IQ AirIQ Inc

AirIQ Inc. ("AirIQ") (TSX VENTURE:IQ), a supplier of wireless asset management
services, today announced its financial results for the three months and six
months ended September 30, 2013.


"The Company is gaining momentum with growing revenues while still watching its
expenses," said Donald Gibbs, President and Chief Executive Officer of AirIQ.


The highlights of the quarter were as follows:



--  The Company is shipping under the blanket contract previously announced
    with a major North American rental company. In the quarter the Company
    was approved for installation in the customer's trucks and has commenced
    shipments to this division. 
    
--  74% of revenue in the quarter was recurring. 
    
--  Positive cash flow from operating activities of $28 during the quarter. 
    
--  EBITDAS of ($44) for the quarter ended September 30, 2013 improved over
    the prior quarter ended June 30, 2013. 
    
--  Revenue of $608 for the current quarter improved from the prior quarter.
    
--  Gross profit of 64.1% was slightly reduced from the prior quarter. 
    
--  Expenses (excluding stock based compensation) of $434 were down from
    $459 in the prior quarter and included a charge for the Company's annual
    meeting of $23. 
    
--  Net loss of ($74) was lower than the ($107) reported in the prior
    quarter. 



Financial Highlights     



                                                 Three months  Three months 
                                                        ended         ended 
                                                    30-Sep-13     30-Sep-12 
----------------------------------------------------------------------------
Total Revenue                                     $       608   $       580 
Gross Margin                                      $       390   $       402 
Gross Margin %                                           64.1%         69.3%
Net Income (loss)                                 $       (74)  $       (96)
Net Income (loss) per share, basic and diluted    $      0.01   $     (0.00)
EBITDAS(i)                                        $       (44)  $       (54)
----------------------------------------------------------------------------
(i) The Company has included information concerning EBITDAS because it      
believes that it may be used by certain investors as one measure of the     
Company's financial performance. EBITDAS is not a measure of financial      
performance under IFRS and is not necessarily comparable to similarly titled
measures used by other companies. EBITDAS should not be construed as an     
alternative to net income or to cash flows from operating activities (as    
determined in accordance with IFRS) or as a measure of liquidity.           



Business Review

The Company continues to focus on its key strategy elements to build revenues
and manage costs to achieve sustained profitability and positive cash flow and
to seek opportunities to form value creating strategic partnerships.


Unless otherwise noted herein, and except share and per share amounts, all
references to dollar amounts are in thousands of Canadian dollars.


Overview

The Company's consolidated condensed interim financial statements include the
accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S.,
Inc., and AirIQ, LLC. All inter-company balances and transactions have been
eliminated on consolidation.


The Company's audited consolidated financial statements as at and for the year
ended March 31, 2013, including notes thereto, and Management's Discussion and
Analysis for the same period were filed with the Canadian securities regulatory
authorities on July 29, 2013, and will be available on the Company's website
(www.airiq.com) and on the System for Electronic Document Analysis and Retrieval
("SEDAR") website (www.sedar.com).


Revenues for the three months ended September 30, 2013, increased 5% to $608
from $580 for the three months ended September 30, 2012. Revenues for the six
months ended September 30, 2013, increased 5% to $1,212 from $1,157 for the six
months ended September 30, 2012. Approximately 74% and 73% of the total revenue
for the three and six month periods ended September 31, 2013 respectively,
represents recurring revenue from the Company's airtime customers.


Overall, gross profit for the three months ended September 30, 2013 decreased by
3% to $390 and 1% to $784 for the six months ended September 30, 2013 compared
to $402 and $791 for the three months and six months ended September 30, 2012.


Sales and marketing, research and development and general and administrative
expenses totalled $442 and $905, respectively for the three months and six
months ended September 30, 2013 compared to $466 and $939, respectively for the
three months and six months ended September 30, 2012.


The Company's net loss for the three months and six months ended September 30,
2013 was $74 and $181, respectively, as compared to a net loss of $96 and $207,
respectively, for the three months and six months ended September 30, 2012, an
improvement of $22 and $26, respectively.


Stock Option Grant

The Company also announced that effective November 28, 2013, the Board of
Directors granted stock options to each of the non-executive Board members in
consideration for acting on the Company's Board. A total of 250,000 options for
common shares were granted with an exercise price of $0.05 per share, in lieu of
any cash compensation to the Board members. Vernon Lobo, Chairman of the Board,
was granted options to purchase up to 150,000 common shares of the Company and
George Christopoulos was granted options to purchase up to 100,000 common
shares. The term of the options is ten years from the date of grant and the
options vest over a period of one year; 25% each quarter. All other terms of the
option grants are in accordance with the Company's Stock Option Plan and are
subject to approval of the TSX Venture Exchange.


No Conference Call

AirIQ will not be holding a conference call to discuss results. The Company's
financial report, including complete financial statements and Management's
Discussion and Analysis will be available on the Company's website www.airiq.com
and at www.sedar.com on November 28, 2013.


About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's
office is located in Pickering, Ontario, Canada. The Company offers a suite of
asset management services that generate recurring revenues from each device
deployed. AirIQ delivers services to two primary markets: Commercial Fleets and
dealers that service Consumer segments. AirIQ provides vehicle owners with the
ability to monitor, manage and protect their mobile assets. Services include:
instant vehicle locating, boundary notification, automated inventory reports,
maintenance reminders, security alerts and vehicle disabling and unauthorized
movement alerts. For additional information on AirIQ or its products and
services, please visit the Company's website at www.airiq.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, AirIQ's operations, anticipated
financial performance, business prospects and strategies. Forward-looking
information typically contains statements with words such as "hope", "goal",
"anticipate", "believe", "expect", "plan" or similar words suggesting future
outcomes. These statements are based upon certain material factors or
assumptions that were applied in drawing a conclusion or making a forecast or
projection as reflected in the forward-looking statements, including AirIQ's
perception of historical trends, current conditions and expected future
developments as well as other factors management believes are appropriate in the
circumstances. Such forward-looking statements are as of the date which such
statement is made and 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 future results expressed, anticipated or implied by such
forward-looking statements. Such factors include, but are not limited to,
changes in market and competition, technological and competitive developments
and potential downturns in economic conditions generally. Therefore, actual
outcomes may differ materially from those expressed in such forward-looking
statements. Forward-looking statements are provided for the purpose of providing
information about management's current expectations and plans relating to the
future. Readers are cautioned that such information may not be appropriate for
other purposes. Other than as may be required by law, AirIQ disclaims any
intention or obligation to update or revise any such forward-looking statements,
whether as a result of such information, future events or otherwise.


Neither 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
AirIQ Inc.
Donald Gibbs
President and Chief Executive Officer
(905) 831-6444, Ext. 4255
dgibbs@airiq.com
www.airiq.com

AirIQ (TSXV:IQ)
Historical Stock Chart
From May 2024 to Jun 2024

AirIQ (TSXV:IQ)
Historical Stock Chart
From Jun 2023 to Jun 2024