Canada NewsWire
OTTAWA, ON, Aug. 21, 2023
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Loss from operations improves 42% as cost optimization stabilizes. Vantage DX market continues to develop and repayment of debt subsequent to quarter-end provides additional runway for revenue growth.
OTTAWA, ON, Aug. 21, 2023 /CNW/ - Martello Technologies Group Inc., ("Martello" or the "Company") (TSXV:MTLO), a provider of software that optimizes the Microsoft Modern Workplace environment, today released financial results for the three months ended June 30, 2023. Martello software provides businesses with actionable insights on the performance and user experience of cloud services such as video conferencing and voice calls, with a focus on Microsoft 365, Microsoft Teams and Mitel unified communications.
"Almost everyone has experienced the frustration of a Microsoft Teams meeting marred by audio or video issues, or a failure to connect," said Terence Matthews, Chairman of Martello. "Senior executives consistently communicate to me that these challenges impact productivity, erode customer experiences, and diminish employee satisfaction. With Martello Vantage DX, organizations can harness the full potential of the modern workplace, unburdened by the interruptions stemming from IT infrastructure issues."
"Legacy product revenue declines were a forecasted headwind in Q1 FY24. The proactive measures we've taken to streamline costs and manage debt in FY23 will set Martello up for success," said John Proctor, President and CEO of Martello. "We are focused on driving Vantage DX revenue growth and continuing to develop our strong Mitel business. As legacy product revenue sunsets, we expect overall revenue growth will deliver value to shareholders."
"I'm pleased with actions taken this year to optimize spend with a focus on aligning Vantage DX with the significant market share gains of Microsoft Teams," said Jim Clark, Chief Financial Officer of Martello. "Vantage DX continues to deliver value towards quantifiable improvements in business productivity. Our annual operating plan is focused on expanding market penetration and revenue with the help of important partnerships, including Microsoft, Orange Business Services and CGI." Clark added, "The recent refinancing of the Martello debt provides several benefits. Settling the Vistara debt earlier has provided additional runway to deliver net accretive growth and positive adjusted EBITDA while deferring the cash outlay until August 28, 2026."
Financial Highlights | June 30, | June 30, | |
(in 000's) | 2023 | 2022 | |
(Three months ended) | |||
Sales | 4,004 | 4,178 | |
Cost of Goods Sold | 481 | 463 | |
Gross Margin | 3,523 | 3,715 | |
Gross Margin | 88.0 % | 88.9 % | |
Operating Expenses | 4,285 | 5,024 | |
Loss from operations | (762) | (1,309) | |
Other income/(expense) | (562) | 162 | |
Loss before income tax | (1,324) | (1,147) | |
Income tax recovery (expense) | 117 | (79) | |
Net loss | (1,208) | (1,226) | |
Total Comprehensive income (loss) | (1,156) | (1,943) | |
EBITDA (1) | (288) | (1,159) | |
Adjusted EBITDA (1) | (201) | (645) | |
(1) Non-IFRS measure. See "Non-IFRS Financial Measures". |
Martello will host a conference call with John Proctor, President & CEO and Jim Clark, CFO at 8:00 AM Eastern Time on Tuesday, August 22, 2023 to discuss the Q1 FY24 financial results.
Canada/USA Toll Free: | 1-800-319-4610 |
International Toll: | +1-604-638-5340 |
Callers should dial in 5 – 10 min prior to the scheduled start time and ask to join the Martello call. An audio recording of the call will be available on August 22, 2023 at https://martellotech.com/investors/#earnings.
The financial statements, notes and Management Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR at www.sedar.com, and on Martello's website at www.martellotech.com. The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars.
This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the "1933 Act") as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Martello Technologies Group Inc. (TSXV: MTLO) is a technology company that provides digital experience monitoring (DEM) solutions to optimize the modern workplace. The company's products provide actionable insight on the performance and user experience of cloud business applications, while giving IT teams and service providers control and visibility of their entire IT infrastructure. Martello's software products include Vantage DX, which provides Microsoft 365 and Microsoft Teams end user experience monitoring and optimization. Martello is a public company headquartered in Ottawa, Canada with employees in Europe, North America and the Asia Pacific region. Learn more at http://www.martellotech.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods and " includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including the execution of a multi-year action plan to reduce hosting costs, the aim that as legacy product revenue sunsets, overall revenue growth will deliver value to shareholders, the execution of a strategy to convert certain Legacy customers to the Vantage DX platform, and the significant improvement in working capital with the recent debt refinancing.
Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:
Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
SOURCE Martello Technologies Group Inc.
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