·
|
Transaction Payment Processing (TPP) segment revenue increase of 26%
|
·
|
Added over 900 customers; total customer base increases to over 14,000
|
·
|
New products include partnering with MasterCard to provide support for MasterCard’s PayPass wallet service, allowing online merchants to provide consumers with a frictionless check-out experience
|
·
|
Launched a Beanstream mobile app for iPhone
|
·
|
All three business segments (Transaction Payment Processing (TPP), Check Processing (CP) and Intellectual Property Licensing (IPL)) achieve profitability
|
Three Months Ended
|
||||||||
June 30
|
||||||||
2012
|
2011
|
|||||||
REVENUE
|
$ | 5,613,032 | $ | 5,969,265 | ||||
COST OF REVENUE
|
3,250,972 | 3,321,826 | ||||||
GROSS PROFIT
|
2,362,060 | 2,647,439 | ||||||
OPERATING EXPENSES
|
||||||||
General and administrative
|
966,187 | 931,004 | ||||||
Sales and marketing
|
251,224 | 307,510 | ||||||
Product development and enhancement
|
309,974 | 273,695 | ||||||
INCOME BEFORE OTHER INCOME AND INCOME TAXES
|
834,675 | 1,135,230 | ||||||
Foreign exchange (loss) gain
|
(4,206 | ) | 31,650 | |||||
Interest income
|
26,757 | 17,177 | ||||||
INCOME BEFORE INCOME TAXES
|
857,226 | 1,184,057 | ||||||
Income tax expense (recovery)
|
||||||||
Current
|
455,619 | 206,197 | ||||||
Deferred
|
(45,722 | ) | 290,514 | |||||
409,897 | 496,711 | |||||||
NET INCOME
|
447,329 | 687,346 | ||||||
OTHER COMPREHENSIVE INCOME
|
||||||||
Unrealized foreign exchange (loss) gain on translation of foreign operations
|
(131,159 | ) | 14,363 | |||||
TOTAL COMPREHENSIVE INCOME
|
$ | 316,170 | $ | 701,709 | ||||
EARNINGS PER SHARE, basic and diluted
|
$ | 0.02 | $ | 0.02 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||
Basic
|
28,246,684 | 28,149,725 | ||||||
Diluted
|
28,626,607 | 28,987,253 |
June 30,
|
March 31,
|
|||||||
2012
|
2012
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 27,560,561 | $ | 26,783,754 | ||||
Funds held for merchants
|
12,954,151 | 9,485,182 | ||||||
Short-term investments
|
3,237,169 | 3,290,393 | ||||||
Restricted cash
|
175,000 | 175,000 | ||||||
Accounts receivable, less allowance of $26,867 (March 31, 2012 - $27,397)
|
1,428,230 | 1,272,580 | ||||||
Inventory
|
38,205 | - | ||||||
Corporate taxes receivable
|
275,606 | 373,939 | ||||||
Prepaid expenses
|
271,585 | 331,361 | ||||||
Total current assets
|
45,940,507 | 41,712,209 | ||||||
Property and equipment, net
|
123,305 | 121,496 | ||||||
Patents
|
75,775 | 120,457 | ||||||
Restricted cash
|
254,896 | 258,095 | ||||||
Deferred tax assets
|
855,673 | 809,951 | ||||||
Goodwill
|
17,874,202 | 17,874,202 | ||||||
Other intangible assets
|
3,596,250 | 3,720,037 | ||||||
Other assets
|
20,624 | 20,796 | ||||||
Total assets
|
$ | 68,741,232 | $ | 64,637,243 | ||||
LIABILITIES
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$ | 674,894 | $ | 720,666 | ||||
Accrued liabilities
|
1,412,982 | 1,445,490 | ||||||
Corporate taxes payable
|
835,439 | 386,607 | ||||||
Funds due to merchants
|
12,954,151 | 9,485,182 | ||||||
Current portion of obligations under finance lease
|
2,460 | 2,460 | ||||||
Current portion of deferred revenue
|
1,092,814 | 1,342,828 | ||||||
Total current liabilities
|
16,972,740 | 13,383,233 | ||||||
Obligations under finance lease
|
4,125 | 4,920 | ||||||
Total liabilities
|
16,976,865 | 13,388,153 | ||||||
EQUITY
|
||||||||
Capital stock
|
||||||||
Class A, preferred stock, $1.00 CDN par value, 150,000,000 shares authorized, issuable in series, none issued or outstanding
|
- | - | ||||||
Class B, preferred stock, $1.00 CDN par value, 150,000,000 shares authorized, issuable in series, none issued or outstanding
|
- | - | ||||||
Common shares, no par value, 100,000,000 shares authorized, 28,246,684 issued and outstanding (March 31, 2012 - 28,246,684)
|
53,918,912 | 53,918,912 | ||||||
Contributed surplus
|
10,200,701 | 10,001,594 | ||||||
Warrants
|
113,662 | 113,662 | ||||||
Deficit
|
(12,610,231 | ) | (13,057,560 | ) | ||||
Accumulated other comprehensive income
|
141,323 | 272,482 | ||||||
Total equity
|
51,764,367 | 51,249,090 | ||||||
Total liabilities and equity
|
$ | 68,741,232 | $ | 64,637,243 | ||||
Three Months Ended
|
||||||||
June 30
|
||||||||
2012
|
2011
|
|||||||
Operating Activities:
|
||||||||
Net income
|
$ | 447,329 | $ | 687,346 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
||||||||
Amortization of property and equipment
|
22,200 | 34,240 | ||||||
Amortization of intangible assets
|
168,469 | 165,645 | ||||||
Share-based payments
|
199,107 | 136,437 | ||||||
Deferred income taxes
|
(45,722 | ) | 290,514 | |||||
Foreign exchange loss (gain)
|
53,981 | (3,703 | ) | |||||
Changes in non-cash operating working capital
|
||||||||
Accounts receivable
|
(180,243 | ) | (874,550 | ) | ||||
Corporate taxes receivable
|
97,098 | (59,169 | ) | |||||
Inventory
|
(38,505 | ) | ||||||
Prepaid expenses
|
56,716 | 21,507 | ||||||
Accounts payable and accrued liabilities
|
(52,376 | ) | (138,024 | ) | ||||
Corporate taxes payable
|
460,078 | (4,338,755 | ) | |||||
Deferred revenue
|
(241,025 | ) | (309,206 | ) | ||||
Net cash provided by (used in) operating activities
|
947,107 | (4,387,718 | ) | |||||
Investing Activities:
|
||||||||
Acquisition of property and equipment
|
(26,531 | ) | (21,242 | ) | ||||
Net cash used in investing activities
|
(26,531 | ) | (21,242 | ) | ||||
Financing Activities:
|
||||||||
Proceeds from exercise of stock options
|
- | 205,375 | ||||||
Net cash provided by financing activities
|
- | 205,375 | ||||||
Effects of foreign exchange rate changes on cash and cash equivalents
|
(143,769 | ) | 12,387 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
776,807 | (4,191,198 | ) | |||||
Cash and cash equivalents, beginning of period
|
26,783,754 | 26,917,491 | ||||||
Cash and cash equivalents, end of period
|
$ | 27,560,561 | $ | 22,726,293 | ||||
Supplemental disclosure of cash flow information
|
||||||||
Interest paid
|
$ | - | $ | - | ||||
Taxes paid
|
$ | - | $ | 4,599,921 |
CONTACTS:
|
|
Patrick H. Gaines
|
Investor Relations
|
CEO
|
(800) 888-2260
|
(604) 689-4440
|
|