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."
About ProntoForms® and TrueContext
ProntoForms is a mobile workflow solution used by 2,400 business customers. Available for smartphones and tablets, the ProntoForms solution incorporates a mobile device App, a Web management portal to manage teams and data flow, and provides the ability to export or connect data to the back office or to popular cloud services.
TrueContext, traded on the TSXV under the symbol TMN, has a powerful and proprietary patent portfolio, from which the ProntoForms mobile App and Web reporting portal have been developed. ProntoForms is the registered 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 Company 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 Company. 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.
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, operator or other reseller 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 market for software as a service is at a relatively early stage of development, and if it does not develop or develops more slowly than expected, the Company's business will be harmed; (vii) 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; (viii) a global economic downturn or market volatility may adversely affect our business and/or our ability to complete new financings; (ix) the business of the Company may be harmed if it does not continue to penetrate markets;
(x) the success of the business depends on the Company's ability to develop new products and enhance its existing products; (xi) the Company's growth depends in part on the success of its strategic relationships with third parties; (xii) the financial condition of third parties may adversely affect the Company; (xiii) 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; (xiv) 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; (xv) the Company may be liable to its customers or third parties if it is unable to collect data or it otherwise loses data; (xvi) the Company may be liable for the handling of personal information; (xvii) intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xviii) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xix) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xx) 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 (xxi) if the Company loses any of its key personnel, its operations and business may suffer. Please see "Risk Factors Affecting Future Results" for a more complete discussion of these and other risks. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
TrueContext Mobile Solutions Corporation
Chief Executive Officer
613.599.8288 ext. 1111