The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

BSM Technologies continues double digit growth in earnings in Q3 2012

Monday, August 20, 2012

BSM Technologies continues double digit growth in earnings in Q3 201207:30 EDT Monday, August 20, 2012TORONTO, Aug. 20, 2012 /CNW/ - BSM Technologies Inc.("BSM" or the "Company")  (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems today announced its financial and operating results for the three and nine month periods ended June30, 2012.Q3 fiscal 2012 Highlights (all amounts in thousands of Canadian dollars, except for per share or unit data):Recurring revenues from our core product line, Sentinel, of $1,406 for the quarter represents a 12% increase over the prior year.Net income: $477 represents a 100% improvement over prior year.EBITDA:  $540 represents a 77% increase over prior year.Improved gross margin to 68% from 59% in prior year.Recurring revenue gross profit exceeds our expenses net of amortization, commission and bonus expense by $289.Cash from Operations of $326 are a $33 or 11% improvement over the prior year.Investment of $149 in share buyback of 2,984,000 of the Company's common shares.Significant orders:Subsequent to the quarter, we were awarded a contract to provide the Sentinel FM asset tracking solution to a major U.S.-based railroad. This contract has a potential of approximately 10,000 units.  The initial contract is for five years with an option to renew for a further five-year period. This is the third North American railroad customer that we provide services to and will position BSM well in the rail vertical.We were awarded a contract to provide our Sentinel FM asset tracking solution to a major U.S.-based oil and gas service fleet.  An initial order for this customer was for 300 units of a 4,000 unit fleet.Subsequent to the quarter we were awarded a contract from one of Canada's leading national communications solutions providers, which will generate revenue of $820 over a three-year period."We are very pleased with our continued growth in earnings which reflects our success in building a sustainable infrastructure that will support growth in our core product line and improve our earnings," said Aly Rahemtulla, President and CEO. "Growing sales is a priority for us and post-quarter we announced significant contract wins which will contribute to future earnings and sales growth."Financial Highlights          All currency in thousands except perThree months ended June 30Nine months ended June 30share data.2012 2011 2012 2011         Recurring revenue$2,358$2,439$7,117$6,955Hardware and software revenue 1,011 1,476 3,339 4,130Total revenue 3,369 3,915 10,456 11,085Gross profit 2,287 2,318 6,799 6,286Gross margin % 68% 59%   65% 57%         Net income  477 239 906 259         Basic and diluted income per share$0.002$0.001    $0.003$0.001         EBITDA 540 305 1,085 539Adjusted EBITDA 540 305 1,329 414         Cash and cash equivalents    $2,781$761Working capital     2,380 1,743The Company' financial statements for the three and ninemonths ended June 30, 2012, together with management's discussion and analysis, have been filed at BSM Technologies ( Technologies, through its subsidiary BSM Wireless Inc., is a leading provider of remote monitoring, fleet tracking, fleet maintenance, and business intelligent engine providing real time, web‐based tracking of mobile and fixed assets. BSM provides solutions for commercial, government, and law enforcement organizations who manage and operate diverse assets and large fleets, and who seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs.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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.For more information, please visit http://www.bsmwireless.comSOURCE: BSM Technologies Inc.For further information: Aly Rahemtulla President & CEO BSM Technologies Inc. 1-416‐675-1201 Craig MacPhail TMX | Equicom 1-416-815-0700, ext. 290