OTTAWA, Sept. 29, 2016 /CNW/ - Magor Corporation (TSX-V:MCC), a leader in visual collaboration solutions, today announced its first quarter (Q1) financial results for the three month period ended July 31, 2016.
- Total revenue increased by 1% to $163,750 in Q1 2017, compared to $162,656 in Q1 2016.
- Total operating expenses decreased by 21% to 1,042,177 in Q1 2017, compared to $1,320,611 in Q1 2016. These decreases resulted from the cost reduction plan implemented by the Company during fiscal 2016.
- Order backlog increased by $99,883, or 26% to $478,848 as at July 31, 2016 compared to $378,965 as at April 30, 2016.
- As at July 31, 2016, the Company had cash on hand of $47,307 compared to $95,738 as at April 30, 2016.
- As at July 31, 2016, the Company had secured debt outstanding in the principal amount of $5,362,000 and unsecured debt in the principal amount of $6,999,028.
- Subsequent to the quarter, the Company entered into agreements, with a company controlled by the Chairman of Magor, to borrow $690,000 by way of promissory notes bearing interest at 12% per annum.
Strategic Review Process
The Board also announced today that, in light of the Company's financial performance in recent years, it will conduct a strategic review process that will explore alternatives to enhance shareholder value. The strategic review process will be broad and could include, but not be limited to, a strategic investment in the Company by a third party, a business combination with another entity, a recapitalization of the Company, a sale of the Company, or some combination of the foregoing.
At present, there can be no assurance as to what, if any, strategic alternatives might be pursued by the Company. The Company does not intend to disclose further details with respect to its review of strategic alternatives unless and until the Board of Directors has approved a specific transaction or otherwise determines that further disclosure is warranted
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: Brian Baker, Interim President and CEO, Magor Corporation, 613-686-1731 ext 5504, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group, 416-644-5081, [email protected]