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GINSMS Announces Financial Results for the Three and Nine Months Ended December 31, 2014
CALGARY, ALBERTA--(Marketwired - Feb. 26, 2015) - GINSMS Inc. (TSX VENTURE:GOK) (the "Company") has announced its financial results for the third quarter ended December 31, 2014.
The complete financial results for GINSMS are available at www.sedar.com. Highlights include:
Revenue of $436,257 and $1,082,919 for the three and nine month period ended December 31, 2014 respectively as compared to $254,327 and $911,652 for the three and nine month period ended December 31, 2013 respectively.
Gross Profit of $26,153 and $93,907 the three and nine month period ended December 31, 2014 respectively as compared to $71,126 and $351,819 for the three and nine month period ended December 31, 2013 respectively.
Selling, general and administrative expenses increased from $425,622 for the three month period ended December 31, 2013 to $435,013 for the three month period ended December 31, 2014. However, selling, general and administrative expenses decreased from $1,234,022 for the nine month period ended December 31, 2013 to $1,211,105 for the nine month period ended December 31, 2014.
Net loss of $821,138 and $2,411,364 for three and nine month period ended December 31, 2014 respectively as compared to a net loss of $777,639 and $1,977,878 for the three and nine month period ended December 31, 2013 respectively.
New application-to-person ("A2P") SMS Service that was introduced in March 27, 2014 has generated revenue of $307,127 and $490,078 for the three and nine months ended December 31, 2014 and is expected to contribute significantly to the Company's revenue in the future.
GINSMS's A2P business started generating revenue in the month of April 2014. Revenue for the first quarter ended June 30, 2014, second quarter ended September 30, 2014 and third quarter ended December 31, 2014 were CAD78,115, CAD104,836 and CAD 307,127 respectively. The table below shows the monthly revenue generated for the A2P business in the three months ended December 31, 2014:
Revenue | Oct 2014 | Nov 2014 | Dec 2014 |
(CAD thousand) | |||
A2P SMS Service | 72 | 104 | 131 |
Selected Profit and Loss Information
Financial Highlights | Three-month period ended | Nine-month period ended | |||
2014 | 2013 | 2014 | 2013 | ||
Revenues $ | |||||
A2P SMS Service | 307,127 | - | 490,078 | - | |
IOSMS | (11,105) | 30,427 | 22,222 | 101,202 | |
S/W Product & Services | 140,235 | 223,900 | 570,619 | 810,450 | |
436,257 | 254,327 | 1,082,919 | 911,652 | ||
Cost of sales $ | |||||
A2P SMS Service | 285,500 | - | 455,390 | - | |
IOSMS | 1,059 | 51,497 | 72,843 | 156,516 | |
S/W Products & Services | 123,545 | 131,704 | 460,779 | 403,297 | |
410,104 | 183,201 | 989,012 | 559,813 | ||
Gross profit $ | |||||
A2P SMS Service | 21,627 | - | 34,688 | - | |
IOSMS | (12,164) | (21,070) | (50,621) | (55,314) | |
S/W Products & Services | 16,690 | 92,196 | 109,840 | 407,153 | |
26,153 | 71,126 | 93,907 | 351,839 | ||
Gross margin % | |||||
A2P SMS Service | 7.0% | - | 7.1% | - | |
IOSMS | 109.5% | (69.2)% | (227.8)% | (54.7)% | |
S/W Products & Services | 11.9% | 41.2% | 19.2% | 50.2% | |
6.0% | (28.0)% | 8.7% | 38.6% | ||
EBITDA $ | (359,706) | (268,623) | (961,282) | (664,667) | |
EBITDA margin | (82.5)% | (105.6)% | (88.8)% | (72.9)% | |
Net earnings $ | (821,138) | (772,639) | (2,411,364) | (1,977,878) | |
Net earnings margin | (188.2)% | (303.8)% | (222.7)% | (217.0)% | |
Net earnings (loss) per share $ | |||||
Basic | (0.02) | (0.02) | (0.05) | (0.04) | |
Diluted | (0.02) | (0.02) | (0.05) | (0.04) | |
EBITDA is a non-GAAP measure related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation & amortization (in both cost of sales and general and administration expenses) and the accretion on obligations. | |||||
About GINSMS
GINSMS is a mobile technology and services company focusing on 2 areas namely cloud-based application-to-peer ("A2P") messaging service and Software Products & Services. GINSMS operates a cloud-based A2P messaging service that allows the termination of SMS to mobile subscribers of more than 200 mobile operators globally. GINSMS also develops and distribute innovative software products and services for mobile operators and enterprises and have successfully deployed more than 100 solutions worldwide. GINSMS has offices in China, Singapore, Hong Kong, Malaysia and Indonesia.
Forward-Looking Statements
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with GINSMS' business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to GINSMS or its management. The forward-looking statements are not historical facts, but reflect GINSMS' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors" in GINSMS' Filing Statement filed on August 29, 2012 with the regulatory authorities. GINSMS 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 required by law.
NEITHER THE 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.
