Despite a decline in fourth-quarter revenue and gross margin, good things are on the horizon for Ottawa-based Magor, the company’s CEO said Friday.
Magor (TSX-V:MCC), a provider of visual collaboration solutions, posted revenue of $424,558 for the three months ending April 30. Revenue in the same quarter last year was almost twice as high.
Mike Pascoe said the revenue drop was due to delays in closing some large contracts, but he said Magor also secured partnerships during the quarter that will strengthen its position in a number of industries in the U.S. market.
“We have also commenced earning recurring revenue from our Aerus cloud-based services, an area which we expect will drive significant continued growth in future quarters,” Mr. Pascoe said in a statement. “The company is focused on building the recurring revenues through long-term subscription contracts with its customers.”
Gross margin for the quarter was 44.4 per cent, compared with 52.3 per cent in the same quarter last year.
The company’s cash on hand was down this quarter to about $666,000, compared with $2.8 million last year.
Working capital also declined to $743,000 this year, compared with $3.2 million last year.