Ottawa, Canada - February 17, 2010 - ZIM Corporation (OTCBB: ZIMCF), a provider of software products and services for the database and mobile markets: today announced its financial results for its third quarter ended December 31, 2009. 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 December 31, 2009 was $418,068 a decrease from $499,202 for the same period last year. ZIM's decrease in revenue is primarily attributable to lower than expected database software sales.
Net income for the quarter was $101,167, as compared to a net income of $203,620 for the quarter ended December 31, 2008. On a year to date basis the net income was $189,581 as compared to a net income of $102,954 for the same period in fiscal 2008. The year to date increase in net income principally reflects the other income realized from an out of court settlement of an unrecognized claim in the amount of $171,400 and is offset by the decline in revenue.
"Results for the quarter were in line with our expectations and are a reflection of the ongoing challenges of operating in a difficult global economy." said Dr. Michael Cowpland, President and CEO of ZIM. "Despite this situation we�ve maintained our R&D momentum, generate cash and completed a strategic investment in another technology-based company. We remain cautious in light of the current market conditions and continue to manage the company's expenses and cash accordingly."
ZIM had cash and cash equivalents of $1,103,759 as at December 31, 2009 as compared to $640,214 as at March 31, 2009 and $628,906 as at December 31, 2008 with no outstanding long term debt. ZIM has working capital of $1,088,078 as at December 31, 2009.
ZIM is a provider of software products and services for the database, mobile and IPTV markets. ZIM products and services are used by enterprises in the design, development and management of business, database and IPTV 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.