OTTAWA, Aug. 28, 2014 /CNW/ - Magor Corporation
(TSX-V:MCC), a global leader in visual collaboration solutions,
today announced fourth quarter (Q4) financial results for the three
and twelve-month period ended April 30,
2014.
"The Company encountered delays in closing on certain large
contracts we have been working on, that resulted in lower than
expected revenues in the quarter. However, with the solid and
growing pipeline of opportunities we have in place, we are very
confident about the new fiscal year of our Company," said
Mike Pascoe, President and CEO of
Magor Corporation. "During the quarter, we secured a number of
partnerships to strengthen our competitive position in the U.S.
market, as we see increasing demand for video collaboration
solutions across a number of verticals, including government, oil
and gas, and law enforcement. We have also commenced earning
recurring revenue from our Aerus cloud-based services, an area
which we expect will drive significant continued growth in future
quarters. The Company is focused on building the recurring revenues
through long-term subscription contracts with its customers."
Operational Highlights
- During the quarter, the Company announced two key developments
to the Aerus Service Delivery Platform (SDP) which provides greater
reach and service options to the end users: (i) support for the
desktop visual collaboration client for Windows operating system;
and (ii) new Aerus OnDemand services that provide personalized
virtual meeting rooms and WebRTC-based webinar-style collaboration
services.
- During the quarter, the Company completed the second tranche of
its brokered private placement in the amount of $1,137,000 through the issuance of 1,137 units at
a price of $1,000 per unit. Each unit
consisted of a $1,000 par value
secured debenture and 1,000 common share warrants, at an exercise
price of $0.40 per common share with
a term of four years.
- Subsequent to the quarter, Magor announced a follow-on orders
from a Middle Eastern Government agency for a total contract value
of over $337,000.
- Subsequent to the quarter, the Company partnered with
New York-based Brook-Pro to
provide a video-enabled service offering to the financial services
and higher education markets.
- Subsequent to the quarter, Magor partnered with Cumulus
Solutions to offer its cloud-based Aerus Service Delivery Platform
for a range of video and collaboration services throughout the
State of Texas' agencies,
universities, counties, public school districts and other state
funded entities.
- Subsequent to the quarter, Magor partnered with Transglobal
Business Systems to enhance their situational awareness offering
for US law enforcement agencies.
- Subsequent to the quarter end, the Company entered into
agreements, with a company controlled by the Chairman of the
Company, to borrow $700,000 by way of
promissory notes bearing interest at 12% per annum
Financial Highlights
- Total revenue was $424,558 for Q4
2014, compared to $837,325 in Q4 2013
with a significant portion of this decrease occurring in the
hardware revenue category.
- Gross margin for the quarter was 44.4% (including inventory
write-down, gross margin at 33.3%) compared to 52.3% for the fourth
quarter of last fiscal year.
- Order backlog of $237,203 as at
April 30, 2014, compared to
$249,288 as at January 31, 2013.
- As at April 30, 2014, the Company
had cash on hand of $666,195 compared
to $2,792,075 as at April 30, 2013.
- As at April 30, 2014, the
Company's working capital was $743,053 compared to $3,154,028 as at April 30,
2013
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",
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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