AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE: IQ), a supplier
of asset management services, today announced its financial results
for the first quarter ended June 30, 2011.
"These are the Company's first financial statements prepared
using International Financial Reporting Standards ("IFRS"), as
opposed to the Company's previously prepared financial statements
which were prepared in accordance with Canadian Generally Accepted
Accounting Principles ("Canadian GAAP")," said Don Gibbs, President
and Chief Executive Officer of AirIQ. "The statements disclose the
impact of transition to IFRS on the Company's reported financial
positions, financial performance and cash flows", continued Mr.
Gibbs, "in accordance with IFRS and the International Accounting
Standards Board ("IASB")."
Unless otherwise noted herein, all amounts are in thousands of
Canadian dollars except share, per share and unit information.
Business Highlights for the Quarter:
During the period, the Company continued to focus on the key
elements of its strategy to:
1. Build revenues and manage costs to achieve sustained profitability and
positive cash flow;
2. Strengthen the balance sheet and achieve positive working capital;
3. Economically resolve outstanding legal claims; and
4. Continue to seek opportunities to form value creating strategic
partnerships.
On April 12, 2011, the Company issued an aggregate of 8,707,374
common shares for $0.15 per share through a rights offering for
gross proceeds of approximately $1,306. In addition, on May 31,
2011, the Company completed a private placement of 2,772,886 common
shares at a price of $0.15 per share, for total consideration of
$416.
Subsequent to the quarter end, on August 2, 2011, the Company
repaid its outstanding loans to its lenders in the aggregate amount
of $250, and is now free of all long term debt.
On August 16, 2011 the Company purchased the fleet assets of a
Canadian technology company, which the Company now operates under
the name "ResQ Fleet Services, a division of AirIQ Inc.". The
purchase adds approximately 1,900 additional units to the Company's
subscriber base and also provides the Company with a new software
platform and increased sales capability.
In addition, on August 29, 2011 the Company was successful in
obtaining an Order for Summary Judgement in respect of a claim
filed against AirIQ in the District Court of Harris County, Texas,
alleging damages as a result of the installation of a device in a
vehicle owned by the plaintiff without their knowledge. Effective
October 8, 2011, all claims against AirIQ in this matter will be
dismissed with prejudice.
"The Company expects increased sales as a result of acquiring
the ResQ Fleet Services software platform, as the system provides
enhanced technical capabilities for both existing and new
customers", stated Don Gibbs. "The acquisition, combined with the
equity raises, debt repayment and legal claim dismissal are key
steps towards the Company achieving its strategy as noted above",
continued Mr. Gibbs, "and we will continue to focus on these key
elements as the Company moves forward."
Financial Highlights
Revenues for the three months ended June 30, 2011, decreased 29%
to $617 from $868 for the three months ended June 30, 2010.
Approximately 78% of the total revenue for the quarter represents
recurring revenue from the Company's airtime customers.
Overall, gross profit for the three months ended June 30, 2011,
decreased 24% to $421 from $557 for the comparative three months
ended June 30, 2010.
Sales and marketing, engineering and research and general and
administrative expenses totalled $529 and $782 for the three months
ended June 30, 2011 and three months ended June 30, 2010,
respectively. Expense reductions were achieved in the following
areas; a) wages and related expense reductions of approximately $87
due to the Company's restructuring initiatives and work sharing
programs, b) consulting expense of approximately $87 primarily
related to the restructuring initiatives, c) computer operating
expense savings of approximately $31 due to the reduction of
co-location expenses and other cost reductions of approximately $48
related to audit fees, director fees, legal fees and other
costs.
The Company's net loss from continuing operations for the three
months ended June 30, 2011 year was $166 as compared to a net loss
of $361 for the three months ended June 30, 2010, a decrease of
$195.
The Company's unaudited consolidated condensed interim financial
statements as at and for the three months ended June 30, 2011,
including notes thereto, and the accompanying Management's
Discussion and Analysis were filed with the Canadian securities
regulatory authorities on September 27, 2011, and are available on
the Company's website (www.airiq.com) and on the System for
Electronic Document Analysis and Retrieval website
(www.sedar.com).
About AirIQ
AirIQ currently trades on the TSX Venture Exchange under the
symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada.
The Company offers a suite of asset management services that
generate recurring revenues from each device deployed. AirIQ
delivers services to two primary markets: Commercial Fleets and
dealers that service Consumer segments. AirIQ provides vehicle
owners with the ability to monitor, manage and protect their mobile
assets. Services include: instant vehicle locating, boundary
notification, automated inventory reports, maintenance reminders,
security alerts and vehicle disabling and unauthorized movement
alerts. For additional information on AirIQ or its products and
services, please visit the Company's website at www.airiq.com.
Forward-looking Statements
This news release contains forward-looking information based on
management's best estimates and the current operating environment.
These forward-looking statements are related to, but not limited
to, AirIQ's operations, anticipated financial performance, business
prospects and strategies. Forward-looking information typically
contains statements with words such as "hope", "goal",
"anticipate", "believe", "expect", "plan" or similar words
suggesting future outcomes. These statements are based upon certain
material factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection as reflected in the
forward-looking statements, including AirIQ's perception of
historical trends, current conditions and expected future
developments as well as other factors management believes are
appropriate in the circumstances. Such forward-looking statements
are as of the date which such statement is made and are subject to
a number of known and unknown risks, uncertainties and other
factors, which could cause actual results or events to differ
materially from future results expressed, anticipated or implied by
such forward-looking statements. Such factors include, but are not
limited to, changes in market and competition, technological and
competitive developments and potential downturns in economic
conditions generally. Therefore, actual outcomes may differ
materially from those expressed in such forward-looking statements.
Forward-looking statements are provided for the purpose of
providing information about management's current expectations and
plans relating to the future. Readers are cautioned that such
information may not be appropriate for other purposes. Other than
as may be required by law, AirIQ disclaims any intention or
obligation to update or revise any such forward-looking statements,
whether as a result of such information, future events or
otherwise.
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.
Contacts: AirIQ Inc. Donald Gibbs President and Chief Executive
Officer (905) 831-6444, Ext. 4255 dgibbs@airiq.com
AirIQ (TSXV:IQ)
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