Intouch Insight Ltd. Announces FY 2017 Financial Results
By: Lindsay Sykes March 29, 2018
OTTAWA, Canada March 29, 2018 – Intouch Insight Ltd., (“Intouch”) (TSXV: INX) today announced its operating and financial results for the year ended December 31, 2017.
Revenue for the year ending 2017 was $13,868,877, which was 4% higher than revenue of $13,349,391 in 2016.
Due to the increased investment in product development and marketing of new software products, the net loss before income taxes was $763,860 compared to net earnings of $212,945 reported in 2016. Gross Margin remained stable at 53% in 2017 compared to 2016.
Company-defined adjusted EBITDA was approximately $151,000 for the year ended December 31, 2017, compared to an EBITDA of approximately $1,075,000 for the year ended 2016. The decrease in EBITDA was part of the significant planned investment into new software products.
“We are quickly transitioning to a software and services company. Beginning in 2017 we accelerated product development, started onboarding new sales team members and began ramping up our marketing activities. In February 2018, we filed a provisional patent application for our unique machine learning technology which will be added to our portfolio of customer experience management products. We also partnered with Dell Boomi to facilitate the integration of Intouch products with other platforms to accelerate the time to value equation for our customers,” said Cameron Watt, President and Chief Executive Officer.
“Our core product line remains strong with a 97% retention rate of our 2017 revenue along with very significant new orders for 2018 received in the first quarter. Historical customer loyalty and confidence in Intouch is a huge benefit as we launch new products throughout 2018,” said Watt.
|Consolidated Statements of Operations||2017||2016|
|Revenue||$ 13,854,877||$ 13,349,391|
|Cost of services||$ 6,502,612||$ 6,294,697|
|Gross profit||$ 7,352,265||$ 7,054,694|
|Total operating expenses||$ 8,053,828||$ 6,780,554|
|Earnings (loss) from operating activities||$ (701,563)||$ 274,140|
|Finance costs||$ (72,297)||$ (92,195)|
|Loss on transactions with associate||-||$ (15,000)|
|Gain on disposal of equity accounted investment||$ 10,000||-|
|Negative goodwill||-||$ 46,000|
|Net earnings (loss) before income taxes||$ (763,860)||$ 212,945|
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Vice President, Communications
First Canadian Capital Corp.
Chief Financial Officer