News

Data Call intros new AP digital signage content, releases financials for Q3

November 10, 2014

Data Call Technologies Inc., an Internet-based company specializing in the aggregation and delivery of news and information content for the digital signage Industry, announced the official release of its new content made possible through its relationship with the Associated Press, the "Video Wrap," effective today. The Video Wrap is offered in addition to the company's current dynamic content modules.

The Video Wrap product distributes fresh news and informational video content that is updated for subscribers throughout the day, and is optimized for use in public spaces such as waiting areas where audio delivery is functional at the presentation area. AP's video newsgathering infrastructure uses mobile satellite uplinks and a network of video news bureaus around the world, using the latest generation of video editing, compression and transmission tools, for optimal presentation and viewing.

The company also released its financial results for the fiscal quarter ended Sept. 30, highlighted as follows:

Three months ended Sept. 30, compared to three months ended Sept. 30, 2013:

• Revenues for the three months ended Sept. 30, were $166,076, compared to $152,852 for the three-month period of the prior year, representing an increase of $13,224 or approximately 8.7 percent. The increase in revenues was mainly due to client renewals as well as new business clients.
• Costs of sales for the months ended Sept. 30 were $35,346 compared to $29,327 for the three-month period ended Sept. 30, 2013, representing an increase of $6,019 due to costs related to the licensing and royalty expense required to provide enhanced subscription services.
• Gross margins for the three months ended Sept. 30 were 78.7 percent, compared to 80.81 percent for the three-month period ended Sept. 30, 2013.
• Operating expenses for the three months ended Sept. 30 were $211,997, compared to $150,451 for the three-month period ended Sept. 30, 2013, representing an increase of $61,546 from the same period in the prior year. This increase is primarily related to the nonrecurring expense associated with the issuance of Series B Preferred Stock.
• Net loss for the three months ended Sept. 30 was $84,141, compared to $79,798 for the same three-month period of the prior year. The increase in its net loss is mainly due to the non-cash expense of $123,081 in connection with stock option grants and shares issued for services during the three months ended Sept. 30, the company said. Adding back these nonrecurring, non-cash expense items would have resulted in net income of $38,940, compared to $23,731 for the same period of the prior year.

Nine months ended Sept. 30, compared to nine months ended Sept. 30, 2013:

• The company's revenues for the nine months ended Sept. 30 were $497,564, compared to $467,340 for the nine-month period ended Sept. 30, 2013, representing an increase of $30,224. The increase in revenues was mainly due to the standard renewals and revenues from new business customers.
• Costs of sales for the nine months ended Sept. 30 were $94,841, compared to $84,232 for the same period of the prior year. This increase was due the costs related to the licensing and royalty expense required to provide the subscription services and the additional cost associated with the increase in revenue.
• Gross margins for the nine months ended Sept. 30, 2014 were 80.9 percent, compared to 82.0 percent for the same nine-month period of the prior year.
• Operating expenses for the nine months ended Sept. 30 were $501,251, compared to $536,606 for the nine-month period ended Sept. 30, 2013, representing a decrease of $35,355, which the company said was mainly due to the decreased expense associated with the issuance of shares and the grant of options.

The company reported a record positive working capital calculation of $11,661 that directly relates to the company's change in management in the first quarter of 2013.

Data Call CEO Tim Vance said in the announcement, "We are enjoying a very positive business environment for Data Call. The efficiencies and other changes that we commenced in early 2013 have enabled us to grow with a firm and stable footing. I am proud of our people and our relationships that have furthered our success and I want to express my gratitude to those who continue to stand beside us through our growth, helping us obtain our mutual goals."