OTTAWA, Dec. 18, 2015 /CNW/ - Magor Corporation
(TSX-V: MCC), a technology leader in visual collaboration
solutions, today announced the second quarter (Q2) financial
results for the three and six month periods ended October 31, 2015.
"I am pleased to report that good progress was made in several
areas during the second quarter of fiscal 2016," said Mike Pascoe, President and CEO of Magor
Corporation. "This includes an expansion of our customer base to
mitigate risk associated with a limited number of large accounts.
This risk was apparent in Q2 as we experienced order delays with
two of our largest accounts during the quarter. One of the key
developments during and subsequent to the quarter was progress with
the Magor Windows and Aerus cloud-based services software, both of
which are opening significant opportunities for the company.
Subsequent to the quarter the RCMP moved to expand deployments
within their private Aerus cloud, which will result in additional
sales and an increase in recurring revenue for Magor. One of the
targets for this fiscal year is to leverage the Magor Windows
software to address the larger desktop sales opportunities that
exist within existing business relationships, as well as continuing
to add more accounts and partners. The desktop opportunities In
particular will accelerate the growth of our recurring revenue
stream."
Financial Highlights
- Recurring revenue grew by 113% to $133,612 for Q2 2016, compared to $62,779 in Q2 2015.
- Total revenue was $340,790 for Q2
2016, compared to $563,171 in Q2
2015.
- Total operating expenses decreased by 24.6% to $1,093,719 for Q2 2016, compared to $1,450,610 for Q2 2015.
- Net loss and comprehensive loss decreased by 3.5% to
$1,314,168 for Q2 2016, compared to
net loss and comprehensive loss of $1,362,482 for Q2 2015.
- Order backlog increased to $514,460 as at October 31,
2015, compared to $509,846 as
at July 31, 2015.
- As at October 31, 2015, the
Company had cash on hand of $50,969
compared to $201,086 as at
April 30, 2015.
Operational Highlights
- During the quarter:
- Magor's recurring revenue category continued to grow with
higher software assurance sales from its growing installed base and
increasing number of cloud-based subscriptions.
- Subsequent to the quarter:
- Magor received additional orders from the RCMP for its visual
collaboration software. To-date, the RCMP has deployed Magor
software in over 100 sites across the Canada The orders received
for an additional 29 systems reflects an on-going plan to expand
the use of Magor software in meeting rooms and desktop applications
across the country.
- Certain of Magor's customers began initial testing of the new
Windows client for consideration in their expansion of video and
collaboration to the desktop. One such customer, a government
account has proceeded to the next phase and initial orders have
been received for what is now a paid for trial as the scale and
scope of the trial increases.
- Magor entered into agreements, with a company controlled by the
Chairman of the Company, to borrow $350,000 by way of promissory notes bearing
interest at 12% per annum.
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.
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within the meaning of applicable Canadian securities legislation.
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SOURCE Magor Corporation