JERSEY CITY, N.J., Feb. 3, 2015 (GLOBE NEWSWIRE) -- SITO Mobile Ltd. (OTCQB:SITO), a leading mobile engagement platform provider, today announced results for its fiscal first quarter ended December 31, 2014. Total revenue was $3,847,346 for the quarter ended December 31, 2014, representing 28% sequential quarterly growth over the $3,003,672 in total revenue for the quarter ended September 30, 2014, led by a 131% sequential increase in media placement revenue that was $1,289,089 for the quarter ended December 31, 2014 as compared to $556,859 for the quarter ended September 30, 2014. Operating revenue, which excludes revenue from licensing and royalties, was $3,713,855 for the quarter ended December 31, 2014, representing a 72% increase over the $2,157,128 in operating revenue for the quarter ended December 31, 2013. Total revenues for the quarter ended December 31, 2013 were $2,907,128, which include $750,000 in one-time licensing revenue from Zoove Corporation.
"The results of this quarter only begin to indicate the size of the opportunity in front of us and our ability to quickly capture market share", said Jerry Hug, CEO of SITO Mobile. "Driven by the success of our Location-Based Ad Platform and specifically our Verified Walk-In product, we are now beginning to see the early results of our plan take shape. We remain focused on our goal to become a leading player in the Mobile Marketing and Advertising space."
Media placement revenue accounted for 34% of total revenue for quarter ended December 31, 2014 as compared to 19% of total revenue for quarter ended September 30, 2014 and 0.3% of total revenue for quarter ended December 31, 2013. SITO Mobile's growth in media placement revenue has come from sales of mobile advertising campaigns that leverage the geo-fencing and real time bidding technology acquired through the Company's July 2014 DoubleVision acquisition.
SITO Mobile's gross margin was 56% for quarter ended December 31, 2014 as compared to a 62% margin for quarter ended September 30, 2014. EBITDA was $69,871 for the quarter ended December 31, 2014 as compared to ($1,084,064) for the quarter ended September 30, 2014. SITO Mobile reported a net loss of ($536,251), or $0.00 per share, for the quarter ended December 31, 2014 as compared to a net loss of ($1,539,945), or $0.01 per share, for quarter ended September 30, 2014.
As of December 31, 2014, cash on hand was $5.5 million, a $4.9 million increase from September 30, 2014. SITO Mobile's October 2014 financing transaction with Fortress enabled the Company to repay all of its outstanding convertible debt and provided the Company with capital to grow operating revenues, make acquisitions and pursue new licensing and royalties revenue streams using its portfolio of 27 U.S. patents.
Conference call information:
| Date: Tuesday, February 3, 2015 |
| Time: 4:30 P.M. Eastern Time (ET) |
| Dial in Number for U.S. & Canadian Callers: 877-407-8629 |
| Dial in Number for International Callers (Outside of the U.S. & Canada): 201-493-6715 |
Participating on the call will be SITO Mobile's Chief Executive Officer Jerry Hug and Chief Financial Officer Kurt Streams. To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time. A live webcast and archive of the call will also be available on SITO Mobile's website at: http://sitomobile.equisolvewebcast.com/q1-2015.
A replay will be available for 2 weeks starting on February 3, 2015 at approximately 8:00 P.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 414392.
About SITO Mobile Ltd.
SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty, and ultimately sales. For more information visit www.sitomobile.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, our reliance on brand owners and wireless carriers, the possible need for additional capital as well other risks identified in our filings with the SEC. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
| SITO Mobile, Ltd. | ||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| For the Three Months | ||
| Ended | ||
| December 31, | ||
| 2014 | 2013 | |
| Revenue | ||
| Wireless applications | $ 2,424,766 | $ 2,147,128 |
| Licensing and royalties | 133,581 | 750,000 |
| Media placement | 1,289,089 | 10,000 |
| Total Revenue | 3,847,436 | 2,907,128 |
| Cost of Revenue | 1,696,347 | 868,093 |
| Gross Profit | 2,151,089 | 2,039,035 |
| Operating Expenses | ||
| General and administrative (including stock based compensation) | 1,370,538 | 2,496,638 |
| Sales and marketing (including stock based compensation) | 700,364 | 227,560 |
| Depreciation and amortization | 188,744 | 149,757 |
| Research and development | 10,316 | 24,093 |
| 2,269,962 | 2,898,048 | |
| Loss from operations | (118,873) | (859,013) |
| Other Expenses | ||
| Interest expense | (417,378) | (192,720) |
| Net loss before income taxes | (536,251) | (1,051,733) |
| Provision for income taxes | -- | -- |
| Net loss | $ (536,251) | $ (1,051,733) |
| Basic and diluted loss per share | $ (0.00) | $ (0.01) |
| Weighted average shares outstanding | 153,262,747 | 140,815,604 |
| Stock compensation expense | ||
| General and administrative | $ 172,729 | $ 841,706 |
| Sales and marketing | 8,085 | -- |
| Total | $ 180,814 | $ 841,705 |
| SITO Mobile, Ltd. | ||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| December | September | |
| 31, | 30, | |
| 2014 | 2014 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 5,488,672 | $ 620,185 |
| Accounts receivable, net - current portion | 3,388,956 | 2,443,308 |
| Prepaid consulting | -- | 81,547 |
| Other prepaid expenses | 84,916 | 151,994 |
| Total current assets | 8,962,544 | 3,297,034 |
| Property and equipment, net | 244,584 | 236,706 |
| Other assets | ||
| Accounts receivable, net | 225,000 | 450,000 |
| Capitalized software development costs, net | 762,661 | 639,416 |
| Intangible assets: | ||
| Patents | 425,420 | 447,427 |
| Patent applications cost | 709,060 | 609,010 |
| Software license | 831,000 | 831,000 |
| Goodwill | 4,482,884 | 3,482,884 |
| Deferred loan costs, net | 132,920 | -- |
| Other assets including security deposits | 158,946 | 113,291 |
| Total other assets | 7,727,891 | 6,573,028 |
| Total assets | $ 16,935,019 | $ 10,106,768 |
| SITO Mobile, Ltd. | ||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| December | September | |
| 31, | 30, | |
| 2014 | 2014 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | ||
| Accounts payable | $ 2,389,712 | $ 1,651,805 |
| Accrued expenses | 547,176 | 501,122 |
| Accrued compensation - related party | 438,192 | 598,592 |
| Deferred revenue | 752,324 | 378,257 |
| Current obligation under capital lease | 19,715 | 16,661 |
| Purchase price payable | 1,000,000 | -- |
| Note payable | 1,000,002 | -- |
| Convertible debenture - related party | -- | 643,973 |
| Convertible debentures - unrelated parties | -- | 3,646,926 |
| Total current liabilities | 6,147,121 | 7,437,336 |
| Long-term liabilities | ||
| Obligations under capital lease | 17,900 | 12,718 |
| Note payable | 7,555,763 | -- |
| Total long-term liabilities | 7,573,663 | 12,718 |
| Total liabilities | 13,720,784 | 7,450,054 |
| Stockholders' Equity | ||
| Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding | -- | -- |
| Common stock, $.001 par value; 300,000,000 shares authorized, 153,348,167 shares issued and outstanding as of December 31, 2014 and $.001 par value; 200,000,000 shares authorized, 150,728,628 shares issued and outstanding as of September 30, 2014 | 153,348 | 150,729 |
| Additional paid-in capital | 138,006,669 | 136,915,516 |
| Accumulated deficit | (134,945,782) | (134,409,531) |
| Total stockholders' equity | 3,214,235 | 2,656,714 |
| Total liabilities and stockholders' equity | $ 16,935,019 | $ 10,106,768 |