VirtualArmour Reports Third Quarter 2016 Financial Results

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

-Managed Services Revenue Grows 25% Period over Period-

VANCOUVER, Nov. 17, 2016 /CNW/ - VirtualArmour International Inc. (the "Company") (CSE:VAI), an IT solutions provider that helps enterprises build, monitor, maintain and secure their networks from cloud to core, today announced third quarter (Q3) financial results for the three-month period ended September 30, 2016. All figures are in USD unless otherwise stated.

"I am pleased to report that VirtualArmour delivered another great quarter of growth as evidenced by our 25% year over year growth in our multi-year recurring revenue managed security services business," said Matthew Brennan, President of VirtualArmour. "Since the beginning of the year we have continued to attract industry leaders in a variety of verticals to use our holistic security solutions platform to manage their network. Our services have been well received as many of these initial sales have turned into long term contracts as exhibited by our growth in the managed services business. A large contributor to our success has been our ability to provide a customized service for each customer which has led to a high retention rate."

"Looking into the remainder of 2016 and 2017, we are committed to expanding our footprint as an IT solutions provider on a global scale," continued Matthew Brennan. "This includes bringing on key personnel in our managed services side of the business which provides us with a predictable and recurring source of revenue, growing our cloud based solutions tailored to specifically target networking and security functions within a large organization, and continuing to partner with the best cybersecurity technologies in the market place today."

"Lastly, we see a large opportunity globally in the security solutions market to expand our footprint and bring our brand to the forefront of the industry.  We expect to expand into additional territories and capture market share as quickly as possible so we can drive value to our loyal shareholders."

Third Quarter Financial Highlights

  • Total revenue for Q3 2016 increased by 9% to $2,003,095, compared to $1,840,424 in Q3 2015. The growth in revenue was due to an increase in the number of customers served as well as the size of orders from new and existing customers.
  • Hardware and software sales revenue decreased slightly by 1% to $1,383,271 in Q3 2016, compared to $1,401,983 in Q3 2015.
  • Managed services revenue, which represents recurring revenue to VirtualArmour, increased by 25% to $420,194 in Q3 2016, as compared to $336,870 in Q3 2015.
  • Professional services revenue increased by 100% to $196,194 in Q3 2016, compared to $98,069 in Q3 2015.
  • As at September 30, 2016, the Company's cash balance was $170,977 compared to cash of $187,657 as at June 30, 2016.
  • The Company recorded net income of $1,372,100 ($0.03 per share) for the quarter ended September 30, 2016 as compared to a net loss of $4,460,529 ($0.10 per share) for the quarter ended September 30, 2015.
  • The Company recorded an adjusted loss of $227,674 for the quarter ended September, 2016 as compared to an adjusted income of $87,249 for the quarter ended September, 2015. The table below details certain non-cash and other transactions that for the purposes of this discussion have been adjusted out of the reported income (loss) to produce an adjusted (loss) income that forms a better basis for comparing the period-over-period operating results of the Company.

2016

$

2015

$

Income (loss) for the period as reported

1,372,100

(4,460,529)

Add (deduct):




Change in fair value of warrant derivative liabilities

(1,638,919)

30,215


Listing expense

-

4,166,285


G&A expense – share-based payments

39,145

351,278

Adjusted (loss) income for the period (1)

(227,674)

87,249

(1) 

Adjusted (loss) income for the period is not a term recognized under IFRS.  Non-IFRS measures do not have standardized meaning.  Accordingly, non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.



  • The Company currently has 55,769,447 common shares outstanding.

Operational Highlights

  • During the quarter, the Company:
    • Announced that they received an order from a leading network communications service provider for approximately USD $1,000,000
    • Announced the closing of a CAD $415,000 non-brokered private placement
    • Announced new partnerships with leading security solutions providers
  • Subsequent to quarter end, the Company:
    • Received a USD $264,000 order from a global medical technology company.
    • Announced that they had completed a corporate name change from "VirtualArmor International Inc." to "VirtualArmour International Inc."
    • Hosted Industry Experts at Leading Cybersecurity Panels

About VirtualArmour

VirtualArmour is an IT solutions provider that helps enterprises build, monitor, maintain and secure their networks from cloud to core. VirtualArmour's services run 24 hours per day, 7 days per week, 365 days per year through its primary security operations center ("SOC") located in Middlesbrough, U.K. and a secondary SOC located in Salt Lake City, Utah. Each member of VirtualArmour's team supports the three main facets of its business: managed services, professional services, and hardware sales, by handling the design, configuration and installation of advanced network and cloud architecture solutions. VirtualArmour uses best-in-breed partnerships to provide solutions for customers that are affordable, highly reliable, scalable, and backed by thorough knowledge of the related technologies, products, and platforms. VirtualArmour has secured partnerships with established technology businesses specializing in network appliances, software, and systems and provides its services to the mid- to large- enterprise and service provider markets. VirtualArmour customers include a 13-location data center provider, a Fortune 100 oil and gas company, multiple service providers with presences throughout the United States, and household name enterprise organizations located primarily in the western United States. Further information about the Company is available under its profile on the SEDAR website, www.sedar.com, on the CSE website, www.thecse.com, and on its website, http://www.VirtualArmour.com/.

Forward-Looking Information:

This press release may include forward-looking information within the meaning of Canadian securities legislation. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour.  Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE VirtualArmour

For further information: Company Contact: Matthew Brennan, President, Office: 720-398-5873, Matthew.Brennan@VirtualArmour.com; Investor Relations Contact: Babak Pedram, Office: 416-644-5081, bpedram@virtusadvisory.com

RELATED LINKS
http://www.virtualarmor.com

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