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TrueContext Mobile Solutions Corporation Announces Third Quarter Results

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  Published in Stocks and Investing on Tuesday, November 24th 2009 at 15:19 GMT by Market Wire
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OTTAWA, ONTARIO--(Marketwire - Nov. 24, 2009) - TrueContext Mobile Solutions Corporation (formerly Carlaw II Capital Corp.) (TSX VENTURE:TMN), a mobile data solutions company today announced its results for its third quarter ended September 30, 2009. All amounts are stated in Canadian dollars unless otherwise noted.

"We continue to believe that break-even is achievable in the short term and that we are well positioned in the high growth mobility market." said Alvaro Pombo, Chief Executive Officer. "We are pleased with the progress made during our third quarter with a cost restructuring, a private placement and a transaction enabling our shares to trade on the TSX Venture Exchange. We are encouraged by the subscription growth patterns and the size and quality of opportunities that we can address. Our revenue has been increasing steadily this year and we are focused on gaining traction with customers and partners to accelerate our growth. We continue to see steady progress with resellers and customer adoption of our Pronto Mobile Forms ([ www.prontoforms.com ]) service in a wide variety of business processes across multiple industries and international markets."

Operating Results for the Quarter Ended September 30, 2009

The following is a summary of the operating results for TrueContext Mobile Solutions Corporation (the "Company"), for the quarter ended September 30, 2009.

Revenue for the three months ended September 30, 2009 was $149,439 compared to $277,326 for the three months ended September 30, 2008. Total revenue for the third quarter of 2009 increased by 7.2% over the 2009 second quarter revenue of $139,310. The 2009 third quarter revenue consisted of approximately $79,300 of license revenue, of which $72,100 was earned through subscriptions and $7,200 through a perpetual license sale. The 2009 third quarter subscription revenue of $72,100 represents a 29% increase over the 2009 second quarter subscription revenue of $56,000 as the average number of subscribers per month increased from approximately 1,100 to 1,575. The 2009 third quarter revenue also included $70,098 of professional services and support.

The Company had a net loss of $353,009 for the three months ended September 30, 2009 compared to a net loss of $1,231,525 for the same period in 2008. The loss from operations for the three months ended September 30, 2009 decreased to $351,735 compared to $686,645 for the three months ended September 30, 2008. The majority of the reduction in loss from operations resulted from cost cutting measures implemented in Q1 and Q2 of this year. The reduction in net loss was also affected by the elimination of the foreign exchange loss on US denominated preferred shares. The preferred shares were converted into common shares in the second quarter of 2009, so results are no longer impacted by foreign exchange gains and losses or interest expense on redeemable preferred shares.

Operating expenses for the three months ended September 30, 2009 were $473,307 compared to $877,701 for the three months ended September 30, 2008. The Company's Q3 2009 operating expense is indicative of operating costs for the remainder of the fiscal year.

As at September 30, 2009, the Company had cash and cash equivalents of $931,071 and working capital of approximately $571,682 which is believed to be sufficient to fund operations through at least mid 2010.

The complete financial statements and management discussion and analysis of the Company for the three and nine months ended September 30, 2009 can be found at [ www.sedar.com ].

Option Grants

Options to purchase up to 375,000 common shares of the Company were granted by the Board of Directors, including 70,000 to certain directors and officers. The options were granted pursuant to the terms of the Company's stock option plan and are exercisable for a period of five years at an exercise price to be equal to the closing price of common shares on November 26, 2009. These grants form part of a total remuneration package. Stock option grants are subject to necessary regulatory approvals

ABOUT TRUECONTEXT MOBILE SOLUTIONS CORPORATION

Established in 2001, TrueContext is a pioneer in the creation and utilization of easy to use Mobile Data Collection applications. TrueContext's flagship product, Pronto Forms ([ www.prontoforms.com ]) simplifies field data capture and extends the most powerful business applications to nearly any mobile device. This award-winning, patent-pending technology allows non-technical customers to securely build, manage and deploy a wide variety of forms for mobile workforce management. For questions or additional information, please contact TrueContext at [ sales@truecontext.com ] or at +1.877.668.6438.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation 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 and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at [ www.sedar.com ].

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.