OTTAWA, ONTARIO -- (Marketwired) -- 04/03/13 -- TrueContext Mobile Solutions Corporation (TSX VENTURE: TMN) ("TrueContext" or "the Company"), a mobile data solutions company, today announced results for its year ended December 31, 2012. All amounts are stated in Canadian dollars unless otherwise noted.
Operating Results for the Year Ended December 31, 2012
Total revenue for the year ended December 31, 2012 of $2,487,898 represented an increase of 60% over total revenue of $1,555,703 for the year ended December 31, 2011.
-- 2012 subscription license revenue grew by 89% to $1,856,400 from $984,252 in 2011, while 2012 operator channel subscription revenue grew to $1,116,345 from $492,061 in 2011 representing growth of 127%.-- 2012 services revenue increased by 10.5% to $631,498 from $571,451 in 2011.-- 2012 net loss was $1,981,107 compared to 2011 net loss of $2,767,984, representing an improvement of approximately 28%.-- As at December 31, 2012, the Company had cash and cash equivalents of $630,096 and net working capital of $260,154 and entered into a loan arrangement with BDC Capital Inc. for up to $1 million of which $500,000 gross proceeds were received as at December 31, 2012.
Operating Results for the Three Months Ended December 31, 2012
Total revenue for the fourth quarter of 2011 of $704,504 represented an increase of 12% over total revenue for the 2012 third quarter of $631,311 and 40% growth over total revenue of $504,695 for the comparable fourth quarter of 2011.
-- Subscription revenue for the three months ended December 31, 2012 grew sequentially by 18% to $585,490 from $494,889 in the 2012 third quarter and by 74% from $336,175 for the comparable fourth quarter in 2011. Subscription revenue from operator channels increased from $285,969 in the third quarter of 2012 to $367,413 in the fourth quarter of 2012, representing sequential operator revenue growth of 28.5%.-- Services revenue was $119,014 for the 2012 fourth quarter compared to $136,422 in the third quarter of 2012 and $168,519 for the comparable fourth quarter of 2011.-- Company Q4 2012 net loss was $378,051 compared to the Q3 2012 net loss of $452,184 and the comparable 2011 Q4 net loss of $748,856.
"We are continuing down the path towards profitability by balancing controlled spending with strong subscriber and revenue growth. Throughout every quarter of 2012, we established a steady trend; subscriber and revenue base growth, particularly through our operator partners, while at the same time reducing our net loss. In addition, we successfully replicated our AT&T operator framework with Rogers Communications, Bell Canada and Entel Communications in Chile," said Alvaro Pombo, Chief Executive Officer, TrueContext.
Mr. Pombo added: "ProntoForms is an innovative and relevant product that enhances field productivity for employees in small, medium and large organizations. Its broad customer and industry appeal, and ease of deployment is helping operators improve sales of related voice and data plans, as well as smartphones and tablets, while reducing customer churn. Furthermore, leading device brands continue to partner with us for co-marketing to help accelerate the sale of tablets and smartphones to businesses looking to mobilize their business processes. These relationships demonstrate the strategic value of the application within the carrier ecosystem. Finally, because the ProntoForms product is deployed with more than 2,400 companies, we have been able to track adoption and use trends to adjust our product strategy to maximize the appeal of our product features and functionality for SMB and Enterprise businesses."