Continues to Lead in Visual Collaboration
with Two Key Technology Developments
OTTAWA, Sept. 29, 2014 /CNW/ - Magor Corporation
(TSX-V: MCC), a technology leader in visual collaboration
solutions, today announced first quarter (Q1) financial results for
the three month period ended July 31,
2014.
"We are excited by the progress we are making as evidenced by
the largest quarterly backlog in our history," said Mike Pascoe CEO
of Magor Corporation. "However, the summer proved to be very
challenging from a revenue perspective. Several factors contributed
to this with the largest being:
- Delays in closing government orders over the summer.
- Middle East shipments were
held back to meet a request from our largest customer to customize
their own Arabic User Interface (UI). This has since been completed
and advances significantly the ability to combine powerful visual
collaboration with a simple UI. It also ensures lock-in with this
large account.
- A delay in closing a large US carrier opportunity.
The delays in all three of these key areas have been overcome,
which coupled with our strong backlog provides a solid start as we
move to our Q2.
While these delays in business had a direct effect on our cash
position, I am very pleased to point to the on-going financial
support of our Chairman, and all of our Board members and our
Management team as part of our current financing activity. This
inside support reflects positively on the belief we have in our
current key account activities."
A couple of key technical milestones have also been reached over
the last month that will significantly add to the markets we
address:
- Magor has delivered its Visual Collaboration client for Windows
desktops into some exciting trial applications. This is a major
accomplishment as it extends the powerful Magor UI experience to
your desktop. The same unique aspects of our visual collaboration
software that have allowed us to displace key competitors in major
accounts is now available as part of our Aerus cloud service to
support broad deployment to the desktop.
- Magor is excited to introduce its Visual Synthesis software.
This delivers a breakthrough in eye contact engagement for
video-based interactions. Taking advantage of two or more cameras,
this software synthesizes a single view for direct eye-to-eye
contact with cameras that are largely invisible to the users. The
result is a user experience that exceeds that of telepresence,
without the costs. This technology will significantly enhance large
display applications as well as that at the desktop. Look to
announcements over the next quarter as we take a leadership role in
this next generation of video technology.
Operational Highlights
- During 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.
- During 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.
- During the quarter, Magor partnered with Transglobal Business
Systems to enhance their situational awareness offering for US law
enforcement agencies.
- Subsequent to the quarter, the Company entered into agreements
with a company controlled by the Chairman of the Company to borrow
$775,000.
- 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 as part of a large
multi-phase deployment.
- On September 5, 2015, the Company
announced its intention to raise maximum gross proceeds of
$3,000,000 by way of a non-brokered
private placement offering of subordinated secured debentures.
Financial Highlights
- Order backlog increased by 177% to $657,285 as at July 31,
2014, compared to $237,203 as
at April 30, 2014
- Total revenue was $179,056 for Q1
2015, compared to $196,537 in Q1
2014.
- Recurring revenue grew by 99.0% to $75,130 for Q1 2014, compared to $37,748 in Q1 2014 due to
- Gross margin increased to 51.3% in Q1 2015, compared to 26.6%
for Q1 2014.
- Net loss and comprehensive loss of $1,718,188 for Q1 2015, compared to net loss and
comprehensive loss of $1,668,235 for
Q1 2014.
- As at July 31, 2014, the Company
had cash on hand of $54,216 compared
to $666,195 as at April 30, 2014.
- As at July 31, 2014, the Company
had negative working capital of $960,193 compared to working capital of
$743,053 as at April 30, 2014.
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.
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SOURCE Magor Corporation