Prodigy Ventures Inc. Announces Q1 2017 Financial Results

(TSXV-PGV)

TORONTO, May 26, 2017 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced the results for the first quarter ended March 31, 2017.

"I am very pleased with our growth this quarter as we continue to strengthen our position in the Canadian market as one of the leading boutique technology service providers in the country," stated Tom Beckerman, CEO of Prodigy. "We are off to a fast start this year, expanding our sales and marketing, building our pipeline, and developing new clients. And, with our new relationship with Ov2 Securities, we are actively seeking acquisitions to add additional customers, new revenue streams and increase cash flow."

Mr. Beckerman continued, "As well, we continue to gain traction with our iVideo brand as we release new versions with enhanced features. We have increased our R&D expenses in this segment of the business for both our B2C and B2B iVideo applications. This increase, coupled with significant sales and marketing expense increases in our services provider business, reduced our net income for Q1, but position us well for our next stage of growth."

First Quarter 2017 Financial Results

  • Revenue for the three-month period ended March 31, 2017 totalled $3,063,308 compared to $2,697,267 for the three months ended March 31, 2016, an increase of 13.6%.
  • Gross profit for the three-month period ended March 31, 2017 of $989,384 as compared to $1,003,324 for the three-month period ended March 31, 2016, a decrease of 1.4%, due to increased costs of technology talent.
  • Operating Expenses for the three-month period ended March 31, 2017 of $752,850 as compared to $490,006 for the three-month period ended March 31, 2016, an increase of 53.6%.
  • Net Income for the three-month period ended March 31, 2017 totalled $169,169 as compared to $372,303 for the three-month period ended March 31, 2016, a decrease of 54.6%.
  • The Company had working capital of $2,093,598 as of March 31, 2017 compared to $1,952,165 as of December 31, 2016.


Three months ended March 31


2017

$

2016

$

Revenue

3,063,308

2,697,267

Gross Profit

989,384

1,003,324

Expenses

752,850

490,006

Net and comprehensive income for the period

169,169

372,303

Net income per share – basic and diluted

0.00

0.00

 

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.

About Prodigy Ventures Inc.

Prodigy Ventures is an innovation company that has combined an enterprise services business - Prodigy Labs - with a Venture Builder business. The two businesses work together to sell services and create new enterprise-grade platforms and apps using technologies such as mobile video, proximity, wearables, 3D & augmented reality.

Prodigy has been named as one of Canada's fastest growing technology companies in the 19th annual Deloitte Technology Fast 50™ awards for demonstrating bold innovation, dedicated leadership and strong growth. Prodigy also ranked on Deloitte's Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.

Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of among other things, the Company's expectations with respect to revenue growth and cash flow for certain products or services, the ability to increase shareholder value with iVideo and the identification of potential acquisitions to add additional customers, new revenue streams and increase cash flow. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the quarter ended March 31, 2017, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.

SOURCE Prodigy Ventures Inc.

For further information: Andrew Hilton, Prodigy Ventures Inc., Chief Financial Officer, Andrew.Hilton@Prodigy.Ventures, 416-606-8833; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., BPedram@VirtusAdvisory.com, 416-644-5081


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