OTTAWA, March 30, 2016 /CNW/ - Magor Corporation (TSX-V:
MCC), a technology leader in visual collaboration solutions, today
announced the third quarter (Q3) financial results for the three
and nine month periods ended January 31st,
2016.
"Timing of some orders received in Q3 came in too late for
shipping the associated hardware, but did result in the Company
growing the backlog going into Q4," said Mike Pascoe, President and CEO of Magor
Corporation. "In addition, we are seeing a growing amount of
recurring revenue business which results in an initial sale of
lower margin hardware without the software revenue. Subsequent
quarters for those sales then become predictable high margin
software revenue and over time recurring software becomes a larger
portion of the overall revenue mix. We are also pleased to see the
significant growth in orders over the last few months with the RCMP
as they move forward on their nationwide deployment
plan."
Operational Highlights
During the Quarter
- A regional Middle Eastern service provider completed their
trial of Magor's Aerus cloud-based Service Delivery Platform and
has commenced marketing and selling these services to their
customers. Magor will commence recording revenues from this
partnership arrangement in the fourth quarter of fiscal 2016
- As reported on Dec. 9th, the RCMP
placed orders for an additional 29 systems for their national
network. This was further augmented with an additional 45 systems
in January.
Subsequent to the Quarter
- The Company entered into agreements, with a company controlled
by the Chairman of the Company, to borrow $490,000 by way of promissory notes bearing
interest at 12% per annum.
- The Company announced that it has filed amended and restated
unaudited interim financial statements and related management's
discussion and analysis ("MD&A") for the three month period
ended July 31, 2015 (Q1) and for the
three and nine month periods ended October
31, 2015 (Q2).
- Additional bookings were received from the RCMP for 57 systems
as they continue to add to their national network.
Financial Highlights
- Order backlog as at January 31,
2016 was $713,069 compared to
$514,460 as at October 31, 2015 representing a 39%
increase.
- Total revenues for the three month period ended January 31, 2016 of $365,118 compared to $810,862 for the three months ended January 31, 2015. Total year-to-date
revenues for the nine month period ended January 31, 2016 of $868,564 compared to $1,048,091 for the prior year.
- Software revenue for the three month period ended January 31, 2016 of $27,792 compared to $630,697 for the three months ended January 31, 2015. This decrease
resulted from a one-time sale of perpetual licenses in fiscal 2015
of approximately $600,000 combined
with decline in the sale of perpetual licenses as customers'
transition to SaaS contracts.
- Recurring revenues grew by 8.4% to $123,432 for the three month period ended
January 31, 2015 compared to
$113,921 for the comparable quarter
in the prior year. Year-to-date recurring revenues for the
nine month period increased by 54.2% to $388,355 compared $251,829 for the prior year.
- Gross margin percentages for the three and nine month periods
ended January 31, 2016 were 37% and
49% respectfully compared to 85% and 68% in the prior year due to
the higher mix of lower margin hardware sales in fiscal 2016 and
inventory write-downs recorded in the current fiscal year.
- Operating expenses for the three month and nine month period
ended January 31, 2016 decreased by
$189,509 and $904,462, or 13% and 20% respectively.
- Net loss and total comprehensive income for the three month
period ended January 31, 2016 of
$1,868,619, or ($0.04) per share compared to a net loss of
$1,016,817, or ($0.02) per share for the same period in the
prior year driven by the significant decrease in gross margins
combined with higher other expenses in the areas of interest
expense, stock option expense and the loss related to change in
fair value of Class A Shares.
- As at January 31st, 2016, the
Company had cash on hand of $82,062
compared to $201,086 as at
April 30, 2015.
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.
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concerning historical financial information, may be forward-looking
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anticipated future losses; the ability to access capital; and the
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SOURCE Magor Corporation