Ottawa, Canada - February 12, 2009 - ZIM Corporation (OTCBB: ZIMCF), a provider of software products and services for the database, mobile and IPTV markets; today announced its financial results for its second quarter ended September 30, 2008. 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, 2008 was $499,202, a slight decrease from comparable revenue of $500,914 for the quarter ended December 31, 2007. Net income for the quarter ended December 31, 2008 was $203,620, a 31% increase from $155,758 for the quarter ended December 31, 2007. The improvement in net earnings is primarily attributable to the increased sales from new software licenses, maintenance and consulting services related to our enterprise database products coupled with a 42% decrease in operating expenses when compared to the same quarter last year.
"We produced solid results this quarter" said Dr. Michael Cowpland, President and CEO of ZIM. "Despite the ongoing challenges of the global economy we had a profitable quarter and generated a significant increase in net income and over $170,000 in net cash flow. We had good success at reengaging with our enterprise database customers resulting in increased sales in this segment of our business. We remain cautious in light of the current market conditions and will continue managing the company's expenses and cash accordingly."
ZIM had cash and cash equivalents of $628,906 as at December 31, 2008 as compared to $273,507 as at December 31, 2007 with no outstanding debt.
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.
For more information:
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.