GINSMS Announces Financial Results for Third Quarter Ended December 31, 2013
28 Febrero 2014 - 10:39AM
Marketwired
GINSMS Announces Financial Results for Third Quarter Ended December
31, 2013
CALGARY, ALBERTA--(Marketwired - Feb 28, 2014) - GINSMS Inc.
(TSX-VENTURE:GOK) has announced its financial results for the third
quarter ended December 31, 2013.
PERFORMANCE HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED
DECEMBER 31, 2013:
- The acquisition of Inphosoft Group Pte Ltd ("Inphosoft") was
completed on September 28, 2012. GINSMS's income statement for the
three and nine months ended December 31, 2013 includes the
operating results of Inphosoft Group Pte Ltd and its subsidiaries
resulting in total revenue of $254,327 and $911,652 respectively,
compared to $477,240 and $784,237 for the corresponding three and
nine months in the previous year.
- Activities for the three-month and nine-month period ended
December 31, 2013 resulted in a net loss of $772,639 and $2,086,759
respectively, including a non-realized exchange loss of $10,928 and
$7,797 respectively and a non-cash charge to earnings of $324,826
and $924,277 respectively representing accretion on obligations
related to the convertible debentures and promissory notes issued
in connection with the acquisition of Inphosoft. For the three and
nine months ended December 31, 2012, the Company recorded a net
loss of $343,627 and $816,810 respectively.
- EBITDA of negative $268,623 and $664,667 respectively for the
three and nine months ended December 31, 2013. This is a
deterioration of $312,544 and $286,935, compared to EBITDA of
positive $43,921 and negative $377,732 respectively during the
corresponding three and nine months in the previous year. The lower
EBITDA principally reflect much higher losses due to lower revenue
generated by IOSMS platform despite higher revenue contributed by
the Inphosoft Group Pte Ltd and its subsidiaries. There are also
higher costs incurred by the whole group in relations to the
salaries & wages, amortization & depreciation and accretion
costs of debenture and notes payables.
- Volume of inter-SMS traffic for the three-month period ended
December 31, 2013 was down by 69.5% to 6,138,264 from the same
period the previous year. When compared to the previous quarter
ended September 30, 2013, traffic was down by 5.7%. This downward
trend in SMS traffic is largely caused by cellphone users migrating
to mobile instant messaging ("MIM") applications and the removal of
bundle fees in the new agreements signed with the mobile network
operators that came into effect on the 1st March 2013.
RESULTS OF OPERATIONS
Financial Highlights |
Three-month period ended December 31, (Unaudited) |
Nine-month period ended December 31, (Unaudited) |
|
2013 |
2012 |
2013 |
2012 |
Revenues $ |
254,327 |
477,240 |
911,652 |
784,237 |
Cost of sales $ |
(97,328) |
(108,731) |
(342,297) |
(246,671) |
Gross profit $ Gross margin % |
156,999 61.7% |
368,509 77.2% |
569,355 62.5% |
537,566 68.5% |
EBITDA (1) $ EBITDA margin |
(268,623) (105.6)% |
43,921 9.2% |
(664,667) (72.9)% |
(377,732) (48.2)% |
Net earnings $ Net earnings margin |
(777,639) (303.8)% |
(343,627) (72.0)% |
(2,086,759) (228.9)% |
(816,810) (104.2)% |
Net earnings (loss) per share $ |
|
|
|
|
|
Basic |
(0.01) |
(0.01) |
(0.04) |
(0.02) |
|
Diluted |
(0.01) |
(0.01) |
(0.04) |
(0.02) |
1
EBITDA is a non-GAAP measure related to cash earnings and is
defined for these purposes as earnings before income taxes,
depreciation, amortization and the accretion on obligations. |
|
|
Consolidated as at December 31, 2013 (unaudited)(1) |
Consolidated as at March 31, 2013 (Audited)(1) |
Total
assets $ |
5,057,488 |
6,686,027 |
Total
liabilities $ |
7,332,427 |
7,056,584 |
Shareholders' equity $ |
(2,274,939) |
(370,557) |
1 The
figures reported above are based on the consolidated financial
statements of the Company which have been prepared in accordance
with International Financial Reporting Standard. |
Revenue for the 3 months and 9 months ended December 31, 2013
was $254,327 and $911,652 respectively, representing a decrease of
46.7% and increase of 16.2% respectively, compared to $477,240 and
$784,237 during the corresponding periods the previous year. The
increase of 140.3% in revenue from Inphosoft for 9 months to
$810,450 is mainly due to the inclusion of full 9 months of revenue
for the period ended December 31, 2013 as compared to the inclusion
of only 3 months of revenue the revenue from Inphosoft for the
period ended December 31, 2012. However, revenue from Inphosoft for
3 months ended December 31, 2013 declined by 32.6% to $227,311 is
mainly due to the company has concentrated in the development of
two applications i.e. InphoShop GoMall Happy Hours V2 and InphoChat
Here Messenger in the current quarter. The development of the two
applications have not completed yet. Revenue from the Company's
IOSMS activities, taken separately, declined by 80.7% and 77.4% for
the 3 months and 9 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
69.5% drop in SMS traffic during the quarter ended December 31,
2013, compared to the corresponding quarter the previous year.
Revenue from Inphosoft for the 9 months aggregated $810,450 is
broken down as follow: Professional Services - $457,336 (56.4%),
License fees - $38,120 (4.7%), and Support and Maintenance
(S&M) -$314,994 (38.9%).
The net loss for the quarter ended December 31, 2013 amounted to
$772,639, compared to a loss of $343,627 during the same quarter
the previous year. The loss for the third quarter this fiscal year
includes a net foreign exchange loss of $10,928 and a non-cash
charge to earnings of $324,826 representing accretion on
obligations related to the convertible debentures and promissory
notes issued in connection with the acquisition of Inphosoft.
EBITDA for the third quarter ended December 31, 2013 amounted to
deficit of $268,623 while EBITDA for the corresponding period the
previous year which showed a surplus of $43,921. These results
underline a decline in gross profit with gross income decreasing by
57.4% to $156,999 and with a lower gross profit margins hence
translate into a gross margin of 61.7%, compared to 77.2% 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 9 months ended December 31, 2013, the loss of
$2,086,759 reported during the period reflects higher operating
expenses. With Inphosoft, salaries and wages jumped by 211.0% to
$817,168, and general and administrative expenses are up 119.0% to
$233,214. However, consultancy fees decreased by 55.6% to $36,423
and professional fees decreased by 72.8% to $139,420. 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
$493,490, compared to $93,301 for the corresponding 9 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.
GINSMS Inc.Joel Chin, CEOTel:
+65-6441-1029investor.relations@ginsms.com
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