A 16 per cent revenue drop in 2014 was “within management’s expectations,” Ottawa-based In-Touch Survey Systems said after releasing its annual results late Friday.
Revenue for 2014 was $8.4 million, down from just under $10 million in 2013.
In-Touch’s net earnings before taxes were $115,348 in 2014, compared with $406,685 in 2013. Gross margin increased to 58 per cent from 57 per cent the year before.
Company-defined adjusted EBITDA was about $764,000 for the year ended Dec. 31, 2014, compared with $824,000 for the year ended 2013.
“We are extremely pleased with the EBITDA and net earnings performance that was achieved despite the significant change in revenues. As a percentage of revenue, EBITDA increased to nine per cent in 2014 compared to eight per cent in 2013,” In-Touch president and CEO Cameron Watt said in a statement.
Mr. Watt said monthly recurring revenue from software application licensing “became a driving force” last year, and he expects that to “set the stage for future growth.”
He said the In-Touch (TSXV: INX) also has additional opportunities for commercialization in the coming year.