OTTAWA,
March 25, 2014 /CNW/ - Magor
Corporation (TSX-V:MCC), a global leader in visual collaboration
solutions, today announced third quarter (Q3) financial results for
the three and nine-month period ended January 31, 2014.
"Q3 was our strongest quarter to date," said
Mike Pascoe, President and CEO of
Magor Corporation. "We have been building a solid foundation for
our business, and are pleased to see the results of our
initiatives. While orders are still subject to some short-term
variability, we expect to see more predictable growth as a result
of the greater number of large customers we are adding to our
customer base. In Q3 we started recognizing recurring revenue from
our Aerus cloud-based services, from which we expect significant
growth going forward. In addition, we received our first orders
from both a large UK Police Force as well as a major security
provider in Brazil. This, along
with our existing strong sales into this vertical in the
Middle East and Canada reinforces the strength of our offering
for Police and Security. During the quarter we also introduced our
support for Windows Operating Systems. This addition to our product
line is ideally positioned for our Aerus cloud service offerings.
Aerus has successfully completed trials and is into implementation
with a number of carrier and Vertical Service Integrators (VSI)
partners. Several additional partners are into new trials of a
number of Aerus services including Aerus Invite, which provides
users with a Virtual Meeting Room (VMR) that allows any number of
video callers from different video sources to call into a personal
meeting room. This service is being trialed by several carriers and
it is expected they will be introducing services around this and
the other Aerus capabilities such as recording, streaming and
mobile over the next few months."
Financial Highlights
- Total revenue grew by 232.3% to $1,076,071 for Q3 2014, compared to $323,789 in Q3 2013.
- Hardware revenue grew by 266.8% to $461,554 in Q3 2014, compared to $125,824 in Q3 2013.
- Software revenue grew by 263.7% to $516,353 in Q3 2014, compared to $141,958 in Q3 2013.
- Gross margin for the quarter was 62.9% compared to 27.1% for
the comparable period.
- Order backlog of $249,288 as at
January 31, 2014, compared to
$401,955 as at October 31, 2013, as the Company fulfilled a
number of large orders in the quarter.
- As at January 31, the Company had
cash on hand of $1,390,613 compared
to $2,792,075 as at April 30, 2013. Subsequent to quarter end,
the Company closed the second tranche of the debt financing for
gross proceeds of $1,137,000.
- As at January 31, 2014, the
Company's working capital was $1,441,052 compared to a working capital of
$3,154,028 as at April 30, 2013.
Operational Highlights
- On February 6, 2014, the Company
completed the second tranche of its brokered private placement in
the amount of $1,137,000 through the
issuance of 1,137 units at a price of $1,000 per unit. Each unit consisted of a
$1,000 par value secured debenture
and 1,000 common share warrants, at an exercise price of
$0.40 per common share with a term of
four years.
- Subsequent to the quarter, the Company announced two key
developments to the Aerus Service Delivery Platform (SDP) which
provides greater reach and service options to the end users: (i)
support for the desktop visual collaboration client for Windows
operating system; and (ii) new Aerus OnDemand services that provide
personalized virtual meeting rooms and WebRTC-based webinar-style
collaboration services.
- During the quarter, the Company opened an office in
Dubai, in the United Arab Emirates to service the growing
customer base in the region.
- The Company recently recruited a Vice President of Global Sales
located in the United States.
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 uncertainties. The words "may", "will",
"could", "should", "would", "suspect", "outlook", "believe",
"plan", "anticipate", "estimate", "expect", "intend", "forecast",
"objective", "hope", and "continue" (or the negative thereof), and
words and expressions 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.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
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SOURCE Magor Corporation
