- 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.
Operational Highlights
- 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.
Financial Highlights
- 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.
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SOURCE Magor Corporation