LOS ANGELES, CA , Aug. 17, 2017 (GLOBE NEWSWIRE) -- GTX Corp Second Quarter 2017 Results
LOS ANGELES, CA - GTX Corp (OTCQB: GTXO), an IoT platform and provider of personal location GPS wearable technology and wandering assistive technology, announces financial summary for the second quarter ending June 30, 2017.
Second Quarter and Six Month Highlights
- Product revenues increased by 28% over 2016 comparable period
- International subscribers increased by 37% over 2016 comparable period
- Combined total revenues increased 8% over 2016 comparable 6 month period
- Net service income increased 97% over 2016 comparable period
- Gross margins increased 23% over 2016 comparable 6 month period
- Net loss decreased 21% over 2016 comparable 6 month period
Overall product revenues were up 28%, however total revenues and product revenues were lower than expected this quarter due to a technical issue with the Company’s first production run of version 1.5 SmartSole. GTX Corp was able to resolve the issue; however not until after the quarter ended, hence 300 units which were expected to ship before June 30th shipped after the quarter ended, lowering the Company’s product and overall revenues for the second quarter. The issue has been completely resolved and is not expected to have any further impact on future production runs.
On the R&D front, the Company began several new projects and made significant progress on current projects. First being a CDMA version of the SmartSole that is being developed to operate on the Verizon network throughout North America. The Company is in the final phase of development and pre-production testing both internally and with evaluation units in the field with sales representatives, customers and potential new customers. The second R&D project is a “SmartSole lite,” which will have a lower selling price with perhaps as much as 50% lower cost and be available in children sizes. This “lite” product is being created for lower disposable income markets and for individuals that are not just “at risk” of wandering due to Alzheimer’s or autism, but rather more for general population use. Think moms that want to keep track of their kids.
GTX Corp is also continuing to invest in R&D with sensor technology and predictive analytics and has begun working on bio–metric technology which will monitor gait, activity, weight and heart rate. The Company has been in discussion with customers, strategic partners, academia and the senior housing and caregiving communities all of which have confirmed there is a need for a smart wearable technology to combine location monitoring with bio-metrics into one non-invasive wearable product such as the SmartSole. The Company has also filed a patent for these combined technologies and continues to work on expanding its IP portfolio by adding more patents and working with its strategic partner, Inventergy, on monetizing three of its patents in the Comm protocol 286 family.
During the second quarter, the Company continued expanding its sales channels internationally and domestically, signing up new distributors and exploring opportunities in Japan, Hong Kong, Chile, Spain and the Middle East and attended several large trade shows in the U.S. and Europe. GTX hired two additional account representatives to manage the Company’s reseller programs in the U.S., Latin America and the Caribbean.
This quarter GTX also launched the SoleProtector which keeps the SmartSole hygienically clean, covers logos or markings making the GPS SmartSole more stealth and discrete, and adds some comfort and overall protection. All of these features have been requested by many of the Company’s B2B customers and consumers. As the Company plans to launch more wearable technology footwear, the SoleProtectors are a high margin accessory product extension. GTX Corp has also began shipping its Take-Along Tracker 3G GPS, SOS and voice-activated tracking device to its international distributors, which are introducing this solution for the lone worker government mandates in many European countries.
As the trend to use technological innovations to help seniors live longer and more fulfilling lives continues to grow around the world (generally referred to as the Aging 2.0 movement), GTX continues to look ahead on creating new products and solutions and working with partners that will help the Company grow in the future. One such partner, George Mason University, completed the first phase of wandering predictive research utilizing the GTX IoT platform and data, and a two-stage spatiotemporal clustering algorithm which correctly predicted a users’ location 87% of the time. This high level of initial success in accurate wandering prediction has enabled George Mason University to file for a much larger phase II grant. The preliminary research will be made available to GTX Corp, which will consider deploying the prediction algorithms into its backend monitoring platform, adding yet another layer of technology and overall value to the Company’s IoT tracking platform and monitoring services. As mass numbers of Baby Boomers who need care begin to outnumber those able to help them, the need for research and technology solutions will continue to grow, hence GTX is also exploring developing a data collection only SmartSole, that would be much lower in cost and could be used on wide scale research programs and clinical trials.
Patrick Bertagna, GTX Corp CEO, commented, “By most measurable metrics we continue to make forward progress, increasing our sales, expanding our distribution channels, growing our subscriber base, increasing our margins, developing and launching new products, exploring new revenue generating opportunities and growing our IP portfolio, while maintaining our operational costs and cash burn to a minimum. As we continue to work on all of these fronts, adding customers, partners, patents and products, we are also keeping an eye on our true value proposition which is our ‘wearable footwear platform’ and all of our IP surrounding it. Tech footwear is gaining traction and lots of small and large companies are entering this space. Recently Techflier.com listed the 13 top smart shoes, with the SmartSole recognized as number six on the list and Fujitsu announced launching Interactive Shoe Hub, highlighting the art of the possible by combining electronics and footwear. Our focus to date has been around location based wearable tech and being able to let you know where someone is at the touch of a button, but our universe is evolving.”
In describing the Company’s future, Mr. Bertagna continued, “There are many more solutions that can be delivered from smart footwear, such as predictive analytics and bio-metrics. Our experience, knowhow, patents and global partners has and will continue to present us with new opportunities. Our history and team has demonstrated we can move and react quickly to new market opportunities, leveraging our assets, while keeping our expenses low. We realize everyone has high expectations and we would all like to see triple digit growth every quarter, however we are still a small emerging, but underfunded company operating on a global stage with minimum resources. In this large and growing market we have manged to forge relationships with small to fortune 1,000 companies, manufacture and sell products across the globe in over 35 countries, ideate and innovate, launch new products and grow our IP portfolio, while for the most part delivering single and double digit growth in most measurable metrics over the past 12 quarters. As we drive towards cash flow positive by adding more subscribers, we are also evaluating new opportunities to create additional revenue streams and shareholder value from all of our assets. I want to thank our team, shareholders, stakeholders, partners and vendors for your continued support.”
About GTX Corp
GTX Corp (GTXO) is a pioneer in Smart, Mobile and Wearable GPS, cellular and BLE tracking and recovery location based services. Through its proprietary enterprise monitoring platform and licensing, subscription recurring revenue business model, GTX Corp offers a complete end-to-end solution of hardware, software and connectivity, backed by an extensive portfolio of patents, patents pending, registered trademarks, copy rights and URL's. Headquartered in Los Angeles, California, with distributors in over 14 countries, GTX is known for its game-changing patented GPS Smart Shoe, Smartphone GPS Tracking App, and award winning, patented GPS and BLE SmartSole, the world’s first, invisible wearable wander guard GPS tracking device, initially created for quick recovery of those at risk of wandering due to Alzheimer’s, dementia, autism or traumatic brain injury. GTX provides solutions that answer the “where” question: where is my mother, child, employee, vehicle, drone and high-value assets. The Company doesn’t just make and sell the best GPS tracking products, they deliver in over 35 countries, innovative, miniaturized, low power consumption wearable tech that provides safety, security and peace of mind at the touch of a button. We put the "Where" in Wearable Tech.
Social media: #withyou #smartsole #connectedandprotected
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Forward Looking Statements
This news release contains forward-looking statements. The terms and phrases “expects,” “would,” “will,” “believes,” and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by GTX in light of its experience and its perception of current conditions and expected future developments, as well as other factors that GTX believes are appropriate in the circumstances. Many factors could cause GTX’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Certain risk factors that may cause actual results to differ are set forth in GTX’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (which may be obtained at http://www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on GTX’s forward-looking statements. GTX has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Source: Uptick Newswire
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