TrueContext Q3 revenues spike on subscriber growth

TrueContext Mobile Solutions (CVE:TMN) said Tuesday its third quarter revenues more than doubled as the company continued to drive subscriber growth.
The company, which in early 2010 announced its partnership with AT&T (NYSE:T), is responsible for the ProntoForms business application, which does away with paperwork and redundant data entry, allowing field workers in the retail inspection field, for example, to fill business forms from Apple, Blackberry, Android, or Microsoft-powered devices as required.
For the three months that ended September 30, TrueContext posted revenues of $423,593, more than double the 170,054 it posted a year ago. Sequentially, revenues rose 25 percent over the $338,628 in the second quarter.
The total average number of subscribers per month increased 19 percent sequentially, to 7,887 in the third quarter.
Licensing sales hiked to $273,938, from $115,725 a year ago and from $220,270 in the second quarter, while services drew in $149,655 in revenues, up from $54,329 a year ago and from $118,358 in the second quarter.
US operator channel subscription revenues, such as those from the AT&T partnership, increased to $141,606, up 30 percent from the second quarter. Operator channels subscribers per month increased 24 percent over the second quarter, to 4,486.
"Our third quarter results show that we are achieving strong revenue and subscriber growth and recently we passed the mark of activating 10,000 paying subscribers," commented CEO Alvaro Pombo.
"Additionally, we exceeded 1,200 customers, demonstrating to use that our operator channels are working effectively.
"With our solid customer acquisition rates, we are increasing our focus on maximizing adoption usage within our customer organizations to provide growth in our subscriber base and the resulting recurring source of cash.
The ProntoForms mobile app, which is available for purchase directly through AT&T's Small Business Mobile Application Recommender Tool (SMART), allows companies to streamline their out-of-office processes and workflows by turning paper forms into mobile ones. ProntoForms allows users to create forms, generate reports, as well as capture signatures and photos within minutes, all in real-time over the AT&T wireless network.
Data on the mobile form is then maintained securely in a data-center, and can be turned into emails or PDF reports, instantly accessible with an internet connection or connected to back office systems.
The app hits the sweet spot in terms of what small and medium businesses desire for mobile applications - it is a tool that will help their mobile workforce increase productivity in the field, helping businesses save time and be more effective. Subscribers can also download templates and customize forms as they wish through the TrueContext website.
The company continues to work to improve its product line, boosting research and development expenses by 64 percent to $513,662. Selling and marketing expenses doubled to $401,097, while general and administrative expenses hiked 58 percent to $242,520.
As a result, TrueContext said it widened its net loss to $747,157, or $0.01 loss per share, compared to a loss of $499,982, or $0.01 per share, a year ago.
"In addition to achieving the 10,000 target, we have learned a great deal about delivery of our product through operator channels and the end customers' use of our product," Pombo added.
"These advancements will be put to use as we set our sights on achieving 100,000 subscribers and more. Our operator channels are key to our success and we continue to drive subscriber growth with these partners as well as exploring additional channels in new markets."