Martello revenues tick up 4% in Q2 amid rising sales of flagship Vantage DX software

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Martello Technologies put the brakes on its protracted sales skid in the second quarter, generating four per cent more revenue than it did the previous year.

The Kanata-based software company, which specializes in products that enhance the performance of cloud-based business applications, reported revenues of $3.98 million for the quarter ended Sept. 30, up from $3.84 million in the same period in 2022.

Martello said its flagship Vantage DX troubleshooting software for Microsoft customers continued to gain new users in the second quarter, while its Mitel sales channel remained stable and sales of its sunsetting legacy products declined at a slower rate as economic headwinds caused some customers to delay switching to other vendors.

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“Today, Vantage DX is trusted by major enterprise clients and key partners, and we’ve made significant improvements to our sales and demand generation processes to drive our sales pipeline,” interim CEO Jim Clark, who replaced former chief executive John Proctor earlier this month, said in a statement.

“By optimizing working capital and repurposing capacity, we have strengthened our growth strategy and operational performance.”

Martello trimmed its net loss to $1.57 million from $2.42 million a year ago. The company attributed the improvement in its bottom line to cost-cutting measures that included a round of layoffs in the second quarter of 2022 and lower spending on professional fees, office costs, marketing and advertising.

In financial documents filed Tuesday, the firm said its addressable market continues to expand, adding its deals with telecommunications companies hold “promise for the future.”

Martello said it “continues to execute on strategies to expand its pipeline of direct sales opportunities and opportunities with channel partners.”

Management conceded that sales of Vantage DX have slowed recently as rising fears of a looming recession have caused large enterprise customers to become “increasingly rigorous” when assessing their need for new software.

Martello said it hopes to drive sales by wooing Mitel customers that also use Microsoft products while forming new channel partnerships with telecom companies, global systems integrators and Microsoft partners.

“Their clients represent millions of users on Microsoft Teams, and Vantage DX can provide a new recurring services revenue stream and improve their own service operations,” the company said.

Martello shares were unchanged at one and a half cents Wednesday on the TSX Venture Exchange.

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