ORONTO, ONTARIO, Feb 10, 2010 Advantex Marketing International Inc. /quotes/comstock/11v!adx (CA:ADX 0.04, +0.01, +16.67%) , a leading specialist in loyalty marketing programs and merchant funding, today announced its results for the fiscal second quarter ended December 31, 2009. All references to quarters or years are for the fiscal periods and all currency amounts are in Canadian dollars unless otherwise noted.
“The solid results of the second quarter are a reflection of efforts to strengthen the Company by increasing the number of merchants participating in Advantex programs, and operational improvements. We now have over 650 merchants participating in our CIBC Advantex programs, a record participation level, “said Kelly Ambrose, Chief Executive Officer and President.
“Advantex is well positioned to build on this achievement, and we expect to add significant incremental revenue streams towards the end of fiscal 2010 by expanding our existing loyalty marketing and merchant funding programs into new business segments. We are in advanced stages of finalizing arrangements, with new and existing affinity partners and existing lenders, which will enable this expansion. We will leverage our existing infrastructure and processes to implement the expansion in new business segments, “Mr. Ambrose said.
Advantex earns revenue as customers make purchases at establishments participating in its programs. While the Company continues to be cautiously optimistic of its operational performance during the balance of Fiscal 2010, it will continue to be subjected to weakness in the economy. In addition, the Company results will reflect seasonality of consumer spend, with the January to March quarter being historically the weakest revenue quarter for the Company.
With regards to its existing agreement with CIBC that expires June 30, 2010, the Company believes its CIBC Advantex programs offer an attractive method for eligible CIBC credit cardholders to accelerate accumulation of loyalty rewards, and is working towards a multi year renewal with CIBC on mutually beneficial terms.
The Company believes its Advance Purchase Marketing (APM) model which offers loyalty, marketing, and merchant funding is a winning product. APM appeals to small businesses because it delivers marketing value and access to working capital. We expect it to be well received when it is launched in new business segments outside of the current restaurant sector.
“Renewal and/or extension of the existing CIBC agreement, and finalization of agreements that will allow the Company to launch its products, particularly APM, in new business segments are priorities for the balance of fiscal 2010, “said Mr. Ambrose.
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and secured future sales through its Advance Purchase Marketing model. Advantex partners include more than 1000 restaurants, online retailers, golf courses, small inns and resorts, and major organizations, including CIBC, United Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the TSX Venture Exchange under the symbol “ADX”. For additional information on Advantex, please visit www.advantex.com.
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Contacts: Advantex Marketing International Inc. Mukesh Sabharwal Vice-President and Chief Financial Officer 905-470-9558 ext. 249 [email protected]