Ivrnet Inc. Reports First Quarter Results

For Immediate Release

May 28, 2009

Calgary, Alberta

(TSX Venture Exchange: “IVI”)

 

Issued Common Shares: 28,424,167

 

Ivrnet Inc. Reports First Quarter Results

Calgary, Alberta – May 28, 2009 – Ivrnet Inc. (TSX Venture: IVI) is pleased to report on its’ financial results for the quarter ended March 31, 2009. In this first quarter, the Company enacted various measures to control costs, while aggressively pursuing new market opportunities, notwithstanding the broader economic downturn. These measures were and continue to be successful. In the first three months of 2009, the Company generated revenues of $625,232, a 17% increase over the equivalent first quarter of 2008, and also 17% higher than revenues in Q4 of 2008.

In Q1 of 2009, the gross margin amounted to $518,924, or 83% of revenues. This compares to a 71% gross margin achieved in the first quarter of the previous fiscal year. Net income was $1,596 in this first quarter, compared to a loss of ($73,091) in the first quarter of the previous fiscal year, and a loss of ($63,944) in the last quarter of 2008.

Although the Company first quarter net income was marginal, its EBITDA for the period amounted to $75,961, which in part contributed to a net quarter over quarter gain in total assets of $69,832, bringing total asset value to $1,065,405. As at March 31, 2009, total current assets were recorded at $484,815. As total current liabilities as at the same data amounted $501,437, this resulted in a working capital deficiency of $16,622.

However, at December 31, 2008, the working capital deficiency stood at $121,658. Consequently, although this remains an issue that the Company is continuing to address, Management is pleased that the deficiency diminished by 86% over a single quarter.

 Quarter over Quarter Summary of Selected Financial Results

 

2009

2008

 

 

 

$ CAD

Q1

Q4

Q3

Q2

Q1

Revenues

625,232

534,259

591,145

622,569

536,113

Cost of Sales

(106,308)

(73,779)

(123,232)

(151,718)

(153,930)

Gross Margin

518,924

460,480

467,913

470,851

382,183

Expenses

(442,963)

(431,612)

(367,973)

(386,313)

(379,666)

EBITDA (1)

75,961

28,868

99,940

84,538

2,517

Net Income (Loss)

1,596

(63,944)

13,236

4,241

(73,091)

Earnings (Loss) Per Share

0.00

(0.00)

0.00

0.00

(0.00)

Total Assets

1,065,405

995,573

1,105,416

1,240,366

1,288,916

(1) EBITDA is defined as earnings before interest, taxes, depreciation and amortization.  EBITDA is not a recognized measure under Canadian generally accepted accounting principles.  Management believes however that EBITDA is a useful supplementary measure as it provides indication of the results of Ivrnet’s business operations without regard to how these activities were financed or how these results were taxed. 

A more complete analysis of the Company’s financial results can be found by visiting www.sedar.ca.

Dave Snell, Ivrnet’s President and CEO stated, “We are pleased that our overall financial position and profitability has strengthened, in an otherwise very challenging fiscal period. We expect to continue to build momentum as an economic recovery takes hold, and to initiate further measures to extend shareholder value over time.” 

About Ivrnet Inc. – Ivrnet is a communications company that develops and operates intelligent software applications, delivered through traditional phone networks and over the Internet. These applications facilitate automated interaction; personalized communication between people; mass communication for disseminating information to thousands of people concurrently; and personalized communication between people and automated systems. Ivrnet's applications are accessible through nearly any form of communication technology, at anytime from anywhere in North America via voice, phone, fax, email, texting and the Internet.

For additional information please visit our website at www.ivrnet.com, or contact:

David L. Snell

Ivrnet Inc.

President and CEO

(403) 538-4540

eMail: d.snell@ivrnet.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release may contain certain forward-looking information.  Actual future results may differ materially from those contemplated.  The risks, uncertainties and other factors that could influence the actual results are described in documents filed with regulatory authorities.


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