ZIM Corporation announces Fiscal Year 2006 Financial Results

Wed, 2006-06-28 00:00 -- zim-admin

Ottawa, Canada - June 28, 2006- ZIM Corporation (OTCBB: ZIMCF), a mobile content and services provider, today announced its results for the fiscal year ended March 31, 2006. All figures presented are calculated in accordance with generally accepted accounting principles (GAAP) in the United States and presented in US dollars. 

Revenue for the year ended March 31, 2006 was $ 3,595,315, a decrease from $4,031,198 in the prior year. As previously announced, ZIM's decrease in revenue is primarily attributable to the decline in revenue from our SMS aggregation services caused by the continued saturation of the aggregation market. 

Net loss for the year ended March 31, 2006 was $3,388,493, or a basic and diluted loss per share of $0.06. The net loss for the year ended March 31, 2005 was $3,964,107, or a basic and diluted loss per share of $0.07. Included in the net loss for the year ended March 31, 2006 is a non-cash amount of $2,133,197 relating to the impairment of the goodwill acquired in the EPL acquisition in fiscal 2004. The goodwill had represented our anticipated ability to generate future cash flows from our aggregation business. Due to the decrease in revenues relating to these services and management’s previously announced expectation that these revenues will not increase significantly, an impairment was recorded in the third quarter. Included in the net loss for the year ended March 31, 2005 were non-cash amounts of $1,199,453 relating to the impairment of the technology and the customer list purchased in the EPL acquisition. In fiscal 2005, there was also an impairment of $530,270 in the goodwill relating to our Brazilian operations. 

"Although ZIM experienced a decrease in SMS aggregation revenues, we continued to build our relationships and technology for the mobile industry. With our previously announced acquisition of Advanced Internet Inc., which operates two internet portals, www.monstertones.com and www.ringingphones.com, we are well positioned to expand our business in the mobile content market for fiscal 2007”. said Dr. Michael Cowpland, President and CEO of ZIM. 

ZIM had cash of $ 237,035 and a line of credit of $ 29,967 at March 31, 2006, as compared to a cash balance of $737,888 at March 31, 2005. As at March 31, 2006, ZIM also had an amount due to a shareholder of $430,260.

About ZIM

ZIM is a mobile content and service provider. For more information on ZIM and its customers, partners and products, visit: www.zim.biz

For more information:

Jennifer North
Chief Financial Officer
ZIM Corporation
Phone: 1 613.727.1397 ext. 121
E-mail: jnorth@zim.biz

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