Ivrnet Inc. Reports Third Quarter Results

For Immediate Release December 7, 2009
Calgary, Alberta (TSX Venture Exchange: “IVI”)
  Issued Common Shares: 29,044,062

Ivrnet Inc. Reports Third Quarter Results

Calgary, Alberta – December 7, 2009 – Ivrnet Inc. (TSX Venture: IVI) is pleased to report financial results for the quarter ended September 30, 2009. The Company generated revenues of $696,489 during the quarter. This represents an 18% increase over the equivalent quarter of 2008, and a greater than 10% increase over reported revenues in Q2 of 2009.  This also constitutes the best quarterly top line performance in the Company’s history.  Dave Snell, Ivrnet’s President and CEO noted: ‘We are very pleased with these results, both because it occurred during a time of generally weak economic conditions, and because it appears to validate the strategic direction that the Company has taken.”

The gross margin in Q3 of 2009, amounted to $536,835, or 77% of revenues. This compares to a gross margin of only $467,913 in the third quarter of the previous fiscal year, comprising 79% of that quarters’ revenues. Operationally, the Company generated a profit of $1,075 in Q3 of 2009. But with adjustments for other non-operating expenses, a net loss of $98,925 was recorded, compared to a net income of $13,236 in the third quarter of the previous fiscal year.

As can be seen in the table below, the loss in Q3 of 2009, is almost entirely attributable to a $100,000 expense allocation for stock based compensation. During the quarter, a $500,000 term loan was obtained to provide Ivrnet with additional working capital and to fund capacity expansions at the Company’s data center. The stock based compensation was issued to a Director of the Company, in exchange for a personal guarantee on the $500,000 loan. This guarantee made it possible for Ivrnet to negotiate the loan at a much more favorable rate, than would otherwise be achievable.

A comparative summary of recent financial results is presented below.

Summary of Selected Financial Results

 

 

 

2009

2008

 

$ CAD

Q3

Q2

Q1

Q4

Q3

Revenues

696,489

630,501

625,232

534,259

591,145

Cost of Sales

(159,654)

(128,822)

(106,308)

(73,779)

(123,232)

Gross Margin

536,835

501,679

518,924

460,480

467,913

Expenses

(447,939)

(413,459)

(442,963)

(431,612)

(367,973)

EBITDA (1)

88,896

88,220

75,961

28,868

99,940

Net Income (Loss)

(98,925)

1,616

1,596

(63,944)

13,236

Earnings (Loss) Per Share

(0.00)

0.00

(0.00)

0.00

0.00

Total Assets

1,660,086

1,326,751

1,065,405

995,573

1,105,416

(1) EBITDA is defined as earnings before interest, taxes, depreciation and amortization.  Also excluded in Q3 of 2009 is $100,000 of non-cash financing costs.  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.

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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