In-Touch Optimistic Despite Revenue Decline

Canadian firm In-Touch Survey Systems has reported a 7.4% decline in revenues to $5.48m in 2009, compared with $5.91m in FY 2008. However, CEO Michael Gaffney says he is optimistic about the future, with revenue forecasts for Q1 2010 ahead of those in 2009.

Founded in 1992 and headquartered in Ottawa, In-Touch develops solutions for market and customer research, custom data capture and mobile marketing.

During 2009, the firm's net loss grew to $440k from $177k a year earlier, mainly because of a $143k write-off relating to its 2008 acquisition of MarketLine Research Corp. MarketLine is part of In-Touch's market research division, which last year saw its revenue decline by 32%.

For the fourth quarter, the company reported a 21% drop in revenue to $1.38m, and a net loss of $226,000 from a profit of $1,000 last year.

However, operating income during the year improved to $15k, compared with a loss of $219k during 2008.

'We continue to be optimistic about the future even though the economic challenges of 2008-2009 are still impacting 2010,' said CEO Michael Gaffney. 'Even with the 22% cut in sales orders the company was successful in replacing 70% of the cancelled orders with new customer business.'

Gaffney said that initial revenue forecasts for Q1 2010 are slightly ahead of Q1 2009 revenue forecasts, but the company cautions that the economy is still very unpredictable.

'Because of the company's significantly improved cost structure and new scalable technology, we expect to be net income positive if revenue levels are similar to 2009,' Gaffney added. 'After a very challenging year this is a very big accomplishment.'

Web site: www.intouchsurvey.com .