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Press release from CNW Group

BSM Technologies reports record revenue and earnings in Q1 2013

Friday, March 01, 2013

BSM Technologies reports record revenue and earnings in Q1 201307:00 EST Friday, March 01, 2013TORONTO, March 1, 2013 /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 financial and operating results for the three months ended December 31, 2012. All results are in Canadian dollars unless otherwise stated.Q1 2013 Financial Highlights ($ thousands except per share data)Record revenue: Total revenue of $4,858 represents an increase of 45% over the prior year period.Net income: $823 for the quarter represents an 814% improvement over the prior year period.Earnings per Share (diluted) ("EPS"): $0.029 per share for the quarter represents an 867% increase over the prior year period.EBITDA: $902 for the quarter represents a 522% increase over the prior year period.Hardware and other revenue of $2,558 represents an increase of 165% over the prior year period.Record number of Sentinel units sold during the quarter:  Hardware and other revenue from the Company's core Sentinel product line of $2,499 for the quarter represents a 187% increase over the prior year period. This is a result of the sale of 3,547 units of the Sentinel solution, representing a 151% increase in the number of Sentinel units sold over the prior year period.During the quarter, BSM was awarded the following significant contracts which were the main contributors to the significant increase in hardware and other revenue over the prior year period:A major Canadian utility company ordered 1,289 units of the Sentinel solution. This was an exceptional contract because (i) the majority of units ordered were higher-priced dual mode units, and (ii) all of the units were delivered during the quarter, which resulted in all of the hardware revenue being recorded during the period.A major security service provider ordered 404 units of the Sentinel solution, all of which were delivered during the quarter.A major U.S.-based railroad company ordered an additional 357 unit of the Sentinel solution. Pursuant to the order, the customer has equipped approximately 1,000 of their 10,000 vehicle fleet with the Sentinel solution.A major Canadian coffee supplier ordered 354 units of the Sentinel solution, all of which were delivered during the quarter.Subsequent to the quarter, the following significant events occurred:Financing:  On February 28, 2013, the Company completed a fully marketed prospectus offering (the "Offering") of 6,160,665 common shares for gross proceeds of $8,624,931 at a price of $1.40 per common share. Net proceeds from the Offering were approximately $7,757,435 after related costs including agents' commissions of $517,496 and other issuance costs of approximately $350,000. In addition, the agents received compensation options to acquire up to an aggregate of 431,246 common shares exercisable at a price of $1.40 per common share until February 28, 2014.The net proceeds from the Offering are expected to be used by the Company for business expansion, research and development, sales and marketing, product expansion and general working capital purposes.The impact of this transaction if the Offering was in effect at the beginning of the quarter on the fully diluted EPS calculation for the three months ended December 31, 2012, is as follows:     Fully diluted EPS, after financing: $0.024The company was awarded a contract with The Toronto District School Board for the deployment of 585 units of the Sentinel solution."This was an especially strong quarter for BSM, as several new, large customer contracts, some of which, we have been pursuing for some time all closed and deployed in the period," said Aly Rahemtulla, President and CEO, BSM Technologies Inc. "These contracts were a direct result of our continued focus on select market verticals, specifically the construction, rail and services industries. We are continuing to demonstrate success at growing our high-margin recurring revenue subscriber base."Financial Highlights  All values in thousands except per share data. Three months ended December 31 2012 2011Recurring service revenue $   2,300  $   2,375  Hardware and other revenue       2,558        966  Total revenue       4,858       3,341  Gross profit       2,863       2,124  Gross margin %    59%     64%  Net income          823          90  Basic income per share        $ 0.029  $ 0.003  Diluted income per share        $ 0.029  $ 0.003  EBITDA 902 145         Cash and cash equivalents $   2,468 $    2,202  Working capital 3,619 1,927  The Company's financial statements for Q1 2013, together with management's discussion and analysis, can be found at www.sedar.com.About BSM Technologies (bsmwireless.com)BSM 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.SOURCE: BSM Technologies Inc.For further information: For more information, please visit http://www.bsmwireless.com Aly Rahemtulla President & CEO BSM Technologies Inc. (416) 675-1201 arahemtulla@bsmwireless.com Craig Armitage TMX Equicom (416) 815-0700 ext. 278 carmitage@tmxequicom.com Fil Marinkovic TMX Equicom (416) 815-0700 ext. 289 fmarinkovic@tmxequicom.com