SITO Mobile, Ltd.

Single Touch Interactive, Inc.

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Single Touch Reports Second Quarter Fiscal 2013 Results

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Conference Call Scheduled for 8:30 am ET on May 16

JERSEY CITY, NJ -- (Marketwired) -- 05/15/13 -- Single Touch Systems, Inc. (OTCBB: SITO), a technology based mobile media solutions provider, today reported financial results for the three and six months ended March 31, 2013.

Financial Highlights:

  • Revenue: For the second quarter of fiscal 2013, revenue increased to $1.8 million from $1.6 million for the second quarter of fiscal 2012, representing a year-over-year increase of 16%. For the six months ended March 31, 2013, revenues increased to $3.8 million from $3.1 million for the same period of the prior year, representing a year-over-year increase of 19%. Because a majority of the Company's revenues are currently derived from mobile messaging for retailers, Single Touch's business peaks during the holidays and then reflects a return to normalized growth in its third fiscal quarter beginning in April.

  • Gross Margin: For the second quarter of fiscal 2013, gross margin was 57%. In the six months ended March 31, 2013 gross margins improved to 56% from 55% in the same period of 2012.

  • Adjusted EBITDA: For the second quarter of fiscal 2013, adjusted EBITDA, a non-GAAP financial measure, was $(443,000) compared to adjusted EBITDA of $(305,000) for the second quarter of fiscal 2012. For the six months ended March 31, 2013, adjusted EBITDA was $(804,000) as compared to $(709,000) for the same period of the prior year.

  • Net Income (Loss): For the second quarter of fiscal 2013, net loss, on a GAAP basis, was $(1.1) million or $(0.01) per basic and dilute share, compared to a net loss of $(665,000) or $(0.01) per basic and diluted share for the second quarter of fiscal 2012. For the six months ended March 31, 2013, net loss was $(3.3) million or $(0.02) per basic and diluted share, compared to $(1.3) million or $(0.01) per basic and diluted share for the same period in 2012.

  • Messaging Volume: In the second quarter of fiscal 2013, Single Touch sent 66 million marketing message to mobile phone users. This is up 15% from 56 million messages sent in the second quarter of fiscal 2012. Messaging volume is a key business metric for the Company.

"With continued double digit year-over-year revenue growth and gross margin improvement for the first two quarters of fiscal 2013, we continue to progress towards our goals for revenue growth and profitability in our operating business. We are focused on ramping recurring revenue streams through both existing and new clients," stated Single Touch President and CEO James Orsini.

"For marketers and advertisers there is a realization that consumers don't use desktop and mobile in the same way when they are searching to shop. The numbers are very compelling. Ninety percent of people conducting a mobile search act within 1 day, and 70% act within 1 hour according to data published on sparksheet.com. We believe Single Touch is well positioned to capitalize on the seismic shift towards mobile media consumption and corresponding action. We provide the ROI, the patent protected technologies, and services that deliver results for our customers," Orsini added.

Single Touch Chairman and Chief Technology Officer Anthony Macaluso commented, "During the second quarter of fiscal 2013, we continued our efforts to unlock value in our IP portfolio. In the quarter our Single Touch Interactive subsidiary was also granted a patent from the United States Patent and Trademark Office for a key invention addressing mobile data transfer functions that happen nearly every time a new mobile device is purchased in the U.S. With this latest patent, Single Touch's IP position in the mobile ecosystem is now comprised of 49 patents issued and pending applications."

Conference Call Dial-In Information:

Date: Thursday, May 16, 2013

Time: 8:30 A.M. Eastern Time (ET)

Dial in Number for U.S. & Canadian Callers: 877-407-8629

Dial in Number for International Callers (Outside of the U.S. & Canada): 201-493-6715

To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time. A live webcast and archive of the call will also be available on Single Touch's website at: http://singletouch.equisolvewebcast.com/q2-2013.

If you are unable to participate in the call at this time, a replay will be available for 7 days starting on May 16 at approximately 11:00 A.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 414392.

About Single Touch Systems, Inc.

Single Touch Systems, Inc. is a technology based mobile solutions provider serving businesses, advertisers and brands. Through patented technologies and a modular, adaptable platform, Single Touch's multi-channel messaging gateway enables marketers to reach consumers on all types of connected devices, with information that engages interest, drives transactions and strengthens relationships and loyalty. For more information about Single Touch Systems, Inc. visit: www.singletouch.net

Forward-Looking Statements

This news release may contain forward-looking statements that involve risks and uncertainties and reflect Single Touch's judgment as of the date of this release. These statements may include those regarding strategy, growth and future operations. Actual events or results may differ from Single Touch's expectations. The risks and uncertainties include reliance on brand owners and wireless carriers, the possible need for additional capital, as well as other risks identified in Single Touch's filings with the SEC. Single Touch disclaims any intent or obligation to update these forward-looking statements beyond the date of this press release, except as may be required by law.

SINGLE TOUCH SYSTEMS, INC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
March 31, March 31,
2013 2012 2013 2012
Revenue
Wireless applications $ 1,808,836 $ 1,554,823 $ 3,756,114 $ 3,144,496
Operating Expenses
Royalties and application costs 776,540 654,310 1,660,333 1,417,631
Research and development 24,050 16,050 32,756 53,250
Compensation expense (including stock based compensation) *
635,203

679,961

2,390,541

1,373,784
Depreciation and amortization 160,148 163,604 314,934 319,075
General and administrative (including stock based compensation) *
1,006,158

577,778

2,073,682

1,108,448
2,602,099 2,091,703 6,472,246 4,272,188
Loss from operations (793,263 ) (536,880 ) (2,716,132 ) (1,127,692 )
Other Income (Expenses)
Interest income 20 11 41 36
Interest expense (279,046 ) (128,468 ) (587,553 ) (166,077 )
Net (loss) before income taxes (1,072,289 ) (665,337 ) (3,303,644 ) (1,293,733 )
Provision for income taxes - - (800 ) (800 )
Net income (loss) $ (1,072,289 ) $ (665,337 ) $ (3,304,444 ) $ (1,294,533 )
Basic and diluted loss per share $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.01 )
Weighted average shares outstanding 132,646,727 130,182,392 132,558,602 130,316,818
* Details of stock based compensation included within:
Compensation Expense $ - $ $ 1,109,720 $ 9,960
General and administrative $ 190,421 $ 68,606 $ 487,243 $ 89,753
Total $ 190,421 $ 68,606 $ 1,596,963 $ 99,713
SINGLE TOUCH SYSTEMS, INC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, September 30,
2013 2012
Assets
Current assets
Cash and cash equivalents $ 924,350 $ 2,157,707
Accounts receivable - trade 1,182,697 1,085,840
Employee advances 3,188 -
Prepaid expenses 827,604 129,290
Total current assets 2,937,839 3,372,837
Property and equipment, net 183,430 228,499
Other assets
Capitalized software development costs, net 383,768 383,227
Intangible assets:
Patents 534,946 602,056
Patent applications cost 740,214 667,858
Software license 831,000 76,000
Deposit - related party - 155,000
Other assets including security deposits 84,278 84,278
Total other assets 2,574,206 1,968,419
Total assets $ 5,695,475 $ 5,569,755
SINGLE TOUCH SYSTEMS, INC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, September 30,
2013 2012
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 1,078,653 $ 768,263
Accrued expenses 211,020 200,591
Accrued compensation - related party 75,253 72,730
Current obligation on patent acquisitions - 87,500
Convertible debentures - unrelated parties - 294,241
Total current liabilities 1,364,926 1,423,325
Long-term liabilities
Deferred revenue - 25,000
Convertible debenture - related party 556,439 527,512
Convertible debentures - unrelated parties 3,544,773 2,685,280
Total long-term liabilities 4,101,212 3,237,792
Total liabilities 5,466,138 4,661,117
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
-

-
Common stock, $.001 par value; 200,000,000 shares authorized, 132,945,480 shares issued and outstanding as of March 31, 2013 and 132,472,392 shares issued and outstanding as of September 30, 2012

132,945


132,472
Additional paid-in capital 128,050,287 125,425,617
Accumulated deficit (127,953,895 ) (124,649,451 )
Total stockholders' equity 229,337 908,638
Total liabilities and stockholders' equity $ 5,695,475 $ 5,569,755

Reconciliation of Non-GAAP Measures

For the Three Months Ended March 31,
2013 2012 GAAP Adjusted EBITDA
Adjust- Adjusted Adjust- Adjusted Change Change
GAAP ments EBITDA GAAP ments EBITDA $ % $ %
Revenue
Wireless Applications $ 1,808,836 $ 1,808,836 $ 1,554,823 $ 1,554,823 $ 254,013 16 % $ 254,013 16 %
Operating Expenses
Royalties and Application Costs $ 776,540 $ 776,540 $ 654,310 $ 654,310 $ 122,230 19 % $ 122,230 19 %
Research and Development $ 24,050 $ 24,050 $ 16,050 $ 16,050 $ 8,000 50 % $ 8,000 50 %
Compensation expense (including stock-based compensation) $
635,203
$
635,203
$
679,961
$
679,961
$
(44,758
)
-7
% $
(44,758
)
-7
%
Depreciation and amortization $ 160,148 $ (160,148 ) $ - $ 163,604 $ (163,604 ) $ - $ (3,456 ) -2 %
General and administrative (including stock-based compensation) $
1,006,158
$
(190,421
) $
815,737
$
577,778
$
(68,606
) $
509,172
$
428,380

74
% $
306,565

60
%
$ 2,602,099 $ (350,569 ) $ 2,251,530 $ 2,091,703 $ (232,210 ) $ 1,859,493 $ 510,396 24 % $ 392,037 21 %
Loss from Operations/Adjusted EBITDA $ (793,263 ) $ 350,569 $ (442,694 ) $ (536,880 ) $ 232,210 $ (304,670 ) $ (256,383 ) 48 % $ (138,024 ) 45 %
For the Three Months Ended March 31,
2013 2012 GAAP Adjusted EBITDA
Adjust- Adjusted Adjust- Adjusted Change Change
GAAP ments EBITDA GAAP ments EBITDA $ % $ %
Professional Fees $ 439,859 $ 439,859 $ 181,818 $ (15,006 ) $ 166,812 $ 258,041 142 % $ 273,047 164 %
Travel $ 81,044 $ 81,044 $ 80,386 $ 80,386 $ 658 1 % $ 658 1 %
Consulting expense $ 323,865 $ (190,421 ) $ 133,444 $ 166,895 $ (53,600 ) $ 113,295 $ 156,970 94 % $ 20,149 18 %
Office rent $ 53,820 $ 53,820 $ 53,145 $ 53,145 $ 675 1 % $ 675 1 %
Insurance expense $ 46,230 $ 46,230 $ 31,894 $ 31,894 $ 14,336 45 % $ 14,336 45 %
Equipment lease $ - $ - $ - $ - $ -
Trade shows $ 17,537 $ 17,537 $ 3,995 $ 3,995 $ 13,542 339 % $ 13,542 339 %
Telephone $ 15,220 $ 15,220 $ 19,419 $ 19,419 $ (4,199 ) -22 % $ (4,199 ) -22 %
Office expense $ 13,118 $ 13,118 $ 9,862 $ 9,862 $ 3,256 33 % $ 3,256 33 %
Other $ 15,465 $ 15,465 $ 30,364 $ 30,364 $ (14,899 ) -49 % $ (14,899 ) -49 %
Total General and Administrative Expenses $ 1,006,158 $ (190,421 ) $ 815,737 $ 577,778 $ (68,606 ) $ 509,172 $ 428,380 74 % $ 306,565 60 %

Reconciliation of Non-GAAP Measures

For the Six Months Ended March 31,
2013 2012 GAAP Adjusted EBITDA
Adjust- Adjusted Adjust- Adjusted Change Change
GAAP ments EBITDA GAAP ments EBITDA $ % $ %
Revenue
Wireless Applications $ 3,756,114 $ - $ 3,756,114 $ 3,144,496 $ - $ 3,144,496 $ 611,618 19 % $ 611,618 19 %
Operating Expenses
Royalties and Application Costs $ 1,660,333 $ - $ 1,660,333 $ 1,417,631 $ - $ 1,417,631 $ 242,702 17 % $ 242,702 17 %
Research and Development $ 32,756 $ - $ 32,756 $ 53,250 $ - $ 53,250 $ (20,494 ) -38 % $ (20,494 ) -38 %
Compensation expense (including stock-based compensation) $ 2,390,541 $
(1,109,720
) $
1,280,821
$ 1,373,784 $ (9,690 ) $
1,364,094
* $ 1,016,757
74
% $ (83,273 )
-6
%
Depreciation and amortization $ 314,934 $ (314,934 ) $ - $ 319,075 $ (319,075 ) $ - $ (4,141 ) -1 %
General and administrative (including stock-based compensation) $
2,073,682
$
(487,243
) $
1,586,439
$ 1,108,448 $ (89,753 ) $
1,018,695
* $ 965,234
87
% $ 567,744
56
%
$ 6,472,246 $ (1,911,897 ) $ 4,560,349 $ 4,272,188 $ (418,518 ) $ 3,853,670 $ 2,200,058 51 % $ 706,679 18 %
Loss from Operations/Adjusted EBITDA $ (2,716,132 ) $ 1,911,897 $ (804,235 ) $ (1,127,692 ) $ 418,518 $ (709,174 ) $ (1,588,440 ) 141 % $ (95,061 ) 13 %
For the Six Months Ended March 31,
2013 2012 GAAP Adjusted EBITDA
Adjust- Adjusted Adjust- Adjusted Change Change
GAAP ments EBITDA GAAP ments EBITDA $ % $ %
Professional Fees $ 777,492 $ (1,894 ) $ 775,598 * $ 348,778 $ (30,012 ) $ 318,766 * $ 428,714 123 % $ 456,832 143 %
Travel $ 248,887 $ - $ 248,887 $ 219,227 $ - $ 219,227 $ 29,660 14 % $ 29,660 14 %
Consulting expense $ 761,344 $ (485,349 ) $ 275,995 * $ 273,820 $ (59,741 ) $ 214,079 * $ 487,524 178 % $ 61,916 29 %
Office rent $ 107,640 $ - $ 107,640 $ 98,436 $ - $ 98,436 $ 9,204 9 % $ 9,204 9 %
Insurance expense $ 75,199 $ - $ 75,199 $ 60,050 $ - $ 60,050 $ 15,149 25 % $ 15,149 25 %
Equipment lease $ - $ - $ - $ - $ - $ - $ - $ -
Trade shows $ 18,327 $ - $ 18,327 $ 15,995 $ - $ 15,995 $ 2,332 15 % $ 2,332 15 %
Telephone $ 27,945 $ - $ 27,945 $ 31,029 $ - $ 31,029 $ (3,084 ) -10 % $ (3,084 ) -10 %
Office expense $ 24,837 $ - $ 24,837 $ 17,918 $ - $ 17,918 $ 6,919 39 % $ 6,919 39 %
Other $ 32,011 $ - $ 32,011 $ 43,195 $ - $ 43,195 $ (11,184 ) -26 % $ (11,184 ) -26 %
Total General and Administrative Expenses $ 2,073,682 $ (487,243 ) $ 1,586,439 $ 1,108,448 $ (89,753 ) $ 1,018,695 $ 965,234 87 % $ 567,744 56 %
* Adjustment represents the elimination of stock-based compensation recorded in accordance with GAAP but not considered in the calculation of Adjusted EBITDA.

Investor and Media Contact:
Robert Haag
Hampton Growth IR
877-368-3566
Email Contact

Source: Single Touch Systems

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