Ottawa, Canada - November 14, 2011 - ZIM Corporation (OTCBB: ZIMCF), a provider of software products and services for the database and mobile markets, today announced its financial results for its second quarter ended September 30, 2011. 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 September 30, 2011 was $402,145, a decrease from $499,593 for the same period last year. The decrease in revenue is primarily attributable to a decrease in SMS messaging and mobile content revenue combined with the delay in revenue recognition of work in progress on consulting projects related to our migration software and services.
Net loss for the quarter ended September 30, 2011 was $44,466 or a basic and diluted loss per share of $0.000. The net income for the same period last year was $152,197 or a basic and diluted income per share of $0.001. The decrease in net income principally reflects a decrease in sales, software revenue recognition, delayed receipt of income tax credits related to research and development and a weakening US dollar.
"Minor project delays that did not allow us to recognize revenue in the quarter combined with the timing of accounting recognition of Scientific Research and Experimental Development tax credits resulted in the decline of revenue and profit this quarter" said Dr. Michael Cowpland, President and CEO of ZIM. "Given that the decline in overall financial performance is mainly a timing issue, I remain pleased with our operating performance and the interest that our customers continue to show in our enterprise products and services."
ZIM had cash and cash equivalents of $1,317,406 at September 30, 2011 as compared to cash and cash equivalents of $1,770,990 at March 31, 2011. The decline in cash and cash equivalents includes a non-realized cash loss of $169,561 related to the volatility of foreign exchange rates. It also reflects lower revenues, increased research and development expenditure and the investment in Connecting People for Health Co-operative Ltd.
ZIM is a provider of software products and services for the database and mobile markets. ZIM products and services are used by enterprises in the design, development and management of business, database and mobile applications. Certain of ZIM’s mobile products are also provided to the consumer market. For more information on ZIM and its customers, partners and products, visit: www.zim.biz.
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This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to the success of ZIM’s aggregation services and ZIM’s ability to enter the mobile content market. All forward-looking statements made in this press release relating to expectations about future events or results are made as of, and are based upon information available to ZIM as of, the date hereof. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those described or implied by any forward-looking statements. Factors that might cause such a difference include, but are not limited to, ZIM’s limited operating history, ZIM’s history of operating losses and expected future operating losses, ZIM’s ability to obtain additional financing when needed, ZIM’s ability to continue as a going concern, ZIM’s reliance on wireless carriers to market and use its applications and services, possible fee increases by third party service providers, the potential loss of services of Dr. Michael Cowpland and other key personnel, rapid developments in technology, including developments by competitors, possible internal controls deficiencies and possible accounting adjustments resulting from our quarter-end accounting and review procedures, ZIM's ability to maintain current reporting under the Securities Exchange Act of 1934, and ZIM’s ability to successfully integrate any acquisition. Please refer to ZIM’s filings with the SEC for additional information regarding risks and uncertainties. Copies of these filings are available through the SEC's website at www.sec.gov. ZIM assumes no obligation to revise or update publicly the forward-looking statements included in this news release, other than as required by law.