Ottawa’s Magor Corporation had a summer that was “challenging from a revenue perspective,” its chief executive said as the company reported 2015 first-quarter results Tuesday.
Delays in closing three major deals contributed to revenue of $179,056, compared with $196,537 for the same quarter last year for the visual collaboration solution provider.
“We are excited by the progress we are making, as evidenced by the largest quarterly backlog in our history,” CEO Mike Pascoe said in a statement. He said that, combined with the fact that all the delays have been overcome, provides the company with a “solid start” to its second quarter.
Mr. Pascoe said the delays affected the company’s cash position but it continues to get financial support from chairman Terry Matthews as well as all members of the board of directors and the management team.
“This inside support reflects positively on the belief we have in our current key account activities,” Mr. Pascoe said.
At the end of April, Magor (TSX-V: MCC) had $666,195 in cash on hand. By the end of July, that was down to $54,216. Working capital is at negative $960,193 as of July 31, compared with $743,053 at the end of April.
For the three months ended July 31, the order backlog was up 177 per cent to $657,285 compared with $237,203 in the previous quarter.
Recurring revenue grew 99 per cent to $75,130, while gross margin was at 51.3 per cent, up from 26.6 per cent for the same quarter last year.
Net loss and comprehensive loss was up about $500,000 from the first quarter of last year, now at just over $1.7 million.
The company said in the last month, it has delivered its Visual Collaboration client for Windows desktops into some trial applications and also introduced its Visual Synthesis software, two developments it said will expand its market base.
The company’s shares were trading up 10 per cent at midday Tuesday, at $0.165.