IP Applications Reports Q2 2008 Results

For the quarter ended June 30, 2008 revenue was $1.3M, a decrease of 30% from $1.9M in the corresponding period in 2007. The net loss increased 51% to $(374)K from $(247)K. EBITDA loss was $(313)K as compared to an EBITDA loss of (13)K in the corresponding quarter in 2007.

For the six-months ended June 30, 2008 revenue was $3.0M, a decrease of 25% from $4.0M in the corresponding period in 2007. The net loss increased 18% to $(512)K from $(433)K. EBITDA loss was $(412)K as compared to EBITDA of 12K in the corresponding period in 2007.

John Jacobson, President and CEO said "Despite a challenging quarter in the technical support and Internet Service segment of our business, we're making solid progress establishing our Software as a Service ("SaaS") business as the dominant driver of future shareholder value. Multiples and valuations of successful SaaS companies are many times greater than conventional help desk and hosted applications providers.

In the second quarter we committed significant staff and cash resources to begin marketing our billing and subscriber management services into the fast growing SaaS and Cloud Computing markets. Early efforts yielded our first contract for these services with Logistica Solutions Inc. of Anaheim, California. Our updated www.SaaSAutomation.com website and online marketing campaigns are also generating new leads. Market research commissioned by the Company shows that companies in the enterprise software space are searching for technical solutions to billing and subscriber management problems. Our intention is to expand and focus IP Applications' business into this fast-growing high-value market." -- www.cnxmarketlink.com