LENCO MOBILE INC. Announces 3rd Quarter results
SANTA BARBARA, Calif.–(BUSINESS WIRE)– Lenco Mobile Inc. (Pink Sheets: LNCM) today announced its financial results for the 3rd quarter, ended September 30, 2009.
Announcing the results, Michael Levinsohn, CEO of Lenco Mobile Inc., said, “Our revenues for the third quarter were $2,807,384, up over 200% versus the prior year period. Year to date, our revenues were $8,703,649, an increase of over 300% versus the prior year. This continued growth of our mobile and internet marketing operations has allowed us to expand our personnel levels to support the U.S. and international development efforts for our mobile business. We remained profitable at a net income level despite over $1.1 million of non-cash amortization and depreciation expenses for the nine months ended September 30, 2009. The results for the last three months include expenses in excess of $500,000 relating to our preparation of the Form 10, our application to be admitted to a major exchange, and meeting the compliance requirements of becoming a fully reporting company. In addition, the results were impacted by our investment in personnel necessary to scale up our mobile operations. Fundamentally, in order to provide our clients with continued extraordinary service, we have made the investment in people that we believe will lead to significant new business in 2010.”
Discussing liquidity and the balance sheet, Levinsohn said, “Our balance sheet at quarter’s end showed cash on hand of $568,421 and accounts receivable of $2,731,627. Our operating activities generated cash flow approaching $600,000 for the nine months ended September 30, 2009, while maintaining year-over-year growth and absorbing the costs of expanding our business.”
About Lenco Mobile Inc.
Lenco Mobile Inc. owns and operates businesses focused on the high growth mobile marketing and Internet sectors. Lenco Mobile Inc. owns Multimedia Solutions, AdMax Media Inc., Digital Vouchers and CellCard. Multimedia Solutions, based in South Africa, provides MMS message solutions to wireless carriers and brand owners using its proprietary MMS messaging platforms. The MMS messaging platform provides significant benefits for wireless carries including improved messaging throughput, better quality and reduced bandwidth usage on a per message basis. The Multimedia Solutions platform is offered as a managed service, thereby reducing upfront capital costs for wireless carriers. AdMax Media’s services include a full suite of online performance marketing, search engine optimization and lead generation tools. Admaximizer.com is a real time campaign management platform for online advertising that enables advertisers to obtain the best response to their campaigns. The AdMaximizer platform manages the creation and display of online campaign materials such as banner advertisements, landing pages and email offers by using campaign performance related data, keyword search listings, and search engine optimization components. Digital Vouchers is a mobile phone and Internet marketing platform under development which is designed to enable brand owners to extend offers to consumers which can then be redeemed via mobile phones at point of sale in a retail outlet. CellCard is a software platform under development that is designed to provide brand owners with the ability to download mobile content such as a video clip to a mobile phone and also provides a mobile payment platform which can be used to pay for goods and services, either person to person or person to business.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: discussions about anticipated trends in our revenues, operating expenses or net income; our ability to successfully execute our business plan; the sufficiency of our capital resources to meet our existing and planned operating requirements. Actual results may differ materially from those contained in the forward-looking statements in this press release. Neither Lenco Mobile Inc. nor any company mentioned in this release undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.