Intouch Insight Ltd. announces Q1 2017 financial results
OTTAWA, May 25, 2017 /CNW/ - Intouch Insight Ltd. ("Intouch") (TSXV: INX) today announced its operating and financial results for the quarter ended March 31, 2017.
Revenue for the first quarter was $3,274,536, which was 0.4% lower than revenue of $3,286,974 in the same quarter in 2016. Recurring revenue decreased 11% during the first quarter at $539,890 compared to $603,579 in first quarter 2016. Services revenue increased 2% over the same time period from $2,683,395 to $2,734,646. Of the Services revenue $2,697,502 or 99% was recurring revenue while $37,144 or 1% was from one-time set-up and technical services.
Earnings from operating activities resulted in a loss this quarter of $135,249 compared to a profit in Q1 2016 of $445, a decrease of $135,702. Net loss and comprehensive loss for the first quarter was $148,709 compared to a net loss of $27,092 in the same quarter of 2016. Gross Margin decreased to 51% in the first quarter compared to 53% for the same quarter in 2016. 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 approximately $58,000 for the first quarter, compared to an EBITDA of approximately $224,000 for the same quarter in 2016.
"While Q1 was a challenging quarter financially it was due to planned activities and we are very encouraged to be finally able to put the investment in place we need to secure the long-term future of the company. We are ramping up sales and marketing activities and expect to have most of our clients migrated on to our new technologies by the end of Q2. We are optimistic regarding future growth opportunities as discussions with potential customers in Q1 were very positive regarding our products and product direction." said Cameron Watt, President & Chief Executive Officer.
"We remain committed to the investments we have been making and look forward to seeing the results of our journey as we move through 2017", said Watt.
| Consolidated Statements of Operations |
Q1 2017 |
Q1 2016 |
|||
| Revenue |
$ |
3,274,536 |
$ |
3,286,974 |
|
| Cost of services |
1,596,799 |
1,537,773 |
|||
| Gross profit |
1,677,737 |
1,749,201 |
|||
| Total operating expenses |
1,812,986 |
1,748,756 |
|||
| Earnings (loss) from operating activities |
(135,249) |
445 |
|||
| Finance costs |
(13,460) |
(27,537) |
|||
| Net loss before income taxes |
$ |
(148,709) |
$ |
(27,092) |
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 Insight Systems Inc.
George Pretli, Chief Financial Officer, [email protected], 613-270-7916
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