| | | Losing over a million dollars a quarter. Can they turn this around ?? They are broke and borrowing money at 12% interest from insider. That usually ends badly.....
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 cent per annum.Magor loses $1.31-million in Q2 fiscal 2016
2015-12-18 15:36 MT - News Release
Mr. Mike Pascoe reports
MAGOR ANNOUNCES FISCAL Q2 2016 RESULTS
Magor Corp. has released the second quarter financial results for the three- and six-month periods ended Oct. 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 chief executive officer of Magor. "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 per cent to $133,612 for second quarter 2016, compared with $62,779 in second quarter 2015.Total revenue was $340,790 for second quarter 2016, compared with $563,171 in second quarter 2015.Total operating expenses decreased by 24.6 per cent to $1,093,719 for second quarter 2016, compared with $1,450,610 for second quarter 2015.Net loss and comprehensive loss decreased by 3.5 per cent to $1,314,168 for second quarter 2016, compared with net loss and comprehensive loss of $1,362,482 for second quarter 2015.Order backlog increased to $514,460 as at Oct. 31, 2015, compared with $509,846 as at July 31, 2015.As at Oct. 31, 2015, the company had cash on hand of $50,969 compared with $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 an 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 reflect a continuing 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 increase.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 cent per annum.
We seek Safe Harbor.
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