TORONTO, ONTARIO — (Marketwire) — 04/30/12 — Frontline Technologies Inc. (TSX VENTURE: FLC), a provider of technology-based equity and options trading services, IT infrastructure support and managed network services, released its fourth quarter and annual results for the three and twelve months ended December 31, 2011.
Total Revenue for the quarter increased by 31% to $1.7 million from $1.3 million in the same quarter last year. Annual Revenue increased by 26% to $6.8 million from $5.4 million last year. Total Expenses for the quarter increased by 68% to $4.7 million from $2.8 million in the same quarter last year. Included in the quarter was a write-down of $1.5 million related to software. Annual Expenses increased by 36% to $15.9 million from $11.7 million last year. Loss from Continuing Operations for the quarter increased to $3.0 million from $1.6 million in the same quarter last year. Loss from Continuing Operations for the year increased to $9.3 million from $6.6 million last year. Discontinued operations for the quarter reported a loss of $0.2 million from a profit of $0.2 million in the same quarter last year. Discontinued operations overall reported a profit of $1.3 million from a loss of $0.5 million last year. Included in discontinued operations was US $1.8 million from the referral of clients of Robert C Sheehan & Associates LLC to ConvergEx. The Total Comprehensive Loss for the quarter increased to $3.1 million from $1.8 million in the same quarter last year. Total Comprehensive Loss for the year increased to $7.9 million from $7.6 million last year. Loss per share for the quarter was ($0.15) compared to ($0.12) the same quarter last year. Loss per share for the year was ($0.39) compared to a loss per share of ($0.48) last year.
“Frontline was presented with challenges in 2011, with two notable ones shaping our year. The first was the integration of Frontline and Belzberg and the second was the rapidly evolving marketplace. The integration of the two companies, though resource intensive and initially disruptive to the organization, will yield many benefits in the years to come. The financial results provide early indication of this in the cost savings achieved from combining the two firms- infrastructures. In doing so, we were able to greatly reduce the monthly burn of the Belzberg business. In 2012, we look forward to executing on strategies that further exploit the benefits of the combined entity. The challenges in the market place presented an ever more sophisticated clientele with rapidly evolving requirements while price compression continued to depress trading technology revenues. Frontline will spend a considerable amount of time and effort in assessing the marketplace in 2012 and craft a strategy that offers a path to profitability and continued viability as a solutions provider,” said Hoss Astaraki, Chairman and CEO.
About Frontline Technologies
Frontline Technologies Inc. is a provider of trading technology services for equities and options and also offers IT infrastructure support and managed services. Frontline Technologies is listed on the Toronto Venture Exchange (Ticker FLC) – Additional information is available at .
Forward looking statement disclaimer
Except for historical information contained herein, the matters discussed in this press release are based on forward-looking statements that involve risk and uncertainty. A variety of important factors could cause results to differ materially from such statements, including but not limited to economic, competitive, governmental and technological factors affecting the company-s operation, markets, products, prices and other factors.
Contacts:
Frontline Technologies Inc.
Hoss Astaraki
Chairman and Chief Executive Officer
(416) 637-7462
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