Intouch Insight Ltd. Announces Q3 2016 Financial Results with 38% Growth
By: Lindsay Sykes November 25, 2016
OTTAWA, Nov. 24, 2016- Intouch Insight Ltd. (“In-Touch”) (TSXV: INX) today announced its operating and financial results for the quarter ended September 30, 2016.
Revenue for the third quarter was $3,187,766, which was 38% higher than revenue of $2,315,974 in the same quarter 2015. Recurring revenue increased 3% during the third quarter at $592,915 compared to $576,402 in third quarter 2015. Services revenue increased 50% over the same time period from $1,739,572 to $2,594,851.Earnings (loss) from operating activities decreased 110% for Q3 2016 to $(18,998) a decrease of $197,390 compared to earnings of $178,392 in Q3 2015. The net loss before income taxes for the third quarter was $34,101 compared to net earnings before income taxes of $159,954 in the same quarter 2015. Gross Margin decreased to 50% in the third quarter compared to 59% for the same quarter in 2015. The decrease in gross margin is attributed to product mix shift.
Company-defined adjusted EBITDA decreased 49% to $173,000 for the third quarter, compared to an EBITDA of $336,000 for the same quarter in 2015.
“We are pleased with the growth for the quarter as we head towards record breaking revenues in 2016. In Q3 we continued our significant investment in product development to enable the transition of our acquired and legacy technology platforms to a common standard alongside our newer product lines. While we had planned to be at break-even for the quarter the receivables loss as a result of the ITT Technical Institute bankruptcy pushed us in to a loss position as it made up 100% of the loss in Q3,” said Cameron Watt, President & Chief Executive Officer.
“In order to leverage the strength of our new technology and differentiated product lines we will be significantly increasing our sales and marketing spending to support significant growth in 2017. We will continue to invest in product development as we remain very optimistic about the direction of our product suite and are excited about the future possibilities for the company," said Watt.
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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