ZIM Corporation Reports First Quarter Financial Results

Mon, 2006-08-14 00:00 -- zim-admin

Ottawa, Canada - August 14, 2006 - ZIM Corporation (OTCBB: ZIMCF), a mobile content and services provider, today announced its financial results for its first quarter of fiscal year 2007, ending March 31, 2007. 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 quarter ended June 30, 2006 was $705,797, a decrease from $1,331,649 for the quarter ended June 30, 2005. 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 quarter ended June 30, 2006 was $567,725, or a basic and diluted loss per share of $0.008. The net loss for the quarter ended June 30, 2005 was $196,881, or a basic and diluted loss per share of $0.003. 

"As anticipated our revenues decreased substantially. We are however pleased with the integration of our acquisition of Advanced Internet Inc and the internet portals, www.ringingphone.com and www.monstertones.com." said ZIM president and chief executive officer Michael Cowpland. 

ZIM had cash of $772,015 as at June 30, 2006. During the quarter the Company completed a private placement for cash proceeds of $280,422. The balance of approximately $454,000 relating to the private placement was realized through the conversion of an amount due to a shareholder. At March 31, 2006 the Company had cash of $237,035, a line of credit of $29,967 and 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