OTTAWA, Sept. 29, 2015 /CNW/ - Magor Corporation (TSX-V:MCC), a global leader in visual collaboration solutions, today announced its first quarter (Q1) financial results for the three month period ended July 31, 2015.
"Q1, occurring during our summer period, has historically been a low revenue quarter for Magor. We saw an increase in recurring revenues over the same period last year, because of higher software assurance sales to our growing installed base, as well as an increase in the number of cloud-based subscriptions, as we transition the business to a SaaS model," said Mike Pascoe, President and CEO of Magor Corporation. "During and subsequent to the quarter, we made progress with several government and enterprise customers in the deployment of Magor Aerus cloud software, including the commencement of trials of our Windows client. In addition to this we have continued to focus on appropriate cost management strategies."
- Recurring revenues grew by 75% to $131,312 in Q1 2016, compared to $75,130 in Q1 2015 as the Company continues to increase the installed base of software licenses, leading to more software assurance revenue, and an increase in the number of cloud-based subscriptions.
- Total revenue decreased by 9% to $162,656 in Q1 2016, compared to $179,056 in Q1 2015.
- Total operating expenses decreased by 21% to 1,320,611 in Q1 2016, compared to $1,678,674 in Q1 2015. These decreases resulted from the cost reduction plan implemented by the Company during fiscal 2015.
- Order backlog of $509,846 as at July 31, 2015 compared to $597,673 as at April 30, 2015.
- As at July 31, 2015, the Company had cash on hand of $41,255 compared to $201,086 as at April 30, 2015.
- Subsequent to the quarter, the Company entered into agreements, with a company controlled by the Chairman of Magor, to borrow $525,000 by way of promissory notes bearing interest at 12% per annum.
About Magor Corporation:
Magor develops and markets visual collaboration software addressing the needs of meeting rooms, desktops and mobility devices, as part of a cloud service offering called Aerus. 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, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group, 416-644-5081, [email protected]