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In-Touch Gives Q3 Warning
In Canada, In-Touch Survey Systems has reported an 8% increase in Q2 revenue to $1.41m, thanks largely to the strength of its manual data collection business. However, the firm warns of a tough half-year ahead because of cancelled orders.
The firm says its largest client significantly reduced its contract during the period, and around $1.2m in electronic data collection (EDC) orders that would have taken effect in the latter half of the year, have been cancelled.
During the quarter, the strength of the Canadian dollar caused a foreign exchange loss of $29k, compared with a gain of $1,000 in Q2 2008. This contributed to a 3.5% increase in net losses to c.$89,000.
'Even though over $1m-worth of electronic data collection orders for 2009 were cancelled due to the economic downturn, EDC second-quarter 2009 revenues were flat compared to the second quarter of 2008,' noted CEO Michael Gaffney. 'Our acquisition strategy and hard work by the sales team have largely mitigated the effects of a challenging economic period and maintained EDC revenues at last year's levels.'
Gaffney added the company would be closely monitoring its Q3 results, when most of the cancelled orders would have been put on the books.
The firm is continuing to look for acquisitions, although it said it will be less aggressive than in 2008 given its current financial status and the overall market outlook.
Founded in 1992 and headquartered in Ottawa, In-Touch develops solutions for market and customer research, custom data capture and mobile marketing, and is online at www.intouchsurvey.com .
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