Intouch Insight Ltd. Announces Q2 2017 With Record Revenues
By: Lindsay Sykes August 29, 2017
OTTAWA, Canada August 29, 2017 - Intouch Insight Ltd. (“In-Touch”) (TSXV: INX) today announced its operating and financial results for the quarter ended June 30, 2017.
Revenue for the second quarter was $3,784,220, which was 8% higher than revenue of $3,514,718 in the same quarter 2016. Recurring software revenue remained relatively the same during the second quarter at $562,809 compared to $565,620 in second quarter 2016. Services revenue increased 9% over the same time period from $2,949,098 to $3,221,411. Of the Services revenue $3,099,954 or 96% was recurring revenue while $121,457 or 4% was from one-time set-up and technical services.
Earnings from operating activities decreased 43% for Q2 2017 to $88,953 a decrease of $66,215 compared to $155,168 in Q2 2016. Net earnings before income taxes for the second quarter was $82,319 compared to net earnings before income taxes of $115,841 in the same quarter 2016. Gross Margin increased to 55% in the second quarter compared to 52% for the same quarter in 2016. The increase in gross margin is attributed to operational improvements & revenue increases.
Company-defined adjusted EBITDA decreased 11% to approximately $296,000 for the second quarter, compared to an EBITDA of approximately $332,000 for the same quarter in 2016.
“We are pleased with the outcome of the quarter having delivered the highest revenue quarter in the history of the company along with revenue, net earnings and EBITDA exceeding targets for the first six months of the year. We are also very happy to have delivered positive net earnings & EBITDA while increasing our spending in marketing and product development,” said Cameron Watt, President & Chief Executive Officer.
“We continue to invest in our customer facing software products as well as in software to improve our ability to deliver our products and services competitively. These investments are starting to pay off and as such we remain committed to continuing this technology transformation and continued advancement towards recurring revenue. We already have some plans in the works to accelerate these activities and are very optimistic,” said Watt.
| Consolidated Statements of Operations | Q2 2017 | Q2 2016 |
|---|---|---|
| Revenue | $ 3,784,220 | $ 3,514,718 |
| Cost of services | 1,713,103 | 1,677,818 |
| Gross profit | 2,071,117 | 1,836,900 |
| Total operating expenses | 1,982,164 | 1,681,732 |
| Earnings from operating activities | 88,953 | 155,168 |
| Finance costs | (16,634) | (24,327) |
| Portion of associate expenses | - | (15,000) |
| Sale of investment in IPSG Technology | 10,000 | - |
| Net earnings before income taxes | $ 82,319 | $ 115,841 |
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 more information please contact:
George Pretli
Chief Financial Officer
gpretli@intouchinsight.com
613-270-7916