On The Go Technologies Group (OTCBB: ONGO)
On The Go Reports Fiscal 2006 Revenue Up 439% to $30.0M
Company Says Acquisitions Driving Strong Revenue Growth
CONCORD, Ontario, Oct. 31 — On The Go Technologies Group (OTC Bulletin Board: ONGO, ‘the Company’), a leading multi-industry computer hardware, software and systems integrator, announced today that total revenue from sales in the fiscal year ended July 31, 2006 was $30,011,797, a gain of 439% from $5,570,778 reported in the previous fiscal year.
Net loss for the year was ($6,342,635) or $0.65 per share, compared with a net loss of ($1,033,028) or $0.59 per share in 2005. This year’s loss is inclusive of $1,233,291 in interest and financing expenses due primarily to new convertible debentures, deemed beneficial conversion features, resulting not only in normal interest expense, but also expense related to that conversion feature. Management believes such interest and financing expense will decrease significantly in the next 12 months as the majority of the charges were expensed during the 2006 year. On The Go further recorded a $633,479 non-recurring loss on extinguishment of debt related to two restructured convertible debentures.
The cost of sales was $25,281,289 for the year, up from $4,560,594 for 2005. The percentage of cost of sales to revenue was 16%, which was slightly lower than the 18% reported in the previous fiscal year.
On The Go Technologies Chief Executive Officer, Stuart Turk, commented, “The Company’s dramatic sales growth and relative financial results reflect the impact of our most recent acquisitions: Infinity Technologies, Island Corporation and Solutions in Computing. The Company also incurred certain expenses associated with those acquisitions including new convertible debentures as well as a one-time loss on extinguishment of debt. Cash required for operations was $2,798,558 in 2006, compared with $1,378,952 for 2005, due to the increase in accounts receivable associated with the growth in sales. Reducing those receivables, which were $4,695,497 as of July 31, 2006, is one of our top priorities.”
Mr. Turk continued, “With a mission to build on our record-breaking numbers and remain focused on significant shareholder value, we believe the Company is well positioned to add appreciably to its growth for the 2007 fiscal year. The divisions continue strengthening their franchises, steadily bringing in both new business and expanding upon existing client relationships. To that end, and in light of the run rate set to date this first quarter, we believe our goal of $40 million in revenue for 2007 is strongly underway.”
About On The Go Technologies Group
On The Go Technologies Group is a North American corporation focused on acquiring versatile and profitable companies in the IT sector. OTG has established itself as a respected industry competitor through its four divisions: OTG Enterprise, catering to Fortune 1000 and SME clientele and vendors such as HP, Apple, IBM, SGI, Extreme Networks and Adobe; OTG Creative, a prominent systems integrator in the U.S. and Canadian digital entertainment industry; and OTC Healthcare and OTG Research compiling sophisticated digital solutions and networks for the diagnostic medical community and scientific research communities respectively. The company’s intention is to maintain sustained growth in the years to come via continued development in its existing divisions and an aggressive acquisition schedule. For more information, visit http://www.otgtech.com or http://www.otgtech.com/video.
To view a company profile, visit http://www.hawkassociates.com/ongoprofile.aspx.. To be added to On The Go Technologies Group’s e-mail list for company news, visit http://www.otgtech.com/new_site/inv_pkg_form.htm and http://www.hawkassociates.com/email.aspx. For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com or visit http://www.hawkassociates.com and http://www.americanmicrocaps.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements contain words such as “expects,” “believes,” “anticipates” and “intends.” Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting the B2B environment; continued ability to obtain hardware, software and peripherals at competitive costs; the company’s ability to finance its planned expansion efforts; the company’s ability to manage its planned growth; and changes in regulations affecting the company’s business and such other risks disclosed from time to time in the company’s reports filed with the Securities and Exchange Commission. The company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in management’s expectations, except as required by law.
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