BSM Technologies Reports 2008 Revenues of $7.83 Million
Woodbridge, Ontario, CANADA‐ BSM Technologies Inc, (BSM)(GPS: TSX‐V) (http://www.bsmwireless.com) a leading provider of high security vehicle tracking and surveillance solutions today announced that revenues for the year ended September 30, 2008 were $ 7,827,823.
Results of Operations
Revenue for the year ended September 30, 2008 decreased by 465,354 or 5.6% to$ 7,827,823 from $ 8,293,177 for year ended September 30, 2007. The decrease of $465,354 from September 30, 2007 yearly revenue of $8,293,177 can be attributed to lower hardware revenue.
The gross profit for the year ended September 30, 2008 increased by $ 32,045to $3,753,033 or 48% of the revenue from $3,720,988 or 45% of the revenue for the year ended September 30, 2007. The increase in yearly total gross profit was primarily due to increase in higher gross profit margin services revenue, a result of the growth of the services subscriber base and introduction of additional billable service features such as our new data bus integration offering. As a percentage of revenues, gross profit for the year ended September 30, 2008 was 48% compared to 45% for the year ended September30, 2007. The increase in total gross profit margins was due primarily to reduction in cost of the hardware devices, and increased sales mix of higher gross profit margin services revenue.
Income/Loss from Operations
Net loss for the year ended September 30, 2008 was $3,870,991 or $0.05 per share per share (basic and diluted) compared with a net loss of $2,683,738 or$0.04 per share (basic and diluted) for the for the year ended September 30,2007.
Overall, operating expenses before interest expense and amortization of intangible assets increased by $ 655,760 to $6,583,242 for the Year ended September 30, 2008 from $ 5,927,482 for the Year ended September 30, 2007.
Liquidity and Capital Resources
The Company used $1,920,760 to finance operating activities during the year ended September 30, 2008, including $3,033,164 in operating losses offset by a decrease of $1,112,404 in non cash operating working capital. This compares with cash used in the year ended September 30, 2007 of $ 1,519,446 ‐ $2,311,272to finance operating losses offset by a decrease of $791,826 in non cash operating working capital. Lower accounts receivable, higher accounts payable, offset by higher inventory amount accounted for the changes in the non‐cash working capital. At September 30, 2008, the working capital deficiency was $ 154,031 (September 30, 2007‐ $ 909,607).Working Capital has been calculated by netting current assets and current liabilities, and excluding deferred revenue which is a non cash item. Working capital was at September 30, 2008 increased by $755,576. The primary cause of working capital increase was new equity and debenture financing, offset by operating loss incurred in the year. 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) on or before January 28, 2009.
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 email@example.com where they can also request addition to the BSM investor e‐mail list.
About BSM Technologies
BSM Technologies designs, manufactures and markets a comprehensive line of AVSL (“Automatic Vehicle Security and Tracking”) solutions for Commercial and Government Fleet Management, including Law Enforcement, through its subsidiary BSM Wireless. The BSM line of products range from Fleet Management and Consumer Vehicle Protection offerings to the full featured Stinger product line. Featured in news media worldwide, BSM’s Stinger product is the key technology behind the Bait and Covert applications used by hundreds of Law Enforcement agencies to deter vehicular, trailer and heavy equipment theft.
Superior functionality, seamless switching between multiple communication networks, enhanced reliability, advanced security features, and excellent value characterize BSM products. By incorporating advanced wireless locating and mapping technology, and IP‐based communications protocols, the BSM line of products provides sophisticated real‐time monitoring and control of commercial and personal vehicle assets to meet the demanding needs and stringent requirements of today’s mobile environments.
SecTrack is a European‐based satellite telematics distribution company, selling Inmarsat D+ and IsatM2M transceivers and airtime subscription to value added resellers throughout Europe, Asia, Africa, Central and South America. It has a network of more than 220 value‐added resellers in over 38 countries servicing 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. For more information please visit http://www.sectrack.be
About Netistix Technologies
Incorporated in 2002, Netistix Technologies Corporation is head quartered in Woodbridge, Canada and has developed FleetPulse, a comprehensive and customizable wireless fleet management system leveraging direct connection to vehicle diagnostic systems, and communicating via cellular or Wi-Fi communication networks. The FleetPulse Wireless Fleet Management System delivers actionable information that reduces fleet operation and environmental costs, improves productivity and increases safety. For more information, please visit http://www.netistix.com
Mr. Aly Rahemtulla
President & CEO
BSM Technologies Inc.
1 (905) 265 1200
Except for historical information contained herein, this news release contains forward‐looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development.
The TSX Venture Exchange has not reviewed and does not accept 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. This News Release may include certain “forward‐looking statements” that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward‐looking statements. The company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the company’s new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the company’s business prospects may be materially different from forward‐looking statements made by the company