OTTAWA, Aug. 28, 2015 /CNW/ - Magor Corporation (TSX-V:MCC), a global leader in visual collaboration solutions, today announced the financial results for the three and twelve-month period ended April 30, 2015.
"During the quarter we continued to execute on a strategy to focus on the delivery of software resulting in a three times increase in software revenues in the fourth quarter of fiscal 2015 over the prior year," said Mike Pascoe, President and CEO of Magor Corporation. "Gross margins have increased over the prior fiscal year as the Company transitions to obtaining a higher portion of total revenues from software sales and recurring revenues. This is in line with the decision we made in the past year to re-focus efforts to higher margin products, while scaling back hardware sales in an effort to reduce our overall operating costs and manage working capital more efficiently."
- In fiscal 2015 the Company began executing on a strategy to focus on achieving higher margin sales to channel partners. The channel partners, at the same time, source the lower margin hardware components directly from other suppliers. This strategy results in lower total revenues to the Company, however, it reduces the investment in working capital requirements and increases overall gross margins. As a result of this shift in sales focus, the Company's total revenues grew by $213,000 (10%) from the prior year, while gross margins increased by $420,000 (40%) with the overall gross margins percentages increasing from 51% in fiscal 2014 to 65% in the current fiscal year.
- Total revenues increased by 65% to $700,443 in Q4 2015, compared to $424,558 in Q4 2014, and increased by 10% to $2,253,532 in FY 2015, compared to $2,040,430 in FY 2014.
- Software revenues increased by more than three times in Q4 2015 compared to prior year and increased by 56% in FY 2015, compared to FY 2014.
- Recurring revenues grew by 51% and 91% in the three and twelve-month periods ended April 30, 2015 over the comparable periods in the prior year.
- Gross margin for Q4 2015 was 60%, compared to 33% in Q4 2014.
- Total expenses decreased by 24% to $1,366,588 in Q4 2015, compared to $1,786,282 in Q4 2014, and decreased by 11% to $5,952,298 in FY 2015, compared to $6,722,747 in FY 2014.
- Order backlog of $597,673 as at April 30, 2015, compared to $249,288 as at April 30, 2014.
- As at April 30, 2015, the Company had cash on hand of $201,086 compared to $666,195 as at April 30, 2014.
- During the quarter, the Company's product achieved standardization status for video deployment by Shared Services Canada within the Federal Government.
- During the quarter, the Company received an order for 23 Room-based Systems from two Canadian federal government departments to expand their initial visual collaboration deployments.
- Subsequent to the quarter, the Company entered into agreements with a company controlled by the Chairman of the Company, to borrow $985,000 by way of promissory notes bearing interest at 12% per annum.
- Subsequent to the quarter, the Company introduced a General Availability of Windows version of the Company's industry leading Visual Collaboration software. Testing is now underway at key national and global accounts.
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.
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SOURCE Magor Corporation
For further information: Mike Pascoe, President and CEO, Magor Corporation, 613-686-1731 ext 5510, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group, 416-644-5081, [email protected]