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Call Genie Announces Third Quarter 2008 Financial Results

November 7, 2008

Call Genie Announces Third Quarter 2008 Financial Results

 

Revenues continue to increase on a year over year basis.

Toronto, Ontario – November 7, 2008. Call Genie, a leading provider of mobile local search and

advertising solutions, today announced financial results for the nine months ended September 30,

2008.

 

Year to Date 2008 Results

• Revenues of $3,290,804 compares to $1,156,578 for the first nine months of 2007.

• Net loss of $15,078,774 ($0.18 per share) compares to $8,330,314 ($0.13 per share) for the first nine months of 2007.

• Cash used in operations was $13,065,464 compares to $7,780,842 for the first nine months of 2007.

• At September 30, 2008 the Company had positive working capital of $7,358,753.

 

Third Quarter 2008 Results

• Revenues of $875,182 compares to $509,859 for the third quarter of 2007.

• Net loss of $4,770,985 ($0.06 per share) compares to $3,103,593 ($0.04 per share) for the third quarter of 2007.

• Cash used in operations was $4,311,965 compares to $3,262,669 for the third quarter of 2007.

 

Withdrawal of Prior Financial Guidance

Recent economic and market events have increased the uncertainty with respect to forecasting short-term

growth and profitability. During Q3 of 2008, certain customer projects were scaled back, delayed or

cancelled. The current credit crisis may impact some of the Company’s customers and their ability to invest

in new potential revenue streams. Accordingly, the Company is withdrawing its previously issued financial

guidance for 2008 and 2009.

 

Improved Operational Efficiency

The Company has undertaken various measures to optimize the use of cash. These measures include but

are not limited to: 1) a freeze on all hiring; 2) elimination of major capital purchases; 3) scaling back

expenditures on travel and conferences; 4) rationalization of manpower in certain non-strategic

operational areas; 5) cancelation of all management bonus programs; 6) Directors have deferred fees; and

7) increased use of tools to improve technology development efficiency.

 

Mr. Michael Durance, the Company’s Chief Executive Officer, remarked, “Despite the poor economic climate,

the fundamentals for our value proposition remain very strong. Analysts expect mobile local search and

mobile advertising trends to continue to grow and we remain focused on this very important market. In the

short term, the Company has been successful in increasing efficiency in order to reduce going forward cash

burn.”

 

This news release Call Genie should be read in conjunction with Call Genie’s unaudited financial statements

and the accompanying notes as at and for the periods ended September 30, 2008 and the related Management

Discussion and Analysis (“MD&A”), which have been filed with certain securities regulatory authorities in

Canada and available on SEDAR (www.sedar.com) and on the Call Genie website at www.callgenie.com

 

About Call Genie Mobile Local Search Product Suite

The CG Mobile Local Search Product Suite includes three product lines: CG Interact, CG Open and CG

ADvantage. These product lines provide directory assistance providers, Yellow Pages publishers,

wireless carriers and search engine companies with the applications and technology platforms

required to deliver innovative mobile local search and advertising services.

The CG Interact products deliver automated or operator-assisted voice enabled solutions, mobile data

search and seamless delivery of information to phones from web sites. CG Open products have been

designed with the underlying philosophy that a great user experience must be the foundation for any

service that will be monetized through ad sponsorship. CG Open products deliver key benefits to

reduce costs and enhance the user experience. All of the CG Open platforms leverage industry

standards to maximize their ability to integrate into and interoperate with our customer’s existing

systems, data sources and with mobile content providers. CG ADvantage products enable our

customers to capitalize on the emerging Mobile Local Search advertising opportunity and deliver

inventory, taxonomy and campaign management specifically optimized for this unique ad inventory.

 

About Call Genie Inc.

Call Genie is a leading global provider of local mobile search and advertising solutions that connect

ready to transact consumers directly with local merchants for local directory businesses, directory

assistance services and local media publishers. Call Genie solutions offer an exceptional experience for

both advertisers and consumers and are deployed in 11 countries around the world. Call Genie has

been awarded the Excellence in Integrated Ad Management award by the Pelorus Group, has won the

Yellow Page Association Industry Excellence Award for Marketing Innovation, the Whitaker Innovation

Award, and the 118 Tracker Awards for both Technology Innovation in the UK and most recently,

Outstanding Contribution to the Industry. www.callgenie.com.

 

For More Information

Call Genie Inc.

Alex Blodgett, Investor Relations

Tel: +1 403 410-6875

Email: alex.blodgett@callgenie.com

 

or

 

Ali Mahdavi

Tel: +1 416 962-3300 ext 225

Email: amahdavi@spinnakercmi.ca

The TSX Exchange has neither approved nor disapproved the contents of this news release.

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