OTTAWA, Aug. 29, 2016 /CNW/ - Magor Corporation (TSX-V:
MCC), a technology leader in visual collaboration solutions, today
announced financial results for the three and twelve month periods
ended April 30, 2016 and the
retirement of the CEO.
"Q4 revenues of $896,465 were
largely driven by orders received in the quarter from law
enforcement organizations for the deployment of boardroom and
desktop systems. A growing portion of the Magor software business
with this sector and others is shifting from perpetual licenses to
recurring software revenue. This has the effect of reducing the
initial overall revenues and margins, however, it provides more
predictable revenue growth in addition to increased future margins.
As evidenced by our 60% year over year growth in recurring
revenue, the company is actively working towards driving the
recurring revenue model," said Terry
Matthews, Chairman of Magor Corporation. "Revenues from the
Middle East business in fiscal
2016 were disappointing due to economic conditions resulting from
the decline in oil prices. While this significantly impacted
Magor's revenues and margins for the year, many of the regional
projects are expected to recover in the new fiscal year."
Financial Highlights
- Total revenues for the three month period ended April 30, 2016 grew 28% to $896,465 compared to $700,443 for the three months ended April 30, 2015. Full year revenue for the twelve
months ended April 30, 2016 was
$1,765,029, a decline of 22% when
compared to $2,253,532 for the twelve
month period ended April 30,
2015.
- Recurring revenues grew by 70% to $241,730 for the three month period ended
April 30, 2016, compared to
$142,391 for the three months ended
April 30, 2015. Recurring revenues
grew 60% to $630,085 for the twelve
months ended April 30, 2016 compared
to $394,220 for the twelve months
ended April 30, 2015.
- Software revenue for the three month period ended April 30, 2016 of $80,728 compared to $293,582 for the three months ended April 30, 2015. Software revenue for the twelve
month period ended April 30, 2016 of
$229,744 compared to $1,085,593 for the twelve months ended
April 30, 2015. The decrease was
primarily due to a large order received in the fourth quarter of
fiscal 2015 for perpetual licenses that was not repeated in the
current fiscal year. Furthermore, there is a decline in sale of
software licenses being sold as customers' transition to SAAS
contracts.
- Hardware revenue increased by 143% to $516,370 for the three month period ended
April 30, 2016, compared to
$212,729 for the three months ended
April 30, 2015. Hardware revenue
increased by 20% to $805,234 for the
twelve months ended April 30, 2016,
compared to $669,708 for the twelve
months ended April 30, 2015.
- Gross margin percentages for the three and twelve month periods
ended April 30, 2016 were 39% and 44%
respectively, compared to 60% and 65% in the prior year. The
decrease was primarily due to the higher mix of lower margin
hardware sales in fiscal 2016 as well as the delays in software
revenue associated with shifting to a recurring revenue
business.
- Operating expenses for the three month period ended
April 30, 2016 decreased by 22% to
$1,068,299 compared to $1,366,588 for the three month period ended
April 30, 2015. For the twelve month
period ended April 30, 2016 operating
expenses decreased by 20% to $4,749,547 compared to $5,952,298 for the twelve months ended
April 30, 2015.
- Net loss and total comprehensive loss for the three month
period ended April 30, 2016 of
$998,954 or loss of $0.02 per share, compared to a net loss of
$1,318,402 or loss of $0.03 per share for the same period in the prior
year, a decrease in loss of 24%. Net loss and total comprehensive
loss for the twelve month period ended April
30, 2016 of 5,763,312, compared to $5,415,894 for the twelve month period ended
April 30, 2015, an increase in the
loss of 6%.
- Order backlog as at April 30,
2016 was $378,965 compared to
$713,069 as at January 31, 2016.
- As at April 30, 2016, the Company
had cash on hand of $95,738 compared
to $82,062 as at January 31, 2016.
Operational and Financial Highlights
During the Quarter
- The Company announced $718,000 of
additional orders from law enforcement organization.
- Discussions continue with the holders of promissory notes that
matured on January 28, 2016 and
February 15, 2016, in the principal
amount of $1,500,000 plus accrued and
unpaid interest owing.
Subsequent to Year End
- The Company entered into agreements, with a company controlled
by the Chairman of the Company, to borrow $975,000 by way of promissory notes bearing
interest at 12% per annum.
Changes in Senior Management
Mr. Mike Pascoe has decided to
step down as Chief Executive Officer and a member of the Board on
August 31, 2016. The Board has
appointed Mr. Brian Baker, Magor's
current Chief Financial Officer, as interim President and Chief
Executive Officer and he will be joining the Board of Directors.
A search has been initiated for a permanent CEO. Mr.
Pascoe has agreed to continue working with the Company as a senior
advisor focused on sales and channel development.
Terry Matthews, Chairman said,
"On behalf of the entire Board, I want to thank Mike for his
contributions to the development of Magor over the past eight
years. He played an important role in establishing Magor as a
leading player in the next generation cloud based video
collaboration market. Furthermore, we are pleased that Mike
has agreed to continue working with the sales team to drive sales
growth in key markets."
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
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 the adequacy or
accuracy of this release.
SOURCE Magor Corporation
