TIO Networks Corp., owner of North America's leading automated bill payment and financial services network, (TSX-V: TNC), today announced operating results for the third quarter ended April 30, 2008.
The number of revenue generating transactions increased 27% to 1,415,220 compared to 1,114,860 for the same period last year and improved by 36,817 transactions or 3% over the previous quarter. Total recurring revenue for the quarter, including transaction services and maintenance/licensing services revenue, increased 3% and accounted for $3,441,953 or 98% of total revenue, compared to $3,355,835 or 92% for the quarter ended April 30, 2007. The gross profit on recurring revenue for the quarter decreased 8.9% to $1,218,440, compared to gross profit of $1,337,605 for the same period one year ago. Given that approximately 99% of the Company's recurring revenue was generated in the US, recurring revenue for the quarter was adversely affected by a 14% change in currency caused by devaluation in the US dollar as compared to the same period one year ago.
Revenue for the quarter ended April 30, 2008 was $3,508,643, compared to $3,639,693 for the same period one year ago. Revenue was negatively impacted by the devaluation of the US dollars by approximately 14% compared with Q3 2007. *Earnings before interest, tax, depreciation, amortization and stock-based compensation (EBITDA) was a loss of $342,000 compared to a loss of $146,000 one year ago and a loss of $541,000 during the previous quarter representing a quarter over quarter EBITDA improvement of 37%. Net loss for the quarter ended April 30, 2008 was $1,267,348 compared to a loss of $1,119,695 for the same period one year ago.
Contributing to the financial results for Q3 were:
1 Amortization of property and equipment of $728,098 (compared with $597,269 in Q3 2007).
2 Reduced margins for the quarter in the amount of $218,000 or 14% due to foreign exchange as compared to the exchange rates adopted in the same period last year,
3 Decrease in one-time revenues by $217,000 for the quarter as compared to one-time revenues of $284,000 in the same period last year
4 Reduction in margins was partially offset by the reduction in operating expenses. General and administration expenses went down by $116,360 or 13% to $750,175 compared to the same period last year. Compared to the previous quarter, it went down by $253.200 or 25%. Sales and marketing expenses went down by $27,628 or 6% to $411,716 compared to the same period last year. The Company recently announced that it had surpassed the 10,000 location activated milestone
"The Company delivered on its plan to significantly reduce expenses, improve quarter over quarter profitability and deliver growth in locations and transactions while dramatically reducing its capital expenditures." said Hamed Shahbazi Chairman and CEO of TIO Networks, "Subsequent to the quarter we surpassed the '10,000 locations activated' mark earlier than expected and look forward with increased confidence as we unlock the value of the TIO Network." -- www.cnxmarketlink.com
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