An increase in fourth-quarter revenue wasn’t enough to prevent Ottawa-based Magor Corporation from seeing a decline in revenue during the fiscal year that ended on April 30.
The company, which makes visual collaboration software, reported revenue of $1,765,029 during the year. That’s down 22 per cent from the $2,253,532 it reported for the 12-month period that ended April 30, 2015.
However, revenue during the three-month period that ended on April 30 was up 70 per cent from the same period the year before – rising to $896,465 from $700,443.
That revenue was “largely driven by orders received in the quarter from law enforcement organizations for the deployment of boardroom and desktop systems,” Magor chairman Terry Matthews said in a release.
That growth helped shrink the company’s quarterly net loss from $1,318,402 to $998,954. However, the company’s net loss for the year was up slightly, rising six per cent to $5,763,312 from $5,415,894 in 2015.
“Revenues from the Middle East business in fiscal 2016 were disappointing due to economic conditions resulting from the decline in oil prices,” Mr. Matthews said. “While this significantly impacted Magor’s revenues and margins for the year, many of the regional projects are expected to recover in the new fiscal year.”
Magor is also in the process of shifting to a software-as-service business model that helped increase the company’s recurring revenue.
Recurring revenue grew by 60 per cent from $394,220 to $630,085 during the fiscal year, while recurring revenue during the fourth quarter was up 70 per cent from $142,391 to $241,730.
“A growing portion of the Magor software business with this sector and others is shifting from perpetual licences to recurring software revenue,” Mr. Matthews said.
“This has the effect of reducing the initial overall revenues and margins. However, it provides more predictable revenue growth in addition to increased future margins. As evidenced by our 60 per cent year-over-year growth in recurring revenue, the company is actively working towards driving the recurring revenue model.”
After the year end, Magor entered into an agreement to borrow $975,000 from Mr. Matthews. The company ended the year with $95,738 in cash, down from $201,086 at the end of the previous fiscal year. Its accumulated deficit was $48,796,970 on April 30.
Magor is also on the search for a new CEO.
Current chief executive Mike Pascoe will step down at the end of August, the company announced. Brian Baker, Magor’s current CFO, will act as interim president and CEO until a permanent replacement is found. He will also join the company’s board of directors.
Mr. Pascoe will continue to work with Magor as a senior adviser focused on sales and channel development.