TORONTO, ONTARIO — (Marketwire) — 11/28/11 — AirIQ Inc. (“AirIQ” or “the Company”) (TSX VENTURE: IQ), a supplier of asset management services, today announced its financial results for its second quarter ended September 30, 2011.
Q2 Fiscal 2012 Highlights:
“We are pleased to report these improving quarterly results,” said Don Gibbs, President and Chief Executive Officer of AirIQ. “Our continuing commitment to supply small to medium size fleets with economical asset management solutions, while closely monitoring expenses, is bearing fruit,” continued Mr. Gibbs. “I am also happy to report that the Company repaid all of its long term debt commitments.”
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 September 30, 2011, decreased 5% to $633 from $669 for the three months ended September 30, 2010. Revenues for the six months ended September 30, 2011, decreased 19% to $1,250 from $1,537 for the six months ended September 30, 2010. Approximately 78% 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 10% to $476 and decreased by 9% to $897 for the six months ended September 30, 2011, from $431 and $988, respectively for the comparative three months and six months ended September 30, 2010.
Total expenses were $505 for the three months ended September 30, 2011 compared to $719 for the three months ended September 30, 2010. Expense reductions were achieved in the following areas; a) wages and related expense reductions of approximately $66 due to the Company-s restructuring initiatives and work sharing programs, b) general expenses of approximately $45 primarily related to the reversal of a contingent liability and a reduction of taxes owing due to the forgiveness of a penalty c) computer operating expense savings of approximately $17 due to the reduction of co-location expenses, (d) reduction in share-based payments of $78, and (e) other cost reductions of approximately $7 related to audit fees, director fees, legal fees and other costs.
Total expenses were $1,054 for the six months ended September 30, 2011 compared to $1,597 for the six months ended September 30, 2010. Expense reductions were achieved in the following areas; a) wages and related expense reductions of approximately $153 due to the Company-s restructuring initiatives and work sharing programs, b) consulting expense of approximately $80 primarily related to the restructuring initiatives, c) computer operating expense savings of approximately $49 due to the reduction of co-location expenses, (d) reduction in share-based payments of $156, and (e) other cost reductions of approximately $106 related to audit fees, director fees, legal fees and other costs.
The Company-s net loss for the three months ended September 30, 2011 was $63, as compared to a net loss of $319 for the three months ended September 30, 2010, a decrease of $256. The Company-s net loss for the six months ended September 30, 2011 was $229, as compared to a net loss of $680 for the six months ended September 30, 2010, a decrease of $451.
The Company-s unaudited consolidated condensed interim financial statements as at and for the three months and six months ended September 30, 2011, including notes thereto, and the accompanying Management-s Discussion and Analysis were filed with the Canadian securities regulatory authorities on November 28, 2011, 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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