BSM Technologies Inc. For immediate release To the attention of Business and Financial Editors BSM Reports 35% Rise in Quarterly Revenue, Increase in Gross Profit to 59% of Revenues
Woodbridge, Ontario, CANADA – BSM Technologies Inc. (“BSM”) (TSX-V: GPS) is pleased to announce its financial results for the financial quarter ended December 31, 2009.
Highlights for the three months ended December 31, 2009:
• 35% increase in revenue to over $3.5 million, in line with management expectations
• Gross profit of 59% of revenue, exceeding management expectations
• Working capital of $1,798,080
• Tight control of expenses as management began implementing measures to realize $1.5 million in synergies from the acquisition of Datacom
BSM’s quarterly revenue increased 35 %, in line with management expectations. Revenue for the quarter ended December 31, 2009 increased by $911,186 to $3,505,130. Service revenue for the quarter ended December 31, 2009 increased by $841,020 or 72% to $2,004,122.
Gross profit increased from 50% of revenue to 59% of revenue, meeting management expectations. The gross profit for the quarter ended December 31, 2009 increased by $765,607 to $2,072,243.
On September 25, 2009 BSM Technologies acquired all the outstanding shares of Datacom Wireless Corporation. The integration of the two businesses began and significant progress was made in the quarter ended December 31, 2009. While this had a limited financial impact in the period ending December 31, 2009, management expects that $1.5 million in annual cash synergies will be in place by the end of quarter ending March 31, 2010.
Working Capital as at December 31, 2009 increased by $2,076,594 to $1,798,080 compared to working capital deficiency as at December 31, 2008 of $278,514. Expenses The increase in expenses is explained by the business combination of BSM and Datacom. Tight expense control kept the net loss for the quarter below management expectations. Overall operating expenses before interest expense, notional charges preferred shares, and amortization of intangible assets, increased by $ 1,042,242 to $2,205,534.
Net loss for the for the quarter ended December 31, 2009 was $236,054 or $0.001 per share on a diluted basis compared with a net loss of $223,674 or $0.003 per share on a diluted basis for the for the quarter ended December 31, 2008. The Company’s consolidated financial statements, accompanying notes and Management’s Discussion and Analysis will be available on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website (www.sedar.com). This press release is available on the Company’s official website at http://www.bsmwireless.com. Alternatively, investors are able to e–mail their questions to firstname.lastname@example.org where they can also request addition to the BSM investor e–mail list.
About BSM Technologies
BSM Technologies, through its subsidiary BSM Wireless Inc., is a leading provider of fleet tracking, fleet maintenance, and automated vehicle security systems providing real time, web-based tracking of fleet assets. BSM provides solutions for commercial, government, and law enforcement organizations who manage and operate large fleets, and who seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs.
On September 25, 2009 BSM Technologies acquired all the outstanding shares of Datacom Wireless Corporation. Founded in 1999, Datacom has grown to become one of the Canadian leaders in the design, development and marketing of mission critical vehicle fleet management and theft prevention solutions. Its products and services use wireless communications and satellite-based tracking technologies (GPS) and a state-of-the-art ASP information portal.
BSM Technologies subsidiary SecTrack sells Inmarsat D+ transceivers and airtime subscription to value added resellers around the world. These VARs are typically local companies who have built a proper monitoring and tracking service for end–users in a multitude of maritime and land based sectors including nuclear transport monitoring, mining, security tracking of trucks, trailers and other vehicles and tracking of airplanes and rescue helicopters. The company’s customer base is spread over Europe, Asia, Africa and Central and South America. For more information, please visit http://www.bsmwireless.com. For more information on SecTrack, please visit http://www.sectrack.be/
For more information please contact:
Mr. Aly Rahemtulla
President & CEO
BSM Technologies Inc.