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.”
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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.