Ottawa-based analytics firm In-Touch Survey Systems (TSX-V:INX) managed to further grow its customer base in the second quarter of 2013 but that wasn’t enough to prevent the firm from posting another loss.
© Darren Brown
Michael Gaffney, CEO of In-Touch Survey Systems.
The company recorded a net loss of $139,964 in the second quarter of 2013, in contrast to a $351,933 net income from the same quarter last year.
Revenues also fell five per cent to $2.8 million, from $2.9 million in 2012, the locally headquartered survey firm said in a news release.
In-Touch previously announced it had lost several key customers in 2012 that would reduce revenues in 2013. The company said Thursday it has replaced and exceeded those customers but that won’t have a significant impact on the firm’s net profit until the third quarter.
"Replacing the lost customers and their associated revenue from 2012 and improving the gross margins were two of our successful strategic initiatives,” said Michael Gaffney, the In-Touch’s CEO, in a statement.
“Currently, the Company's sales forecast puts 2013 revenues slightly ahead of 2012 revenues, which would be a major achievement for the Company. The Company continues to invest heavily in new product development and marketing and we have a cost optimization plan being implemented in Q3 and Q4.”
Company officials also blamed product development and marketing spending for the loss, but added that it was a needed investment for increasing revenue for the rest of this year and into 2014.
In-Touch stated, adding it expects to return to a profit again in the next quarter.
Also contributing to the loss were costs associated with the $1-million acquisition of the field research division of NAVEX Global Inc., which In-Touch announced in April.