TMN Prontoforms Corporation

TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or
"the Company"), a mobile data solutions company today announced results for its
three and nine months ended September 30, 2012. All amounts are stated in
Canadian dollars unless otherwise noted.


Operating Results for the Three Months Ended September 30, 2012 

Total revenue for the three months ended September 30, 2012 of $631,311
represented an increase of 49.0% over total revenue for the third quarter of
2011 of $423,593. 




--  Third quarter 2012 subscription license revenue grew by 80.7% to
    $494,889 from $273,938 in the third quarter of 2011, while third quarter
    2012 operator channel subscription revenue grew to $285,969 from
    $141,606 in the third quarter of 2011 representing growth of 101.9%. 
    
--  Third quarter 2012 services revenue decreased by 8.8% to $136,422 from
    $149,655 in the third quarter of 2011. 
    
--  Third quarter 2012 net loss was $452,184 compared to a third quarter
    2011 net loss of $747,157, representing an improvement of approximately
    40%, and a second quarter 2012 net loss of $564,897. National Research
    Council Canada Industrial Research Assistance Program ("NRC-IRAP")
    funding and increased refundable investment tax credits on eligible
    research and development expenditures contributed to the reduction in
    net loss in the 2012 third quarter. This represents the third straight
    quarter of net loss reduction as revenues increased. 
    
--  As at September 30, 2012, the Company had cash and cash equivalents of
    $500,587 and net working capital of $141,698 and recently announced
    entering into a commitment letter with BDC Capital Inc. for a term
    credit facility for up to $1 million.



"In 2012 so far, we have steadily grown our subscriber base, particularly with
subscribers added through our operator partners, providing us with strong
revenue growth and enabling us to steadily reduce our net loss. Our third
quarter 2012 operator channel subscription revenue grew by over 100% over last
year and we recently added Rogers Communications and Bell in Canada to our
operator channel network. We continue on our path to balance strong subscriber
and revenue growth while steadily progressing towards profitability," said
Alvaro Pombo, Chief Executive Officer, TrueContext.


Mr. Pombo added: "ProntoForms is a strategic subscriber service for operators
that helps improve sales of related voice and data plans, smartphones and reduce
customer churn. We believe that we have an advantage in deploying ProntoForms(R)
with operator channel partners and we continue to see interest from new
operators. Our customer engagement and deployment engine allows us to equip our
customers with the ProntoForms solution in a quick and easy fashion through our
web portal. Also, our secured co-marketing partnerships with the global top four
mobile smartphone brands help expand awareness and representation of our
products through the mobile operator channels globally."


Option Grant

Options to purchase up to 100,000 common shares of the Company were approved for
grant by the Board of Directors, including 40,000 to an officer of the Company.
The options were approved for grant to be effective as of December 6, 2012
pursuant to the terms of the Company's stock option plan and are exercisable for
a period of five years from the effective date at an exercise price to be equal
to the greater of $0.18 and the closing price of the common shares on December
5, 2012. Stock option grants are subject to necessary regulatory approvals.


ABOUT PRONTOFORMS(R) AND TRUECONTEXT 

ProntoForms is a mobile workflow solution used by 2,000 business customers.
Available for any smartphone or tablet, ProntoForms incorporates a mobile device
App, a Web management portal to manage teams and data flow, and provides the
ability to export or connect data to the back office or to popular cloud
services. 


TrueContext, traded on the TSXV under the symbol TMN, has a powerful and
proprietary patent portfolio, from which the ProntoForms mobile App and Web
reporting portal have been developed. ProntoForms is the registered trademark of
TrueContext Corporation, a wholly-owned subsidiary of TrueContext.


Certain information in this press release may constitute forward-looking
information. This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to predict. Actual
results might differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from those
reflected in the forward looking-statements unless and until required by
securities laws applicable to the Company. Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this release. 


There are a number of risk factors that could cause future results to differ
materially from those described herein, including but not limited to the
following: (i) there can be no assurance that the Company will earn any profits
in the future or that profitability, if achieved, will be sustained; (ii) if the
Company is not able to achieve profitability, it will require additional equity
or debt financing, and there can be no assurances that the Company will be able
to obtain additional financial resources on favourable commercial terms or at
all; (iii) the Company's quarterly revenues and operating results may fluctuate,
which may harm its results of operations; (iv) the loss of business from a major
customer, operator or other reseller could reduce the Company's sales and harm
its business and prospects; (v) a portion of the Company's sales are through
operators and other resellers, and an adverse change in the Company's
relationship with any of such operators or other resellers may result in
decreased sales; (vi) the market for software as a service is at a relatively
early stage of development, and if it does not develop or develops more slowly
than expected, the Company's business will be harmed; (vii) the Company faces
competition from other software solution providers, which may reduce its market
share or limit the prices it can charge for its software solutions; (viii) a
global economic downturn or market volatility may adversely affect our business
and/or our ability to complete new financings; (ix) the business of the Company
may be harmed if it does not continue to penetrate markets; (x) the success of
the business depends on the Company's ability to develop new products and
enhance its existing products; (xi) the Company's growth depends in part on the
success of its strategic relationships with third parties; (xii) the financial
condition of third parties may adversely affect the Company; 

(xiii) the US dollar may fluctuate significantly compared to the Canadian
dollar, causing reduced revenue and cash flow as most of our revenues are
received in US dollars while most of our expenses are payable in Canadian
dollars; (xiv) subscription services which produce the majority of the Company's
revenue are hosted by a third party service for the Company and any interruption
in service could harm its results of operations; (xv) intellectual property
claims against the Company may be time consuming, costly to defend, and
disruptive to the business; (xvi) the Company uses open source software in
connection with its products which exposes it to uncertainty and potential
liability; (xvii) economic uncertainty and downturns in the software market may
lead to decreases in the Company's revenue and margins; (xviii) any significant
changes in the technological paradigm utilized for building or delivering
applications in Smartphone devices could harm the Company's business and
prospects; and (xix) if the Company loses any of its key personnel, its
operations and business may suffer. Please see "Risk Factors Affecting Future
Results" in the Company's annual management's discussion and analysis for the
year ended December 31, 2011, for a more complete discussion of these and other
risks. Readers are cautioned not to place undue reliance on forward-looking
statements. We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by applicable law. 


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any securities. The securities have not been and will not be
registered under the United States Securities Act of 1933, as amended (the "US
Securities Act") or any state securities laws and may not be offered or sold
within the United States or to US persons unless registered under the US
Securities Act and applicable state securities laws or an exemption from such
registration is available. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
TrueContext Mobile Solutions Corporation
Alvaro Pombo
Chief Executive Officer
613.599.8288 ext. 1111
apombo@truecontext.com

Prontoforms Corporation (TSXV:TMN)
Historical Stock Chart
From May 2024 to Jun 2024

Prontoforms Corporation (TSXV:TMN)
Historical Stock Chart
From Jun 2023 to Jun 2024