JERSEY CITY, NJ — (Marketwired) — 08/06/13 — Single Touch Systems, Inc. (OTCBB: SITO), a technology based mobile media solutions provider, today reported financial results for the three and nine months ended June 30, 2013.
Financial Highlights:
Operating Profits: During the six-month period from January 2013 through June 2013, on a pro-forma basis when separating out intellectual property (IP) related initiatives, Single Touch-s core, underlying business generated positive operating profits.
Cash Flow: Achieved cash flow breakeven, inclusive of IP-related expenses, in May and June, the last two months of the third quarter of fiscal 2013.
Revenue: For the third quarter of fiscal 2013, revenue increased to $1.9 million from $1.6 million for the third quarter of fiscal 2012, representing a year-over-year increase of 21%. For the nine months ended June 30, 2013, revenues increased to $5.7 million from $4.7 million for the same period of the prior year, representing a year-over-year increase of 20%. Growth in the third quarter and the nine-month period was all organic and driven by continued adoption of Single Touch-s mobile programs by new and existing client relationships.
Gross Margin: For the third quarter of fiscal 2013, gross margin increased to 58%, from 50% in the same period of the prior year. In the nine months ended June 30, 2013 gross margin improved to 57% from 54% in the same period of 2012.
Adjusted EBITDA: For the third quarter of fiscal 2013, the loss on an adjusted EBITDA basis, a non-GAAP financial measure, narrowed by 28%, to ($255,000), from $(356,000) for the third quarter of fiscal 2012. For the nine months ended June 30, 2013, adjusted EBITDA was $(1,059,000) essentially flat, when compared to $(1,075,000) for the same period of the prior year.
Net Income (Loss): For the third quarter of fiscal 2013, net loss, on a GAAP basis, was $(1.3) million or $(0.01) per basic and diluted share, compared to a net loss of $(1.0) million or $(0.01) per basic and diluted share for the third quarter of fiscal 2012. For the nine months ended June 30, 2013, net loss was $(4.6) million or $(0.03) per basic and diluted share, compared to $(2.3) million or $(0.02) per basic and diluted share for the same period in 2012.
Messaging Volume: In the third quarter of fiscal 2013, Single Touch sent 75 million messages to mobile phone users. This is up 21% from 62 million messages sent in the third quarter of fiscal 2012. Messaging volume is a key business metric for the Company.
“We continue to deliver double-digit revenue growth, coupled with gross margin improvements, which exceed historical levels. We have achieved cash flow breakeven in May and June, inclusive of expenses for our IP initiatives. This is a financial goal we had previously set and we are pleased to have achieved it. When excluding IP-related expenses on a pro-forma basis, our core, underlying business generated operating profits at an increasing rate for the six-month period from January through June 2013,” stated Single Touch President and CEO James Orsini.
“We are very encouraged by the scalability of our business and its implication for future results and profitability. As our messaging volume and corresponding revenues grow, we do not foresee the need for significant additional capital to fund core operations. This sets us on a course for further margin expansion, driven by volume efficiencies, continued efforts to reduce carrier cost, and the launch of new products and services.”
“Our growth in the third quarter was driven by new contracts and increasing volume from previously existing contracts,” Orsini added. “In the third quarter of fiscal 2013, we booked revenues from new customers including Touch Rate, an insurance provider with touchscreen quotes in a national retailer, as well as a nationwide call center client. We also saw significant message volume increases from current customers and initiatives, including a key sports retail client and the #TAXI mobile cab ordering service.”
Single Touch Chairman Anthony Macaluso noted, “With respect to our efforts to unlock the value of our IP portfolio, specific members of our team are laser focused on executing our IP strategy. Due to the nature of these efforts however, we can only provide updates to our shareholders based on specific legal or contractual events. In July, following the end of our fiscal 2013 third quarter, we received what we believe to be a predominantly favorable in our patent infringement action against Zoove. During the third quarter, in April, Single Touch was added to the stock index comprised of 30 publicly traded companies focused on IP. Our Company is increasingly being recognized by the investment and technology communities for the IP portfolio that we hold.”
Conference Call Dial-In Information:
Date: Wednesday, August 7, 2013
Time: 8:30 A.M. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers: 877-407-8629
Dial in Number for International Callers (Outside of the U.S. & Canada): 201-493-6715
To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time. A live webcast and archive of the call will also be available on Single Touch-s website at:
If you are unable to participate in the call at this time, a replay will be available for 7 days starting on August 7th at approximately 11:00 A.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 414392.
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 IR
877-368-3566