TORONTO, ONTARIO -- (Marketwire) -- 02/25/13 -- AirIQ Inc. ("AirIQ") (TSX VENTURE: IQ), a supplier of wireless asset management services, today announced its financial results for the three months and nine months ended December 31, 2012.
"The Company delivered a small sequential growth in quarterly revenue," said Donald Gibbs, President and Chief Executive Officer of AirIQ. "However, the potential increase could have been greater were it not for delays from two large customers in the New York area due to Hurricane Sandy," continued Mr. Gibbs. "On the operational side, compared to the previous quarter, the Company kept expenses fairly flat, but experienced a one-time increase in install and repair costs which resulted in a lower gross margin percentage." Mr. Gibbs also noted that the Company has been spending considerable time and money on a new firmware platform, which was delivered to six major customers during the quarter. General release of the platform to the Company's entire installed base is scheduled for the next quarter.
The main highlights for the quarter were as follows:
-- Third sequential quarter of increased revenue.-- Completed a $300 financing comprised of a $150 loan and a non-brokered private placement for gross proceeds of $150.-- New firmware platform deployed to six major customers.
Three months Three months ended ended 31-Dec-12 31-Dec-11----------------------------------------------------------------------------Total Revenue $ 583 $ 600Gross Margin $ 388 $ 454Gross Margin % 66.6% 75.6%Net Income (loss) $ (109) $ (97)Net Income (loss) per share, basic and diluted $ (0.01) $ (0.01)EBITDAS(i) $ (74) $ (55)Cash from operating activities $ ($168) $ (15)----------------------------------------------------------------------------
(i)EBITDAS represents earnings before interest, tax, depreciation, amortization, shared-based compensation expense and the gain on business acquisition. The Company has included information concerning EBITDAS because it believes that it may be used by certain investors as one measure of the Company's financial performance. EBITDAS is not a measure of financial performance under IFRS and is not necessarily comparable to similarly titled measures used by other companies. EBITDAS should not be construed as an alternative to net income or to cash flows from operating activities (as determined in accordance with IFRS) or as a measure of liquidity.
Unless otherwise noted herein, and except share and per share amounts, all references to dollar amounts are in thousands of Canadian dollars.
Revenues for the three months ended December 31, 2012, decreased 3% to $583 from $600 for the three months ended December 31, 2011. Revenues for the nine months ended December 31, 2012, decreased 6% to $1,740 from $1,850 for the nine months ended December 31, 2011. Approximately 74% and 73% of the total revenue for the three and nine month periods ended December 31, 2012 respectively, represents recurring revenue from the Company's airtime customers.
Overall, gross profit for the three months ended December 31, 2012 decreased by 15% to $388 and 13% to $1,179 for the nine months ended December 31, 2012 compared to $454 and $1,351 for the three months and nine months ended December 31, 2011.
Sales and marketing, research and development and general and administrative expenses totalled $465 and $1,374, respectively for the three months and nine months ended December 31, 2012 compared to $503 and $1,519, respectively for the three months and nine months ended December 31, 2011.
Expense reductions for the three months ended December 31, 2012 when compared to the three months ended December 31, 2011 were achieved in the following areas; a) wages and related expense reductions of approximately $26 due to the Company's restructuring initiatives and work sharing programs, b) computer operating expense savings of approximately $12 due to the reduction of co-location expenses, c) consulting cost reductions of approximately $11 and, d) other cost reductions related to insurance, share based costs and other general and administrative costs of $8. These savings were partially offset by increased legal fees of $13 relating to savings recorded in the three month period ended December 31, 2011 which did not reoccur in the three month period ended December 31, 2012 and increased director fees of approximately $6.
Expense reductions for the nine months ended December 31, 2012 when compared to the nine months ended December 31, 2011 were achieved in the following areas; a) wages and related expense reductions of approximately $106 due to the Company's restructuring initiatives and work sharing programs, b) legal fees of approximately $11 primarily related to the reduced legal costs due to the settlement of suits c) computer operating expense savings of approximately $26 due to the reduction of co-location expenses, d) consulting fee reductions of approximately $16 and, e) other cost reductions related to insurance, share based payments, director fees and other general and administrative costs of approximately $29. These savings were partially offset by reductions recorded in contingent and tax liabilities recorded in the nine month period ended December 31, 2011 of approximately $43 which did not reoccur in the nine month period ended December 31, 2012.
The Company's net loss from continuing operations for the three months and nine months ended December 31, 2012 was $109 and $316, respectively, as compared to a net loss of $97 and $326, respectively, for the three months and nine months ended December 31, 2011, an increase of $12 and a decrease of $10, respectively.
The Company's unaudited consolidated condensed interim financial statements as at and for the three months and nine months ended December 31, 2012, including notes thereto, and the accompanying Management's Discussion and Analysis were filed with the Canadian securities regulatory authorities and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval website (www.sedar.com) on February 25, 2013.
AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of location based services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.
This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President and Chief Executive Officer
(905) 831-6444, Ext. 4255