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- Annualized operating expenses reduced by 20%
- Full impact of cost optimization measures starting in Q3
FY23
- Streamlining sales processes and anchoring operations on
Vantage DX
- Management is focused on accelerating time to positive cash
flow
OTTAWA,
ON, Aug. 17, 2022 /CNW/ - Martello
Technologies Group Inc., ("Martello" or the "Company") (TSXV:
MTLO), a provider of software that optimizes the Microsoft Modern
Workplace, a segment of the broader market for digital experience
monitoring (DEM), today announced cost optimization measures as
part of a strategy to accelerate positive cashflow and profitable
revenue growth driven by Vantage DX, the Company's flagship
software as a service (SaaS) for the optimization of the Microsoft
Teams and Microsoft 365 user experience.
![Martello Technologies Group Inc. Logo (CNW Group/Martello Technologies Group Inc.) Martello Technologies Group Inc. Logo (CNW Group/Martello Technologies Group Inc.)](https://mma.prnewswire.com/media/1879647/Martello_Technologies_Group_Inc__Martello_Announces_Cost_Optimiz.jpg)
Cost optimization is the first pillar in Martello's profitable
growth strategy. The consolidation of Martello's products into a
single offering with Vantage DX provided the Company with an
opportunity to reduce costs while maximizing the market opportunity
for this solution. The cost optimization measures involved the
identification and elimination of approximately 20% or $4M of annualized run rate costs, which included
headcount reductions across the organization as well as reduced
vendor, lease and consulting spend. The full benefit of these cost
reductions will be realized in Q3 FY23.
The second pillar in the Company's profitable growth strategy is
increasing recurring revenue from sales of Vantage DX. Key
initiatives include streamlining the sales and trial process,
disciplined management of core KPIs across the organization, and
operational focus on Microsoft and other key partnerships to
increase enterprise sales of Vantage DX.
"Demand for the Vantage DX product, launched in late 2021 is
strong within the Microsoft ecosystem. Management and Martello's
Board of Directors are confident that Vantage DX has a significant
market opportunity which will drive profitable growth",
said John Proctor, President and CEO of Martello. "We have
removed approximately 20% of our overall expenses while
strengthening our focus on accelerating Vantage DX sales."
"After evaluating the strength of the Vantage DX opportunity,
and the allocation of our resources across the organization, we
were able to better align our operations to accelerate our path to
profitable growth and maximize shareholder value. Management
is creating accountability to the operational and expense
discipline required to achieve profitable growth", commented
Jim Clark, Chief Financial Officer
of Martello.
This press release does not constitute an offer of the
securities of the Company for sale in the
United States. The securities of the Company have not been
registered under the United States Securities Act of 1933, (the
"1933 Act") as amended, and may not be offered or sold
within the United States absent
registration or an exemption from registration under the 1933
Act.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or
sale would be unlawful.
About Martello Technologies Group
Martello Technologies Group Inc. (TSXV: MTLO) is a technology
company that provides digital experience monitoring (DEM) solutions
to optimize the modern workplace. The company's products provide
actionable insight on the performance and user experience of cloud
business applications, while giving IT teams and service providers
control and visibility of their entire IT infrastructure.
Martello's software products include Vantage DX, which provides
Microsoft 365 and Microsoft Teams end user experience monitoring
and optimization. Martello is a public company headquartered in
Ottawa, Canada with employees in
Europe, North America and the Asia Pacific region. Learn more at
http://www.martellotech.com
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news
release.
Cautionary Note Regarding Forward-Looking
Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Forward-looking information can be identified by words such as:
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods
and " includes, but is not limited to, statements with respect to
activities, events or developments that the Company expects or
anticipates will or may occur in the future including statements
that the full benefit of cost reductions will be
realized in Q3 FY23 and statements with respect to accelerating the
path to profitable growth and accelerating Vantage DX sales
cycles .
Forward-looking information is neither a statement of
historical fact nor assurance of future performance. Instead,
forward-looking information is based only on our current beliefs,
expectations and assumptions regarding the future of our business,
future plans and strategies, projections, anticipated events and
trends, the economy and other future conditions. Because
forward-looking information relates to the future, such statements
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Our actual results and financial condition
may differ materially from those indicated in the forward-looking
information. Therefore, you should not rely on any of the
forward-looking information. Important factors that could cause our
actual results and financial condition to differ materially from
those indicated in the forward-looking information include, among
others, the following:
- Continued volatility in the capital or credit markets and
the uncertainty of additional financing.
- Our ability to maintain our current credit rating and the
impact on our funding costs and competitive position if we do not
do so.
- Changes in customer demand.
- Disruptions to our technology network including computer
systems and software, as well as natural events such as severe
weather, fires, floods and earthquakes or man-made or other
disruptions of our operating systems, structures or
equipment.
- Delayed purchase timelines and disruptions to customer
budgets, as well as Martello's ability to maintain business
continuity as a result of COVID-19.
- and other risks disclosed in the Company's filings with
Canadian Securities Regulators, including the Company's annual
information form for the year ended March
31, 2021 dated January 7,
2022, which is available on the Company's profile on SEDAR
at www.sedar.com.
Any forward-looking information provided by the Company in
this news release is based only on information currently available
and speaks only as of the date on which it is made. Except as
required by applicable securities laws, we undertake no obligation
to publicly update any forward-looking information, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
SOURCE Martello Technologies Group Inc.