|Page (1) of 1 - 04/17/12||email article||print page|
Peak Positioning Files Fiscal 2011 Results and Operating Highlights(April 17, 2012)
MONTREAL, QUEBEC -- (Marketwire) -- 04/17/12 -- Peak Positioning Technologies Inc. ("Peak") (TSX VENTURE:PKK) today announced its financial results and reviewed highlights for the year ended December 31, 2011.
-- Began operations as a publicly traded company in February 2011. -- Royalties derived from a pilot project in China produce first operating revenues. -- R&D expenditures, net of tax credits, of $531,801. -- Net loss of $2,341,904 for the year. -- $2,554,000 of net equity capital raised through private placements.
-- Agreement with LongKey-Hong Kong Limited ("LongKey") opened the door to Chinese market. -- North American development work for deployment of HomeWave(TM) across all classes of mobile devices largely completed with plans to target telecom customers in 2012. -- Established facilities and recruited professional staff to pursue parallel growth paths in China and North America.
"Our first year as a public company has been an exciting and eventful trip down parallel growth paths in China and North America", said Johnson Joseph, Peak's President and CEO. "The HomeWave(TM) mobility security solution, which we initially developed for North America, provided us with an entry point into the exploding Chinese mobile market. Interestingly though, that was only the beginning. As our relationship with LongKey grew stronger, the scope of our activities there has also grown to the point where we now believe that much of what we are doing in China will be adaptable for distribution to the North American telecom market", Mr. Joseph explained.
Looking to the future, Mr. Joseph expects another big year with important milestones in 2012. "A new mobile framework, co-developed with LongKey, is virtually complete and will be launched shortly", he said. "A successful launch could lead to significant royalties for Peak in the remaining three quarters of the year", Mr. Joseph added. "Closer to home, our goal is to complete the adaptation of our applications for tablets, smartphones and portable computers by mid-year and sign up a North American telecom supplier to market the applications to business customers by year end", he stated.
Fiscal 2011 Financial Results Summary
The Company generated $2,500 in royalty revenues for the year ended December 31, 2011 as the result of a pilot project in China with its partner LongKey. In the prior year period there were interest revenues of $4,827. Although the 2011 revenues were minimal, the $2,500 in royalty revenues is significant because it marked the successful integration of the Company's applications into its Chinese partner's platform.
Reflecting increased activity and development work for the Chinese and North American markets as well as the costs associated with becoming a public company, expenses for 2011 were $2,344,404 compared to $356,509 in the prior year. The net loss for the year was $2,341,904 compared to $351,682 in 2010. Further details on the Company's 2011 financial results can be found in the Audited Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the years ended December 31, 2011 and 2010, which are available at www.sedar.com.
About The Chinese Telecom market:
According to the Ministry of Industry and Information Technology of the People's Republic of China and based on published data from China's three largest telecom service providers, there were 987 million mobile subscribers in China as of January 2012. Since 2008, the Chinese government has made a concerted effort to increase the use of 3G technology in China and the Chinese smartphone market is growing dramatically. U.S.-based International Data Corporation recently released a report indicating that China will account for 20.7%, or 137 million, of the projected 660 million global smartphone shipments in 2012, leapfrogging the United States to become the biggest smartphone market in terms of annual shipments in the world.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. (TSX VENTURE:PKK), is a Canadian software developer for smartphones and other mobile computing devices, conducting business primarily in China and North America. In association with its partner, LongKey-Hong Kong Ltd, the company has developed a suite of applications for mobile devices that includes: cloud-based calendar, e-mail and contacts synchronization, automated device configuration, and HomeWave(TM) mobility security. While LongKey markets the applications in China through its partnerships with major Chinese telecommunication companies and banks, Peak plans to similarly market the applications for its own account in North America. For more information: http://www.peakpositioning.com
About LongKey-Hong Kong Ltd.:
LongKey Hong Kong Ltd., through its subsidiary LongKey Software Technology Ltd., provides a wide range of IT solutions, business management applications, and mobile applications based on its proprietary Unified Information Services Platform (UISP). LongKey's applications are distributed to end- users in China by some of China's largest telecom and banking entities. For more information: http://www.longkeysoft.com
Forward-Looking Statements / Information
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
Neither the 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.
Peak Positioning Technologies Inc.
President and CEO
514-340-7775 ext.: 501
Copyright @ Marketwire
Related Keywords: Peak Positioning Technologies Inc. , Home, Security, Digital Media Software, Communications, Smart Phone, Applications, Security, Computer Technology, Internet, Mobile Devices, Smartphone, Security, Internet Server Applications, E-mail, Management, CEO/CFO, Post/Production, Management, Computers/Peripherals, Business, PDA/Smartphone, USA, China, Hong Kong, Marketwire, Inc., , IT (Information Technology), Financial, Computer Science, Business, china, Other,