Apivio Announces First Quarter Financial Results
Vancouver, Canada – May 11, 2017, Apivio Systems Inc. (“Apivio” or the “Company”) (TSX .V: APV) reports its results of operations for the quarter ended March 31, 2017.
For the full condensed consolidated interim financial statements and management discussion & analysis for the quarter ended March 31, 2017, please see SEDAR at http://www.sedar.com. All Dollar amounts are in Canadian Dollars unless otherwise noted.
First Quarter Highlights:
- Sales increased 1% to CAD $13,268,172 compared to Q1 2016, in part, due to a slight increase in volume in Korea;
- Gross margins improved to 17.5% compared to 16.2% in Q1 2016, primarily due to favorable exchange rates;
- Adjusted EBITDA of ($391,448) compared to $70,014 in Q1 2016;
- Net loss of $639,348 compared to $201,998 in Q1 2016. Adjusted EBITDA and Net Income were both lower due to one-time expenses of $255,851 related to Nuri take-over bid and foreign exchange translation loss of $325,070 from forward contracts; and
- Loss per share of ($0.01) compared to ($0.00) in Q1 2016.
Apivio is pleased to announce its results for the quarter ended March 31, 2017. Despite considerable uncertainty and distraction to management arising from the Nuri take-over bid, the company managed to report higher revenue compared to the year-ago quarter. Net Income would have been higher than the year-ago quarter but for the expenses related to the Nuri take-over bid as well as revaluation of forward exchange contracts.
As announced earlier, On January 17, 2017, Nuri Telecom Company Limited, through its wholly owned subsidiary, 1101324 B.C. Ltd., (collectively “Nuri”) made an unsolicited offer to purchase all the issued and outstanding common shares of Apivio Systems Inc. The detailed terms and conditions of the unsolicited offer were set forth in a circular filed by Nuri on SEDAR and mailed to all the shareholders. On May 2, 2017, Nuri announced that 47,887,785 Apivio common shares representing approximately 87% of the number of outstanding Apivio shares, were tendered under the offer to purchase all of the outstanding Apivio shares. As well, each of the conditions to the offer, including the minimum tender condition, was satisfied by Nuri. As required by securities laws, Nuri extended the offer for a mandatory ten (10) day extension until 5:00 p.m. (Toronto Time) on May 12, 2017 to provide Apivio’s shareholders who have not yet tendered their Apivio shares to the offer an opportunity to do so.
About Apivio Systems Inc.
Apivio Systems Inc. (“Apivio” or the “Company”) (TSX.V: APV) is a Canadian technology company principally engaged in the design, development, marketing, and sale of communications equipment and software. It has a wholly-owned Korean subsidiary with a history of supplying VoIP telephone equipment and other products to major Korean and international telecommunications carriers. For more information regarding Apivio, please refer to its respective public filings available at www.sedar.com
This press release has been prepared by Apivio Systems Inc. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, anticipated revenue, conditions or financial performance that is based on assumptions about future economic conditions and courses of action. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, budget”, “scheduled”, “suggest”, “optimize”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, believes”, “anomalous” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Although Apivio has attempted to identify important factors that could affect Apivio and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Apivio does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
For Further Information, Contact:
President and Chief Executive Officer
Apivio Systems Inc.
Virtus Advisory Group Inc.