By The Associated Press
Thursday, October 15, 2009
GuestLogix Inc. (TSXV:GXI) had a small profit in its summer quarter, recovering from losses in the year-earlier period as its revenues doubled to $4.8 million, the information technology company said Thursday.
The provider of retail solutions to the travel industry reported a net profits of $238,000 or zero cents a share for the third quarter of fiscal 2009, up from losses of $650,000 or one cent a share in the same quarter last year.
Meanwhile, revenues for the quarter ending Aug. 31 was double the $2.4 million in sales at the same time last year.
A number of new product deployments and a growing customer footprint added to the quarter's positive figures.
GuestLogix caters to airlines, railways, ferries, hotels, caterers and commissaries.
Deals with Continental Airlines, KLM and an Asia Pacific-based air carrier were among the quarter's highlights while a multi-year agreement to sell Las Vegas-based event tickets onboard customer airlines was also significant.
The company also signed agreements with Toronto Airport Express and Viator which enables customer airlines to sell ground transportation vouchers for the world's 50 busiest airports.
New onboard product launches, which included in-flight sales' programs also added to the company's increased revenues.
"While airline adoption of our in-flight merchandising is still in the early stages, passenger response has been positive," Tom Douramakos, GuestLogix's president and chief executive officer.
"Providing our customers with a suite of offerings that they can sell onboard positions us to accelerate top line growth, specifically by increasing our revenue per passenger trip, with minimal additional investment," he said.
Given its results for the quarter, the company said it is working towards a goal of approximately one billion passenger trips in fiscal 2009. GuestLogix also hopes to achieve a $2 million monthly revenue run-rate by November this year.
"Based on our current sales and deployment pipelines, we believe we are positioned to further strengthen our financial results in the coming quarters," said Douramakos.
Also contributing to the company's positive news was a settlement agreement reached in a legal dispute with a U.S. company which involved no cash payment or compensation.
GuestLogix shares closed at $1.34 Wednesday on the Toronto Venture Exchange.