Intermap Technologies Reports Preliminary 2018 Financial Results

Intermap Technologies (TSX:IMP) on Thursday (January 31) announced preliminary unaudited financial results for the year ended December 31, 2018 with the company reporting revenues of US$15.8 million as compared to US$19.3 million in 2017.

As quoted in the press release:

Preliminary Unaudited 2018 Financial Results

For the year ended December 31, 2018, the Company reported revenue of $15.8 million, compared with $19.3 million and $7.0 million for 2017 and 2016, respectively. While revenue from software and data solutions products increased significantly in 2018, the increases were not enough to offset the impact of a delay caused by an election at a single foreign government customer, impacting our acquisition services revenue. As a result, the Company completed no foreign government data acquisition in 2018.

2018 revenues reflect a favorable shift in business mix towards shorter sales cycle, and higher-margin, software and data solutions sales, which grew 61% to $7.1 million. Excluding corporate costs, these business segments generated operating income of 58% and 61% of sales, respectively, during 2018.

Strategic Alternatives Review Process

Intermap Technologies has announced a process to explore strategic alternatives. Such strategic alternatives could include, among other options, a sale of the Company, a business combination, or continuing as a standalone entity. The Company has retained Teneo Capital as their financial advisor and Quilty Analytics as a strategic consultant to assist the Company in evaluating its alternatives and prudently determining the optimal course of action for the Company.

Trading Update

The Company’s common shares have traded below the minimum levels required to maintain a market capitalization and public float of $3 million and $2 million, respectively over the past 29 consecutive days. As a result, it is possible that the Company may become subject to remedial listing review by the Toronto Stock Exchange (TSX). If the Company becomes subject to a remedial listing review, it will have an opportunity to resolve the deficiencies that led to such review.

Click here for the full release.