BSM Technologies reports 140% EBITDA growth in fiscal Q2 2012

Toronto ON – BSM Technologies Inc. (“BSM” or the “Company”)  (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems today announced financial and operating results for the three and six month periods ended March 31, 2012.

Q2 fiscal 2012 Highlights (all amounts in thousands of Canadian dollars, except for per share or unit data):

  • Eighth consecutive quarter of positive EBITDA:  $401 represents a 140% increase over Q2 2011 EBITDA of $167.
  • Net income of $338 represents a 213% improvement over Q2 2011 net income of $108.
  • Improved gross margin to 64% from 54% in prior year.
  • Cash from Operations of $840 improved $777 over the prior year.
  • Core Sentinel line recurring revenues of $1,363 for the quarter increased 29% over the prior year.
  • Cash and cash equivalent of $2,611 increased $2,118 from Q2 2011.


“Our core Sentinel product line had a subscription base increase of 53 percent this past quarter over prior year,” said Aly Rahemtulla, President and CEO. “This demonstrates that our continued focus on building a solid recurring revenue base is driving strong bottom line growth. Going forward we will aggressively increase sales to add to this base.”

In the quarter, the Company also purchased four million of its outstanding shares under a Normal Course Issuer Bid for $204. All repurchased shares were returned to treasury.


Financial Highlights


All currency in thousands except per share data.

Three months ended

Six months ended

March 31

March 31

2012

2011

2012

2011

Recurring service revenue

$   2,384

$   2,312

 

$   4,758

$   4,516

Hardware and software revenue

1,361

1,590

 

2,328

2,654

Total revenue

3,745

3,902

 

7,086

7,170

Gross profit

2,387

2,113

 

4,512

3,968

Gross margin %

64%

54%

64%

55%

Net income (loss)

338

108

 

428

20

Basic and diluted income (loss) per share

0.0012

.0005

 

.0015

.0001

EBITDA

401

167

 

546

234

Adjusted EBITDA

401

167

 

789

234

Cash and cash equivalents


$      2,611

$     493

Working capital


1,799

1,328



The Company’ financial statements for the three and six months ended March 31, 2012, together with management’s discussion and analysis, have been filed at www.sedar.com.



About BSM Technologies

BSM Technologies, through its subsidiary BSM Wireless Inc., is a leading provider of remote monitoring, fleet tracking, fleet maintenance, and automated vehicle security systems providing real time, web‐based tracking of mobile and fixed assets. BSM provides solutions for commercial, government, and law enforcement organizations who manage and operate diverse assets and large fleets, and who seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For more information, please visit http://www.bsmwireless.com


For more information please contact:

Mr. Aly Rahemtulla

President & CEO

BSM Technologies Inc.

1.416.675.1200

aly@bsmwireless.com

Craig MacPhail
TMX | Equicom
416-815-0700, ext. 290
cmacphail@equicomgroup.com