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Tuesday, December 10th, 2019

GINSMS Announces Financial Results for the Three and Nine Months Ended September 30, 2016

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by November 11, 2016 General

CALGARY, ALBERTA — (Marketwired) — 11/11/16 — GINSMS Inc. (TSX VENTURE: GOK) (the “Company”) has announced its financial results for the second quarter and nine months ended September 30, 2016.

The complete financial results for GINSMS are available at www.sedar.com. Highlights include:

--  Revenue of $1,473,341 and $4,814,174 for the three-month and nine-month
    period ended September 30, 2016 respectively as compared to $1,330,793
    and $3,225,387 for the three-month and nine-month period ended September
    30, 2015, respectively.
--  Gross Profit of $287,485 and $792,654 for the three-month and nine-month
    period ended September 30, 2016, respectively, as compared to gross
    profit of $162,273 and $190,473 for the three-month and nine-month
    period ended September 30, 2015, respectively.
--  Operating expenses and finance costs decreased from $1,050,240 and
    $6,403,754 for the three-month and nine-month period ended September 30,
    2015, respectively, to $666,239 and $1,870,997 for the three-month and
    nine-month period ended September 30, 2016, respectively.
--  Net loss of $377,237 and $1,077,652 for three-month and nine-month
    period ended September 30, 2016 as compared to a net loss of $888,217
    and $6,089,375 for three-month and nine-month period ended September 30,
    2015, respectively.
--  The cloud-based application-to-person messaging service (the "A2P
    messaging") that was introduced in March 27, 2014 has generated revenue
    of $1,211,177 for the three-month period ended September 30, 2016.

Selected Profit and Loss Information

----------------------------------------------------------------------------
                     Three-month   Three-month    Nine-month    Nine-month
                    period ended  period ended  period ended  period ended
                       September     September     September     September
                             30,           30,           30,           30,
                            2016          2015          2016          2015
Financial Highlights (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
----------------------------------------------------------------------------

Revenue $
A2P Messaging
 Service               1,211,177     1,066,242     4,100,354     2,501,886
IOSMS Messaging
 Service                       -             -             -        12,598
Software Products &
 Services                262,164       264,551       713,820       710,903
                    --------------------------------------------------------
                       1,473,341     1,330,793     4,814,174     3,225,387
                    --------------------------------------------------------

Cost of sales $
A2P Messaging
 Service               1,003,415       966,867     3,480,602     2,327,110
IOSMS Messaging
 Service                       -             -             -        14,219
Software Products &
 Services                182,441       201,653       540,918       693,585
                    --------------------------------------------------------
                       1,185,856     1,168,520     4,021,520     3,034,914
                    --------------------------------------------------------
Gross profit $
A2P Messaging
 Service                 207,762        99,375       619,752       174,776
IOSMS Messaging
 Service                       -             -             -        (1,621)
Software Products &
 Services                 79,723        62,898       172,902        17,318
                    --------------------------------------------------------
                         287,485       162,273       792,654       190,473
                    --------------------------------------------------------
Gross margin %
A2P Messaging
 Service                    17.2%          9.3%         15.1%          7.0%
IOSMS Messaging
 Service                       -             -             -         (12.9)%
Software Products &
 Services                   30.4%         23.8%         24.2%          2.4%
                    --------------------------------------------------------
                            19.5%         12.2%         16.5%          5.9%
                    --------------------------------------------------------

Adjusted EBITDA(1)$     (103,129)     (271,943)     (304,517)     (908,551)
Adjusted EBITDA
 margin                     (7.0)%       (20.4)%        (6.3)%       (28.2)%
----------------------------------------------------------------------------
Net loss $              (377,237)     (888,217)   (1,077,652)   (6,089,375)
Net loss margin            (25.6)%       (66.7)%       (22.4)%      (188.8)%
----------------------------------------------------------------------------
Loss per share $
----------------------------------------------------------------------------
  Basic                   (0.003)       (0.015)       (0.008)       (0.113)
----------------------------------------------------------------------------
  Diluted                 (0.003)       (0.015)       (0.008)       (0.113)
----------------------------------------------------------------------------

(1)  Adjusted EBITDA is a non-IFRS measure which does not have any
     standardized meaning under IFRS. Adjusted EBITDA is related to cash
     earnings and is defined for these purposes as earnings before income
     taxes, depreciation and amortization (in both cost of sales and general
     and administration expenses), interest expenses, the accretion on
     obligations and also excludes certain non-recurring or non-cash
     expenditure. This non-IFRS measure is not recognized under IFRS and,
     accordingly, shareholders are cautioned that this measure should not be
     construed as an alternative to net income determined in accordance with
     IFRS. The non-IFRS measure presented is unlikely to be comparable to
     similar measure presented by other issuers. The Corporation believes
     that Adjusted EBITDA is a meaningful financial metric as it measures
     cash generated from operations which the Corporation can use to fund
     working capital requirements, service interest and principal debt
     repayment and fund future growth initiatives.

About GINSMS

GINSMS is a mobile technology and services company focusing on 2 areas namely its A2P Messaging Service and its Software Products and Services. GINSMS operates a cloud-based A2P messaging service that allows the termination of SMS to mobile subscribers of more than 200 mobile operators globally. GINSMS also develops and distribute innovative software products and services for mobile operators and enterprises and have successfully deployed more than 100 solutions worldwide. GINSMS has offices in China, Singapore, Hong Kong, Malaysia and Indonesia.

Forward Looking Statements

Certain information included in this press release may contain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, or “continue” or the negative thereof or variations thereon or similar terminology. These statements are not historical facts, but reflect management’s current beliefs and are based on information currently available to management regarding future results and events. Particularly, these forward-looking statements are based on management’s estimate of future events based on technological advances relating to the Company’s services, current market conditions and past experiences of management in relation to how certain contracts will affect revenues. Forward-looking statements, by their very nature, involve significant risks, uncertainties and assumptions.

A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to dependence on required licenses, dependence on major customers, system failures, delays and other problems, competition, security and privacy breaches, adequacy of network resilience, network diversity and backup systems, loss of significant information, failure to develop, enhance or introduce new value-added services, competition, dependence on third-party software and equipment, market acceptance at desired pricing levels, key members of the management team, credit risks of accounts receivable, conflicts of interest, inability to satisfy customer demand for performance, price or terms and international risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Company cannot assure the reader that actual results will be consistent with these forward-looking statements.

In particular, forward-looking statements include the following assumptions:

--  Management's belief that the availability of 3G/4G services in China and
    the rest of the world will continue to create demand for the Company's
    software products and services.
--  Management's belief that the future growth in messaging is in the area
    of A2P Messaging Service and the Company's investment in this area will
    create a viable and profitable business in the future.
--  Management's belief that the Company is able to generate sufficient
    amounts of cash through operations and financing activities to fulfil
    the working capital requirements of its present operations.

These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by law. Accordingly, readers should not place undue reliance on the forward-looking statements. Forward looking statements are presented in this news release for the purpose of assisting investors and others in understanding certain key elements of our expected fiscal 2016 financial results, as well as our objectives, strategic priorities and business outlook for fiscal 2016, and in obtaining a better understanding of the Company’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. All forward-looking statements contained in this press release are qualified by this cautionary statement.

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.

Contacts:
GINSMS Inc.
Joel Chin
CEO
+65-6441-1029
investor.relations@ginsms.com

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