OTTAWA, Dec. 18, 2015 /CNW/ - Magor Corporation (TSX-V: MCC), a technology leader in visual collaboration solutions, today announced the second quarter (Q2) financial results for the three and six month periods ended October 31, 2015.
"I am pleased to report that good progress was made in several areas during the second quarter of fiscal 2016," said Mike Pascoe, President and CEO of Magor Corporation. "This includes an expansion of our customer base to mitigate risk associated with a limited number of large accounts. This risk was apparent in Q2 as we experienced order delays with two of our largest accounts during the quarter. One of the key developments during and subsequent to the quarter was progress with the Magor Windows and Aerus cloud-based services software, both of which are opening significant opportunities for the company. Subsequent to the quarter the RCMP moved to expand deployments within their private Aerus cloud, which will result in additional sales and an increase in recurring revenue for Magor. One of the targets for this fiscal year is to leverage the Magor Windows software to address the larger desktop sales opportunities that exist within existing business relationships, as well as continuing to add more accounts and partners. The desktop opportunities In particular will accelerate the growth of our recurring revenue stream."
- Recurring revenue grew by 113% to $133,612 for Q2 2016, compared to $62,779 in Q2 2015.
- Total revenue was $340,790 for Q2 2016, compared to $563,171 in Q2 2015.
- Total operating expenses decreased by 24.6% to $1,093,719 for Q2 2016, compared to $1,450,610 for Q2 2015.
- Net loss and comprehensive loss decreased by 3.5% to $1,314,168 for Q2 2016, compared to net loss and comprehensive loss of $1,362,482 for Q2 2015.
- Order backlog increased to $514,460 as at October 31, 2015, compared to $509,846 as at July 31, 2015.
- As at October 31, 2015, the Company had cash on hand of $50,969 compared to $201,086 as at April 30, 2015.
- During the quarter:
- Magor's recurring revenue category continued to grow with higher software assurance sales from its growing installed base and increasing number of cloud-based subscriptions.
- Subsequent to the quarter:
- Magor received additional orders from the RCMP for its visual collaboration software. To-date, the RCMP has deployed Magor software in over 100 sites across the Canada The orders received for an additional 29 systems reflects an on-going plan to expand the use of Magor software in meeting rooms and desktop applications across the country.
- Certain of Magor's customers began initial testing of the new Windows client for consideration in their expansion of video and collaboration to the desktop. One such customer, a government account has proceeded to the next phase and initial orders have been received for what is now a paid for trial as the scale and scope of the trial increases.
- Magor entered into agreements, with a company controlled by the Chairman of the Company, to borrow $350,000 by way of promissory notes bearing interest at 12% per annum.
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. The Magor Aerus service delivery platform removes the limitations of traditional video conferencing and collaboration tools. The goal is to provide entirely new ways of interacting with video to drive increased productivity while reducing travel and other costs. 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, 416-995-8651, [email protected]