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Intouch Insight Ltd. Announces Q1 2018 Financial Results

OTTAWA, May 29, 2018 /CNW/ - Intouch Insight Ltd. (“Intouch”) (TSXV: INX) today announced its operating and financial results for the quarter ended March 31, 2018.

Revenue for the first quarter was $3,567,328, which was 9% higher than revenue of $3,274,536 in the same quarter in 2017. Recurring SaaS revenue increased 5% during the first quarter at $567,904 compared to $539,890 in first quarter 2017. Services revenue increased 10% to $2,968,276 in Q1 2018 from $2,697,502 in Q1 2017.

Loss from operating activities in Q1 2018 was $610,974 compared to a loss of $135,249 in Q1 2017. Net loss and comprehensive loss for the first quarter was $614,487 compared to a net loss of $148,709 in the same quarter of 2017.  Gross Margin increased to 54% in the first quarter compared to 51% for the same quarter in 2017.

Because of the increased investments in sales, marketing and product development, the Company-defined adjusted EBITDA was approximately negative $404,000 for the first quarter, compared to a positive EBITDA of approximately $58,000for the same quarter in 2017.

“The losses in Q1 were due to planned expenses for product development, sales and marketing for the launch of LiaCXTM,which was officially launched on May 1, 2018.  We are pleased to have put our investments in to action in the marketplace and remain optimistic about the future of our products moving forward.  Due to anticipated sales cycles we do not expect significant revenue from the new product line to occur until 2019,” said Cameron Watt, President & Chief Executive Officer.

“Our legacy business is strong and growing. Based on current sales information we are forecasting a 10% year over year sales growth with revenues exceeding $15.0M for FY 2018.  We remain committed to establishing Intouch as the leading provider of Artificial Intelligence (AI) software in the customer experience management space,” said Watt.


Consolidated Statements of Operations Q1 2018 Q1 2017
Revenue $ 3,567,328 $ 3,274,536
Cost of services 1,625,323 1,596,799
Gross profit 1,942,005 1,677,737
Total operating expenses 2,552,979 1,812,986
Earnings (loss) from operating activities (610,974) (135,249)
Finance costs (3,513) (13,460)
Net loss before income taxes $ (614,487) $ (148,709)
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