TORONTO, ONTARIO — (Marketwire) — 02/28/12 — AirIQ Inc. (“AirIQ” or “the Company”) (TSX VENTURE: IQ), a supplier of asset management services, today announced its financial results for the three months and nine months ended December 31, 2011.
Quarterly Highlights compared to the same period last year:
“The Company is pleased to report that its new hardware platform has now been integrated into its back-end, which gives us full over-the-air (OTA) capability,” said Don Gibbs, President and Chief Executive Officer of AirIQ. “We are also excited about the introduction of a new AirIQ -Plug and Track- product that plugs into the vehicle and provides complete tracking capability. This new product has been enthusiastically received by the marketplace and we look forward to increasing revenues in the coming quarters with the sale of this product,” continued Mr. Gibbs.
The Company also reported that the cost of integrating the recently acquired ResQ platform and application into AirIQ is now behind the Company, and it is expected that this new product line will be accretive in future quarters.
Financial Highlights
Unless otherwise noted herein, from this point forward, all amounts are in thousands of Canadian dollars except share, per share and unit information.
Revenues for the three months ended December 31, 2011, decreased 8% to $600 from $649 for the three months ended December 31, 2010. Revenues for the nine months ended December 31, 2011, decreased – 15% to $1,850 from $2,186 for the nine months ended December 31, 2010. Approximately 74% of the total revenue for the quarter represents recurring revenue from the Company-s airtime customers.
Overall, gross profit for the three months increased by 11% to $454 for the three months ended December 31, 2011 and decreased by 3% to $1,351 for the nine months ended December 31, 2011, from $406 and $1,394, respectively for the comparative three and nine months ended December 31, 2010.
Total expenses were $522 for the three months ended December 31, 2011 compared to $742 for the three months ended December 31, 2010. Expense reductions were achieved in the following areas; a) wages and related expense reductions of approximately $58 due to the Company-s restructuring initiatives and work sharing programs, b) legal fees of approximately $20 primarily related to the reduced legal costs due to the settlement of suits c) computer operating expense savings of approximately $36 due to the reduction of co-location expenses, (d) reduction in share-based payments of $75, and (e) other cost reductions of approximately $31 related to audit fees, director fees, and other costs.
Total expenses were $1,574 for the nine months ended December 31, 2011 compared to $2,337 for the nine months ended December 31, 2010. Expense reductions were achieved in the following areas; a) wages and related expense reductions of approximately $208 due to the Company-s restructuring initiatives and work sharing programs, b) consulting expense of approximately $76 primarily related to the restructuring initiatives, c) computer operating expense savings of approximately $69 due to the reduction of co-location expenses, (d) reduction in share-based payments of $232, and (e) other cost reductions of approximately $178 related to audit fees, director fees, legal fees and other costs.
The Company-s net loss from continuing operations for the three months ended December 31, 2011 was $97, as compared to a net loss of $386 for the three months ended December 31, 2010, a decrease of $289. The Company-s net loss from continuing operations for the nine months ended December 31, 2011 was $326, as compared to a net loss of $1,066 for the nine months ended December 31, 2010, a decrease of $740.
The Company-s unaudited consolidated condensed interim financial statements as at and for the three months and nine months ended December 31, 2011, including notes thereto, and the accompanying Management-s Discussion and Analysis will be filed with the Canadian securities regulatory authorities on February 28, 2012, and are available on the Company-s website () and on the System for Electronic Document Analysis and Retrieval website ().
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
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