AirIQ Announces Third Quarter Results, Gross Profit Increase of 61%.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Improvements in key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. and fruition fru·i·tion n. 1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition. 2. Enjoyment derived from use or possession. 3. of GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. strategy, positions AirIQ for growth AirIQ Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :IQ), a leader in Global Wireless Security specializing in Telematics services, reports results for the third quarter ended September September: see month. 30, 2005. Financial Highlights for the third quarter: - Gross profit increased by 60.8% to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.4 million year over year - Subscribers surpassed 194,000, an increase of 50% over the previous year - Revenue increased 32.3% to $10.3 million year over year - Expenses excluding accounting-related expenses for stock based compensation and the loss on foreign exchange decreased to $4.9 million from $5.0 million in the second quarter of this year - Expense to revenue ratio improved to 51.3% compared to 64.6% in the fourth quarter of 2004, and to 47% from 63% over the same period if we exclude accounting-related expenses for stock based compensation and the loss on foreign exchange As a recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue business, the key measures of AirIQ's progress relate to various trajectories, or trends. The Company's strategy is to aggressively acquire new subscribers and service revenues from a relatively fixed and scalable infrastructure. "We have made steady progress over the breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of our business units that position the Company for the next phase of growth," says Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Simmonds Simmonds is a surname, and may refer to
Marine Business Growth During the quarter the marine customer business, Boatracs, experienced the largest subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. shipment month in its ten year history. New units shipped to these customers represented a 9% growth in that subscriber base. A number of vessels Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 they self-released a 5 track eponymous ep, and played many gigs including the unsigned stage at Leeds Festival. came under new fishing regulations and Boatracs is one of only two approved suppliers to this industry. GSM Launch AirIQ launched its GSM (Global System for Mobile Communications (communications) Global System for Mobile Communications - (GSM, originally "Groupe de travail Sp?ciale pour les services Mobiles") One of the major standards for digital cellular communications, in use in over 60 countries and serving over one billion subscribers. ) technology with two significant announcements. During the quarter a GSM agreement with Telefonica Moviles Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. was announced and subsequent to the quarter end, an agreement with Cingular Wireless, the largest wireless carrier in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . GSM offers higher messaging volume capabilities and improved power management for clients at low costs, and supports the Company's aggressive subscriber acquisition plans in the United States and Mexico. Revenues Increased AirIQ reported revenue for the third quarter of $10.3 million, an increase of 32.3% compared to $7.8 million for the period ended September 30, 2004. Revenue for the period was 1.9% higher than the previous three months ended June June: see month. 30, 2005. For the first nine months of 2005, revenue of $30.1 million was a 136.2% increase from the same period in 2004. The increase in revenues resulted from continuing net additions to the Company's subscriber base and from the acquisition of the Aircept and Boatracs businesses, which occurred during June and October October: see month. of 2004. Gross Profit Improved Gross profit for the third quarter of 2005 was $4.4 million, an increase of 60.8% compared to gross profit of $2.7 million in the same period in 2004. As a percentage of revenues, gross profit improved to 42.6% from 35.1% for the third quarter of 2004 and management expects further improvements can be achieved as the Company's integration strategy progresses. Expenses Expenses for the third quarter were $5.3 million, compared to $4.7 million for the same period in 2004. Expenses as a percentage of revenues were 51.3% in the third quarter, compared to 60.3% in the same quarter in 2004 and 50.4% for the quarter ended June 30, 2005. This decrease reflects improvements in operating efficiencies and execution of the Company's integration strategies for Aircept and Boatracs. "Our expenses, excluding accounting-related expenses for stock based compensation and the loss on foreign exchange have continued to improve over the past four quarters, the period since we completed our most recent business acquisition," states Mark Kohler Kohler, village (1990 pop. 1,817), Sheboygan co., E Wis., on the Sheboygan River; inc. 1912. The Kohler plumbing-fixtures plant there, which still produces its famous stainless-steel products, has been the scene of some of the longest and most bitter labor disputes , Chief Financial Officer of AirIQ. Expenses, excluding the accounting related expenses for stock-based compensation expenses, and losses or gains on foreign exchange, totalled $4,876,274 for the three months ended September 30, 2005, a further improvement compared to $5,007,224 for the three months ended June 30, 2005, and $5,173,626 for the three months ended March 31, 2005. Net Interest Net interest expense for the nine months and three months ended September 30, 2005, was $1,049,785 and $192,399 compared to $1,068,314 and $365,827 for the nine months and three months ended September 30, 2004. The improvement in quarter over quarter interest expense is primarily due to the Company's repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of the term loan on May 2, 2005, and the more favourable interest rates charged on the new $10 million credit facility entered into by the Company on April 25, 2005. Net Loss per Share The net loss for the three months ended September 30, 2005, was $1.9 million, or $0.02 per share, and an improvement from the $2.9 million net loss in the same quarter last year. The net loss of $7.4 million for first nine-months of 2005 includes provision for income taxes of $471,000 and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of $1.7 million resulting from the businesses acquired in 2004. Liquidity and Capital Resources As at September 30, 2005, the Company had cash and cash equivalents of $3.4 million and working capital of approximately $2.0 million. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , and as required in section 3070, Deferred Charges, of the CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) handbook
This article is about reference works. For the subnotebook computer, see .
The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge regardless of their associated amortization period. Deferred service contract costs, as at September 30, 2005, of $7,533,431 (September 30, 2004 - $6,243,873) are to be amortized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over the next twelve months. The related deferred revenue and obligations for service contracts, as at September 30, 2005, to be realized over the same twelve month period amounts to $10,607,735 ($9,775,291 and $832,444, respectively) compared with $12,481,576 ($9,529,389 and $2,952,187, respectively) as at September 30, 2004. Consolidated Financial Statements The following unaudited interim consolidated financial statements are presented for the three months and nine months ended September 30, 2005 and September 30, 2004, and include the operating results of AirIQ Inc. and its US subsidiaries.
Consolidated Balance Sheets
September 30, December 31,
(As at September 30, 2005, Unaudited) 2005 2004
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Assets
Current assets
Cash and cash equivalents $ 3,444,180 $ 4,902,089
Accounts receivable 4,969,207 5,072,938
Inventory 5,244,906 3,808,331
Future tax asset 215,000 100,000
Prepaid expenses 980,800 494,301
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Total current assets 14,854,093 14,377,659
Capital assets, net 5,017,476 5,749,246
Intangibles, net 7,696,235 9,468,691
Goodwill 9,196,817 9,646,817
Deferred financing costs, net - 102,778
Deferred service contract costs, net 9,452,991 9,911,855
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$ 46,217,612 $ 49,257,046
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 7,216,463 $ 6,854,983
Income taxes payable 296,749 165,000
Term loan - 1,932,980
Bank financing 5,110,968 -
Deferred revenue 9,775,291 9,255,940
Obligations for service contracts 832,444 1,086,801
Obligations under capital lease 219,261 136,566
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Total current liabilities 23,451,176 19,432,270
Term loan - 3,027,978
Obligations under capital lease 263,037 69,098
National Research Council loan 131,009 201,081
Deferred revenue 2,084,916 1,696,016
Obligations for service contracts 860,567 1,451,792
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Total liabilities 26,790,705 25,878,235
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Shareholders' equity
Share capital 81,095,655 78,121,413
Other paid-in capital 3,610,254 3,610,254
Contributed surplus 1,062,080 567,080
Deficit (66,341,082) (58,919,936)
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Total shareholders' equity 19,426,907 23,378,811
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$ 46,217,612 $ 49,257,046
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Consolidated Statements of Loss and Deficit
(Unaudited)
Three months ended Nine months ended
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
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Revenues $ 10,273,609 $ 7,763,034 $ 30,093,953 $ 12,738,570
Direct cost
of sales 5,898,134 5,041,850 17,411,821 7,962,371
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Gross profit 4,375,475 2,721,184 12,682,132 4,776,199
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Expenses
Sales and
marketing 1,332,238 1,392,883 4,388,572 3,017,525
Engineering
and research 1,262,140 1,109,686 3,797,573 2,413,178
General and
administration 2,281,896 2,053,416 6,870,979 4,352,236
Stock-based
compensation 200,000 123,185 495,000 326,560
Loss (gain) on
foreign exchange 198,724 1,368 220,177 (113,050)
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5,274,998 4,680,538 15,772,301 9,996,449
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Loss before
the following (899,523) (1,959,354) (3,090,169) (5,220,250)
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Other expenses
Net interest
expense 192,399 365,827 1,049,785 1,068,314
Other charges 89,000 - 337,759 -
Amortization 762,159 579,358 2,472,433 1,254,451
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1,043,558 945,185 3,859,977 2,322,765
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Loss before
income taxes (1,943,081) (2,904,539) (6,950,146) (7,543,015)
Provision for
income taxes
Current income tax - - 136,000 -
Future income tax - - 335,000 -
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- - 471,000 -
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Net loss for
the period (1,943,081) (2,904,539) (7,421,146) (7,543,015)
Deficit,
beginning of
period (64,398,001) (52,253,319) (58,919,936) (47,614,843)
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Deficit, end
of period $(66,341,082) $(55,157,858)$(66,341,082)$(55,157,858)
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Loss per share
- basic and
diluted $ (0.02) $ (0.03)$ (0.06)$ (0.10)
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Weighted average
number of
common
shares used
in computing
loss per share,
basic and
diluted 121,007,438 86,787,645 118,519,462 75,748,320
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Consolidated Statements of Cash Flows
(Unaudited)
Three months ended Nine months ended
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
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Cash provided by
(used in)
Operating
activities
Net loss for
the year $(1,943,081) $(2,904,539) $(7,421,146) $(7,543,015)
Add items not
involving cash
Future tax
recovery - - 450,000 -
Stock-based
compensation 200,000 123,185 495,000 326,560
Interest
accreted on
term loan - 69,577 358,526 207,785
Amortization of
capital assets 616,463 603,633 1,928,758 1,510,670
Amortization of
deferred
service
contract costs 3,584,639 3,155,304 10,547,288 4,153,317
Amortization of
intangibles 590,822 382,860 1,772,456 400,164
Amortization of
deferred
development
costs - - - 300,518
Amortization of
deferred
financing
costs - 9,798 102,778 29,394
Changes in non-
cash working
capital related
to operations
Accounts
receivable 787,472 67,567 103,731 139,026
Future tax
asset - - (115,000) -
Inventory (727,336) (1,303,955) (1,436,575) (1,642,438)
Prepaid
expenses (116,209) (402,862) (486,499) (433,346)
Accounts
payable and
accrued
liabilities (338,319) 2,505,940 361,480 2,323,107
Income taxes
payable (6,782) - 131,749 -
Deferred
revenue (690,027) 9,013 908,251 1,815,509
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1,957,642 2,315,521 7,700,797 1,587,251
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Investing
activities
Purchase of
net assets - - - (13,388,500)
Cash acquired - - - 620,459
(Additions)/
reductions to
capital assets (462,612) (75,415) (745,589) 150,946
Deferred service
contract costs (2,545,865) (3,027,408) (10,088,424) (5,125,416)
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(3,008,477) (3,102,823) (10,834,013) (17,742,511)
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Financing
activities
Repayment of
obligations
under capital
lease (93,253) (51,654) (174,765) (175,927)
Repayment of
National
Research
Council loan (26,416) (23,302) (70,072) (69,305)
Repayment of
term loan - (433,458) (5,319,484) (433,458)
Proceeds from
bank financing 1,000,000 - 5,110,968 -
Proceeds from
obligations
for service
contracts - - - -
Repayment of
obligations for
service
contracts (250,677) (473,729) (845,582) (1,388,529)
Issuance of
common shares
and equity
instruments - - 2,974,242 6,643,750
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629,654 (982,143) 1,675,307 4,576,531
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Net decrease in
cash and cash
equivalents (421,181) (1,769,445) (1,457,909) (11,578,729)
Cash and cash
equivalents,
beginning of
period 3,865,361 5,612,416 4,902,089 15,421,700
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Cash and cash
equivalents,
end of period $ 3,444,180 $ 3,842,971 $ 3,444,180 $ 3,842,971
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Supplementary
disclosure
Cash paid for
Interest $ 118,753 $ 200,072 $ 458,588 $ 601,121
Non-cash
transactions
Capital assets
purchased under
capital leases 20,917 - 451,399 281,657
Common shares
issued on
acquisition - - - 6,636,000
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Conference Call and Webcast AirIQ will hold its third quarter conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , November November: see month. 11, 2005, at 10 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . To access the call please dial 416-644-3415 or 1-800-814-4857. A replay of the conference call will be available at noon the same day until midnight November 18, 2005. To access the replay, dial 416-640-1917 or 1-877- 289-8525 followed by the passcode 21159855#. The call will also be webcast live on the Company's website at www.airiq.com. The Company's quarterly report, including financial statements, accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. notes and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial will be available at www.airiq.com and at www.sedar.com. About AirIQ AirIQ trades on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol IQ. A leader in global wireless security, AirIQ is headquartered in Pickering Pick·er·ing , Edward Charles 1846-1919. American astronomer noted for his work on stellar photometry. His brother William Henry Pickering , near Toronto, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , with offices in Lake Forest and San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , U.S.A. The Company operates as a wireless Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the applications service provider specializing in Telematics. Telematics is the name given to information and control messages sent wirelessly to and from vehicles and vessels. AirIQ's services are offered to five primary markets: Commercial Fleets; Consumer; Vehicle Finance; Indirect Distribution; and Marine Fleets. AirIQ gives vehicle and vessel VESSEL, mar. law. A ship, brig, sloop or other craft used in navigation. 1 Boul. Paty, tit. 1, p. 100. See sup. 2. By an act of congress, approved July 29, 1850, it is provided that any person, not being an owner, who shall on the high seas, willfully, with. owners the abilities to manage and protect their mobile assets. AirIQ's services include: vehicle locating, boundary BOUNDARY, estates. By this term is understood in general, every separation, natural or artificial, which marks the confines or line of division of two contiguous estates. 3 Toull. n. 171. 2. notification, automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. inventory, maintenance reminders, security alerts, vehicle disabling dis·a·ble tr.v. dis·a·bled, dis·a·bling, dis·a·bles 1. To deprive of capability or effectiveness, especially to impair the physical abilities of. 2. Law To render legally disqualified. , unauthorized movement alerts and many more features. For additional information on AirIQ, its products and services, please visit the Company's website at www.airiq.com. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information based on management's best estimates and the current operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . 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 words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 and results may differ materially from those expressed in such forward-looking statements. AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. AirIQ Inc. (TSX:IQ) |
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