iPerceptions Reports Second Quarter 2010 Financial Results

iPerceptions Inc. (TSX-V: IPE), a leading provider of web-focused Voice of Customer analytics using advanced intercept survey technologies, today reported its financial results for its second quarter of 2010.

Highlights for the second quarter of 2010 include:

• Second quarter revenues of $1,254,571, up 10% from the corresponding period in the previous year.
• The addition and renewal of multiple high-profile companies to the Corporation’s customer portfolio, including General Motors USA, State Farm, Mercedes-Benz USA and Yellow Pages.
• The launch of WASP 2.1 – the next generation of the Web Analytics Solution Profiler (WASP) product line which brings a new level of quality assurance to web analytics implementations.
• The addition and adoption of valuable new 4Q features, including the ability to integrate 4Q data within Google Analytics reports and create custom purpose of visit choices.
• Significant enhancements to the iPerceptions and 4Q websites, including the addition of five corporate product demos, also accessible on YouTube.

“The recent launch of WASP 2.1 and the new 4Q features have been met with great enthusiasm by current clients, marketing experts, and the web analytics community in general,” said Claude Guay, president and CEO of iPerceptions. “With our expanding portfolio of innovative and affordable web analytics solutions, we continue to attract and renew many well-known brands.”

webValidator Continuous Listening Solution

The Corporation added multiple high-profile companies to the customer portfolio of its webValidator solution in Q2 2010, including General Motors USA, Mercedes-Benz USA, State Farm and Norwegian Cruise Line. It also renewed several annual contracts with clients such as Yellow Pages, Harvard Business Review and United Airlines, and increased its scope of work with existing clients such as Workopolis.

4Q Survey

The free 4Q survey continued to experience rapid growth in Q2 2010, with the number of completed surveys reaching close to 500,000 per month. On May 4, 2010, the Corporation announced major upgrades to the free 4Q solution, including the ability to integrate 4Q data within Google Analytics reports, and the ability to customize purpose of visit choices. These additions have been extremely well-received among existing and new 4Q users alike, and have helped solidify 4Q’s reputation as a leading solution in the Voice of Customer community.

In just a couple months, over 10% of 4Q users have taken advantage of the new integration capabilities, and subsequently benefited from the additional insight. Now, users can slice and dice behavioral and attitudinal data together to understand not only what visitors did on their site, but why they did it.

The incredible popularity of the custom purpose of visit choices cannot be understated, with nearly 30% of users who have opted to add their own selections and translations. The greater flexibility, and more detailed information that comes with custom choices is clearly a major benefit for a significant number of 4Q users.

Web Analytics Solution Profiler (WASP)

On July 14th, 2010 the Corporation launched the next generation of its Web Analytics Solution Profiler (WASP) product line, WASP 2.1. This updated version brings a new level of interactivity to performing Web Analytics quality assurance. With the new historical view feature, users can now observe the flow of all complex analytics calls generated from sources such as Flash, Javascript and other.

WASP 2.1 enables users to access performance-related information for all analytic tag executions in order to diagnose performance bottlenecks coming from third party tags. The latest WASP version also features Search Engine Optimization (SEO) functionalities to further expand its data gathering capabilities, allowing users to perform a deep competitive analysis of their website and their competitor’s SEO strategy.

Furthermore, WASP 2.1 contains a tag-cloud of all key words utilized on a website to allow a visual representation of the key word frequency usage. All of these new features take full advantage of the existing reporting functions.

Second quarter 2010 financial highlights:

• For the second quarter of 2010, revenue was $1,254,571 compared to $1,137,268 in the same period in 2009. Gross margin as a percentage of revenue was 64% for the second quarter of 2010 compared to 58% for the same period in 2009.
• Net loss and comprehensive loss for the second quarter of 2010 was $597,383 compared to $981,600 for the same period in 2009, including non-cash charges for interest and accretion of discount on convertible debentures in the amount of $238,867 and $171,319 respectively. The basic and diluted loss per share for the second quarter of 2010 was $0.02 compared to $0.03 for the same period in 2009.
• Cash and cash equivalents totaled $1,508,805 as of June 30, 2010. During the second quarter of 2010 cash used in operating activities amounted to $501,556 compared to $707,399 in the same period in 2009.

For more information please consult our Interim Consolidated Financial Statements and Management Discussion and Analysis available on SEDAR at www.sedar.com.

About iPerceptions:

iPerceptions is a leading web-focused Voice of Customer analytics provider. Its webValidator Continuous Listening Solution, free website survey solution 4Q, Web Analytics Solution Profiler (WASP) and proprietary iPerceptions Satisfaction Index (iPSI) turn thousands of data points into easy-to-understand strategic and tactical decision support for website marketers. iPerceptions’ clients include such well-known brands as InterContinental Hotels, General Motors, Dell, Hyundai, LG Electronics, Choice Hotels International, BMW and Monster Worldwide. For more information, please visit our site at www.iperceptions.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.