Ottawa-based Magor’s decision to shift its focus to software is paying big dividends, the visual collaboration solution provider’s chief executive said when the company released its fiscal 2015 year-end results late last week.
“During the quarter, we continued to execute on a strategy to focus on the delivery of software, resulting in a three times increase in software revenues in the fourth quarter of fiscal 2015 over the prior year,” president and CEO Mike Pascoe said in a statement.
Mr. Pascoe said the decision has resulted in higher gross margins. He said scaling back hardware sales reduced the company’s operating costs, allowing it to “manage working capital more efficiently.”
Magor’s fourth-quarter revenue increased 65 per cent to $700,443, while its year-end revenue of $2.3 million was up 10 per cent from fiscal 2014.
The company’s fourth-quarter software sales tripled, and its year-end software sales were also up 56 per cent compared with 2014.
Recurring revenue for the three months ending April 30 increased by 51 per cent, while Magor’s year-end recurring revenue was 91 per cent higher than in fiscal 2014.
Magor saw a fourth-quarter gross margin of 60 per cent, compared with 33 per cent for the same quarter last year.
As of April 30, Magor (TSX-V:MCC) had $201,086 in cash in hand, down from $666,195 at the same time last year.