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05/18/12 -- Peak PositioningTechnologies Inc. ("Peak") (TSX VENTURE:PKK) today announced itsfinancial results and reviewed highlights for the three-monthperiod ended March 31, 2012. Financial Highlights: -- $4,875 in revenues from royalties; -- R&D expenditures of$196,109, before tax credits; -- Net loss of $507,112 for thequarter; -- $661,572 of new equity capital (net of commissions)from private placement closed on April 5, 2012. Operating Highlights: -- Completed co-development of AiNi(TM)3.0 Mobile Cloud Platform.-- Renegotiated royalty agreement with LongKey-Hong Kong Ltd.("LongKey"). -- Established physical presence in China throughshared-cost office with LongKey. "Our most significant milestone in the first quarter was completingthe co-development of the AiNi(TM)3.0 Mobile Cloud Platform forsmartphones, tablets and other mobile devices", said JohnsonJoseph, Peak's President and CEO. "In early April, AiNi(TM)3.0 wasreleased commercially to China Telecom by our partner, LongKey.What's more, a very positive working relationship with LongKey overthe past twelve months led to the renegotiation of ourroyalty-sharing agreement and the decision to jointly open anoffice in Taizhou", Mr. Joseph added. As previously announced, the parties now share royalties generatedby the sale of all of LongKey's web and mobile applications, ratherthan only those co-developed with Peak. Furthermore, to betterreflect Peak's contribution to the partnership, the percentage ofroyalties to be paid to Peak was increased from 15% to 30%. Looking ahead to the balance of the year, Mr. Joseph is optimisticabout Peak's revenue prospects. "The Chinese mobile market isenormous and the most significant opportunity today is a wave oftransition from 2G devices to 3G devices that is sweeping thecountry with a 250% constant average annual growth rate since 2009.The AiNi(TM) platform and the applications it supports put us ingreat position to ride that wave so I can't overemphasize thesignificance of the commercial release and the timing of therelease of AiNi(TM)3.0 for both Peak and LongKey. With the newroyalty structure now in place, the stage is set for us to generatesustained revenue growth from our business in China through to theyear-end and in the years ahead", he stated. First Quarter Financial Results Summary Peak generated $4,875 in royalty revenues for the three monthsended March 31, 2012 as a result of an ongoing pilot project inChina and the sharing of royalties with LongKey. There were norevenues in the first quarter of the prior year. Although the earlyreturns from the Chinese partnership continue to be modest, theyare indicative of the success Peak and LongKey are enjoying inco-developing software with the potential for significant revenuegrowth in future quarters. Expenses for the three-month period amounted to $511,987 in 2012compared to $1,082,648 in the comparable period of 2011. The higher2011 expenses included $563,000 of costs associated with Peakbecoming a public company. The first quarter expenses include R&D expenditures of $196,109compared to $84,579 in the comparable period of 2011. These costsare before deducting investment tax credits, which are accountedfor on an annual basis only. The net loss for the three-month period ending March 31, 2012 was$507,112 compared to $1,082,648 in the comparable period of 2011. On April 5, 2012, Peak raised $661,572 (net of commissions) of newequity capital through a private placement. Further details on the Company's first quarter 2012 financialresults can be found in the Unaudited Interim ConsolidatedFinancial Statements and Management's Discussion and Analysis(MD&A) for the three-month periods ended March 31, 2012 and2011, which are available at . About The Chinese Telecom market: China is the world's largest mobile phone market with over 1.01billion mobile subscribers as of March 2012 according to theMinistry of Industry and Information Technology of the People'sRepublic of China and based on published data from China's threelargest telecom service providers. Since 2008, the Chinesegovernment has made a concerted effort to increase the use of 3Gtechnology in China and the Chinese smartphone market is growingdramatically. U.S.-based International Data Corporation recentlyreleased a report indicating that China will account for 20.7%, or137 million, of the projected 660 million global smartphoneshipments in 2012, leapfrogging the United States to also becomethe biggest smartphone market in the world, measured by annualshipments. About Peak Positioning Technologies Inc.: Peak Positioning Technologies Inc. (TSX VENTURE:PKK), is a Canadiansoftware developer for smartphones and other mobile computingdevices, conducting business primarily in China and North America.In association with its partner, LongKey-Hong Kong Ltd, the companyhas developed a suite of applications for mobile devices thatincludes: cloud-based calendar, e-mail and contactssynchronization, automated device configuration, and HomeWave(TM)mobility security. While LongKey markets the applications in Chinathrough its partnerships with major Chinese telecommunicationcompanies and banks, Peak plans to similarly market theapplications for its own account in North America. For moreinformation:. About LongKey-Hong Kong Ltd.: LongKey Hong Kong Ltd., through its subsidiary LongKey SoftwareTechnology Ltd., provides a wide range of IT solutions, businessmanagement applications, and mobile applications based on itsproprietary Unified Information Services Platform (UISP). LongKey'sapplications are distributed to end-users in China by some ofChina's largest telecom and banking entities. For more information:. Forward-Looking Statements / Information This news release may include certain forward-looking information,including statements relating to business and operating strategies,plans and prospects for revenue growth, using words including"anticipate", "believe", "could", "expect", "intend", "may","plan", "potential", "project", "seek", "should", "will", "would"and similar expressions, which are intended to identify a number ofthese forward-looking statements. Forward-looking informationreflects current views with respect to current events and is not aguarantee of future performance and is subject to risks,uncertainties and assumptions. The Company undertakes no obligationto publicly update or review any forward-looking informationcontained in this news release, except as may be required byapplicable laws, rules and regulations. Readers are urged toconsider these factors carefully in evaluating any forward-lookinginformation. Neither the TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy oraccuracy of this release. Contacts: Peak Positioning Technologies Inc. Johnson Joseph President and CEO 514-340-7775 ext.: 501 514-340-2228 (FAX) Pinnacle Capital Markets Spyros P. Karellas President and CEO 416-800-8921 spyros@pinnaclecapitalmarkets.ca Copyright @ Marketwire. I am an expert from tinplatesheet.com, while we provides the quality product, such as China Printed Tinplate , Alu Zinc Steel, Galvanised Steel Sheet,and more.
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