Single Touch Systems, Inc., a technology-based mobile solutions provider serving businesses, advertisers, and brands, today reported financial results for its fiscal first quarter ended December 31, 2011.
Fiscal first-quarter revenue increased 57.1 percent to $1.6 million, compared to revenue of $1.0 million for the same period in 2010. The company attributes the increase in revenue to the launch of new programs and an increase in message volume through retailers; quarterly message volume grew 83 percent compared to the first fiscal quarter of the year prior.
James Orsini, CEO of Single Touch, said the positive trends through the company's retail channels are driven by retailers acknowledging the efficiency and relevance of mobile marketing.
"As more and more companies recognize the importance of an integrated mobile marketing and communications strategy, Short Message Service (SMS) has emerged as the most intimate and trusted communications channel. Single Touch is well positioned to capitalize on the strength of its highly-scalable technology platform to cost effectively increase both its client base and message volume throughput," Orsini stated in the press release.
The company reported a 17.9 percent decrease in its loss from operations for the period ended December 31, 2011, excluding stock-based compensation and depreciation and amortization (adjusted EBIDTA) at $0.4 million compared to a loss of $0.5 million in 2010.
Single Touch acknowledged that while adjusted EBITDA is not a measure in accordance with U.S. generally accepted accounting principles (GAAP), the company uses adjusted EBITDA to evaluate the performance of its underlying business:
The net loss (non-GAAP) for the period ended December 31, 2011, was $0.6 million compared to a loss of $4.9 million for the same period last year. The company attributes the improvement to significantly lower stock-based compensation expense of $31,000 incurred during the period, compared to $3.6 million incurred during the same period in 2010.
As of December 31, 2011, Single Touch reports cash and cash equivalents of $1.6 million compared to $0.5 million at the beginning of the period. During the first quarter, the company raised $1.8 million through the issuance of convertible debt. Cash used in operations during the period was $0.6 million. Additionally, the Company invested $0.1 million in CapEx.
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