VoodooVox Inc.
TSX : VVX

VoodooVox Inc.

March 30, 2012 23:49 ET

VoodooVox Reports Fiscal 2011 Financial Results

TORONTO, ONTARIO--(Marketwire - March 30, 2012) - VoodooVox Inc. (formerly Call Genie Inc.; herein "VoodooVox" or the "Company"), (TSX:VVX), a leading provider of mobile advertising solutions, today announced its financial results for the year ended December 31, 2011 and the three months ended December 31, 2011.

Annual Results

  • Revenues recognized for the year ended December 31, 2011 of $6.2 million compares to $4.2 million for 2010. 2011 revenues do not include $0.7 million of invoiced license fees sold and delivered in the fourth quarter to a private company. VoodooVox has not recognized the license fee due to uncertainty with respect to timing of the collection of the outstanding receivable.
  • Operating loss of $1.7 million compares to an operating loss of $7.0 million for 2010.
  • Net loss for the year ended December 31, 2011, excluding non-cash one-time charges, was $4.6 million ($0.05 per share) compared to a net loss, excluding non-cash one-time charges of $8.6 million for 2010 ($0.10 per share). The net loss for 2011 including non-cash one-time charges was $13.2 million ($0.14 per share) and reflects an $8.6 million non-cash one-time charge in connection with a debt conversion incentive program offered to debenture holders in 2011. In accordance with International Financial Reporting standards, the charge was determined by multiplying the number of incremental common shares that could be distributed to debenture holders as part of the incentive program, regardless of whether the debenture holder subsequently converted their debenture, by the closing share price on the date that the incentive plan was approved by the shareholders on December 29, 2011.
  • At December 31, 2011 the Company had a cash balance of $0.4 million compared to $0.4 million at December 31, 2010.

Fourth Quarter Results

  • Amounts invoiced in the fourth quarter were $1.6 million compared to $1.0 million for the same period in 2010. Revenues recognized of $1.0 million compares to $1.1 million for fourth quarter of 2010. The fourth quarter 2011 revenues exclude $0.7 million invoiced to a private company in connection with an ad server license sold and delivered mentioned above.
  • Operating loss of $1.1 million compares to $0.6 million for the fourth quarter of 2010.
  • Net loss for the quarter ended December 31, 2011 was $10.5 million ($0.11 per share) compared to $1.2 million for the same period in 2010 ($0.01 per share). Q4 2011 expenses included the $8.6 million non-cash charge associated with the debt conversion incentive program mentioned above.

HIGHLIGHTS

  • Revenue from transaction fees represented 44% of the $6.2 million of revenues reported for 2011. This compares to 8% for 2010.
  • In December 2011, the shareholders and directors approved an incentive program under which holders of debentures issued by the Company were encouraged to convert the principal amount of their debenture and accrued but unpaid interest into common shares of the Company. In December 2011, debenture holders converted $4.4 million of the aggregate principal amount of debentures and accrued but unpaid interest. A further $2.3 million of principal was converted subsequent to the year end. This represents interest saving of approximately $0.8 million on an annual basis.

OUTLOOK

In 2011, the Company identified market demand and commercialization opportunities to transform its existing technology and solutions into a smarter mobile advertising network. As a mobile advertising company, VoodooVox enters into business arrangements directly with publishers to place advertising. In fourth quarter of 2012, the Company completed the acquisition of the assets of UpSnap Services LLC ("UpSnap") and signed a definitive agreement to acquire the assets of VoodooVox, Inc., a US based mobile advertising and data analytics company. The VoodooVox acquisition closed in the first quarter of 2012 and the Company has merged the operations of UpSnap and VoodooVox. Michael Durance, CEO of the Company, remarked, "2011 was a transformational year for us which saw the emergence of VoodooVox, the smarter mobile advertising company. We have forged a powerful platform, differentiated through consumer analytics, which will allow advertisers, publishers and operators the potential to optimize their yield in the mobile advertising eco-system. VoodooVox will continue to identify productive assets suited for consolidation and we are excited by the prospects of leveraging our expanded products, services and relationships in this extremely high growth market."

This news release should be read in conjunction with VoodooVox's annual consolidated financial statements and the accompanying notes as at and for the year ended December 31, 2011 and the related Management Discussion and Analysis. These 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.

The Company defines net loss excluding one-time non-cash charges as net loss less the loss attributed to the debt conversion incentive program as reported in its annual 2011 consolidated financial statements.

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

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