ZIM Corporation Reports Second Quarter Financial Results

Thu, 2006-11-09 00:00 -- zim-admin

Ottawa, Canada - November 09, 2006 - ZIM Corporation (OTCBB: ZIMCF), a mobile entertainment and Internet TV service provider, today announced its financial results for its second quarter ended September 30, 2006. 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, 2006 was $580,913, a decrease from $817,389 for the quarter ended September 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 September 30, 2006 was $369,991, or a basic and diluted loss per share of $0.004. The net loss for the quarter ended June 30, 2005 was $368,720, or a basic and diluted loss per share of $0.006. 

Revenue for the six months ended September 30, 2006 was $1,286,710, a decrease from $2,149,038 for the six months ended September 30, 2005. 

Net loss for the six months ended September 30, 2006 was $937,716, or a basic and diluted loss per share of $0.012. The net loss for the six months ended September 30, 2005 was $565,601, or a basic and diluted loss per share of $0.009. 

"As anticipated our revenues decreased substantially this quarter as a direct result of our decision to move away from the low margin SMS aggregation services market. We are however very encouraged with the opportunities available to ZIM within the Internet TV industry. We are now offering content providers and consumers access to this technology through our product and service offering available at www.zimtv.biz and www.zimtv.mobi." said ZIM president and chief executive officer, Michael Cowpland. 

ZIM had cash of $578,883 as at September 30, 2006 with no outstanding amounts due to shareholders or financial institutions. 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 entertainment and Internet TV service provider. Through its global infrastructure, ZIM provides publishing and licensing services for market-leading mobile content and for peer to peer (P2P) Internet TV broadcasting. 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

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