In c6396 transmitted at 08:00e today, an error occured in the 1st and 3rd
paragraphs, as well as in the table. The corrected copy follows:
Grey Island announces 3rd quarter financial results posts record revenue
and record income
TORONTO, Aug. 25 /CNW Telbec/ - Grey Island Systems International Inc.
(TSX-V: GIS) has released financial results for the third quarter of fiscal
2008 ended June 30, 2008.
Record revenue of $5.82-million in the third quarter of fiscal 2008
represented an increase of 50 percent as compared with revenue of
$3.88-million in the third quarter of fiscal 2007 and represented an increase
of 31 percent quarter over quarter with the second quarter of fiscal 2008
revenue of $4.44-million. Concurrently, the company posted record income of
$0.44-million during the third quarter of fiscal 2008 compared with a net loss
of $0.33-million for the third quarter of 2007 and net income of $0.06-million
in the second quarter of 2008, an increase of 700 percent quarter over
quarter. The company's stated future goal is to maintain only moderate
increases in operating expenses on a quarter-by-quarter basis when compared
with expected revenue increases.
As described in more detail below, key financial highlights for Grey
Island in fiscal 2008 third quarter included:
- Record Revenues of $5.82-million, up $1.94-million or 50 per cent
from third quarter of fiscal 2007 and up 31 percent from the
previous quarter;
- Gross margin of 51 per cent of revenues, up from 49 percent in
third quarter of fiscal 2007 and down 3 percent from the previous
quarter;
- Income of $0.44-million, up from a net loss of $0.33-million in
third quarter of fiscal 2007 and compared with $0.06-million in the
previous quarter;
- Recurring revenues increased by 37 percent to $1.88-million for the
quarter ended June 30, 2008 compared to the third quarter of 2007;
- US revenue increased by 85 percent to $4.55-million for the third
quarter 2008 from $2.46-million for the third quarter of 2007
"Our results this quarter is indicative of successful execution of our
corporate strategy. The company illustrated significant organic growth through
new client acquisition while limiting operating expense expansion thereby
demonstrating operating leverage in our in our software as a service business
model," said Owen Moore, President at Grey Island "Further, we have a solid
balance sheet with a healthy cash position that will allow us to continue to
capitalize on future opportunities".
"Factors such as increasing fuel prices, increased funding for public
transit, a need for improved mobile work force accountability in government
fleets will continue to drive demand for our products and services," said
Andrew Moore, CEO at Grey Island.
Consolidated statements of operations, comprehensive income and deficit
Three months ended
June 30
2008 2007
Revenue $ 5,819,264 $ 3,876,918
Cost of revenue 2,837,907 1,981,184
--------------- --------------
Gross profit 2,981,357 1,895,734
Expenses
General and administrative 1,083,198 841,617
Sales and marketing 398,691 316,384
Engineering, development and
research 725,340 545,819
Datacentre operations 106,767 100,162
Stock-based compensation 12,882 29,565
--------------- --------------
2,326,878 1,833,547
--------------- --------------
Income before the following 654,479 62,187
Other income and expenses
Other (income) expenses (91,633) (136,504)
Amortization of intangible assets 229,034 229,034
Amortization of tangible assets 66,301 45,375
Foreign exchange (gain) loss 9,982 257,375
--------------- --------------
213,684 395,280
--------------- --------------
Net income before income taxes 440,795 (333,093)
Taxation expense
Current - 3,589
Future - -
--------------- --------------
- 3,589
--------------- --------------
Net income and comprehensive income 440,795 (336,682)
The company's consolidated financial statements, accompanying notes and
management's discussion and analysis will be available on SEDAR.
About Grey Island
Grey Island Systems International Inc. (TSX-V: GIS), together with its
subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New
York, New York is a leading provider of custom real-time GPS/AVL, security and
Telematics solutions as well as real-time passenger information systems to
government and related fleets. To find out more about our products and
services, visit our websites at www.interfleet.com or www.nextbus.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, Grey Island's
operations, anticipated financial performance, business prospects and
strategies. Such forward-looking statements 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 those expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things, business risks, changes in market and competition, technological and
competitive developments and potential downturns in economic conditions
generally. Therefore, there can be no assurance that the expectations of the
management of Grey Island will prove to be correct.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS RELEASE.
