ZIM Corporation Reports Fiscal Year 2014 Financial Results

Wed, 2014-07-30 18:43 -- zim-admin

Ottawa , Canada – July 29, 2014 - ZIM Corporation (OTCBB: ZIMCF), a provider of software products and services for the database and mobile markets: today announced its financial results for its fiscal year ended March 31, 2014. All figures presented are calculated in accordance with generally accepted accounting principles (GAAP) in the United States and presented in US dollars.

Revenue for ongoing operations for the year ended March 31, 2014 was $1,271,427, a slight decrease from revenue of $1,310,481 for the year ended March 31, 2013. Net loss from ongoing operations for the year ended March 31, 2014 was $356,706 or a basic and diluted loss per share of $0.003, an increase from $192,115 for the year ended March 31, 2013, or a basic and diluted income per share of $0.002. The decline in revenue and increased loss is a direct result of delays in the completion of certain consulting projects, decreased enterprise software license revenue , a one-time impairment charge related to investments of $180,271 and, was offset by the increase in revenue from our mobile segment.

“Project delays resulted in a challenging year from a revenue perspective.” said Dr. Michael Cowpland, President and CEO of ZIM. “However, these delays were cleared in the second half of the year as a result of making significant progress with our South American projects. We’re entering fiscal 2015 with a backlog of over $300,000. Also, although we have taken an impairment charge on our investment, we anticipate that this investment will be beneficial in the future.”

During the quarter new contracts were signed resulting in an increased backorder of almost $400,000 USD.

ZIM had cash and cash equivalents of $1,386,737 as at March 31, 2014 as compared to $1,591,507 as at March 31, 2013 with no outstanding long-term debt. ZIM had working capital of $1,647,422 as at March 31, 2014.

About ZIM

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.

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