Single Touch Reports Fiscal 2012 Results with Revenues Increasing 39% to $6,300,000

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Single Touch Reports Fiscal 2012 Results with Revenues Increasing 39% to $6,300,000

JERSEY CITY, N.J.--(BUSINESS WIRE)-- Single Touch Systems, Inc. (OTC BB: SITO), a technology based mobile media solutions provider, today reported financial results for its 2012 fiscal year ended September 30, 2012.

Fiscal 2012 Highlights Include:

  • Revenues up nearly 40%, or $1.8 million over 2011, to $6.3 million
  • Gross margins improve to 54% from 44% in 2011
  • Adjusted EBITDA improves by nearly 25%
  • Over 500,000,000 mobile messages sent on behalf of retail clients by December 20, 2012
  • Formed Single Touch Interactive R&D IP to consolidate IP assets and related activities

"I am pleased to report that we achieved substantial year-over-year organic revenue growth in fiscal 2012 and expect this trend to continue in 2013," said Mr. James Orsini, Chief Executive Officer of Single Touch. "Having recently surpassed a record 500 million mobile messages sent, we have fortified our position as a leader in the industry for sending opt-in mobile messaging for retailers. As mobile messaging evolves into a major distribution channel for marketing and advertising content, we are positioned for continued growth."

"Our move to form Single Touch Interactive R&D IP, a wholly owned subsidiary, in fiscal 2012 marks a key milestone in our strategy to unlock the value of our IP assets for the benefit our Company and our shareholders," added Mr. Anthony Macaluso, Chairman and Chief Innovation Officer of Single Touch. "A majority of our intellectual property rights will be transferred to Single Touch R&D IP, Inc., which will be responsible and bear the expense for all research, development, patent filings and patent maintenance as well as continuing to identify, notify and, where circumstances warrant, enforce against companies we believe are infringing on the intellectual property protected by our growing patent portfolio."

Fiscal Year Ended September 30, 2012 Financial Results Highlights

During the fiscal year ended September 30, 2012, revenue increased 39%, or $1,767,057, to $6,346,919 compared to revenue of $4,579,862 for fiscal 2011. The growth, all of which was organic, was attributable to continuing mobile adoption and new programs for existing and new client relationships.

Royalties and application costs which represent the direct out-of-pocket costs associated with our operating revenues totaled $2,907,110 in 2012, compared to $2,543,885 in 2011, an increase of 14%. Because a portion of royalties and application costs are fixed and all such costs are being monitored and reduced wherever possible, net margin continues to increase. The resulting gross margin improved from 44% in fiscal 2011 to 54% in fiscal 2012.

Adjusted compensation expense grew from $1,834,375 to $2,679,008 during fiscal 2012. This increase reflects the addition of headcount necessary to support business expansion, while concurrently relying less on outside consultants.

Adjusted EBITDA improved by 24% to ($1,573,382) in fiscal 2012, as compared to ($2,080,846) in fiscal 2011. The Company's net loss for the fiscal year ended September 30, 2012 narrowed by 59% to ($3,255,186), from a net loss of ($7,985,163) incurred during the fiscal year ended September 30, 2011.

-Financial Tables to Follow-

When considering the information contained in this press release, refer to the complete financial statements and the accompanying notes contained in our recent Annual Report on Form 10-K filed with the Securities and Exchange Commission at www.sec.gov.

About Single Touch Systems, Inc.

Single Touch Systems, Inc. is a technology based mobile solutions provider serving businesses, advertisers and brands. Through patented technologies and a modular, adaptable platform, Single Touch's multi-channel messaging gateway enables marketers to reach consumers on all types of connected devices, with information that engages interest, drives transactions and strengthens relationships and loyalty.

For more information about Single Touch Systems, Inc. visit: www.singletouch.net

Safe Harbor Statement

This news release may contain forward-looking statements that involve risks and uncertainties and reflect Single Touch's judgment as of the date of this release. These statements may include those regarding strategy, growth and future operations. Actual events or results may differ from Single Touch's expectations. The risks and uncertainties include reliance on brand owners and wireless carriers, the possible need for additional capital, as well as other risks identified in Single Touch's filings with the SEC. Single Touch disclaims any intent or obligation to update these forward-looking statements beyond the date of this press release, except as may be required by law.

    

SINGLE TOUCH SYSTEMS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
For the Years Ended
September 30,
2012 2011 
 
Revenue
Wireless applications$6,346,919 $4,579,862 
 
Operating Expenses
Royalties and application costs2,907,1102,543,885
Research and development84,65878,860
Compensation expense (including stock based
compensation of $365,422 in 2012 and $3,634,268 in 2011)3,044,4305,468,643
Depreciation and amortization690,293633,535
General and administrative (including stock based
compensation of $137,169 in 2012 and $958,162 in 2011)2,386,694 3,161,751 
9,113,185 11,886,674 
 

Loss from operations

(2,766,266)(7,306,812)
 
Other Income (Expenses)
Net (loss) on settlement of indebtedness-(651,315)
Interest expense(488,120)(26,236)
 
Net (loss) before income taxes(3,254,386)(7,984,363)
 
Provision for income taxes(800)(800)
 
Net income (loss)$(3,255,186)$(7,985,163)
 
Basic and diluted loss per share$(0.02)$(0.06)
 
Weighted average shares outstanding131,192,693 127,817,223 
 
    

SINGLE TOUCH SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 
September 30,
20122011
 
Assets
Current assets
Cash and cash equivalents$2,157,707$523,801
Accounts receivable - trade1,085,840907,275
Prepaid expenses129,29093,872
 
Total current assets3,372,8371,524,948
 
Property and equipment, net228,499303,214
 
Other assets
Capitalized software development costs, net383,227395,188
Intangible assets:
Patents602,056714,623
Patent applications cost667,858544,240
Software license76,000-
Deposit - related party155,000155,000
Other assets including security deposits84,27899,481
 
Total other assets1,968,4191,908,532
 
Total assets

$

5,569,755

$

3,736,694
 
    

SINGLE TOUCH SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - continued

 
September 30,
20122011
 
 
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payable

$

768,263

$

1,178,057
Accrued expenses200,591176,232
Accrued compensation - related party72,73036,410
Current obligation on patent acquisitions87,500163,680
Convertible debentures - unrelated parties, including accrued interest of
$21,342 net of discounts of $27,101294,241-
 
Total current liabilities1,423,3251,554,379
 
Long-term liabilities
Deferred revenue25,000-
Convertible debentures - related party, including accrued interest of
$43,973 net of discounts of $16,461527,512-
Convertible debentures - unrelated parties, including accrued interest of
$100,479 net of discounts and loan fees of $927,1992,685,280-
 
Total long-term liabilities3,237,792-
 
Total liabilities4,661,1171,554,379
 
 
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized;
none outstanding--
Common stock, $.001 par value; 200,000,000 shares authorized,
132,472,392 shares issued and outstanding as of September 30, 2012
and 130,182,392 issued and outstanding as of September 30, 2011132,472130,182
Additional paid-in capital125,425,617123,446,398
Accumulated deficit(124,649,451)(121,394,265)
 
Total stockholders' equity908,6382,182,315
 
Total liabilities and stockholders' equity

$

5,569,755

$

3,736,694
 
          

RECONCILIATION OF NON-GAAP MEASURES

    
 
For the Year Ended September 30,
  
20122011GAAPAdjusted EBITDA
Adjust-AdjustedAdjust-AdjustedChangeChange

GAAP

ments

EBITDA

GAAP

ments

EBITDA

$

%

$

%

 
Revenue
Wireless Applications$6,346,919$-$6,346,919$4,579,862$-$4,579,862$1,767,05739%$1,767,05739%
 
Operating Expenses
Royalties and Application Costs$2,907,110$-$2,907,110$2,543,885$-$2,543,885$363,22514%$363,22514%
Research and Development$84,658$-$84,658$78,860$-$78,860$5,7987%$5,7987%
Compensation expense (including
stock-based compensation)$3,044,430$(365,422)$2,679,008$5,468,643$(3,634,268)$1,834,375*$(2,424,213)-44%$844,63346%
Depreciation and amortization$690,293$(690,293) Read Full Story

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