OTTAWA, Aug. 28, 2014 /CNW/ - Magor Corporation (TSX-V:MCC), a global leader in visual collaboration solutions, today announced fourth quarter (Q4) financial results for the three and twelve-month period ended April 30, 2014.
"The Company encountered delays in closing on certain large contracts we have been working on, that resulted in lower than expected revenues in the quarter. However, with the solid and growing pipeline of opportunities we have in place, we are very confident about the new fiscal year of our Company," said Mike Pascoe, President and CEO of Magor Corporation. "During the quarter, we secured a number of partnerships to strengthen our competitive position in the U.S. market, as we see increasing demand for video collaboration solutions across a number of verticals, including government, oil and gas, and law enforcement. We have also commenced earning recurring revenue from our Aerus cloud-based services, an area which we expect will drive significant continued growth in future quarters. The Company is focused on building the recurring revenues through long-term subscription contracts with its customers."
- During 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 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, Magor announced a follow-on orders from a Middle Eastern Government agency for a total contract value of over $337,000.
- Subsequent to 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.
- Subsequent to 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.
- Subsequent to the quarter, Magor partnered with Transglobal Business Systems to enhance their situational awareness offering for US law enforcement agencies.
- Subsequent to the quarter end, the Company entered into agreements, with a company controlled by the Chairman of the Company, to borrow $700,000 by way of promissory notes bearing interest at 12% per annum
- Total revenue was $424,558 for Q4 2014, compared to $837,325 in Q4 2013 with a significant portion of this decrease occurring in the hardware revenue category.
- Gross margin for the quarter was 44.4% (including inventory write-down, gross margin at 33.3%) compared to 52.3% for the fourth quarter of last fiscal year.
- Order backlog of $237,203 as at April 30, 2014, compared to $249,288 as at January 31, 2013.
- As at April 30, 2014, the Company had cash on hand of $666,195 compared to $2,792,075 as at April 30, 2013.
- As at April 30, 2014, the Company's working capital was $743,053 compared to $3,154,028 as at April 30, 2013
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