Magor records another losing quarter as revenue declines

Ottawa-based Magor Corp. has once again reported quarterly losses of over $1 million.

The video-conferencing firm had a net loss of $1.5 million during its second quarter of 2014, the company announced last week.

That’s down from a net loss of $1.6 million for the same period last year and a net loss of $1.7 million during the previous quarter.

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Revenue for the three-month period ending Oct. 31 was $343,263. That’s down from $408,401 for the same period a year ago but up from last quarter, when the company reported revenue of $196,537.

“We continued to see a delay in timing of some of our larger contract wins, resulting in revenues that could not be recognized during the second quarter. However, we are very encouraged by our order book for the upcoming third quarter,” said Mike Pascoe, the president and CEO of Magor Corporation, in a press release.

The company’s order backlog was up to $401,955 at the end of the quarter from $242,305 at the end of the previous quarter.

During the quarter, the company raised $1.5 million through a brokered private placement. The placement saw Magor issue 5,809,300 units at a price of 25 cents.

Each unit included one one common share and half a purchase warrant for one common share. The purchase warrants can be exercised at a price of 40 cents.

On Dec. 23, after the end of the quarter, Magor announced that it has completed the first tranche of a brokered private placement debenture offering.

That offering saw the company raise $1.2 million through the issuance of 1,200 units. Each unit consists of a $1,000 par value secured debenture and 1,000 common share purchase warrants.

The debentures mature four years from the date they were issued and pay an annual interest rate of 12 per cent. The purchase warrants can be exercised at a price of 40 cents.

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