Zim’s profit slides 57%

OBJ Staff
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A decrease in mobile revenue as well as delayed payments from customers caused profits to tumble at Zim Corp. (OTCBB: ZIMCF) in its third quarter of fiscal 2013, the company reported Thursday.

(Stock image)

The Ottawa-based firm recorded a net income of $91,087 – a 57 per cent decline from $211,604 during the same period in fiscal 2012.

Revenues were also down, at $334,577 during the quarter ended Dec. 31, a 31 per cent decrease from the $483,869 for the same period the year previous.

Multiple factors were working against the company last quarter, including a weakening of the Brazilian real, according to the company.

“We are experiencing delays in recognizing revenue with our migration projects due to work interruptions on the client side and a need for additional resources,” stated Michael Cowpland, president and CEO of the company, as well as co-founder of Mitel Networks and founder of Corel.

“Our backorder for new work has grown to over $600,000 and we intend to add additional resources in response to this. Notwithstanding our decline in revenue, we maintained our cost structure and delivered another positive quarter.”

Zim is a software and service provider for the database and mobile markets.

Organizations: Mitel Networks, Corel

Geographic location: Ottawa

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