OTTAWA, Aug. 27, 2015 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) today announced its operating and financial results for the quarter ended June 30, 2015.
Revenue for the second quarter was $2,234,662, which was 6% higher than revenue of $2,102,278 in the same quarter in 2014. Recurring revenue increased 52% during the second quarter at $480,276 compared to $315,549 in second quarter 2014. Services revenue was slightly lower quarter over quarter.
Gross Margin decreased to 54% in the second quarter compared to 58% for the same quarter in 2014.Earnings from operating activities decreased 44% for Q2 2015 to $101,088 a decrease of $79,091 compared to $180,179 in Q2 2014. Net earnings before income taxes for the first quarter decreased 60% to $69,973 compared to net earnings before income taxes of $174,731 in the same quarter in 2014. The decrease in earnings is a result of the Company increasing its marketing and sales expenses.
Company-defined adjusted EBITDA decreased 7% to $262,000 for the second quarter, compared to an EBITDA of $283,000 for the same quarter in 2014.
"We are pleased with the outcome of the quarter, particularly the strong growth in recurring revenue from software licensing and user fees. While margins for the quarter were slightly below expectations we forecast that they will be within expectations for the year. We also anticipate continued success in our new and existing product lines along with positive EBIDA and revenue growth for the remainder of 2015 in line with year to date results." said Cameron Watt, President & Chief Executive Officer.
"We remain committed to securing growth through software sales and will continue strong investments in sales, marketing & product development. Effectively resourcing our efforts around recurring revenue from software sales is key to securing sustainable future growth", said Watt.
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Consolidated Statements of Operations
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Q2 2015
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Q2 2014
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Revenue
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$ 2,234,662
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$ 2,102,278
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Cost of services
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1,036,201
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889,442
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Gross profit
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1,198,461
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1,212,836
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Total operating expenses
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1,097,373
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1,032,657
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Earnings from operating activities
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101,088
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180,179
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Finance costs
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(11,552)
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(10,755)
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Gain on dilution of associate
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-
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106,680
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Portion of associate expenses
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(19,563)
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(101,373)
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Net earnings before income taxes
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$ 69,973
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$ 174,731
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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.
SOURCE In-Touch Survey Systems Ltd.
George Pretli, Chief Financial Officer, gpretli@intouchinsight.com, 613-270-7916Copyright CNW Group 2015