OTTAWA,
Aug. 28, 2015 /CNW/ - Magor
Corporation (TSX-V:MCC), a global leader in visual collaboration
solutions, today announced the financial results for the three and
twelve-month period ended April 30,
2015.
"During the quarter we continued to execute on a
strategy to focus on the delivery of software resulting in a three
times increase in software revenues in the fourth quarter of fiscal
2015 over the prior year," said Mike
Pascoe, President and CEO of Magor Corporation. "Gross
margins have increased over the prior fiscal year as the Company
transitions to obtaining a higher portion of total revenues from
software sales and recurring revenues. This is in line with the
decision we made in the past year to re-focus efforts to higher
margin products, while scaling back hardware sales in an effort to
reduce our overall operating costs and manage working capital more
efficiently."
Financial Highlights
- In fiscal 2015 the Company began executing on a strategy to
focus on achieving higher margin sales to channel partners. The
channel partners, at the same time, source the lower margin
hardware components directly from other suppliers. This strategy
results in lower total revenues to the Company, however, it reduces
the investment in working capital requirements and increases
overall gross margins. As a result of this shift in sales focus,
the Company's total revenues grew by $213,000 (10%) from the prior year, while gross
margins increased by $420,000 (40%)
with the overall gross margins percentages increasing from 51% in
fiscal 2014 to 65% in the current fiscal year.
- Total revenues increased by 65% to $700,443 in Q4 2015, compared to $424,558 in Q4 2014, and increased by 10% to
$2,253,532 in FY 2015, compared to
$2,040,430 in FY 2014.
- Software revenues increased by more than three times in Q4 2015
compared to prior year and increased by 56% in FY 2015, compared to
FY 2014.
- Recurring revenues grew by 51% and 91% in the three and
twelve-month periods ended April 30,
2015 over the comparable periods in the prior year.
- Gross margin for Q4 2015 was 60%, compared to 33% in Q4
2014.
- Total expenses decreased by 24% to $1,366,588 in Q4 2015, compared to $1,786,282 in Q4 2014, and decreased by 11% to
$5,952,298 in FY 2015, compared to
$6,722,747 in FY 2014.
- Order backlog of $597,673 as at
April 30, 2015, compared to
$249,288 as at April 30, 2014.
- As at April 30, 2015, the Company
had cash on hand of $201,086 compared
to $666,195 as at April 30, 2014.
Operational Highlights
- During the quarter, the Company's product achieved
standardization status for video deployment by Shared Services
Canada within the Federal Government.
- During the quarter, the Company received an order for 23
Room-based Systems from two Canadian federal government departments
to expand their initial visual collaboration deployments.
- Subsequent to the quarter, the Company entered into agreements
with a company controlled by the Chairman of the Company, to borrow
$985,000 by way of promissory notes
bearing interest at 12% per annum.
- Subsequent to the quarter, the Company introduced a General
Availability of Windows version of the Company's industry leading
Visual Collaboration software. Testing is now underway at key
national and global accounts.
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
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"would", "suspect", "outlook", "believe", "plan", "anticipate",
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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