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| [January 15, 2013] |
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Single Touch Anticipates Reaching Profitability on a Cash Basis Driven by Expected 50% Revenue Growth in Fiscal 2013
JERSEY CITY, N.J. --(Business Wire)--
On the heels of having achieved a 175% compound annual growth rate
(CAGR) for the past two years, Single Touch Systems, Inc. (OTCBB: SITO),
a technology based mobile media solutions provider, announced today that
the Company anticipates revenue growth of more than 50% in its 2013
fiscal year ending September 30, 2013 as compared to fiscal 2012. Based
on this revenue growth rate, the Company further anticipates reaching
profitability on cash basis for fiscal 2013.
Single Touch CEO James Orsini stated, "In many ways, in terms of our
operating business and our IP activities, the results for our recently
announced 2012 fiscal year were our most significant to date, and we are
now better-positioned than ever to capitalize on the numerous
opportunities available to the Company."
In Single Touch's core operating business, the key highlights include:
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Fiscal 2012 capped a year in which 2-year compound annual revenues
grew approximately 175%
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In fiscal 2013 Single Touch expects revenue growth to exceed 50%
driven by a combination of growth through existing clients, a growing
pipeline of new clients and an increase in premium sponsored messaging
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The Company anticipates continued gross margin improvement, targeting
60% in fiscal 2013
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Single Touch anticipates becoming profitable on a cash basis in the
current 2013 fiscal year
Mr. Orsini added, "The strength of our core operating business is based
on the strong fundamental value proposition we offer to our clients,
which is the key factor that drives our robust organic growth. We are
proud to have announced in December that we eclipsed a milestone of
having sent out a half-billion mobile messages. From the perspective of
our shareholders, our Company's strong value proposition translates into
what we regard as the high quality nature of our revenues, which are
recurring and growing at a significant rate. As we add new clients, we
anticipate the same dynamic to occur - that revenues will recur and grow
commensurately. Adding to this, the fact that we generate substantial
gross margins, the Company isnow positioned to grow its cash flow in
addition to revenues."
Single Touch also announced that, as a result of the growth of its core
messaging solutions, it has now communicated with more than 30 million
unique users.
Also, most notably in the past year, Single Touch developed a separate,
wholly-owned subsidiary company, Single Tough Interactive R&D IP, to
house its portfolio of intellectual property. According to Chairman and
Chief Innovation Officer Anthony Macaluso, "We felt the creation of a
subsidiary company to house the Company's IP portfolio was and is an
important development in Single Touch's evolution as it provides us
significant flexibility to unlock the value of our portfolio of
intellectual property. We are working diligently in this regard and look
forward to providing further updates on our efforts as and when
appropriate."
The Company noted the following key highlights with regard to its IP
portfolio:
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Letters of Notification have been sent to 9 companies including
Google, Apple, Netflix, Yahoo!, Viacom (News - Alert), Dish Network and Amazon
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The Company anticipates sending out additional notices in the current
fiscal year
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Single Touch has initiated a patent infringement lawsuit against
Zoove, which was previously sent a Letter of Notification.
Mr. Macaluso also stated, "As we enter 2013, we believe our IP portfolio
has never been better positioned. In particular, with the fast-paced
development of the market for audio and video streaming advertising to
mobile and connected devices, we believe Single Touch is poised to
capitalize on the value of its streaming patents. We have engaged and
will continue to engage a thoughtful dialog with our advisers and I'm
confident that we are developing strategies and approaches that will
enable the Company and its shareholders to realize significant value
from our IP portfolio, which has been methodically developed and
assembled over a long period of time." Mr. Macaluso concluded by saying,
"The value we hope to realize could come through various strategies
and/or through a variety of options to capitalize on the structure of
the company's wholly-owned IP subsidiary company; we are aggressively
exploring all of our options and we look forward to providing updates to
the company's shareholders as soon as possible."
About Single Touch Systems, Inc.
Single Touch Systems, Inc. is a technology based mobile solutions
provider serving businesses, advertisers and brands. Through patented
technologies and a modular, adaptable platform, Single Touch's
multi-channel messaging gateway enables marketers to reach consumers on
all types of connected devices, with information that engages interest,
drives transactions and strengthens relationships and loyalty. For more
information about Single Touch Systems, Inc. visit: www.singletouch.net
Forward-Looking Statements
This news release may contain forward-looking statements that involve
risks and uncertainties and reflect Single Touch's judgment as of the
date of this release. These statements may include those regarding
strategy, growth and future operations. Actual events or results may
differ from Single Touch's expectations. The risks, uncertainties, and
other factors that could cause our actual results to differ materially
from those expressed or implied in this press release include, our
ability to successfully retain and sell additional services to our
existing clients and obtain new clients; our reliance on primarily a
single client and the continued use by such client of our services with
favorable pricing terms; our ability to obtain additional financing at
favorable rates to maintain and develop our operations, as well as other
risks and uncertainties identified in Single Touch's filings with the
SEC (News - Alert). Single Touch disclaims any intent or obligation to update these
forward-looking statements beyond the date of this press release, except
as may be required by law.
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