DENVER, Nov. 26, 2014 /PRNewswire/ -- ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced that its wholly-owned subsidiary, Identity Rehab Corporation, has terminated its sales and revenue share arrangement ( the "Sales Arrangement") with its principal partner in its "Tech Support Channel" effective November 21, 2014.
Partners in our Tech Support Channel provide personal computer performance enhancement services and, in addition, sell our services as an add-on product offering to their customers. For the nine month period ended September 30, 2014, the Tech Support Channel represented 26% of ID Watchdog's total revenues and this partner was the primary source of new subscription sales for this channel. The identity theft protection service subscriptions sold by this partner were primarily for six month and twelve month subscription periods and, upon expiration of the original subscription period, these customers renewed for a new term of equal length at about a 50% renewal rate. We anticipate that we will experience a significant increase in revenue and gross profit from this channel in the 4th quarter of 2014, as compared to the 3rd quarter of 2014, as we will receive a larger share of the revenues from certain sales subsequent to the termination of the Sales Arrangement. However, we anticipate that the first quarter of 2015 may represent a modest increase in year over year revenue from this channel while at the same time also begin a material sequential quarter over quarter decline in revenue and gross profit for this channel, the amount of which decrease will be determined by actual renewal rates, product selection and pricing, among other factors. We will continue our efforts to increase the revenue from the Tech Support Channel by seeking out new partners that present more advantageous economic terms and more predictable long term performance.
About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE ID Watchdog, Inc.