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TrueContext Mobile Solutions Q1 Revenue Up 93% As Subscriber Growth Continues

TrueContext Mobile Solutions Corp (CVE:TMN) reported Monday that first quarter revenue almost doubled as the mobile app company continued to show growth in customers and subscribers.

For the first three months of the year, total revenue came in at $558,437, 93 per cent higher than sales of $288,788 in the same period one year ago.

The company's ProntoForms mobile business app does away with paperwork and redundant data entry, allowing field workers in the retail inspection arena, for example, to fill business forms out of the office from all major mobile device platforms such as Apple's (NASDAQ:AAPL) iPad, RIM's (NASDAQ:RIMM)(TSE:RIM) Blackberry, Google's (NASDAQ:GOOG) Android platform and Microsoft's (NASDAQ:MSFT) Windows Mobile platform.

The simple to add app is meant to improve overall business productivity, and allows users in the field to create forms, generate reports, as well as capture signatures and photos within minutes.

Data on the mobile form is maintained securely in a data-center, and can be turned into emails or PDF reports, instantly accessible with an internet connection or connected to back office systems.

The company announced earlier this month that its ProntoForms app now fully supports the Microsoft Windows Phone 7.5 operating system, for such devices as the Nokia Lumia 900 from AT&T (NYSE:T).

In early 2010, TrueContext announced its reseller partnership with AT&T.

Subscription license revenue in the latest period more than doubled to $359,090 from a year earlier, while operator channel subscription revenue, such as those from the AT&T partnership, grew to $218,630 from $52,429 in the first quarter of 2011.

Earlier this month, TrueContext announced a Canadian carrier agreement with Rogers Communications (NYSE:RCI) (TSE:RCI.B), broadening distribution for its mobile app.

Services revenue in the most recent period rose by 48 per cent to $199,347. Professional services sales improved by 64 per cent, while maintenance revenue from legacy perpetual licenses fell by 31 per cent.

"Our first quarter 2012 results show continued growth in customers, subscribers and revenues," said CEO Alvaro Pombo.

"In our 2012 first quarter, we made significant strides in reducing our cost structure by transitioning from our legacy 4.8 services and infrastructure.

"While this caused some small turbulence in our subscriber growth, we were able to achieve significant savings in cost of sales and research and development and provide long term value for scaling our offering in a cost effective manner.

"We also recently modified our sales process to increasingly funnel customer activity through our web portal providing better access to customer information and we introduced product improvements such as standardized data destinations and dispatch functionality intended to improve and simplify ProntoForms and shorten the sales cycle."

Indeed, in March, TrueContext released a new dispatching feature for ProntoForms, expanding the app's functions and broadening the company's customer base.

Dispatching with ProntoForms allows managers to partially populate mobile forms and to dispatch them to specific team members directly into the field. This means field workers do not have to make head office return visits to be assigned key information, nor do they have to fill out entire mobile forms on their own when on location.

Managers and administrators can also control company dispatching through the back office system or the ProntoForms Web Portal.

Data can be dispatched to select teams or individuals, and can be handled manually, scheduled with look-up tables, or machine-driven through API calls.

"We continue to focus on maximizing subscriber growth primarily through our mobile operator channel partners," said Pombo.

"We have witnessed solid traction in the US and we recently announced a resell arrangement with Rogers Communications in Canada. In addition, we have made significant progress in other geographies and intend to continue building a diversified base of subscribers."

In the last two quarters, Pombo said the company has also secured co-marketing partnerships with "global top four mobile device brands", which will help expand its products' presence through the mobile operator channel.

For the three months that ended March 31, the company booked a net loss of $585,975, slightly wider than the $582,158 loss a year ago, but smaller than the $748,856 loss seen in the fourth quarter of 2011.

At the end of the first quarter, TrueContext, which last week also completed a $1.0 million private placement financing, had cash and equivalents of $642,057, and net working capital of $104,404.

The ProntoForms app hits the sweet spot in terms of what small and medium businesses desire for mobile applications. Subscribers can also download templates and customize forms as they wish through the TrueContext website.

Ottawa-based TrueContext, formed in 2001, has a proprietary patent portfolio, from which ProntoForms' mobile app and web-reporting portal were developed.