NEWS17 August 2009

In-Touch Survey Systems rues cancelled orders

Financials North America

CANADA— Data collection firm In-Touch Survey Systems has reported that its revenue grew by 8% in the second quarter of 2009, but the firm’s electronic data collection activities took a C$1m hit as clients cancelled orders.

Manual data collection (MDC) revenue grew by 20% although electronic data collection (EDC) activities were affected as clients’ budgets were tightened.

CEO Michael Gaffney said: “Even though over one million dollars worth of EDC orders for 2009 were cancelled due to the economic downturn, EDC Q2 revenues were flat compared to Q2 2008.

“Our acquisition strategy and hard work by the sales team have largely mitigated the effects of a challenging economic period and maintained Q2 EDC revenues at last year’s levels. We are closely monitoring Q3 sales as this is when the largest sales order cancellations occurred last year.”

Overall revenue was up to C$1.414m from C$1.313m in the same period last year but gross profit dropped to C$814,901 from C$839,19 in Q2 2008. A weak Canadian dollar caused a foreign exchange loss of just under C$30,000.

Earlier this year, the firm axed 10% of its workforce, including president and COO Lynda Partner.