TORONTO, ONTARIO — (Marketwire) — 08/14/12 — Northcore Technologies Inc. (TSX: NTI)(OTCBB: NTLNF), a global provider of asset management and social commerce solutions, announced today its interim financial results for the second quarter ended June 30, 2012. All figures are reported in Canadian dollars.
Northcore reported consolidated revenues of $415,000 for the second quarter, representing an increase of $228,000 or 122 percent over the $187,000 reported in the same quarter of 2011. Northcore also reported year-to-date consolidated revenues of $645,000, an increase of $275,000 or 74 percent over the $370,000 reported for the same period of 2011. The growth in revenues was attributed primarily to higher social commerce service revenues as a result of the acquisition of Envision Online Media Inc.
Northcore derives its revenues from application hosting activities provided to customers, the sale of software licenses, and the delivery of technology services, such as application and website development, content management solution and software customization.
Northcore reported an Operational EBITDA loss for the second quarter of $375,000, an improvement of eight percent from the Operational EBITDA loss of $408,000 reported for the second quarter of 2011. Northcore also reported year-to-date Operational EBITDA loss of $731,000, an improvement of 10 percent from the operational EBITDA loss of $812,000 reported for the same period of 2011. An increase in revenues contributed to the reduction in Operational EBITDA loss during the periods.
Operational EBITDA is defined as the loss before interest, taxes, depreciation, stock-based compensation, non-cash and non-recurring items. The Company considers Operational EBITDA to be a meaningful performance measure as it provides an approximation of operating cash flows.
For the quarter and six months ended June 30, 2012, Northcore reported a net loss per share of $0.002 and $0.006 respectively, basic and diluted. This compares to a loss per share of $0.010 and $0.013 respectively, basic and diluted, in the same period of 2011.
As at June 30, 2012, Northcore held cash and short-term investments of $853,000, and accounts receivable of $373,000.
Operating Highlights
We accomplished the following activities in the period:
Outlook
“We had promised our shareholders that they would soon see the impact of our acquisition and Social Commerce strategies. I am pleased to point to our second quarter financial results in this regard,” said Amit Monga, CEO of Northcore Technologies. “While we still have challenges to overcome, we have made important, sequential progress and have executed on our stated objectives. As we progress, portfolio companies Kuklamoo and Envision will contribute significantly to our momentum and as always, the Company remains committed to expanding our suite of IP holdings. We have also followed through on our commitment to “tell the story” more aggressively and have retained a professional investor relations firm to help inform the public markets of our achievements and progress. From our perspective, we have a strong foundation to build lasting shareholder value.”
About Northcore Technologies Inc.
Northcore Technologies Inc. (“Northcore” or the “Company”) provides enterprise level software products and services that enable its customers to purchase, manage and dispose of capital equipment. Utilizing award-winning, multi-patented technology, as well as powerful, holistic Social Commerce tools, Northcore-s solutions support customers throughout the entire asset lifecycle. Northcore-s portfolio companies include Envision Online Media Inc., a specialist in the delivery of content management solutions and Kuklamoo, a family information web destination and national daily deal site targeting families with kids.
Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE and holds a substantial intellectual property portfolio.
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This news release may include comments that do not refer strictly to historical results or actions and may be deemed to be forward-looking within the meaning of the Safe Harbor provisions of the U.S. federal securities laws. These include, among others, statements about expectations of future revenues, cash flows, and cash requirements. Forward-looking statements are subject to risks and uncertainties that may cause Northcore-s results to differ materially from expectations. These risks include the Company-s ability to raise additional funding, develop its business-to-business sales and operations, develop appropriate strategic alliances and successful development and implementation of technology, acceptance of the Company-s products and services, competitive factors, new products and technological changes, and other such risks as the Company may identify and discuss from time to time, including those risks disclosed in the Company-s Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that the Company-s plans will be achieved. Important factors that could cause actual results to differ materially from the Company-s expectations are disclosed in the Company-s documents filed from time to time with the Toronto Stock Exchange, on SEDAR (the System for Electronic Document Analysis and Retrieval at ) and the US Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction.
Contacts:
Northcore Technologies Inc.
Investor Relations
(416) 640-0400 ext. 273
(416) 640-0412 (FAX)
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