OTTAWA, Ont. – March 25, 2014 – 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.”
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.
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.
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.
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 http://www.magorcorp.com.
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