OTTAWA, March 25, 2014 /CNW/ - Magor Corporation (TSX-V:MCC), a global
leader in visual collaboration solutions, today announced third quarter
(Q3) financial results for the three and nine-month period ended
January 31, 2014.
"Q3 was our strongest quarter to date," said Mike Pascoe, President and
CEO of Magor Corporation. "We have been building a solid foundation for
our business, and are pleased to see the results of our initiatives.
While orders are still subject to some short-term variability, we
expect to see more predictable growth as a result of the greater number
of large customers we are adding to our customer base. In Q3 we started
recognizing recurring revenue from our Aerus cloud-based services, from
which we expect significant growth going forward. In addition, we
received our first orders from both a large UK Police Force as well as
a major security provider in Brazil. This, along with our existing
strong sales into this vertical in the Middle East and Canada
reinforces the strength of our offering for Police and Security. During
the quarter we also introduced our support for Windows Operating
Systems. This addition to our product line is ideally positioned for
our Aerus cloud service offerings. Aerus has successfully completed
trials and is into implementation with a number of carrier and Vertical
Service Integrators (VSI) partners. Several additional partners are
into new trials of a number of Aerus services including Aerus Invite,
which provides users with a Virtual Meeting Room (VMR) that allows any
number of video callers from different video sources to call into a
personal meeting room. This service is being trialed by several
carriers and it is expected they will be introducing services around
this and the other Aerus capabilities such as recording, streaming and
mobile over the next few months."
Total revenue grew by 232.3% to $1,076,071 for Q3 2014, compared to
$323,789 in Q3 2013.
Hardware revenue grew by 266.8% to $461,554 in Q3 2014, compared to
$125,824 in Q3 2013.
Software revenue grew by 263.7% to $516,353 in Q3 2014, compared to
$141,958 in Q3 2013.
Gross margin for the quarter was 62.9% compared to 27.1% for the
Order backlog of $249,288 as at January 31, 2014, compared to $401,955
as at October 31, 2013, as the Company fulfilled a number of large
orders in the quarter.
As at January 31, the Company had cash on hand of $1,390,613 compared to
$2,792,075 as at April 30, 2013. Subsequent to quarter end, the
Company closed the second tranche of the debt financing for gross
proceeds of $1,137,000.
As at January 31, 2014, the Company's working capital was $1,441,052
compared to a working capital of $3,154,028 as at April 30, 2013.
On February 6, 2014, the Company completed the second tranche of its
brokered private placement in the amount of $1,137,000 through the
issuance of 1,137 units at a price of $1,000 per unit. Each unit
consisted of a $1,000 par value secured debenture and 1,000 common
share warrants, at an exercise price of $0.40 per common share with a
term of four years.
Subsequent to the quarter, the Company announced two key developments to
the Aerus Service Delivery Platform (SDP) which provides greater reach
and service options to the end users: (i) support for the desktop
visual collaboration client for Windows operating system; and (ii) new
Aerus OnDemand services that provide personalized virtual meeting rooms
and WebRTC-based webinar-style collaboration services.
During the quarter, the Company opened an office in Dubai, in the United
Arab Emirates to service the growing customer base in the region.
The Company recently recruited a Vice President of Global Sales located
in the United States.
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:
President and CEO
613-686-1731 ext 5510
Virtus Advisory Group