For the year ended December 31, 2011, personnel expense was $17.0 million, a 19% decrease from $21.1 million last year. The year-over-year decrease is primarily due to workforce reductions associated with the Company’s restructuring activities. The amount shown for 2011 includes $1.3 million of severance and termination expense compared to $1.4 million last year. On an annualized basis, the net reduction in total personnel expense (after severance and termination related costs) of the workforce reductions made during 2011 is approximately $6.8 million.
For the year ended December 31, 2011, purchased services and materials expense was $10.2 million, relatively flat with $10.0 million last year. Increased job and subcontractor expenses associated with a large contract services project in Southeast Asia were partially offset by decreased operating costs associated with expense reductions during the year. The increased job and subcontractor expenses in 2011 were commensurate with the increase in contract services revenue during the year.
The cash position of the Company at December 31, 2011 (cash and cash equivalents) was $0.6 million, compared to $4.4 million at December 31, 2010. Amounts receivable and unbilled revenue at December 31, 2011 was $6.4 million, compared to $5.2 million at December 31, 2010. Working capital improved to ($1.0) million at December 31, 2011, compared to ($3.5) million at December 31, 2010 (see “Intermap Reader Advisory” below).
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
Fourth Quarter Business Highlights
The Company announced a $950,000 NEXTMap enterprise sale to a leading global telecommunications company for its NEXTMap LinkPro™ 3D business intelligence application. This leading telecommunications company will help their customers modernize their networks by using Intermap’s accurate NEXTMap clutter height data for the planning and development of 4G long-term evolution (LTE) wireless networks across the U.S.
The Company announced a $1.1 million contract for digital mapping services and licensing of its NEXTMap database for selected areas in the U.S. The data will be used by the customer in support of energy transmission corridor planning across a multi-state area. Delivery on the project began in the fourth quarter and is expected to be completed by mid-year 2012.
Intermap was named the winner of the Asian Geospatial Excellence Award – Environment Management for “Mapping the Basin: the Murray-Darling Basin Information Infrastructure Project”. The award was presented during the 10th Annual Asian Conference and Exhibition on Geospatial Information, Technology and Applications on October 17 in Jakarta, Indonesia. The Asian Geospatial Excellence Awards recognize companies for exemplary usage of geospatial tools in various fields implemented in Asia. Such fields include governance, infrastructure, public safety, utilities, design and engineering, environment, agriculture, mining and exploration, transportation management, business intelligence, insurance, and disaster management.
The Company announced that the state of South Dakota is utilizing its NEXTMap data for several critical statewide geospatial applications. This follows South Dakota’s licensing of Intermap’s NEXTMap South Dakota database during the third quarter of 2011. The data is being used by a number of South Dakota state government entities for a variety of geospatial related applications including flood mapping, emergency response, environmental risk analysis and infrastructure planning.
The Company announced an agreement with AIR Worldwide, a well known provider of catastrophe risk modeling software and consulting services, to provide high-resolution elevation data to be used in the development of new catastrophe models for select European countries.
The Company announced a collaboration with Mentum, a leading wireless access and backhaul network planning and optimization company, for the delivery of a new generation of height-attributed land-use geodata that addresses the propagation modeling needs of the wireless industry.
Subsequent to year-end, on January 3, 2012, the Company announced it had received enterprise contracts totaling US$850,000 from two leading global telecommunications companies. These global carriers have licensed Intermap’s LinkPro™ 3D business intelligence application and the Company’s highly accurate NEXTMap terrain and surface models for the planning and development of their 4G Long-Term Evolution (LTE) wireless networks in Europe.
Subsequent to year-end, on January 10, 2012, the Company announced the award of a $2.0 million task order from Dewberry & Davis to perform airborne radar mapping in Alaska. The work will be performed during the summer months of 2012 and is the second phase of a multi-year mapping program in Alaska. Intermap will use its proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology to collect orthorectified radar imagery and high resolution elevation data for an area of Alaska that has never been mapped to this level of accuracy. The elevation data and imagery collected will be used in economic development, infrastructure development and homeland security applications.
As of March 12, 2011, there were 79,003,328 common shares outstanding.
Important factors, including those discussed in the Company’s regulatory filings ( www.sedar.com) could cause actual results to differ from the company’s expectations and those differences may be material. Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.