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Wednesday, September 23rd, 2020

GINSMS Announces Financial Results for the Three and Six Months Ended June 30, 2016

by August 11, 2016 General

CALGARY, ALBERTA — (Marketwired) — 08/11/16 — GINSMS Inc. (TSX VENTURE: GOK) (the “Company”) has announced its financial results for the second quarter and six months ended June 30, 2016.

The complete financial results for GINSMS are available at Highlights include:

--  Revenue of $1,679,421 and 3,340,833 for the three-month and six-month
    period ended June 30, 2016 respectively as compared to $1,071,046 and
    $1,894,594 for the three-month and six-month period ended June 30, 2015
--  Gross Profit of $237,768 and 505,169 for the three-month and six-month
    period ended June 30, 2016 respectively as compared to gross profit of
    $77,318 and $28,200 for the three-month and six-month period ended June
    30, 2015 respectively.
--  Operating expenses and finance costs decreased from $911,422 and
    $5,353,514 for the three-month and six-month period ended June 30, 2015
    respectively to $738,484 and $1,204,758 for the three-month and six-
    month period ended June 30, 2016 respectively.
--  Net loss of $501,012 and $700,415 for three-month and six-month period
    ended June 30, 2016 as compared to a net loss of $836,676 and $5,201,158
    for three-month and six-month period ended June 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 $1,483,777 for the three-month period ended June 30, 2016.

Selected Profit and Loss Information

                     Three-month   Three-month     Six-month     Six-month
                    period ended  period ended  period ended  period ended
                        June 30,      June 30,      June 30,      June 30,
                            2016          2015          2016         2015,
Financial Highlights (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Revenue $
A2P Messaging
 Service               1,483,777       808,109     2,889,177     1,435,644
IOSMS Messaging
 Service                       -             -             -        12,598
Software Products &
 Services                195,644       262,937       451,656       446,352
                       1,679,421     1,071,046     3,340,833     1,894,594

Cost of sales $
A2P Messaging
 Service               1,267,443       778,004     2,477,187     1,360,242
IOSMS Messaging
 Service                       -             -             -        14,219
Software Products &
 Services                174,210       215,724       358,477       491,933
                       1,441,653       993,728     2,835,664     1,866,394
Gross profit $
A2P Messaging
 Service                 216,334        30,105       411,990        75,402
IOSMS Messaging
 Service                       -             -             -        (1,621)
Software Products &
 Services                 21,434        47,213        93,179       (45,581)
                         237,768        77,318       505,169        28,200
Gross margin %
A2P Messaging
 Service                    14.6%          3.7%         14.3%          5.3%
IOSMS Messaging
 Service                       -             -             -         (12.9)%
Software Products &
 Services                   11.0%         18.0%         20.6%        (10.2)%
                            14.2%          7.2%         15.1%          1.5%

Adjusted EBITDA(1) $
Adjusted EBITDA         (244,271)     (249,742)     (201,388)     (636,608)
 margin                    (14.5)%       (23.3)%        (6.0)%       (33.6)%
Net loss $              (501,012)     (836,676)     (700,415)   (5,201,158)
Net loss margin            (29.8)%       (78.1)%       (21.0)%      (274.5)%
Loss per share $
 Basic                    (0.004)       (0.016)       (0.005)       (0.101)
 Diluted                  (0.004)       (0.016)       (0.005)       (0.101)

Adjusted EBITDA is a non-GAAP measure 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.


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 major customers, system failures, delays and other problems, increasing competition, security and privacy breaches, dependence on third-party software and equipment, adequacy of network reliance, network diversity and backup systems, loss of significant information, insurance coverage, capacity limits, rapid technology changes, market acceptance, decline in volume of attractions, retention of key members of the management team, success of expansion into Chinese and other Asian markets, credit risk, consolidation of existing customers, dependence on required licenses, economy and politics in countries where the Company operates, conflicts of interest and residency of directors and officers. 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.


Joel Chin