Intrinsyc Reports 2011 Third Quarter Financial Results
Sequential revenue growth leads to first quarter of positive net income
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/10/11 -- Intrinsyc Software International, Inc. (TSX: ICS) ("Intrinsyc" or the "Company"), a leading connected device development company, today announced its financial results for the third quarter ended September 30, 2011. The Company, for the third quarter, reported net income of $627,106 and revenue of approximately $2.8 million, up from approximately $2.4 million in the previous quarter, and an improvement in gross margin to 56%, compared to 50% in the previous quarter. Results are reported in United States dollars and in accordance with International Financial Reporting Standards ("IFRS"). The Company's results are presented in comparison to the three months ended June 30, 2011 and the three months ended September 30, 2010, also in accordance with IFRS.
"This was an exceptional quarter for Intrinsyc," said Tracy Rees, President and Chief Executive Officer. "We achieved 15 percent sequential revenue growth, including 24 percent in our core product development services. Our improved revenue performance and operational efficiency resulted in the company's tenth consecutive quarter of positive EBITDA. We were able to add four new product development projects with industry leading original equipment manufacturers (OEMs) and increased our engineering capacity and capability with several engineering hires in the quarter."
The Company reported third quarter revenue of approximately $2.8 million as compared to approximately $2.4 million for the three months ended June 30, 2011 and approximately $3.2 million in the period ended September 30, 2010. Total revenue attributable to the Company's Software Solutions was 25 percent of revenues, including software licensing, maintenance/support and software-related services, as compared to 30 percent and 24 percent in the respective comparative quarters. Gross margin improved to 56 percent during the third quarter of 2011, which was higher than 50 percent for the three months ended June 30, 2011 and up slightly from the margin experienced of 55 percent for the three months ended September 30, 2010. Improved gross margin was primarily attributable to improvements in staff utilization.
Total operating expenses, excluding other operating expenses, for the three months ended September 30, 2011 were 6 percent lower over the preceding three months ended June 30, 2011 and 36 percent lower over the three months ended September 30, 2010. Earnings before other operating expenses, finance income and foreign exchange gain (loss) ("EBITDA") for the three months ended September 30, 2011 was $452,121 compared to $53,776 in the previous three months ended June 30, 2011 and $62,711 for the three months ended September 30, 2010.
The Company reported revenue of approximately $7.7 million for the nine months ended September 30, 2011 as compared to approximately $9.8 million for the nine months ended September 30, 2010. Total revenue attributable to the Company's Software Solutions decreased to 30 percent of revenues, including software licensing, maintenance/support and software-related services, as compared to 34 percent in the respective comparative period. Gross margin was 54 percent for the nine months ended September 30, 2011, down slightly from 55 percent in the nine months ended September 30, 2010.
Total operating expenses, excluding other operating expenses, for the nine months ended September 30, 2011 were approximately $3.5 million, compared to approximately $5.2 million for the nine months ended September 30, 2010. EBITDA for the nine months ended September 30, 2011 was $718,033 compared to $176,717 for the nine months ended September 30, 2010.
Cash and cash equivalents were approximately $7.3 million and short-term investments were approximately $4.2 million with net working capital of approximately $11.8 million as of September 30, 2011, compared to cash and cash equivalents of approximately $11.2 million with net working capital of approximately $11.6 million as of December 31, 2010.
Business Highlights
"While we are pleased to grow our engineering services business, over the next few months we plan to introduce new solutions developed through our technology partnerships as well as internal development, that will provide more scalable revenue opportunities," added Rees.
The new accounting policies under IFRS have been consistently applied to all of the periods presented in this news release and all prior period information has been restated or reclassified for comparative purposes unless otherwise noted. Further details on the conversion to IFRS are provided in Management's Discussion and Analysis and in the notes to the Company's unaudited condensed consolidated financial statements as at and for the three months ended September 30, 2011.
Conference call
The Company will release its 2011 third quarter for the three and nine months ending September 30, 2011 financial results on Thursday, November 10, 2011 at 4:00 p.m. Eastern Time (1:00 p.m. Pacific Time). The Company will hold a conference call to discuss the financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) the same day. On the call, Tracy Rees, President and Chief Executive Officer, and George Reznik, Chief Financial Officer, will discuss the financial results announced. This conference call may be accessed in North America, toll-free, by dialing 1-866-610-8602, and internationally by dialing +1-212-401-8152 approximately 10 minutes prior to the start of the call. This conference line is operator assisted and an access PIN is not required. The conference call will also be broadcast live over the Internet and available for replay on the Company's Investor Relations Conference Calls web page (). Analysts and investors are invited to participate on the call. Questions may be submitted to prior to the call.
The Audit Committee of the Company has reviewed the contents of this news release.
Forward-Looking Statements
This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the need to develop, integrate and deploy software solutions to meet the Company's customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on the Company's customer's satisfaction; the timing of entering into significant contracts; customers' continued commitment to the deployment of the Company's solutions; the performance of the global economy and growth in software industry sales; market acceptance of the Company's products and services; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to international expansion; concentration of sales; international operations and sales; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and other factors described in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2010. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
About Intrinsyc Software International, Inc.
Intrinsyc is a product development company that is dedicated to bringing industry leading next generation intelligent connected devices to market, from smartphones and tablets, to emerging categories of M2M (Machine-to-Machine) solutions. Intrinsyc is helping to lead the way to a networked society where 50 billion intelligent connected devices are expected by 2020. Intrinsyc is publicly traded (TSX: ICS) and is headquartered in Vancouver, Canada, with operations in China, Taiwan and the United States.
Contacts:
Intrinsyc Software International, Inc.
George Reznik
Chief Financial Officer
+1-604-678-3734
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Datum: 10.11.2011 - 15:00 Uhr
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