Ivrnet Inc., (TSX-V: IVI), is pleased to report its financial results for the second quarter 2013. Following record profits in Q1, Ivrnet continued with its strong performance to reduce costs while recording a profit in Q2.
David Snell, CEO Ivrnet
“The first half of 2013 has been the most successful six months in Ivrnet’s history,” says David Snell, CEO of Ivrnet. “A significant amount of the debt acquired in 2012 to build our Community Central brand and rebuild ITSN has been repaid in full, and several new products including AdCentral have been brought to the market. As well, Ivrnet Central, the successor to ITSN v2.1, is well underway and expected to begin market testing by the end of the year.”
“We are continuing with our cost optimization strategies - although they are not as significant in Q2 as they were in Q1. Our goal in Q2 and Q3 is to reduce the variable cost of delivering Ivrnet products to market. Our successful strategy in Q1 was to reduce our fixed operating costs.
Revenues for the second quarter of 2013 were up 7.9% to $978,334 compared to $906,364 for the same quarter in 2012. Revenues for the first half of 2013 were up 5.0% to $2,127,484. Included in the first quarter of 2013 was $205,920 in revenues from the new Community Central product. Included in revenues from the second quarter of 2013 was $113,506 from the new Safe Team, Text, and 311 support products. This represents an increase of over $95,000 compared to the second quarter of 2012. In Q2 the Company had net income of $13,360 versus a net loss of $195,031 in 2012, and a half year net income of $168,189 compared to a net loss of $174,354 for the first half of 2012. This is an increase in profit of $342,543 in 2013 over the same period of 2012.
Snell is cautiously optimistic that Ivrnet’s cost reduction strategies and recently launched products will result in continued profitability in the remaining two quarters of 2013.
Summary of Operating Results
Professional services $ 137,385 $ 81,693
Network services 214,721 184,825
Hosted services 299,014 321,775
Hosted applications 107,600 28,435
Telephony applications 219,614 289,436
Agency fees - 200
Cost of Sales 185,478 296,902
Gross Margin 792,856 609,462
General and administrative 633,230 664,242
Marketing and sales 6,579 22,038
Research development 3,300 3,300
Interest 39,761 13,236
Interest on capital lease 9,146 9,319
Depreciation of property and
equipment 45,291 54,648
Depreciation of intangible assets 41,919 37,710
A more complete analysis of the Company’s Q2 financial results can be found by visiting www.sedar.ca.
Ivrnet expects subsequent quarters in 2013 to be stronger than their counterparts in 2012, though Q1 is likely to remain the strongest of the quarters. New customer growth is expected in all future quarters of 2013.
About Ivrnet Inc. -- Ivrnet is a software as service (SASS) and communications company that develops, hosts, sells and supports value added process automation software applications, delivered through the traditional phone network and the Internet. These applications facilitate automated interaction through personalized communication between people; mass communication for disseminating information to thousands of people concurrently; and personalized communication between people and automated systems. Ivrnet’s applications are accessible through nearly any form of communication technology, at any time, from anywhere in North America via voice, phone, fax, email, texting and the Internet.