In-Touch Survey Systems reported third-quarter revenue Thursday 30 per cent lower than the same quarter last year, but its CEO said two fourth-quarter product launches have already set the stage for a stronger 2015.
Revenue for the three months ending Sept. 30 was $2.3 million compared with $3.3 million last year.
The drop in revenue was expected due to account losses that had started to affect the company’s bottom line in the second quarter.
Net earnings for the quarter of $56,572 was down from the just over $505,000 reported in the third quarter of 2013.
Gross margin for the quarter of 57 per cent was higher than the 55 per cent reported last year.
Company president and CEO Cameron Watt said the account losses had the greatest effect this quarter, and the company will continue to feel that in the fourth quarter, but not as much.
“We remain pleased with the year over year performance in profits and increasing gross margins that we have been able to achieve despite the expected decline in revenue," Mr. Watt said in a statement.
As In-Touch (TSXV: INX) continues to increase investment in product development, sales, and marketing, Mr. Watt said the company expects continued pressure on fourth-quarter net income.
“We are anticipating that we will finish 2014 very close to our original expectations and in a good position to seize growth opportunities in 2015,” Mr. Watt said.
He said that growth will be boosted by two product launches that have already happened in the fourth quarter. In-Touch spinoff Dodoname launched its product and In-Touch also launched its first SaaS product, OpsMatrix.
“We are also in the process of reorienting the organization to ensure we can capture these and additional opportunities throughout 2015," Mr. Watt said.