Ivrnet reduces costs while maintaining profitability in Q2

Published Wednesday, September 4, 2013

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. 

 

clientuploads/12 Ivrnet David Snell photo PNG 2 - reduced.png 

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

 

                                                                                                                                

                                                                                               2013                                      2012     

                                                                       

 

Revenue:

 

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

 

                                                                                   978,334                                906,364

 

 

 

Cost of Sales                                                                 185,478                                296,902

 

 

 

Gross Margin                                                                 792,856                                609,462

 

 

 

Expenses:

 

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

 

                                                                              779,226                                804,493

 

 

 

 

Net comprehensive income (loss)         $                    13,630               $             (195,031)

 

 

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.