CALGARY, Alberta, May 11, 2023 (GLOBE NEWSWIRE) -- GINSMS Inc. (TSXV: GOK) (the “Corporation”) has announced its financial results for the first quarter ended March 31, 2023.
The complete financial results for GINSMS are available at www.sedar.com. Highlights include:
- Revenue of $820,657 for the three-month period ended March 31, 2023 as compared of $725,536 for the three-month period ended March 31, 2022.
- Gross Profit of $344,456 for the three-month period ended March 31, 2023 as compared to gross profit of $270,688 for the three-month period ended March 31, 2022.
- Operating expenses and finance costs of $272,788 for the three-month period ended March 31, 2023 increased from $195,059 for the three-month period ended March 31, 2022.
- Net profit of $71,668 for three-month period ended March 31, 2023 as compared to a net profit of $75,629 for three-month period ended March 31, 2022.
Selected Profit and Loss Information
| Financial Highlights |
Three-month
period ended
March 31,
2023
(Unaudited)
$ |
Three-month
period ended
March 31,
2022
(Unaudited)
$ |
Twelve-month
period ended
December 31,
2022
(Audited)
$ |
Twelve-month
period ended
December 31,
2021
(Audited)
$ |
| Revenue ($) |
|
|
|
|
| A2P Messaging Service |
288,377 |
|
378,560 |
|
1,428,885 |
|
1,338,627 |
|
| Software Products & Services |
532,280 |
|
346,976 |
|
1,595,248 |
|
1,392,707 |
|
|
820,657 |
|
725,536 |
|
3,024,133 |
|
2,731,334 |
|
| Cost of sales ($) |
|
|
|
|
| A2P Messaging Service |
179,758 |
|
262,113 |
|
951,718 |
|
1,016,352 |
|
| Software Products & Services |
296,443 |
|
192,735 |
|
910,862 |
|
691,748 |
|
|
476,201 |
|
454,848 |
|
1,862,580 |
|
1,708,100 |
|
| Gross profit ($) |
|
|
|
|
| A2P Messaging Service |
108,619 |
|
116,447 |
|
477,167 |
|
322,275 |
|
| Software Products & Services |
235,837 |
|
154,241 |
|
684,386 |
|
700,959 |
|
|
344,456 |
|
270,688 |
|
1,161,553 |
|
1,023,234 |
|
| Gross margin |
|
|
|
|
| A2P Messaging Service |
37.7% |
|
30.8% |
|
33.4% |
|
24.1% |
|
| Software Products & Services |
44.3% |
|
44.5% |
|
42.9% |
|
50.3% |
|
|
42.0% |
|
37.3% |
|
38.4% |
|
37.5% |
|
|
|
|
|
|
| Adjusted EBITDA(1)($) |
94,783 |
|
99,610 |
|
75,120 |
|
387,645 |
|
| Adjusted EBITDA margin |
11.5% |
|
13.7% |
|
2.5% |
|
14.2% |
|
| Net profit/(loss) ($) |
71,668 |
|
75,629 |
|
(32,284) |
|
281,162 |
|
| Net profit/(loss) margin |
8.7% |
|
10.4% |
|
(1.1)% |
|
10.3% |
|
| Profit/(loss) per share ($) |
|
|
|
|
| Basic and Diluted (In Canadian cents) |
0.039 |
|
0.050 |
|
(0.020) |
|
0.187 |
|
Adjusted EBITDA is a non-IFRS measure which does not have any standardized meaning under IFRS. Adjusted EBITDA is related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation and amortization (in both cost of sales and general and administration expenses), interest expenses, and also excludes certain non-recurring or non-cash expenditure and income. This non-IFRS measure is not recognized under IFRS and accordingly, shareholders are cautioned that this measure should not be construed as an alternative to net income determined in accordance with IFRS. The non-IFRS measure presented is unlikely to be comparable to similar measure presented by other issuers. The Corporation believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Corporation can use to fund working capital requirements, service interest and principal debt repayment and fund future growth initiatives.
About GINSMS
GINSMS is a mobile technology and services company focusing on 2 areas namely its A2P Messaging Service and its Software Products and Services. GINSMS operates a cloud-based A2P messaging service that allows the termination of SMS to mobile subscribers of more than 200 mobile operators globally. GINSMS also develops and distribute innovative software products and services for mobile operators and enterprises and has successfully deployed more than 100 solutions worldwide. GINSMS has offices in China, Singapore, Hong Kong, Malaysia and Indonesia.
Forward Looking Statements
Certain information included in this MD&A may contain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, ”could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, or “continue” or the negative thereof or variations thereon or similar terminology. These statements are not historical facts, but reflect management’s current beliefs and are based on information currently available to management regarding future results and events. Particularly, these forward-looking statements are based on management’s estimate of future events based on technological advances relating to the Corporation’s services, current market conditions and past experiences of management in relation to how certain contracts will affect revenues. Forward-looking statements, by their very nature, involve significant risks, uncertainties and assumptions.
A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to dependence on required licenses, dependence on major customers, system failures, delays and other problems, security and privacy breaches, adequacy of network resilience, network diversity and backup systems, loss of significant information, failure to develop, enhance or introduce new value-added services, competition, dependence on third-party software and equipment, market acceptance at desired pricing levels, key members of the management team, credit risk of accounts receivables, conflicts of interest, inability to satisfy customer demand for performance, price or terms, international risks and the potential impact of the COVID-19 pandemic declared by the World Health Organisation on March 11, 2020 (the “COVID-19”). Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Corporation cannot assure the reader that actual results will be consistent with these forward-looking statements.
In particular, forward-looking statements include the following assumptions:
Management’s belief that the Corporation’s software products and services are expected to take on a different focus based on an outsourcing model approach leveraging on the lower cost base in Indonesia and Malaysia. Therefore the revenue for the software segment in Indonesia and Malaysia should continue to increase.
Management’s belief that the future growth in messaging is in the area of application-to-person (“A2P”) messaging and the Corporation’s investment in this area will create a viable and profitable business in the future.
Management’s belief that the Corporation is able to generate sufficient amounts of cash through operations and financing activities to fulfil the working capital requirements of its present operations.
These forward-looking statements are made as of the date of this MD&A and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by law. Accordingly, readers should not place undue reliance on the forward-looking statements. All forward-looking statements contained in this MD&A are qualified by this cautionary statement.
For further information, please contact:
GINSMS Inc.
Joel Chin, CEO
Tel: +65-6441-1029
Email: investor.relations@ginsms.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
