertising space; (ii) the transformative effect of the proposed financing on the Corporation's balance sheet and capital structure; (iii) the Company's ability to succeed in the mobile advertising market and the effect of the proposed financing on the Company's efforts in that regard.

Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Forward-looking statements involve substantial known and unknown risks, uncertainties and other factors which cause actual results to vary from those express or implied by such forward looking statements. These statements should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved.

The forward-looking statements contained in this press release are made as of the date hereof and based on what management of the company believes are reasonable assumptions. The Company disclaims any intention or obligation to update or publicly revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Furthermore, the Company does not assume responsibility for the accuracy and completeness of the forward looking statements set out in this news release. The Company's forward looking statements are expressly qualified in their entirety by the foregoing cautionary statements.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

The CNSX has neither approved nor disapproved the contents of this news release.

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