ProntoForms patent dump pushes firm to Q2 profit

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Mark Brownlee
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The one-time sale of several patents significantly increased revenues for Ottawa-based data solutions company ProntoForms during the second quarter of 2013, helping propel the firm into the black for the three-month period that ended on June 30.

(Stock image)

The company, which was previously known as TrueContext Mobile Solutions Corp., said it made $535,485 during that time frame.

The firm largely attributed the profit to $875,000 in new income created by selling patents and reducing deferred revenue, which is usually money a company has received in advance of goods or services it is supposed to provide in the future.

Without that earning irregularity the company estimates it would have posted a loss of $339,585 for the quarter. That’s a decrease over the loss of $564,897 posted in the same time period during 2012.

However the one-time increase in revenue helped the firm reverse a loss of $356,453 reported for the first quarter of 2013.

“Despite the earnings anomaly, we are moving towards sustainable profitability by balancing spending with strong subscriber and revenue growth,” said Alvaro Pombo, the firm’s CEO, in a statement.

“This has become an established and steady trend for the last several quarters, particularly for sales through our operator partners, while at the same time we have reduced our operating loss. The sale of patents provides us with the liquidity to continue our plan and enhance our opportunities for business growth.”

The company nevertheless posted growth in both its subscription and services category during the three-month period.

Services revenue was $204,912 for the quarter, which is up from $176,715 during the same time period a year earlier.

Subscription revenue jumped to $750,140 in the most recent quarter from $416,931 last year. However the firm said in a statement that was “unusually high” due to $90,000 added from subscription usage that occurred in prior periods.

At the end of the quarter ProntoForms had cash and cash equivalents of $1,034,176, with working capital of $1,027,877.

The company specializes in creating software that allows clients to access business applications from mobile devices such as smartphones.

Organizations: TrueContext Mobile Solutions

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