Revenue bumped up 6.6 per cent year-over-year for Ottawa's In-Touch Systems Inc. (TSX-V:INX), according to Q2 results released late Friday.

A day after announcing the acquisition of rival NCI Mobility LLP – which is expected to expand the Kanata workforce by five people – In-Touch said its revenue was $1.3 million in Q2 compared with $1.2 million in the same period last year.

The rosy revenue results were tempered by an increase in net loss – this year's Q2 increased to $86,263, more than triple the $25,202 net loss seen for the same quarter in 2007.

However, the gross margin increased by seven percentage points to 64 per cent, a fact that pleased CEO Michael Gaffney.

"It's a positive reflection on our significant investment in software development over the past three years," he said in a statement.

"Several of our Fortune 1000 customers have told us that In-Touch has the best technology for data collection and data integration of all their electronic data collection suppliers."

The acquisition of Chicago's NCI Mobility LLP, announced Thursday, will add more than $1.25 million in annual revenues. However, NCI was about $750,000 in debt when In-Touch took it over.

In an interview earlier on Friday with OBJ, Mr. Gaffney said NCI – under the new name of In-Touch Systems Corp. – would have to meet revenue targets to qualify for debt relief at the hands of its Canadian owners.

General Motors and Victoria's Secret are among the customers using In-Touch's services.