OTTAWA, Sept. 29, 2016 /CNW/ - Magor Corporation
(TSX-V:MCC), a leader in visual collaboration solutions, today
announced its first quarter (Q1) financial results for the three
month period ended July 31, 2016.
Financial Highlights
- Total revenue increased by 1% to $163,750 in Q1 2017, compared to $162,656 in Q1 2016.
- Total operating expenses decreased by 21% to 1,042,177 in Q1
2017, compared to $1,320,611 in Q1
2016. These decreases resulted from the cost reduction plan
implemented by the Company during fiscal 2016.
- Order backlog increased by $99,883, or 26% to $478,848 as at July 31,
2016 compared to $378,965 as
at April 30, 2016.
- As at July 31, 2016, the Company
had cash on hand of $47,307 compared
to $95,738 as at April 30, 2016.
- As at July 31, 2016, the Company
had secured debt outstanding in the principal amount of
$5,362,000 and unsecured debt in the
principal amount of $6,999,028.
Operational Highlights
- Subsequent to the quarter, the Company entered into agreements,
with a company controlled by the Chairman of Magor, to borrow
$690,000 by way of promissory notes
bearing interest at 12% per annum.
Strategic Review Process
The Board also announced today that, in light of the Company's
financial performance in recent years, it will conduct a strategic
review process that will explore alternatives to enhance
shareholder value. The strategic review process will be broad
and could include, but not be limited to, a strategic investment in
the Company by a third party, a business combination with another
entity, a recapitalization of the Company, a sale of the Company,
or some combination of the foregoing.
At present, there can be no assurance as to what, if any,
strategic alternatives might be pursued by the Company. The Company
does not intend to disclose further details with respect to its
review of strategic alternatives unless and until the Board of
Directors has approved a specific transaction or otherwise
determines that further disclosure is warranted
About Magor Corporation:
Magor develops and markets visual collaboration software
addressing the needs of meeting rooms, desktops and mobility
devices, as part of a cloud service offering called Aerus.
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 the adequacy or
accuracy of this release.
SOURCE Magor Corporation
