BACKLOG AT RECORD HIGH
December 30, 2014 – Magor Corporation (TSX-V: MCC), a technology leader in visual collaboration solutions, today announced the second quarter (Q2) financial results for the three month period ended October 31, 2014.
“We have been making significant progress with a number of existing and new accounts, as evidenced by the increase in the amount of order backlog we reported for the quarter,” said Mike Pascoe, President and CEO of Magor Corporation. “During the quarter, we received a record order, which resulted in our backlog growing to a record $900,000 as at October 31, 2014.”
“We are pleased to enter the new calendar year with the introduction of the Windows version of our cloud-based software,” continued Mr. Pascoe. “The introduction of the Windows version is in final testing stages and will be released with the next 30 days. We see this new Windows version as key to opening new market opportunities for Magor. In particular, a Windows desktop client coupled with the Aerus cloud service offering allows Magor to address a much broader desktop marketplace with a monthly recurring revenue service.”
Mr. Pascoe further commented that the Company entered into an agreement with our EMEA channel partner whereby commencing in calendar 2015, the channel partner will be sourcing most of the hardware components for their customers locally. This will allow Magor to focus on the high margin software component of these orders. Although the overall revenues on these EMEA orders will be lower, the margins obtained on these orders will be extremely high as a result of these orders being almost entirely software.
- During the quarter, the Company received an order for US$514,000 from a new customer in the EMEA region.
- During the quarter, Magor announced a follow-on order from a Middle Eastern Government agency for a total contract value of $337,000 in connection with a large multi-phase deployment.
- On September 5, 2015, the Company announced its intention to raise maximum gross proceeds of $3,000,000 by way of a non-brokered private placement offering of subordinated secured debentures.
- During the quarter, the Company closed a non-brokered private placement of subordinated secured debt financing in the amount of $1,525,000 through the issuance of 1,525 Units. Each Unit consisted of a $1,000 par value secured convertible debenture and 500 common share purchase warrants. As part of this financing, a company controlled by the Chairman of the Company exchanged $1,000,000 of outstanding promissory notes for 1,000 Units.
- Subsequent to the quarter, the Company entered into agreements, with a company controlled by the Chairman of the Company, to borrow $750,000 by way of promissory notes bearing interest at 12% per annum.
- The Company is continuing with its fund raising activities and expects to close another round of financing in early 2015.
- Order backlog increased by 37% to $900,097 as at October 31, 2014, compared to $657,285 as at July 31, 2014.
- Total revenue increased by 64.1% to $563,171 for Q2 2015, compared to $343,263 in Q2 2014.
- Recurring revenue grew by 67.8% to $62,779 for Q2 2014, compared to $37,419 in Q2 2014.
- Total operating expenses decreased by 9.5% to $1,450,610 for Q2 2015, compared to $1,602,744 for Q2 2014.
- Net loss and comprehensive loss of $1,362,482 for Q2 2015, compared to net loss and comprehensive loss of $1,486,958 for Q2 2014.
- As at October 31, 2014, the Company had cash on hand of $84,535 compared to $666,195 as at April 30, 2014.
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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SOURCE Magor Corporation
President and CEO
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Virtus Advisory Group