- Large Account Wins Leading the Way -
OTTAWA, March 30, 2015 /CNW/ - Magor Corporation (TSX-V: MCC), a technology leader in visual collaboration solutions, today announced its third quarter (Q3) financial results for the three and nine-month periods ended January 31, 2015.
"I am pleased by our growing engagement and progress with large accounts across the globe," said Mike Pascoe, President and CEO of Magor Corporation. "These large global and government accounts are major users of video and collaboration services. While their buying cycles are longer, we have put in the effort to get to the 'approvals and standardizations' needed to move forward in many of them. As announced during the quarter, the approvals gained within the Government of Canada were an essential step in ensuring eligibility to participate in their efforts to transform Government IT infrastructure and services. Similarly, efforts with a large Government in the Middle East over the last year resulted in our largest software revenues in the Company's history during this quarter. These accounts and others have now put in place the procurement approvals needed for Magor to grow substantial new business with our technology. During the quarter, we recorded a significant increase in software as the overall percentage of our sales. Increase focus on software sales is helping our company become more scalable without the increased working capital requirement that would be associated with hardware sales. In addition, the recurring portion of our revenue continues to grow, which provides the business with more predictable cash flow."
"During the third quarter we also saw good progress with our partners to address the needs of Public Safety sector organizations to increase their ability to access and share real-time information across disparate teams," continued Mr. Pascoe. "Magor's core visual collaboration architecture is uniquely suited to support multiple sources of real-time situational data combined with interactive video at any level of resolution required. This enables national, state and local Law Enforcement, and other key constituents in public safety to visually share the data needed, as it happens, for intelligence led immediate and appropriate levels of response, transcending any geographical or jurisdictional boundaries. This Distributed Decision Network capability provides a powerful interaction tool to augment the Public Safety/Law Enforcement Command and Control. Global and Domestic Security as part of overall Public Safety is commanding a greater percentage of government funding, creating massive opportunities* for software solutions that address these concerns. We anticipate that this will be a key platform for strong revenue growth in the coming quarters."
During the quarter there was continued focus on corporate financing including support from several insiders. "I am pleased that my on-going financial support has contributed to the progress of the Company to win large accounts," said Terry Matthews, Chairman of Magor.
- Magor's technology has recently passed the Government of Canada Shared Services Canada's (SSC) acceptance testing, thus ensuring the technology is aligned with a common IT policy across the public service. Furthermore, this enables governmental departments to procure Magor's SSC-verified solutions off the Federal Government of Canada's video conference standing offer procurement vehicle. The SSC is responsible for identifying Information Technology (IT) solutions in accordance with the "Blueprint 2020" vision for the federal public service, and provides all government departments with guidance on technology procurement options.
- During the quarter Magor received an initial purchase order through an existing channel partner for international government orders having a total value of USD $1,059,000.
- During the quarter the Company received an additional purchase order from the EMEA customer, valued at approximately $220,000, for All-in-One (AIO) executive units and meeting rooms.
- During the quarter, the Company entered into agreements, with a company controlled by the Chairman of the Company, to borrow $1,125,000 by way of promissory notes bearing interest at 12% per annum.
- Recurring revenues grew by 210% to $113,921 for the three month period ended January 31, 2015 compared to $36,688 for the comparable quarter in the prior year.
- Software revenue for the three month period ended January 31, 2015 increased by 24% to $630,697 compared to $508,223 for the three months ended January 31, 2014.
- Total revenues for the three month period ended January 31, 2015 of $810,862 compared to $1,076,071 for the three months ended January 31, 2014.
- Gross margin percentages for the three month period ended January 31, 2015 was 84.6% compared to 62.9% in the prior year.
- Order backlog as at January 31, 2015 was $559,781 compared to $900,097 as at October 31, 2014.
- Net loss for the three month period ended January 31, 2015 of $1,016,817, or ($0.02) per share compared to a net loss of $1,401,269, or ($0.03) per share for the same period in the prior year.
- As at January 31, 2015, the Company had cash on hand of $114,585 compared to $666,195 as at April 30, 2014.
* "Global Homeland Security and Emergency Management Market, 2013–2018", published by MarketsandMarkets is expected to reach $544.02 Billion by 2018
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]