Ottawa, Canada - November 16, 2009 - 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, 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 September 30, 2009 was $370,660 a decrease from $544,043 for the same period last year. The decrease in revenue resulted from a decrease in database software sales, decline in revenue from our Mobile segment and the increased strength of the US dollar as compared to the same quarter in fiscal 2009.
Net loss for the quarter was $34,352, as compared to a net gain of $1,961 for the quarter ended September 30, 2008. The loss is a reflection of the timing of audit fees incurred in the second quarter of 2010 as compared to the same fees incurred during the first quarter of 2009, as well as the increased strength of the US dollar. On a year to date basis net income was $88,414 as compared to a net loss of $100,666 for the same period in fiscal 2009.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 are in line with our expectations and reflect the impact of the timing of audit fees and the strength of the US dollar" said Dr. Michael Cowpland, President and CEO of ZIM. "In light of the ongoing challenges of the global economy we've managed to maintain our momentum and to generate cash year to date. We remain cautious in light of the current market conditions. However, we will continue to invest in R&D activities while managing the company's expenses and cash accordingly."
ZIM had cash and cash equivalents of $894,983 as at September 30, 2009 as compared to $640,214 as at March 31, 2009 and $457,326 as at June 30, 2008 with no outstanding long term debt. ZIM has working capital of $1,043,161 as at September 30, 2009.
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.
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, with respect to ZIM's use of its cash from operations. 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. New risks can arise and it is not possible for management to predict all such risks, nor can it assess the impact of all such risks on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements speak only as of the date of this news release. We undertake no obligation to revise or update publicly any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this news release, other than as required by law. 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.