JERSEY CITY, NJ — (Marketwire) — 02/14/13 — Single Touch Systems, Inc. (OTCBB: SITO), a technology based mobile media solutions provider, today reported financial results for its fiscal 2013 first quarter ended December 31, 2012.
Fiscal 2013 Q1 Highlights Include:
Revenues increase to nearly $2,000,000, a 22% rise over the prior year period
Driven by 18% organic growth in number of mobile messages — sent 77 million in the quarter as compared to 65 million in the prior year period
Gross margins improved to 55%, up from 52% in the same period last year
Reached a record cumulative half billion mobile messages sent
Formed Single Touch Interactive R&D IP to protect and monetize our patents
“We are pleased with the progress achieved in the first quarter both in our operating business and in our IP monetization efforts. We anticipate continued positive developments in terms of growth and market adoption of our services and technologies, and we therefore reiterate our projection of revenue growth of more than 50% in fiscal 2013 over fiscal 2012, driven by a combination of growth through existing clients, a growing pipeline of prospective new clients and an increase in premium sponsored messaging. Our gross margins improved in the first quarter, and we anticipate that to continue, with a target 60% for the 2013 fiscal year. Based on these growth rates, we anticipate becoming profitable on a cash basis during fiscal 2013.”
“Single Touch took its most important step to date regarding monetizing our robust IP portfolio,” stated Single Touch Chairman and Chief Technology Officer Anthony Macaluso. “In October we established our new subsidiary, Single Touch Interactive R&D IP. This was a milestone and a very important step in unlocking the value of our IP and creating a powerful business model as a company that creates, protects and monetizes our intellectual property and technology in the mobile space.”
Revenues in the first quarter increased by 22%, to $1,947,278, compared to $1,589,673 in the first quarter of fiscal 2012. Royalties and application costs, which represent the direct out-of-pocket costs associated with revenue, totaled $883,793 in the period ended December 31, 2012, compared to $763,321 in the prior year period, an increase of 16%. Because a portion of royalties and application costs is fixed and all such costs are being monitored and reduced wherever possible, they have grown at a lesser rate than revenue. Gross margin was $1,063,485, or 55%, for the first quarter of fiscal 2013, compared to $826,352, or 52%, in the same period of the prior year.
Adjusted general and administrative expenses in the first quarter of fiscal 2013 increased 51%, to $770,703, from $509,254 in the first quarter of fiscal 2012. Adjusted professional fees rose by more than $180,000, from $151,954 in the first quarter of fiscal 2012 to $335,739 in the first quarter of fiscal 2013. This increase was caused by additional legal fees both for the Company-s IP monetization efforts and for compliance with SEC filing requirements, mostly one-off costs for our most recent private placement and for the registration of its underlying securities.
On a GAAP basis, loss from operations increased from $590,812 in the first quarter of fiscal 2012 to $1,922,869 in the first quarter of fiscal 2013. Adjusted EBITDA, which we define as operating income before depreciation, amortization of intangible assets, stock-based compensation, and special charges, on the other hand, narrowed to a loss of $361,542 in the first quarter of fiscal 2013 from a loss of $404,235 in the same period of the prior year.
A table reconciling operating income on a GAAP basis to Adjusted EBITDA is presented below. We use EBITDA to measure the results of our underlying business.
The Company-s net loss for the fiscal quarter ended December 31, 2012 was $2,232,155, or $0.02 per basic and diluted share. This is higher than the net loss incurred during the fiscal quarter ended December 31, 2011 of $629,196, or $0.00 per basic and diluted share rounded off.
As of December 31, 2012, the Company had cash on hand of $1,378,363, total assets of $6,486,510 and shareholders- equity of $1,067,689.
Single Touch Systems, Inc. is a technology based mobile solutions provider serving businesses, advertisers and brands. Through patented technologies and a modular, adaptable platform, Single Touch-s multi-channel messaging gateway enables marketers to reach consumers on all types of connected devices, with information that engages interest, drives transactions and strengthens relationships and loyalty. For more information about Single Touch Systems, Inc. visit:
This news release may contain forward-looking statements that involve risks and uncertainties and reflect Single Touch-s judgment as of the date of this release. These statements may include those regarding strategy, growth and future operations. Actual events or results may differ from Single Touch-s expectations. The risks and uncertainties include reliance on brand owners and wireless carriers, the possible need for additional capital, as well as other risks identified in Single Touch-s filings with the SEC. Single Touch disclaims any intent or obligation to update these forward-looking statements beyond the date of this press release, except as may be required by law.
Investor and Media Contact:
Robert Haag
Hampton Growth
877-368-3566