CALGARY, ALBERTA--(Marketwired - Nov. 11, 2015) - GINSMS Inc. (TSX VENTURE:GOK) (the "Company") has announced its financial results for the second quarter and six months ended September 30, 2015.

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

• Revenue of $1,330,793 and $2,401,839 for the three and six month period ended September 30, 2015 respectively as compared to $313,559 and $646,662 for the three and six month period ended September 30, 2014 respectively.
  
  
• Gross Profit of $162,273 and $239,591 for the three and six month period ended September 30, 2015 respectively as compared to $13,688 and $67,754 for the three and six month period ended September 30, 2014 respectively.
  
  
• Selling, general and administrative expenses increased slightly from $389,581 and $733,624 for the three and six month period ended September 30, 2014 respectively to $472,642 and $837,345 for the three and six month period ended September 30, 2015 respectively.
  
  
• Net loss of $888,217 and $1,724,893 for three and six month period ended September 30, 2015 respectively as compared to a net loss of $857,801 and $1,590,226 for the three and six month period ended September 30, 2014 respectively.
  
  
• The cloud-based application-to-person messaging service (the "A2P messaging") that was introduced in March 27, 2014 has generated revenue of $1,066,242 and $1,874,351 for the three and six month period ended September 30, 2015 respectively.
  
  

On March 27, 2014, GINSMS announced that it had launched a cloud based A2P messaging. Mobile application developers use A2P messaging service to deliver one-time-passwords ("OTP") for authentication of over-the-top ("OTT") mobile applications such as Whatsapp, WeChat, Line and KakaoTalk, in-app purchase confirmations or promotion of latest game releases. Enterprises and financial institutions use the A2P messaging service in the areas of mobile marketing, mobile transactions, security, customer relationship management ("CRM") and enterprise resource planning ("ERP"). Research And Markets (www.researchandmarkets.com) estimated the market size of the A2P messaging business to be US$53.07 billion globally in 2013 and growing at a compounded annual growth rate of 4.2% till 2020.

GINSMS's A2P messaging business started generating revenue in the month of April 2014. Revenue for the first quarter ended June 30, 2014, second quarter ended September 30, 2014, third quarter ended December 31, 2014 and fourth quarter ended March 31, 2015 were $78,115, $104,836, $307,127 and $627,535 respectively. Revenue for the first quarter ended June 30, 2015 was $808,109 and second quarter ended September 30, 2015 was $1,066,242. The table below shows the monthly revenue generated for the A2P business in the six months ended ending September 30, 2015:

Revenue ($ thousand)	Apr 2015	May 2015	Jun 2015	Jul 2015	Aug 2015	Sep 2015
A2P Messaging Service	262	271	275	334	360	372

Selected Profit and Loss Information

Financial Highlights		Three-month period ended September 30, (Unaudited)				Six-month period ended September 30, (Unaudited)
		2015		2014		2015		2014
Revenues $
A2P Messaging Service		1,066,242		104,836		1,874,351		182,951
IOSMS Messaging Service		-		9,148		-		33,327
Software Product & Services		264,551		199,575		527,488		430,384
		1,330,793		313,559		2,401,839		646,662
Cost of sales $
A2P Messaging Service		966,867		96,840		1,744,871		169,890
IOSMS Messaging Service		-		28,740		-		71,784
Software Product & Services		201,653		174,291		417,377		337,234
		1,168,520		299,871		2,162,248		578,908
Gross profit $
A2P Messaging Service		99,375		7,996		129,480		13,061
IOSMS Messaging Service		-		(19,592	)	-		(38,457	)
Software Product & Services		62,898		25,284		110,111		93,150
		162,273		13,688		239,591		67,754
Gross margin %
A2P Messaging Service		9.3	%	7.6	%	6.9	%	7.1	%
IOSMS Messaging Service		-		(214.2	%)	-		(115.4	%)
Software Product & Services		23.8	%	12.7	%	20.9	%	21.6	%
		12.2	%	4.4	%	10.0	%	10.5	%
EBITDA(1) $		(271,943	)	(320,110	)	(521,685	)	(559,108	)
EBITDA margin		(20.4	%)	(102.1	%)	(21.7	%)	(86.5	%)
Net earnings $		(888,217	)	(857,801	)	(1,724,893	)	(1,590,226	)
Net earnings margin		(66.7	%)	(273.6	%)	(71.8	%)	(245.9	%)
Net earnings (loss) per share $
	Basic	(0.01	)	(0.02	)	(0.03	)	(0.03	)
	Diluted	(0.01	)	(0.02	)	(0.03	)	(0.03	)

⁽¹⁾ 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 and the accretion on obligations.

Outlook

The Company announces its financial forecasts for the fifteen months ending December 31, 2016. The information included in this news release represents management's guidance as confirmed on November 11, 2015.

The table below shows the summary of the financial forecast highlights for the twelve months ending December 31, 2016:

Financial Highlights	Forecast		Forecast		Forecast		Forecast
($)	Jan - Mar 2016		Apr - Jun 2016		Jul - Sep 2016		Oct - Dec 2016
Revenues $
A2P Messaging Service	1,290,153		1,419,168		1,561,085		1,717,194
IOSMS Messaging Service	-		-		-		-
Software Product & Services	263,345		263,345		263,345		263,345
	1,553,498		1,682,513		1,824,430		1,980,539
Cost of sales $
A2P Messaging Service	1,232,308		1,349,299		1,482,489		1,624,048
IOSMS Messaging Service	-		-		-		-
Software Product & Services	199,728		202,575		205,171		207,601
	1,432,036		1,551,874		1,687,660		1,831,649
Gross profit (loss) $
A2P Messaging Service	57,845		69,869		78,596		93,146
IOSMS Messaging Service	-		-		-		-
Software Product & Services	63,617		60,770		58,174		55,744
	121,462		130,639		136,770		148,890
Gross margin %
A2P Messaging Service	4.5	%	4.9	%	5.0	%	5.4	%
IOSMS Messaging Service	-		-		-		-
Software Product & Services	24.2	%	23.1	%	22.1	%	21.2	%
	7.8	%	7.8	%	7.5	%	7.5	%
Selling, general and administrative expenses	(412,787	)	(383,899	)	(443,540	)	(376,055	)
Operating (loss)	(291,325	)	(253,260	)	(306,771	)	(227,165	)
Non-operating income	100		100		100		100
Non-operating expenses	(232,293	)	(302,949	)	(408,625	)	(427,893	)
Ordinary (loss)	(523,518	)	(556,109	)	(715,296	)	(654,958	)
Extraordinary gains	-		-		-		-
Extraordinary losses	-		-		-		-
(Loss) before tax and minority interest	(523,518	)	(556,109	)	(715,296	)	(654,958	)
Income taxes	-		-		-		-
Minority interest	-		-		-		-
Net (loss) for the period	(523,518	)	(556,109	)	(715,296	)	(654,958	)
EBITA	(242,329	)	(201,417	)	(252,331	)	(170,295	)

⁽¹⁾ EBITDA is a non-GAAP measure related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation & amortization (in both cost of sales and general and administration expenses) and interest expenses.

⁽²⁾ Non-operating income included interest income and other non-operating income. Non-operating expenses included loss on foreign exchange and interest expense.

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 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.

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.