Home » Telecommunication » Networking » AirIQ Announces Results for March 31, 2013
Ihren XING-Kontakten zeigen

AirIQ Announces Results for March 31, 2013

TORONTO, ONTARIO — (Marketwired) — 07/29/13 — AirIQ Inc. (“AirIQ”) (TSX VENTURE: IQ), a supplier of wireless asset management services, today announced its financial results for the year ended March 31, 2013.

“2013 was a transitional year for the Company,” said Donald Gibbs, President and Chief Executive Officer of AirIQ. “We achieved sequential growth for four consecutive quarters and improved our operating cash flow by over $740 to a small loss, while completing a major redesign of our software platform,” continued Mr. Gibbs. “We believe we could have grown sales more, however, hurricane Sandy had a major impact on two of our largest customers, both reducing and delaying sales. In addition, our hardware supplier issued a mandatory upgrade to its firmware that impacted our installed base, and involved three months of intensive re-configurations, testing and OTA (over the air) upgrades. Subsequent to the year end, the Company-s business development efforts were rewarded with the announcement of a contract with a major rental customer which has the potential of adding over 30,000 units to our installed base,” reported Mr. Gibbs.

The main highlights of the year were as follows.

Financial Highlights

(i)The Company has included information concerning EBITDAS because it believes that it may be used by certain investors as one measure of the Company-s financial performance. EBITDAS is not a measure of financial performance under IFRS and is not necessarily comparable to similarly titled measures used by other companies. EBITDAS should not be construed as an alternative to net income or to cash flows from operating activities (as determined in accordance with IFRS) or as a measure of liquidity.

Business Review

The Company continues to focus on its key strategy elements to build revenues and manage costs to achieve sustained profitability and positive cash flow and to seek opportunities to form value creating strategic partnerships.

Subsequent Events

Subsequent to the year end, on June 14, 2013, the Company reached an agreement to settle outstanding debts in the aggregate amount of $165 with the issuance of 3,300,0000 common shares at a price of $0.05 per share, being the market price of the shares pursuant to the policies of the TSX Venture Exchange.

The Company-s lenders, Mosaic Capital Partners LP (“Mosaic”) and 2204671 Ontario Ltd. (“2204671”), agreed to accept common shares in satisfaction of the principal amount due on the Company-s outstanding promissory notes in the aggregate principal amount of $150. In addition, 2204671 also agreed to accept shares in settlement of a portion of trade payables owing by the Company in the amount of $15. A total of 3,300,000 shares were issued; 2,000,000 to Mosaic, and 1,300,000 to Donald Gibbs, principal of 2204671.

Mosaic is a shareholder of the Company and Vernon Lobo, a director and Chairman of AirIQ, is a managing director of Mosaic. 2204671 is a personal holding company of Donald Gibbs, a director, President and Chief Executive Officer of the Company. During the Company-s approval of the transaction, Messrs. Lobo and Gibbs each declared their conflict on the matter and abstained from voting in respect of their interest.

The shares-for-debt transaction was to non-arm-s length parties and was conditional upon acceptance by the TSX Venture Exchange for which acceptance was received. The common shares issued in satisfaction of the indebtedness are subject to a four month statutory hold expiring on October 15, 2013. There was no new control person created as a result of the issuance of the shares for debt.

Following the shares for debt issuance, AirIQ now has a total of 21,358,947 common shares issued and outstanding.

Unless otherwise noted herein, and except share and per share amounts, all references to dollar amounts are in thousands of Canadian dollars.

Overview

The Company-s audited consolidated financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.

The Company-s audited consolidated financial statements as at and for the year ended March 31, 2013, including notes thereto, and Management-s Discussion and Analysis for the same period were filed with the Canadian securities regulatory authorities on July 29, 2013, and will be available on the Company-s website () and on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website ().

Revenues

Revenues for the year ended March 31, 2013, decreased 2.4% to $2,324 from $2,380 for the year ended March 31, 2012. Approximately 74.0% of the total revenue for the year represents recurring revenue from the Company-s airtime customers.

Revenues received from equipment sold in connection with service contracts are recorded as deferred revenue and recognized over the initial term of the service contract.

Sales of hardware units associated with service contracts recorded to deferred revenues were approximately $654, during the year ended March 31, 2013, compared to $515 during the year ended March 31, 2012. Revenues recognized from deferred revenues for the year ended March 31, 2013 were approximately $595 compared to $528 during the year ended March 31, 2012.

Overall, revenues related to service contracts sold in connection with hardware equipment decreased by $93 from $1,812, for the year ended March 31, 2012 to $1,719 for the year ended March 31, 2013.

Included in the Company-s reported revenues are miscellaneous parts, repair, warranty and lost unit sales of approximately $10 during the year ended March 31, 2013, compared to $40, for the year ended March 31, 2012.

Gross Profit

Overall, gross profit decreased by 11.5% to $1,571 for the year ended March 31, 2013 compared to $1,766 for the year ended March 31, 2012.

Equipment gross profits decreased by approximately 11.1% to $281 during the year ended March 31, 2013 from $316 for the year ended March 31, 2012, due increased hardware, repair and installation costs.

Service contract gross profits decreased by approximately 11.0% to $1,290 for the year ended March 31, 2013 from $1,450 for the year ended March 31, 2012.

Expenses and Other Items

Sales and marketing, research and development and general and administrative expenses totalled $1,877 for the year ended March 31, 2013 compared to $1,977 for the year ended March 31, 2012.

Overall these expenses were reduced by $100 for the year ended March 31, 2013 when compared to the year ended March 31, 2012.

Expense reductions for the year ended March 31, 2013 when compared to the year ended March 31, 2012 were achieved in the following areas; a) wages and related expense reductions of approximately $129 due to personnel reductions, b) insurance premium reductions of approximately $36, c) computer operating expense savings of approximately $33 due to the reduction of co-location costs, (d) consulting fee costs were reduced by $26 and (e) other cost reductions of approximately $15 related primarily to legal fees, communication costs and public reporting fees. These savings were offset by increases in the following areas; a) reduced contingent liability reversal of approximately $116, b) general costs of $13, c) rent and facility costs of $10.

Net loss

The Company-s net loss from continuing operations for the year ended March 31, 2013 was $437 as compared to a net loss of $310 for the year ended March 31, 2012 an increase of $127.

The increase in net loss for the year ended March 31, 2013 when compared to the year ended March 31, 2012 can be attributed to improvement in the following areas; a) expense reductions of approximately $100, b) decrease in amortization of approximately $1, c) reduced interest expense of $9 and, d) the decrease in foreign exchange of approximately $6. These improvements were offset by decreases in the following areas; a) the increase in impairment of long lived assets of $3, f) lower gain on business acquisition of $45 and, g) decreased gross profits of $203.

No Conference Call

AirIQ will not be holding a conference call to discuss results. The Company-s financial statements, including complete financial statements and Management-s Discussion and Analysis will be available on the Company-s website and at on July 29, 2013.

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ-s office is located in Pickering, Ontario, Canada. The Company offers a suite of asset management services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company-s website at .

Forward-looking Statements

This news release contains forward-looking information based on management-s best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ-s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as “hope”, “goal”, “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ-s perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward- looking statements. Forward-looking statements are provided for the purpose of providing information about management-s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

Neither 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.

Contacts:
AirIQ Inc.
Donald Gibbs
President and Chief Executive Officer
(905) 831-6444, Ext. 4255

You must be logged in to post a comment Login


Blogverzeichnis - Blog Verzeichnis bloggerei.de Blog Top Liste - by TopBlogs.de Bloggeramt.de blogoscoop