Press Releases

In-Touch Survey Systems Ltd. announces Q3 2008 financial results with 20% increase in revenue

OTTAWA, Nov. 26, 2008 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to announce that revenue increased 20% to $1,695,019 in Q3 2008 compared to $1,413,081 in Q3 2007. Net income was $149,536 compared to a net income of $164,749 in Q3 2007. Cash flow from operations (adjusted EBITDA - see chart below) increased to $296,347 in Q3 2008 compared to $295,000 in Q3 2007. Gross margin increased significantly to 68.5% compared to 59% for Q3 2007.

"Given the current economic environment, we are pleased with our sales and financial performance in Q3. The acquisitions of MarketLine of Minneapolis and NCI Mobility of Chicago have added significant market presence and core competence in key US markets and have contributed to this revenue growth.", said Michael Gaffney, Chief Executive Officer.

"Our financial performance should be viewed in the context of our investments in Chicago and Minneapolis for sales growth and operational capacity. Our continued goal is to increase our overall revenue through acquisition and internal growth while at the same time maintaining positive net income and EBITDA. We expect revenue in Q4 2008 to exceed Q3 2008", said Gaffney.

Revenue for 2008 is expected to be in the range of $5.95-$6.1 million - approximately a 19% increase over 2007 revenues of $5,060,576. The global economic environment may challenge the company to maintain revenue growth in 2009 even though In-Touch continues to see strong demand for its products with requests for proposals. The company signed two large new customers in the months of September and October - a large European automaker and a major Canadian retailer. These two new customers will add approximately $800,000 in revenue over the next twelve months.

However, the Company cautions that over 30% of its 2008 revenues came from major automobile manufacturers in the US and Canada. While these automakers have indicated their satisfaction with In-Touch and the value that In-Touch products and services bring to their operations, and have indicated that they plan to continue purchasing from In-Touch, the company believes that it is prudent to forecast a decrease in revenue from these automakers in fiscal year 2009 and is planning accordingly.

About In-Touch
Founded in 1992, In-Touch provides integrated solutions for market and customer research, custom data capture and mobile marketing for global enterprise customers. Our commitment to effective solutions for retail, finance, services, automotive and hospitality industries delivers a greater return on investment from corporate marketing and operations budgets. Headquartered in Ottawa, with regional offices in Chicago, Minneapolis and Toronto, In-Touch has earned a solid reputation for dedicated customer support and advanced professional services. For more information, visit www.intouchsurvey.com.