- BACKLOG AT RECORD HIGH -
OTTAWA, Dec. 30, 2014 /CNW/ - Magor Corporation (TSX-V:
MCC), a technology leader in visual collaboration solutions, today
announced the second quarter (Q2) financial results for the three
month period ended October 31,
2014.
"We have been making significant progress with a number of
existing and new accounts, as evidenced by the increase in the
amount of order backlog we reported for the quarter," said
Mike Pascoe, President and CEO of
Magor Corporation. "During the quarter, we received a record order,
which resulted in our backlog growing to a record $900,000 as at October 31,
2014."
"We are pleased to enter the new calendar year with the
introduction of the Windows version of our cloud-based software,"
continued Mr. Pascoe. "The introduction of the Windows version is
in final testing stages and will be released with the next 30 days.
We see this new Windows version as key to opening new market
opportunities for Magor. In particular, a Windows desktop client
coupled with the Aerus cloud service offering allows Magor to
address a much broader desktop marketplace with a monthly recurring
revenue service."
Mr. Pascoe further commented that the Company entered into an
agreement with our EMEA channel partner whereby commencing in
calendar 2015, the channel partner will be sourcing most of the
hardware components for their customers locally. This will
allow Magor to focus on the high margin software component of these
orders. Although the overall revenues on these EMEA orders
will be lower, the margins obtained on these orders will be
extremely high as a result of these orders being almost entirely
software.
Operational Highlights
- During the quarter, the Company received an order for
US$514,000 from a new customer in the
EMEA region.
- During the quarter, Magor announced a follow-on order from a
Middle Eastern Government agency for a total contract value of
$337,000 in connection with 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.
- During the quarter, the Company closed a non-brokered private
placement of subordinated secured debt financing in the amount of
$1,525,000 through the issuance of
1,525 Units. Each Unit consisted of a $1,000 par value secured convertible debenture
and 500 common share purchase warrants. As part of this financing,
a company controlled by the Chairman of the Company exchanged
$1,000,000 of outstanding promissory
notes for 1,000 Units.
- Subsequent to the quarter, the Company entered into agreements,
with a company controlled by the Chairman of the Company, to borrow
$750,000 by way of promissory notes
bearing interest at 12% per annum.
- The Company is continuing with its fund raising activities and
expects to close another round of financing in early 2015.
Financial Highlights
- Order backlog increased by 37% to $900,097 as at October 31,
2014, compared to $657,285 as
at July 31, 2014.
- Total revenue increased by 64.1% to $563,171 for Q2 2015, compared to $343,263 in Q2 2014.
- Recurring revenue grew by 67.8% to $62,779 for Q2 2014, compared to $37,419 in Q2 2014.
- Total operating expenses decreased by 9.5% to $1,450,610 for Q2 2015, compared to $1,602,744 for Q2 2014.
- Net loss and comprehensive loss of $1,362,482 for Q2 2015, compared to net loss and
comprehensive loss of $1,486,958 for
Q2 2014.
- As at October 31, 2014, the
Company had cash on hand of $84,535
compared to $666,195 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. 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
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"would", "suspect", "outlook", "believe", "plan", "anticipate",
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of similar import are intended to identify forward-looking
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implied in making forward-looking statements and actual results may
differ materially from those expressed or implied in such
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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