Revenue still out of reach for Ottawa’s Leonovus in Q3

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Leonovus continues to strike an optimistic tone on its numerous customer trials, but the software storage firm’s share price has dwindled this year on promises of revenue to come.

Ottawa-based Leonovus (TSX-V:LTV) looks to provide secure data storage solutions for large institutions such as banks and government departments. The company has been in rebuild mode for more than a year and has shown signs of momentum as of late with dozens of proof of concept trials and a deal with a big-six Canadian bank.

Leonovus had said previously that it expected to see revenue by the third quarter of the year, but in earnings released this week, it reported only marginal gains over last year’s figures related to a few proofs of concept. The company said in new financial filings that revenue from the aforementioned bank customer should begin to flow next quarter.

Leonovus posted a net loss of $1.6 million for the three-month period ending Sept. 30, an increase of roughly $1 million compared with last year’s loss. The firm’s shares have held steady in price this week but are down roughly 50 per cent since the start of 2018.

The company announced in October that it would develop a crypto-based marketplace for firms looking for flexible cloud storage to challenge Amazon and Microsoft’s hold on the market. Earlier this month the company unveiled the whitepaper for its Galaxa marketplace at the Singapore Fintech Festival.