OTTAWA, May 26, 2016 - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) today announced its operating and financial results for the quarter ended March 31, 2016.
Revenue for the first quarter was $3,286,974, which was 42% higher than revenue of $2,311,430 in the same quarter in 2015. Recurring revenue increased 34% during the first quarter at $603,579 compared to $449,876 in first quarter 2015. Services revenue increased 44% over the same time period from $1,861,554 to $2,683,395.
Earnings from operating activities decreased 100% for Q1 2016 to $445 a decrease of $191,638 compared to $192,083 in Q1 2015. Net loss before income taxes for the first quarter was $27,092 compared to net earnings before income taxes of $140,613 in the same quarter in 2015. Gross Margin decreased to 53% in the first quarter compared to 56% for the same quarter in 2015. The decrease in gross margin is attributed to product mix shift.
Because of the increase in our investment in sales, marketing and product development, the Company-defined adjusted EBITDA was $224,000 for the first quarter, compared to an EBITDA of $334,000 for the same quarter in 2015.
"We are pleased with the outcome of the quarter which are in line with expectations. As previously stated we are looking for a 40% growth rate in 2016 and have increased our spending against sales, marketing and product development to ensure that we are not only delivering growth, but building a strong foundation for the future of our products at the same time. We expect to see continued success in our new and existing product lines while additional products are being developed and launched." said Cameron Watt, President & Chief Executive Officer.
"We remain committed to our investment in obtaining recurring software revenue and anticipate additional investments to be made throughout the year to ensure 2016 results while securing a strong future for all of the company's product offerings", said Watt.
|Consolidated Statements of Operations||Q1 2016||Q1 2015|
|Revenue||$ 3,286,974||$ 2,311,430|
|Cost of services||1,537,773||1,012,694|
|Total operating expenses||1,748,756||1,106,653|
|Earnings from operating activities||445||192,083|
|Loss on transactions with associate||-||(33,888)|
|Share on loss from investments accounted for using the equity method||-||(4,928)|
|Net earnings (loss) before income taxes||$ (27,092)||$ 140,613|
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
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