MONTREAL, QUEBEC -- (Marketwire) -- 08/17/12 -- Peak Positioning Technologies Inc. ("Peak") (TSX VENTURE: PKK) today announced its financial results and reviewed highlights for the three-month period ended June 30, 2012.
Financial Highlights:
-- Gross royalty revenues for the quarter of $24,513 up from $4,875 in the
first quarter
-- R&D expenditures of $126,945 before tax credits
-- Total expenses of $931,781 including $450,000 in share to open new
office in China
-- Net loss of $911,694 for the quarter
-- $643,088 net in new equity capital with April 5, 2012 private placement
Operating Highlights:
-- Updated version of the AiNi™ platform with social media feature
released in June
-- Master agreement between LongKey and China Unicom subsidiary, UNISK, for
the distribution of the AiNi™ platform to China Unicom smartphone
customers
-- Agreement between LongKey and the Industrial and Commercial Bank of
China (ICBC) to provide e-commerce solutions to business customers of
ICBC
"We have managed to achieve some significant milestones in the second quarter as part of our short-term growth strategy to gain access to the Chinese market by joining forces with LongKey", said Johnson Joseph, Peak's President and CEO. "In the space of less than a year, we have managed to establish revenue streams from one of China's largest telecom companies and are now poised to add an even larger telecom company as well as China's largest bank to that list revenue contributors", he noted. "This clearly demonstrates that our strategy is working and our revenues for the quarter are right on track with our projections. The prospects for revenue growth in the coming quarters, particularly with the China Unicom agreement, are very exciting", Mr. Joseph stated.
Second Quarter Financial Results Summary
Peak generated $24,513 in gross royalty revenues for the three months ended June 30, 2012 as a result of an on-going pilot project in China and the sharing of royalties with LongKey. There were no revenues in the second quarter of the prior year. As expected, royalties flowing from Peak's agreements with LongKey have started to grow as the on-going pilot involving China Telecom clients slowly expands. A new pilot project, this time involving China Unicom clients, planned for the fall, is expected to provide Peak with the potential for significant revenue growth in future quarters.
Expenses for the three-month period ended June 30, 2012 amounted to $931,781 compared to $455,012 in the comparable period of 2011. The higher 2012 expenses included a $450,000 contribution to the opening of new offices shared with Peak's partner, LongKey, in China as well as a $90,000 contribution to the Peak-LongKey mobile research lab.
The second quarter expenses include R&D expenditures of $126,945 compared to $23,211 in the comparable period of 2011. These costs are before deducting investment tax credits, which are accounted for on an annual basis only.
The net loss for the three month period ending June 30, 2012 was $911,694 compared to $455,012 in the comparable period of 2011.
On April 5, 2012, Peak raised $643,088, net of commissions and fees, in new equity capital through a private placement.
Further details on the Company's second quarter 2012 financial results can be found in the Unaudited Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the six- month periods ended June 30, 2012 and 2011, which are available at www.sedar.com.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. (TSX VENTURE: PKK), is a Canadian software developer for smartphones and other mobile computing devices, conducting business primarily in China and North America. In association with its partner, LongKey-Hong Kong Ltd, the company has developed a suite of applications for mobile devices that includes: cloud-based calendar, e-mail and contacts synchronization, automated device configuration, and HomeWavea mobility security. While LongKey markets the applications in China through its partnerships with major Chinese telecommunication companies and banks, Peak plans to similarly market the applications for its own account in North America. For more information: http://www.peakpositioning.com
About LongKey-Hong Kong Ltd.:
LongKey Hong Kong Ltd., through its subsidiary LongKey Software Technology Ltd., provides a wide range of IT solutions, and cloud-based business management and mobile applications based on its proprietary Unified Information Services Platform (UISP). LongKey's applications are distributed to end- users in China by some of China's largest telecom and banking entities. For more information: http://www.longkeysoft.com
Forward-Looking Statements / Information
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
Neither the 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:
Pinnacle Capital Markets
Spyros P. Karellas
President and CEO
416-800-8921
spyros@pinnaclecapitalmarkets.ca
Pinnacle Capital Markets
Stephen Goodfellow
Vice-President
416-900-3719
stephen@pinnaclecapitalmarkets.ca
