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GINSMS Announces Financial Results for Second Quarter Ended September 30, 2013




CALGARY, ALBERTA — (Marketwired) — 11/27/13 — GINSMS Inc. (TSX VENTURE: GOK) has announced its financial results for the second quarter ended September 30, 2013.

PERFORMANCE HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2013:

RESULTS OF OPERATIONS

Revenue for the 3 months and 6 months ended September 30, 2013 was $211,741 and $657,325 respectively, representing an increase of 41.2% and 114.2% respectively, compared to $149,908 and $306,997 during the corresponding periods the previous year. The increase is due to the inclusion for the revenue from Inphosoft in the consolidated statement of income as revenue from the Company-s IOSMS activities, taken separately, declined by 74.4% and 79.6% for the 3 months and 6 months the previous year. The decline in the revenue generated from the IOSMS platform is due to the less favourable terms of the contracts signed with mobile network operators that came into effect on 1st March 2013 as well as a 73.3% drop in SMS traffic during the quarter ended September 30, 2013, compared to the corresponding quarter the previous year.

Revenue from Inphosoft for the six months aggregated $594,624 is broken down as follow: Professional Services – $349,651 (58.8%), License fees – $11,125 (1.9%), and Support and Maintenance (S&M) -$233,848 (39.3%).

The net loss for the quarter ended September 30, 2013 amounted to $832,129, compared to a loss of $425,148 during the same quarter the previous year. The loss for the second quarter this fiscal year includes a net foreign exchange loss of $16,631 and a non-cash charge to earnings of $308,902 representing accretion on obligations related to the convertible debentures and promissory notes issued in connection with the acquisition of Inphosoft.

EBITDA for the second quarter ended September 30, 2013 amounted to negative $316,190 while EBITDA for the corresponding period the previous year which showed a deficit of $399,109. These results underline an improved gross profit picture with gross income increasing by 34.3% to $111,051, but with a lower gross profit margins hence translate into a gross margin of 52.4%, compared to 55.2% during the corresponding quarter the previous year.

Other than lower revenue generated by the IOSMS platform and the impact the foreign exchange gain have had on the results of the Company for the 6 months ended September 30, 2013, the loss of $1,314,120 reported during the period reflects higher operating expenses albeit more than offset, as mentioned above, by a much higher gross income. With Inphosoft, salaries and wages jumped by 556.7% to $514,360, and general and administrative expenses are up 177.6% to $153,530.. However, consultancy fees decreased by 38.5% to $33,582 and professional fees decreased by 72.7% to $110,059. The decline in professional fees reflected the lower legal fees in particular following the completion of the acquisition at the end of the second quarter of the previous year. The consolidation of Inphosoft also resulted in higher amortization charges which amounted to $314,165, compared to $52,414 for the corresponding 6 months the previous year.

About GINSMS

GINSMS is a mobile technology and services company focusing on 4 areas namely Telecom Platforms and Products, Mobile Advertising, Mobile Messaging and Mobile Applications. GINSMS conducts research and development and also establishes partnerships to develop and distribute innovative products and services globally. Through its wholly owned subsidiaries in Singapore, Hong Kong, Malaysia and Indonesia, GINSMS has successfully deployed more than 100 solutions globally. GINSMS also operates a short message service (“SMS”) hub that provides inter-operator messaging services to mobile telecom operators in Hong Kong and messaging services to enterprises in Asia. Through its Right Here Media brand, GINSMS provides a one-stop mobile advertising service to advertisers. These services include the development of creative mobile advertising campaigns for advertisers, the provision of technology to execute these campaigns and the placement of advertisements on mobile advertising networks.

Forward Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with GINSMS- business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, and similar expressions to the extent they relate to GINSMS or its management. The forward-looking statements are not historical facts, but reflect GINSMS- current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under “Risks Factors” in GINSMS- Filing Statement filed on August 29, 2012 with the regulatory authorities. GINSMS assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless required by law.

NEITHER THE 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:
GINSMS Inc.
Joel Chin
CEO
+65-6441-1029





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