Ignition Point Announces Fiscal 2006 Q3 Results
30 August 2006
Ignition Point Technologies Corp. (TSX-VEN:IPN), a Vancouver-based broadband communications company, today announced its financial results for the quarter ended June 30, 2006, the third quarter of its 2006 fiscal year.
Revenues
Total revenue for the third quarter ended June 30, 2006 was $1,110,696 compared to $443,856 in the comparable quarter of fiscal 2005.
Earnings
The net loss for the third quarter ended June 30, 2006 was $587,707 ($0.08 per share) compared to $470,521 ($0.06 per share) in the comparable quarter of fiscal 2005.
Liquidity
At June 30, 2006 consolidated cash and cash equivalents totaled $849,566 which represents a cash value of $0.12 per share. At September 30, 2005 consolidated cash and cash equivalents totaled $2,993,810, representing a cash value of $0.41 per share. Ignition Point's working capital at June 30, 2006 was $651,000. Cash resources at Ignition Point Technologies are currently very limited and net cash contributions from billable sales are not currently producing adequate cash to cover operating costs. Management estimates that it has sufficient liquidity to continue operating at the present level until November 30, 2006. Accordingly, management is seeking new financing, and although it is optimistic it will be successful, there can be no assurance of success. Should the additional operating funds not be available the Company will be forced undertake material operational changes up to and including suspension of operations.
Milestones
TeraSpan Networks
TeraSpan has developed and commercialized an innovative method of deploying fiber optic networks in the last mile. For the nine months ended June 30, 2006 TeraSpan continued its trend setting pace of deployment and securing sales. During Q3 of 2006 TeraSpan focused on developing new business relationships and entered into an arrangement to supply product to a major US wireless service provider. TeraSpan has also entered into an arrangement to build networks in Toronto. Initial commitments from these product sales agreements sales represents $581,000 or an increase of 994% over product sales for Q3 of 2006.
The vertical inlaid network fiber build for Winnipeg continues to be on schedule with completion expected in October. This multi-month project will cover approximately 50 kilometers and connect 50 buildings. The total value of this project totals $2.86M of which $1.28M or 45% has been recognized. During Q3 TeraSpan completed builds in Manitoba, Alberta and British Columbia.
FatPort Corporation
FatPort is a significant operator of public Wi-Fi Hotspots in Canada. During Q3 of 2006 FatPort achieved a new network access sales record despite a reduction in its sales and marketing expense. At June 30, 2006 FatPort had approximately 115,000 unique customers who have paid to access the network.
During July 2006, FatPort announced the addition of MTS Allstream as a FatPort Powered Provider. Under the agreement, FatPort will provide MTS Allstream with hotspot gateway hardware, back end authentication software and billing services. Over the next several months, MTS will be implementing hotspots in strategic locations across Manitoba.
About Ignition Point
Ignition Point Technologies Corp. (TSX-VEN:IPN), a Vancouver-based broadband technology company, provides unique access and applications solutions to wired and wireless network service providers. Ignition Point subsidiaries include TeraSpan Networks Inc. www.teraspan.com and FatPort Corporation www.fatport.com. For more information, visit www.ignitionpoint.ca.
The company's financial results for the quarter ended June 30, 2006 and all comparable periods are stated in Canadian dollars and are prepared in accordance with Canadian generally accepted accounting standards. Complete financials are available at www.sedar.com.
This release may contain certain forward-looking statements reflecting Ignition Point Technologies' current expectations in the broadband communications market. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, changes in market and competition, technological developments and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the company's financial results are detailed in documents filed from time to time with the British Columbia Securities Commission.
For further information: Press Contact: Stephen Majlath, Chief Financial Officer, Ignition Point Technologies Corp., Phone: (604) 633-9090
Source: newswire
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