Verb Exchange Announces Increased Revenues And Margin In Second Quarter Financials
Verb Exchange Announces Increased Revenues And Margin In Second Quarter Financials
Announcement Highlights and future strategic plans include:
- Revenue increases 35% quarter over quarter
- Tabrio™ product released with web, desktop download and mobile versions
- Carrier Services subsidiary expands
Vancouver, BC, Canada – August 26, 2008 – Verb Exchange, Inc. (TSX:V‐VEI) a leader in digital media, announces that it has released and filed its interim financial statements for the second quarter ended June 30, 2008.
Overall, revenue for the second quarter of 2008 increased compared to 2007. As well, the $214,927 gross profit for the second quarter of 2008 is higher by $146,191 when compared to the gross profit of $68,736 for 2007. Further to this increase, the percentage of gross profit to sales also increased to 3.55% as compared to 1.22% for 2007. While the Company expects gross profit from Carrier Services to continue at increased percentage levels from 2007, it is anticipated that the 3.55% level will not be experienced on a sustained basis.
As the Company concentrates its efforts on its new digital media service offerings such as Tabrio™, Verb Exchange expects that the overall revenue and gross margin should increase without increasing general and administrative expenses at the same rate. Offsetting the decline experienced in Q1, the Company recovered to $6,054,000 in the quarter ended June 30, 2008 versus $4,496,000 in Q1 of 2008, an increase of 35%. Further detail is included in the quarterly results section of the current MD&A. Verb Exchange has been enjoying steady growth in revenue quarter over quarter as a result of organic growth in volume in the Carrier Services business.
“We’ve now ensured that the necessary staff, disciplines and procedures are in place to accommodate growth. This combined with a successful capital program in the fall, will easily accommodate the rapid growth that our business plan expects,” said CFO Donald M. Cameron.
Added Cameron, “We continue to remain focused on our long term goal of profitability while ensuring that our foundation remains strong. The results for the period again met our expectations, and this, combined with an interested and enthused shareholder base, provides the stage for the growth of the newly released Tabrio™.”
Comparative figures for annual revenues, net loss and loss per share are as follows (all figures in Canadian dollars and Canadian GAAP):
Comparative Results 3 months ended
June 30, 2008 (thousands)
(unaudited) 3 months ended
June 30, 2007 (thousands)
(unaudited) Fiscal year ended
Dec 31, 2007
(thousands)
(audited)
Revenue $6,054 $5,659 $23,462
Cost of Sales $5,839 $5,591 $23,175
Gross Margin $215 $69 $287
Expenses $801 $459 $1,828
Net Income (loss) ($584) ($390) ($1,541)
Total Assets $2,839 $664 $2,069
Total Liabilities $424 $955 $450
Weighted Average Shares Outstanding 60,737 31,304 37,549
Net Income (loss) per share ($0.01) ($0.01) ($0.04)
Outlook Statement
“We have completed the first phase of product development with release of Tabrio™. Tabrio™ is the only service of its kind that offers four distinct entry points for access (Desktop, Text, Web, and WAP). Users can access our services from any network device, anywhere in the world, at any time. Tabrio™ allows not only access, but registration from any of these entry points. Meeting this release milestone allows us to aggressively pursue new subscribers and advertisers. Our next steps include expanding our marketing efforts and signing advertisers,” said Craig Goldenberger, the Company’s CEO.
“We expect our Carrier Services division to continue to expand both revenue and margins through Q4 and beyond. The Company is constantly searching out new routes where it can benefit its retail offerings, especially Tabrio™. Carrier Services provides opportunities for Tabrio™ to expand through its relationships with foreign carriers.
To use Tabrio™, visit www.tabrio.com and follow the simple instructions to begin calling. New users receive a $5 US dollar credit, the equivalent of approximately 100 international minutes or text messages.
About Tabrio
Tabrio is a personal communications service developed by Tabrio Communications, Inc. a wholly‐owned subsidiary of Verb Exchange, Inc. Tabrio provides global users with low cost, crystal clear long distance calling, two‐way text messaging and easy contact management. Tabrio runs on existing equipment, and does not require a special phone or headset. Every user receives a $5 US credit following account creation, and pays only for the minutes they use. For advertisers, proprietary advertising and analytics technologies ensure precisely targeted campaigns to Tabrio users based on detailed geographic, demographic and psychographic profiles. For more information and to download Tabrio visit www.tabrio.com.
About Verb Exchange
Verb Exchange (TSX‐V:VEI) is defining the next generation of mobile and online communications for consumers and advertisers. A leading digital media company, Verb Exchange delivers international connectivity with its telecom‐grade carrier services, and is revolutionizing global communication with the introduction of Tabrio, a personal communication service for low cost, high quality long distance voice calling and text messaging. Proprietary advertising and analytics platform ensures precisely targeted campaigns to Tabrio users based on detailed geographic, demographic and psychographic profiles.
In 2007, Verb Exchange was recognized as Canada's #1 technology company by Backbone Magazine, and by BIV Magazine as first on its list of Top 100 Fastest Growing Companies in BC. For more information, see www.verbx.com.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward‐looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
Investor Relations Contact
Arlen Hansen
+1 866.568.9528
arlen@kincommunications.com
Media Relations Contact
Christopher I. Bennett
Manager, PR and Corporate Communications
Verb Exchange, Inc.
+1 866.824.2273
christopher@verbx.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.