Ottawa-based Magor Corporation made “good progress” in the second quarter of its fiscal 2016, its president and CEO said late Friday.
Mike Pascoe was commenting as the visual collaboration solution provider reported total revenue of $340,790 for the quarter, down from the $563,171 reported for the same period last year. Recurring revenue, however, jumped 113 per cent year-over-year to $133,612.
The progress to which Mr. Pascoe referred included expanding the firm’s customer base to “mitigate risk” associated with Magor’s small number of larger accounts.
“This risk was apparent in Q2 as we experienced order delays with two of our largest accounts during the quarter,” Mr. Pascoe said in a statement.
The company also made progress with its Magor Windows and Aerus cloud-based services software, Mr. Pascoe said.
“Subsequent to the quarter the RCMP moved to expand deployments within their private Aerus cloud, which will result in additional sales and an increase in recurring revenue for Magor,” he said.
He added that by continuing to leverage Magor Windows to address larger desktop sales opportunities, the company should see its recurring revenue continue to grow.
Magor cut its total operating expenses in the second quarter by 24.6 per cent to $1.1 million. Its net loss for the quarter was down 3.5 per cent to $1.3 million.
As of Oct. 31, Magor had an order backlog of $541,460, down slightly from the end of July. It had $50,969 in cash on hand, down from the $201,086 it had at the end of April.