Monday, Angoss Software Corporation (ANC.V) posted a net loss in its first quarter, reflecting higher operating expenses, primarily relating to IntelliMaxx unit and US business, despite a 3% revenue growth.
The Toronto, Canada-based company recorded a net loss of C$17.10 thousand or breakeven per share, compared to a net income of C$155.61 thousand or C$0.02 per share in the comparable quarter last year.
The net loss was attributable to amortization expenses of C$50 thousand associated with the IntelliMaxx acquisition. Partially offsetting increased operating expenses was a positive non-cash gain in foreign exchange of about C$100 thousand.
Revenues for the latest quarter rose 3% to C$2.02 million from C$1.95 million recorded last year. Billed revenues for the quarter increased 25% to C$1.62 million from C$1.29 million in the first quarter last year.
Operating expenses for the quarter increased 18% to C$1.96 million, from C$1.66 million last year. The company attributed the increased operating expenses during the quarter to the incremental operating expenses of the IntelliMaxx business and US operations.
The company noted the IntelliMaxx business, which achieved operating profitability and positive cash flow during the quarter, contributed about C$300 thousand or 15% of earned revenues and 18.5% of billed revenues for the period from closing through the end of the quarter.
Looking forward with core expectations for the IntelliMaxx business, Angoss President Eric Apps, said "We are positioning the IntelliMaxx business to deliver a truly unique suite of integrated marketing capabilities spanning data, analytics and campaign execution for marketers looking to grow revenues and improve the precision and effectiveness of their direct, email, mobile and online marketing efforts."
The company expects to achieve additional operating expense reductions of approximately C$200 thousand per quarter over the balance of 2009, as a result of business integration and cost reduction initiatives associated with the IntelliMaxx acquisition.
Further, the company anticipates the implemented initiatives to position itself well to continue to grow revenues with lower costs, as business conditions improve later in 2009.
The company lastly traded on April 14 at C$0.495 per share on the TSX venture. For the past 52-week period, the company's shares are trading in a range of C$0.20 - C$0.99.
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