Magor announces fiscal Q4 2014 results
OTTAWA, Ont. – August 28, 2014 – Magor Corporation (TSX-V:MCC), a global leader in visual collaboration solutions, today announced fourth quarter (Q4) financial results for the three and twelve-month period ended April 30, 2014.
“The Company encountered delays in closing on certain large contracts we have been working on, that resulted in lower than expected revenues in the quarter. However, with the solid and growing pipeline of opportunities we have in place, we are very confident about the new fiscal year of our Company,” said Mike Pascoe, President and CEO of Magor Corporation. “During the quarter, we secured a number of partnerships to strengthen our competitive position in the U.S. market, as we see increasing demand for video collaboration solutions across a number of verticals, including government, oil and gas, and law enforcement. We have also commenced earning recurring revenue from our Aerus cloud-based services, an area which we expect will drive significant continued growth in future quarters. The Company is focused on building the recurring revenues through long-term subscription contracts with its customers.”
- During 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 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, Magor announced a follow-on orders from a Middle Eastern Government agency for a total contract value of over $337,000.
- Subsequent to the quarter, the Company partnered with New York-based Brook-Pro to provide a video-enabled service offering to the financial services and higher education markets.
- Subsequent to the quarter, Magor partnered with Cumulus Solutions to offer its cloud-based Aerus Service Delivery Platform for a range of video and collaboration services throughout the State of Texas’ agencies, universities, counties, public school districts and other state funded entities.
- Subsequent to the quarter, Magor partnered with Transglobal Business Systems to enhance their situational awareness offering for US law enforcement agencies.
- Subsequent to the quarter end, the Company entered into agreements, with a company controlled by the Chairman of the Company, to borrow $700,000 by way of promissory notes bearing interest at 12% per annum
- Total revenue was $424,558 for Q4 2014, compared to $837,325 in Q4 2013 with a significant portion of this decrease occurring in the hardware revenue category.
- Gross margin for the quarter was 44.4% (including inventory write-down, gross margin at 33.3%) compared to 52.3% for the fourth quarter of last fiscal year.
- Order backlog of $237,203 as at April 30, 2014, compared to $249,288 as at January 31, 2013.
- As at April 30, 2014, the Company had cash on hand of $666,195 compared to $2,792,075 as at April 30, 2013.
- As at April 30, 2014, the Company’s working capital was $743,053 compared to $3,154,028 as at April 30, 2013
About Magor Corporation:
Magor enables people to engage in high-quality visual conversations while simultaneously sharing, viewing and editing relevant collaborative material on desktops, laptops, tablets, smartphone applications, whiteboards and other devices. Magor fits any workflow so that users have the freedom to work together naturally anytime, regardless of location, network or device. To find out more about Magor Corporation (TSX-V: MCC), visit our website at www.magorcorp.com.
For further information, please contact:
President and CEO
+1 613 686-1731
Virtus Advisory Group Inc.
+1 416 995-8651
Senior Marketing Manager
+1 613 686-1731 ext. 5526
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