ZIM Corporation reports first quarter 2010 financial results

Aug 07, 2009, 15:28 ET from ZIM CORPORATION

OTTAWA, Aug. 7 /PRNewswire-FirstCall/ - ZIM Corporation (OTCBB: ZIMCF), a provider of software products and services for the database and mobile markets: today announced its financial results for its first quarter ended June 30, 2010. All figures presented are calculated in accordance with generally accepted accounting principles (GAAP) in the United States and presented in US dollars.

Revenue for the quarter ended June 30, 2009 was $346,636, a decrease from $439,330 for the same period last year. As previously announced, ZIM's decrease in revenue is primarily attributable to our less than expected database software sales and the decline in revenue from our Mobile segment.

Net income for the quarter ended June 30, 2009 was $122,766 or a basic and diluted income per share of $0.001. The net loss for the same period last year was $102,627 or a basic and diluted loss per share of $0.001. The return to profitability is a reflection of the Company's reduction in selling and general administrative expenses, increased gross margins and reflects other income realized from an out of court settlement of an unrecognized claim in the amount of $171,400.

"We produced solid net income and cash results again this quarter," said Dr. Michael Cowpland, President and CEO of ZIM. "In light of the ongoing challenges of the global economy we managed to increase our profitability and continue to generate cash. We remain cautious in light of the current market conditions. However, we will continue to invest in R D activities while managing the company's expenses and cash accordingly."

ZIM had cash and cash equivalents of $936,973 as at June 30, 2009 as compared to $640,214 as at March 31, 2009 and $401,525 as at June 30, 2008 with no outstanding long term debt. ZIM has working capital of $975,504 as at June 30, 2009.

About ZIM

ZIM is a provider of software products and services for the database and mobile markets. ZIM products and services are used by enterprises in the design, development and management of business, database and mobile applications. Certain of ZIM's mobile products are also provided to the consumer market. For more information on ZIM and its customers, partners and products, visit: www.zim.biz.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, with respect to ZIM's use of its cash from operations. All forward-looking statements made in this press release relating to expectations about future events or results are made as of, and are based upon information available to ZIM as of, the date hereof. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those described or implied by any forward-looking statements. New risks can arise and it is not possible for management to predict all such risks, nor can it assess the impact of all such risks on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements speak only as of the date of this news release. We undertake no obligation to revise or update publicly any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this news release, other than as required by law. Please refer to ZIM's filings with the SEC for additional information regarding risks and uncertainties. Copies of these filings are available through the SEC's website at www.sec.gov.