Global Mobiletech Inc (OTC:GLMB)

Third Quarter 2013 Financial Results

Financial highlights for Q3, 2013 compared to Q3, 2012 include the following:

• Revenue: $4.46M vs $4.00M ($0.46M or 12% increase)
   
• Gross profit: $1.44M vs $1.25M ($0.19M or 15% increase)
   
• Gross profit margin: 32.4% vs 31.1% (130 basis point increase)
   
• Net income: $559,000 vs $581,000 ($22,000 or 4% decrease)
   
• Diluted EPS: $0.07/share vs $0.10/share ($0.03 decrease)

SPOKANE, Wash., May 16, 2012 /PRNewswire/ -- Global MobileTech, Inc. (OTCBB: GLMB), a leading mobile advertising network and content provider in Asia, today reported earnings of $0.10 per share for the quarter ended March 31, 2012, together with a sharp increase in shareholder equity as a result of the strategic realignment of its business.

In its quarterly report filed with the Securities and Exchange Commission, Global Mobile reported that it had nearly tripled profit margins during the previous nine months on the strength of its technology licensing model adopted in mid-2011. Global MobileTech reported earnings $0.10 per share for the quarter and $0.26 per share for the nine months ending March 31, 2012.

"Our decision to focus on technology licensing as our principal revenue driver has proven to be a highly successful strategy," said Mohd Aris Bernawi, the Company's Chief Executive Officer. "With our acquisition of second generation technology to improve on our mobile platform and a focus on licensing, we have maintained our history of strong earnings, created more shareholder value, and can now focus on improving our market share."

"By eliminating lines of business that generated lower profits and increased our ongoing liabilities," Aris continued, "we maintained our overall profits at lower risk and substantially reduced the company's liabilities. Our balance sheet is stronger and we see great potential as we increase our market share."

In its Mobile VoIP (Voice Over Internet Protocol) and Mobile Advertising segment, Global MobileTech saw gross profit margin jump from 14 percent to 40 percent for the first nine months of its fiscal year, in comparison with the same period in 2011. Shareholder equity, meanwhile, more than doubled from $3.155 million from the year ended June 30, 2011, to $6.64 million for the quarter ended March 31, 2012. Source: PR Newswire (http://s.tt/1bZR6)

GLOBAL  MOBILETECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2011 AND 2010
							For the Three		For the Three		For the Six		For the Six
							Months ended		Months ended		Months ended		Months ended
							December 31,		December 31,		December 31,		December 31,
							2011		2010		2011		2010
							(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues							$ 4,378,157		$ 8,183,586		$ 7,310,853		$ 16,237,712
Cost of Goods Sold							(3,092,296)		(6,916,394)		(5,162,590)		(13,724,112)
Gross Profit							1,285,861		1,267,192		2,148,263		2,513,600
Expenses:
	Professional fees						26,565		21,183		47,891		46,366
	Depreciation and amortization						230,395		62,032		468,841		118,238
	Sales and marketing						194,913		192,452		194,913		287,608
	General and administrative - Other						407,069		261,178		602,144		439,840
		Total operating expenses					858,942		536,845		1,313,789		892,052
Income from Operations							426,919		730,347		834,474		1,621,548
Other (Expense):
	Interest expense						-		(230)		-		(577)
	Loss on disposal of mining claims						-		(21,211)		-		(21,211)
		Total other (expense)					-		(21,441)		-		(21,788)
Income Before Income Taxes							426,919		708,906		834,474		1,599,760
Provision for income taxes:
	Current						(51,628)		(248,114)		(77,176)		(404,337)
	Deferred						-		-		-		-
Net Income							$ 375,291		$ 460,792		$ 757,298		$ 1,195,423
Comprehensive Income:
	Foreign currency translation adjustment						2,216		9,445		(215,929)		70,046
Total Comprehensive Income							$ 377,507		$ 470,237		$ 541,369		$ 1,265,469
Earnings Per Common Share:
	Basic						$ 0.08		$ 0.15		$ 0.19		$ 0.49
	Diluted						$ 0.07		$ 0.14		$ 0.18		$ 0.47
Weighted Average Number of Common Shares Outstanding:
	Basic						4,712,339		3,144,390		4,030,679		2,447,719
	Diluted						5,042,586		3,235,138		4,311,064		2,527,170

The lower revenue for our mobile VoIP communications and mobile advertising segment for the three and six months ended December 31, 2011 compared to December 31, 2010 was attributed to (i) the completion of mobile VoIP communications and mobile advertising contracts that were secured during 2010; and (ii) adoption of the technology licensing model following the acquisition of U.S. patent #8,005,057 on June 27, 2011 that generated lower revenues but a higher profit margin. Our adoption of the technology-licensing model has helped the Company to create a new recurring revenue stream. The new model has also helped our customers to offer a more flexible pricing structure to compete more aggressively in the market. We have mitigated the impact of the lower revenue by securing new multimedia content production and e-commerce contracts that generated a higher profit margin of between 20% to 25%.

								For the Three		For the Three
								Months ended		Months ended
								September 30,		September 30,
								2011		2010
								(Unaudited)		(Unaudited)
Revenues								$ 2,932,696		$ 8,054,126
(Less) : Cost of Goods Sold								2,070,294		6,807,718
Gross Profit								862,402		1,246,408
Expenses:
	Professional fees							21,326		25,183
	Depreciation and amortization							238,446		56,206
	Sales and marketing							-		95,156
	General and administrative - Other							195,100		178,658
		Total Operating Expenses						454,872		355,203
Income from Operations								407,530		891,205
Other Income (Expense):
	Gain on currency translation							29		-
	Interest expense							-		(347)
		Total Other Income (Expense)						29		(347)
Income Before Income Taxes								407,559		890,858
(Less) : Provision for income taxes:
	Current							(25,550)		(156,223)
	Deferred							-		-
Net Income								$ 382,009		$ 734,635
Comprehensive Income (Loss) :
	Foreign currency translation adjustment							(218,145)		58,466
Total Comprehensive Income								$ 163,864		$ 793,101
Earnings Per Common Share:
	Basic							$ 0.11		$ 0.36
	Diluted							$ 0.11		$ 0.35
Weighted Average Number of Common Shares
	Basic							3,633,026		2,043,537
	Diluted							3,620,150		2,073,341

No meaningful explanation was provided for lackluster results, but we surmise it may have to do with the fact that the company derives most of its revenue from a few customers and thus is very sensative to changes in order patterns.

We have increased our marketing efforts to reduce our reliance on the four significant customers from our renewable energy segment that contribute in excess of 70% of our total revenues. If we are unable to retain any of these four significant customers, it will have a material effect on our results of operations and financial condition.

We need to expend approximately $15 million over the next year in costs related to the implementation of a 200 tons/day biofuel (syngas, bio-oil and biochar) production plant integrated with a 10MW syngas-to-electricity generation plant. Production of the biofuels; and generation of electricity is expected to commence during the third quarter of fiscal year 2012. We believe that our plant will be the first of its kind in South East Asia in the conversion of oil palm stems and fronds into electricity. The biofuel production and power generation plant will lay the foundation for expansion beyond 2012 by showcasing our capabilities; and attracting potential investors and joint venture partners into establishing further plants in Malaysia, Indonesia and Thailand. These three countries have an abundant supply of biomass feedstock and governments providing investment incentives to implement renewable energy projects.

We intend to finance our expansion into the biomass-to-energy business through a combination of internally generated funds, private placement of our common stock and securing a loan under the Malaysian Green Technology Financing Scheme or GTFS. Under the GTFS scheme, the government of Malaysia will bear 2% of the total interest. In addition, the Government will provide a guarantee of 60% on the financing amount via Credit Guarantee Corporation Malaysia Berhad (CGC), with the remaining 40% financing risk to be borne by participating financial institutions/banks.

We intend to finance our expansion through a combination of:

1)  internally generated funds

$  1,500,000

2)  private placement of our common stock

    4,500,000

3)  securing a loan under the Green Technology Financing

Scheme (“GTFS”) promoted by the government of Malaysia

    9,000,000

----------------

$15,000,000

==========

GLOBAL MOBILETECH, INC. AND SUBSIDIARIES
(FORMERLY TREVENEX RESOURCES, INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
										June 30, 2011		June 30, 2010
Revenues										$ 30,674,747		$ 4,323,601
(Less) : Cost of Goods Sold										25,897,718		3,644,894
Gross Profit										4,777,029		678,707
Expenses:
	Professional fees									106,283		90,633
	Rent expense - related party									-		2,400
	Depreciation and amortization									270,550		49,580
	Sales and marketing									812,435		188,048
	General and administrative - Other									1,509,413		241,622
		Total Operating Expenses								2,698,681		572,283
Income from Operations										2,078,348		106,424
Other Income (Expense):
	Gain on currency translation									11,317		-
	Interest expense									(577)		(869)
	Loss on disposal of mining claims									(21,211)		-
		Total Other Income (Expense)								(10,471)		(869)
Income Before Income Taxes										2,067,877		105,555
(Less) : Provision for income taxes:
	Current									3,426		-
	Deferred									576,736		48,919
Net Income										$ 1,487,715		$ 56,636
Comprehensive Income:
	Foreign currency translation adjustment									79,733		(2,135)
Total Comprehensive Income										$ 1,567,448		$ 54,501
Earnings Per Common Share:
	Basic									$ 0.46		$ 0.03
	Diluted									$ 0.43		$ 0.03
Weighted Average Number of Common Shares
	Basic									3,260,639		1,771,492
	Diluted									3,431,876		1,771,492

The revenues were generated from our operations by our Malaysian subsidiary, Info-Accent.

In March 2011, we purchased two units of mobile gasifiers and multi-mode pyrolysis reactors in the amount of $666,000. We will need to raise an additional $1.2 million to meet our capital expenditure to further expand our renewable energy business. We have engaged in discussions with private investors to provide us with the capital necessary to expand our renewable energy business.

This Form 10-K Amendment No. 1 is being filed to indicate that the financial statements for the fiscal year ending June 30, 2010 are unaudited due to the discovery that the license of our former Independent Registered Public Accounting Firm, Davis Accounting Group P.C. of Cedar City Utah, was lapsed at the time that the audit report was rendered. A further amendment to this Form 10-K will be filed after our financial statements for the relevant fiscal year are re-audited by our current Independent Registered Public Accounting Firm.

• For the three months ended September 30, 2010, our total revenues were $8,054,126 as compared to no revenues generated for the three months ended December 30, 2009.

• Net income was $734,635 compared to a net loss for three months ended December 30, 2009.

• EPS was $0.14 vs. TBA.

Aik Fun Chong, President & CEO, stated, "We continue to meet critical milestones in our renewable energy business and expect to keep improving revenues for this segment for the remaining quarters of 2011."

• For the three months ended September 30, 2010, our total revenues were $8,054,126 as compared to no revenues generated for the three months ended September 30, 2009.

• Net income was $734,635 compared to a net loss of $25,134 for three months ended September 30, 2009.

• EPS was $0.35 vs. $0.01.

During July 2010, we expanded our operations into the renewable energy business to include the design, integration, marketing and sale of solar PV-wind and solar PV-biomass hybrid power generation applications in partnership with Powernique Technology Sdn Bhd, a Malaysian corporation. Our entry into the renewable energy business is intended to develop another recurring revenue stream that will complement our mobile VoIP calls and mobile advertising business segment.

We began generating revenue from the sale of our solar PV-biomass hybrid power generation application in Malaysia during our first fiscal quarter ended September 30, 2010. On September 1, 2010, Info-Accent Sdn Bhd and Mohd. Aris Bernawi executed an Assignment Agreement whereby the Chairman assigned to the Company, exclusively throughout the world, all rights, title and interest in the methodology for the optimal sizing of a solar PV-wind hybrid power generation system. The methodology relates to finding the optimum configuration, among a set of system components, which meets the desired system reliability requirements with the lowest value of levelized cost of energy.

We have utilized the optimal sizing procedure in the design and integration of the following renewable energy applications: 1) solar PV-wind hybrid power generation for rural and remote island electrification; and powering remote radio base stations, and 2) solar PV-biomass hybrid power generation. During September 2010, we expanded the scope of our strategic partnership with Powernique Technology Sdn Bhd to include the production and sale of torrefied wood to the United States; and countries within the European Union and Asia.

We intend to meet the balance of our cash requirements for the next twelve months through a combination of suppliers’ financing, debt financing, equity financing by way of private placements and revenues from our new business.

Fiscal year 2010

• Revenues were $4.3 million compared to $nil for 2009.

The revenues were generated from the sale of mobile VoIP calls and mobile advertising services by GLMB’s wholly owned Malaysian subsidiary, Info-Accent Sdn Bhd.

• Net income for 2010 was $56,636 compared to a net loss of $64,736 for 2009.
  
• EPS was $0.03 vs $(0.04)

Business Outlook for Fiscal Year 2011

For fiscal year 2011

• Revenue is expected to be between $32 - $35 million.
  
• Net income in the range of $2.9 - $3.2 million.

In providing guidance for 2011, the Company said it expects to increase its revenue through the expansion of its operations in the existing mobile VoIP calls and mobile advertising segment and the new renewable energy segment.

“Fiscal 2010 was a very significant year for GLMB when the Company began generating revenues beginning April 2010,” said Aik Fun Chong, President and CEO of Global MobileTech, Inc. “The Company’s entry into the renewable energy business will provide another recurring revenue stream that will complement its mobile VoIP calls and mobile advertising business segment. Our goal is to establish GLMB into a formidable renewable energy and mobile communications company in Asia by end of fiscal 2011.”

Financial Guidance for July 1, 2009 to June 30, 2010

                                                  
                                         US$'000  
                                                  
 Revenues :                                       
 Mobile VoIP                             2,174    
 Mobile advertising                      3,546    
                                                  
                                         5,720    
                                                  
                                                  
 Cost of sales                           4,445    
                                                  
 Gross profit                            1,275    
                                                  
 General and administrative expenses     459      
                                                  
 Total expenses                          616      
                                                  
 Net profit before tax                   659      
                                                  

The projected revenues for 2010 are expected to be generated primarily by the Company`s wholly owned subsidiary in Malaysia, Info-Accent Sdn Bhd. Field tests are expected to be conducted in the United States during the third quarter of 2010 to lay the groundwork for a commercial roll out during the first quarter of 2011.

"The new Board members bring a fresh perspective and important skills to the Board as the business is reset and enters what we believe will be an era of growth and profitability," stated Aris Bernawi, Chairman of TRVX. "As we take steps to capitalize on the vast opportunities in the mobile VoIP and mobile advertising industry, the Company and its shareholders will be well served by the contribution of its newly appointed Directors and Officers."