TORONTO, ONTARIO — (Marketwire) — 11/09/11 — 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 third quarter ended September 30, 2011. All figures are reported in Canadian dollars.
Northcore reported consolidated revenues of $203,000 for the third quarter, representing an increase of 54 percent over the $132,000 reported in the same quarter of 2010. Northcore also reported year-to-date consolidated revenues of $573,000, an increase of 41 percent over the $406,000 reported for the same period of 2010. The growth in revenues was attributed primarily to the development of a group purchase platform and applications implementation for our strategic partners.
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 development, software customization and social commerce solutions.
Northcore reported an Operational EBITDA loss for the third quarter of $404,000, consistent the Operational EBITDA loss of $395,000 reported for the third quarter of 2010. Northcore reported year-to-date Operational EBITDA loss of $1,252,000, an improvement of six percent from the operational EBITDA loss of $1,327,000 reported for the same period of 2010. The increase in revenues contributed to the improvement in Operational EBITDA loss during the period.
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 nine months ended September 30, 2011, Northcore reported a net loss per share of $0.004 and $0.017 respectively, basic and diluted. This compares to a loss per share of $0.006 and $0.014 respectively, basic and diluted, in the same period of 2010.
As at September 30, 2011, Northcore held cash of $1,524,000 and accounts receivable of $253,000.
Operating Highlights
We accomplished the following activities in the period:
Outlook
“I am gratified by the progress that Northcore has achieved in the last quarter. On the strength of the successful deployment of our first Social Commerce customer, we have formed a dedicated group to focus on this business area,” said Amit Monga, CEO of Northcore Technologies. “It is also exciting to see the modest, but important, sequential improvements to our revenue lines and balance sheet. We are working aggressively on many fronts to ensure these encouraging trends continue.”
Northcore will hold a conference call at 10:00 a.m. (Eastern Time) on Thursday, November 10, 2011 to discuss its financial results and review operational activities. Investors and followers of the Company can listen to a live broadcast of the call from the investor relations section of the Company-s website, .
About Northcore Technologies Inc.
Northcore Technologies 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 has earned the trust and loyalty of customers from a wide range of organizations across many different industry sectors.
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 (“the Company”) 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.
(financial results follow)
Northcore Reports Q3 2011 Results
Contacts:
Northcore Technologies Inc.
Investor Relations
(416) 640-0400 ext. 273
(416) 640-0412 (FAX)
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