Continues to Lead in Visual Collaboration with Two Key Technology Developments
OTTAWA, Sept. 29, 2014 /CNW/ - Magor Corporation (TSX-V: MCC), a technology leader in visual collaboration solutions, today announced first quarter (Q1) financial results for the three month period ended July 31, 2014.
"We are excited by the progress we are making as evidenced by the largest quarterly backlog in our history," said Mike Pascoe CEO of Magor Corporation. "However, the summer proved to be very challenging from a revenue perspective. Several factors contributed to this with the largest being:
- Delays in closing government orders over the summer.
- Middle East shipments were held back to meet a request from our largest customer to customize their own Arabic User Interface (UI). This has since been completed and advances significantly the ability to combine powerful visual collaboration with a simple UI. It also ensures lock-in with this large account.
- A delay in closing a large US carrier opportunity.
The delays in all three of these key areas have been overcome, which coupled with our strong backlog provides a solid start as we move to our Q2.
While these delays in business had a direct effect on our cash position, I am very pleased to point to the on-going financial support of our Chairman, and all of our Board members and our Management team as part of our current financing activity. This inside support reflects positively on the belief we have in our current key account activities."
A couple of key technical milestones have also been reached over the last month that will significantly add to the markets we address:
- Magor has delivered its Visual Collaboration client for Windows desktops into some exciting trial applications. This is a major accomplishment as it extends the powerful Magor UI experience to your desktop. The same unique aspects of our visual collaboration software that have allowed us to displace key competitors in major accounts is now available as part of our Aerus cloud service to support broad deployment to the desktop.
- Magor is excited to introduce its Visual Synthesis software. This delivers a breakthrough in eye contact engagement for video-based interactions. Taking advantage of two or more cameras, this software synthesizes a single view for direct eye-to-eye contact with cameras that are largely invisible to the users. The result is a user experience that exceeds that of telepresence, without the costs. This technology will significantly enhance large display applications as well as that at the desktop. Look to announcements over the next quarter as we take a leadership role in this next generation of video technology.
- During the quarter, the Company partnered with New York-based Brook-Pro to provide a video-enabled service offering to the financial services and higher education markets.
- During the quarter, Magor partnered with Cumulus Solutions to offer its cloud-based Aerus Service Delivery Platform for a range of video and collaboration services throughout the State of Texas' agencies, universities, counties, public school districts and other state funded entities.
- During the quarter, Magor partnered with Transglobal Business Systems to enhance their situational awareness offering for US law enforcement agencies.
- Subsequent to the quarter, the Company entered into agreements with a company controlled by the Chairman of the Company to borrow $775,000.
- Subsequent to the quarter, Magor announced a follow-on orders from a Middle Eastern Government agency for a total contract value of over $337,000 as part of a large multi-phase deployment.
- On September 5, 2015, the Company announced its intention to raise maximum gross proceeds of $3,000,000 by way of a non-brokered private placement offering of subordinated secured debentures.
- Order backlog increased by 177% to $657,285 as at July 31, 2014, compared to $237,203 as at April 30, 2014
- Total revenue was $179,056 for Q1 2015, compared to $196,537 in Q1 2014.
- Recurring revenue grew by 99.0% to $75,130 for Q1 2014, compared to $37,748 in Q1 2014 due to
- Gross margin increased to 51.3% in Q1 2015, compared to 26.6% for Q1 2014.
- Net loss and comprehensive loss of $1,718,188 for Q1 2015, compared to net loss and comprehensive loss of $1,668,235 for Q1 2014.
- As at July 31, 2014, the Company had cash on hand of $54,216 compared to $666,195 as at April 30, 2014.
- As at July 31, 2014, the Company had negative working capital of $960,193 compared to working capital of $743,053 as at April 30, 2014.
About Magor Corporation:
Magor develops and markets visual collaboration software for a world that increasingly rewards those who can bring together the right people and information at the right time. Magor's Aerus service delivery platform removes the limitations of traditional video conferencing and collaboration tools to provide entirely new ways of interacting with video with the goal of creating new ways to be productive. To find out more about Magor Corporation (TSX-V: MCC), visit our website at http://www.magorcorp.com.
This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope", and "continue" (or the negative thereof), and words and expressions of similar import are intended to identify forward-looking statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Corporation's filings with Canadian securities regulatory authorities, as well as the applicability of patents and proprietary technology; the outcome of pending corporate transactions; possible patent ligation; regulatory approval of products in development; changes in government regulation or regulatory approval processes; government and third party reimbursement; dependence on strategic partnerships; intensifying competition; rapid technological change in the industry; anticipated future losses; the ability to access capital; and the ability to attract and retain key personnel. All forward-looking information presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Magor Corporation
For further information: Mike Pascoe, President and CEO, Magor Corporation, 613-686-1731 ext 5510, firstname.lastname@example.org; Babak Pedram, Investor Relations, Virtus Advisory Group, 416-995-8651, email@example.com