January 23, 2012

Improvement of $3.7 million in net ine and record Positive Earnings in Fiscal 2011 for BSM Technologies

Toronto, ON - BSM Technologies Inc.("BSM" or the "Company")  (TSX-V: GPS), a leading developer and provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems today announced financial and operating results for the three and twelve months ended September 30, 2011.


Financial Highlights($ thousands)

  • Positive full year EBITDA:  $925 represents a 300% increase over 2010;
  • Maintained 61% gross margin;
  • Sixth consecutive quarter of positive EBITDA:  Q4 2011 is $385;
  • Transition year, focusing on our core solution, Sentinel; and,
  • Record level sales for Sentinel line: 
    • 7,055 units sold for the full year represents a 71% increase over 2010; and,
    • $4,513 in recurring revenues for the full year represents a 45% increase over 2010.


Operational Highlights

  • Strengthened human resources:
    • Enhanced our executive team (Technology, Sales & Operations);
    • Expanded sales force in the USA; and,
    • Enhanced the R&D team.
  • Significant large volume contracts:
    • Awarded a three-year contract with a major US-based service fleet worth over $1.1 million over three years;
    • Won three-year contracts with the Ontario and Quebec snowmobile associations, worth approximately $1.2 million; and,
    • Expanded relationship with a long term customer by adding 800 vehicle installs in a new division, in addition to the over 1,500 vehicles already installed. This expansion is expected to continue into fiscal 2012 to about 2,700 vehicles and a contract size of $1.2 million.
  • Augmented product and service offerings:
    • Added an Hour-of-Service module to our Sentinel fleet management solution; and,
    • Signed an agreement with ARI, the largest privately-held vehicle fleet management services pany in North America that bines our Sentinel products with ARI's web-based fleet management system.


"With the significant gains we made in sales, the key staff additions, service enhancements and our increased presence in the US, fiscal 2011 was a milestone year for BSM," said Aly Rahemtulla, President and CEO.  "This momentum is continuing and we look forward to continued growth in 2012."


Financial Highlights

($ thousands, except per share amounts)

Three months ended

September 30

Twelve months ended

September 30

2011


2010

2011


2010

2009

Recurring service revenue

$  2,321

$    2,159

$     9,276

$    8,183

$    5,065

Hardware and software revenue

1,045

1,123

5,175

5,324

4,063

Total revenue

3,366

3,282

14,451

13,507

9,128

Gross profit

2,098

1,915

8,871

8,223

4,740

Gross margin %

62%

58%

61%

61%

52%

Expenses

1,705

1,610

7,976

8,780

4,601

Net ine (loss) before other expenses

393

306

895

(557)

139

Other Expenses

74

2,164

316

2,586

3,344

Net ine (loss)

319

(1,859)

578

(3,143)

(3,205)

Basic and diluted ine (loss) per share

$  0.001

$  (0.008)

$     0.002

$  (0.014)

$  (0.037)

EBITDA

385

350

925

(463)

219

Cash from operations

1,473

207

1,612

(1,353)

(303)









($ thousands)

As at September 30

2011


2010

2009

Cash and cash equivalents




$     1,958

$       917

$    2,497

Working capital




1,938

1,209

2,119


"Our growth in EBITDA demonstrates that we can maintain financial discipline while experiencing growth in sales and operations," added Jenny Stranges, Chief Financial Officer. "Also, our growing recurring revenue stream allowsus some predictability into future earnings so we can control costs and maintainprofitability."

The Company' financial statements for the fiscal year 2011, together with management's discussion and analysis, can be found at .



About BSM Technologies

BSM Technologies, through its subsidiary BSM Wireless Inc., is a leading provider of remote monitoring, fleet tracking, fleet maintenance, and automated vehicle security systems providing real time, web