Annual revenues grow more than 103% year over
year, while quarterly revenues of $3.4
million represent a 99% increase over the same period of
2018.
/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR
IN PART, IN OR INTO THE UNITED
STATES./
OTTAWA, July 17, 2019 /CNW/ - Martello Technologies
Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a leading
provider of technology solutions that deliver clarity and control
of complex IT environments deployed in thousands of locations
around the world, today released financial results for the fourth
quarter and fiscal year ended March 31,
2019.
Q4 and FY2019 Highlights
- Martello had an active year, completing its second acquisition
and integrating the two acquired companies, closing a $7.5 million private placement, and going public
on the TSXV. The Company has developed a core competency to target,
acquire and integrate revenue extending assets, and continues to
onboard these acquired businesses onto Martello's technology
platform to accelerate revenue growth in the future.
- The Company reported annual revenues of $10.4 million in F2019, representing an increase
of 103% compared to the 2018 fiscal year.
- Revenue in the fourth quarter of F2019 was $3.4 million, an increase of 99% over the same
period in F2018.
- Recurring revenue was 78% in the fourth quarter of fiscal 2019
and 78% for the year ending March 31,
2019.
- Organic revenue from sales of Martello's UC performance
analytics software to the Mitel channel grew 33% in F2019 compared
to F2018.
- The Company's revenue base continued to expand and diversify,
with sales of unified communications (UC) performance analytics
software contributing 46% of revenues in Q4 F2019, compared to 69%
in Q4 F2018.
- Gross margin as a percentage of revenue was 93% for fiscal 2019
and 92% for the three months ended March 31,
2019, compared to 94% in fiscal 2018 and 93.5% for the three
months ended March 31, 2018.
- The loss from operations in Q4 F2019 was $1.3 million compared to a loss of $613,395 in Q4 F2018. For the year ending
March 31, 2019, the loss from
operations was $4.3 million compared
to $927,678 for the year ending
March 31, 2018.
- Adjusted EBITDA, a non-IFRS financial measure which assesses
operating performance before the impact of costs associated with
acquisition activity and other non-cash costs, amounted to a loss
of $827,238 for the three months
ended March 31, 2019 and $1.7 million for the twelve months ended
March 31, 2019. This compares to
losses of $205,650 and $22,120 respectively for the three and twelve
months ended March 31, 2018.
- Martello made significant investments in fiscal 2019, certain
of which were non-recurring and non-cash, increasing the Company's
operating expenses as a result. These investments, which included
people and systems, have established a strong platform for
responsible growth, both organically and in a capacity to target
and acquire revenue extension assets in the future.
- Martello is an increasingly global company, with triple digit
year over year growth (fiscal 2019 compared to fiscal 2018) in
Europe, Asia and Latin
America driven by acquisitions, expansion of the Mitel
channel and growth of the Company's sales and marketing
team.
"Steady and strong revenue growth in the 2019 fiscal year, both
organically and through acquisitions has created the foundation to
accelerate Martello's business", said John
Proctor, President and CEO of Martello. "Having invested
significantly in people and systems, Martello is now well
positioned to target and acquire accretive assets and drive
responsible growth going forward".
Business Highlights
During the fourth quarter Martello achieved the following
milestones:
- Updated and extended its agreement with Mitel Networks, a key
partner. The terms of the amendment included extending the renewal
term, and expanding the coverage of Martello's software to
additional Mitel communications platforms such as the MiVoice
Connect and MiVoice 5000.
- Expanded into the Indian market, announcing a partnership with
Taraspan.
- Developed Mitel Performance Analytics (MPA) 3.0, which was
launched by Mitel with support for the MiVoice Connect call
platform.
Subsequent Activities
Subsequent to March 31, 2019,
Martello achieved the following milestones:
- Launched support for Microsoft Office 365 and Azure in its iQ
ITOps platform, allowing enterprise customers to manage the
performance of hybrid cloud environment more effectively. Leiden
University Medical Center Chooses Martello to Improve the
Performance and Reliability of Hybrid Cloud-Based Services
- Showcased its Proof of Concept developed with BlackBerry QNX,
which demonstrated that Martello's technology can deliver reliable
network connectivity in challenging mobile IoT applications such as
autonomous vehicles.
- After debuting on the list last year, Martello moved up 20
spots on the 2019 Branham300 ranking of Canada's top ICT companies. Learn more.
- Highlighted its growth in the hospitality industry, with
Martello's solutions now deployed in thousands of hotels around the
world and partnerships with GuestTek in Canada and Naizak in the Middle East. Learn more about how Martello is
powering reliable high speed internet access for hotels around the
world.
- On July 5, 2019, Martello
provided insight on recent stock activity and a business update,
including comments made by co-chairman Bruce Linton on helping Martello define and
execute its acquisition strategy.
Financial Highlights
Note: The information contained in the following
tables, including the Remaining balance and Variance calculations,
is intended to assist in the year over year comparison and provide
additional clarity on the year over year
results.
Martello reported revenues of $10.4
million for the year ended March 31,
2019, and $3.4 million in the
three months ended March 31,
2019. This represented an increase of 103% and 99%
respectively over the same period in the prior year, and can be
attributed to both organic growth and the acquisition of Savision
in November 2018. Savision
contributed $1.9 million in revenue
in the 2019 fiscal year.
Financial
Highlights
(in 000's)
|
|
March
31
2019
|
|
March 31
2018
|
|
March
31
2019
|
|
March 31
2018
|
|
|
|
(3 months
ended)
|
|
(12 months ended)
|
Sales
|
|
$
|
3,368
|
|
1,692
|
|
10,360
|
|
5,100
|
Cost of Goods
Sold
|
|
|
267
|
|
109
|
|
707
|
|
288
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
3,101
|
|
1,582
|
|
9,653
|
|
4,812
|
Gross
Margin
|
|
%
|
92.1%
|
|
93.5%
|
|
93.2%
|
|
94.3%
|
Operating
Expenses
|
|
|
4,413
|
|
2,196
|
|
13,922
|
|
5,739
|
Loss from
operations
|
|
|
(1,312)
|
|
(613)
|
|
(4,269)
|
|
(928)
|
Other
income/(expense)
|
|
|
95
|
|
58
|
|
(1,688)
|
|
(72)
|
Loss before income
tax
|
|
|
(1,217)
|
|
(556)
|
|
(5,958)
|
|
(999)
|
Income tax
recovery
|
|
|
148
|
|
75
|
|
546
|
|
75
|
Net
Loss
|
|
|
(1,069)
|
|
(480)
|
|
(5,412)
|
|
(924)
|
Comprehensive
loss
|
|
$
|
(1,547)
|
|
(480)
|
|
(5,359)
|
|
(924)
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(1)
|
|
$
|
(843)
|
|
(421)
|
|
(5,034)
|
|
(833)
|
Adjusted EBITDA
(1)
|
|
$
|
(827)
|
|
(206)
|
|
(1,689)
|
|
(22)
|
|
|
(1)
|
Non-IFRS
measure. See "Non-IFRS Financial Measures".
|
Gross margin as a percentage of revenue remained strong at 93%
for fiscal 2019 and 92% for the three months ended March 31, 2019. This is only a slight decrease
from 94.3% in fiscal 2018 and 93.5% for the three months ended
March 31, 2018, and is due to the
acquisitions of Savision and Elfiq, which brought the overall
margin down slightly.
Sales and Gross Margin
Q4 2019
(in CAD
$000's)
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
March
31
|
|
March
31
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Sales
|
|
3,368
|
|
1,692
|
|
10,360
|
|
5,100
|
Cost of Goods
Sold
|
|
267
|
|
109
|
|
707
|
|
288
|
Gross
margin
|
$
|
3,101
|
|
1,583
|
|
9,653
|
|
4,812
|
|
%
|
92.1%
|
|
93.5%
|
|
93.2%
|
|
94.3%
|
Revenue grew 30% between Q4 FY2019 and Q4 2018, excluding
Savision. This reflects organic growth of 33% from the Mitel
channel, due to an increase in recurring revenue from the number of
users for Mitel's premium software assurance program and an
increase in fees from Mitel resulting from the amendment to the
Company's agreement with Mitel. In addition there was organic
growth of 26% from SD-WAN and link-balancing sales. The gross
margin at 92% is comparable to the same period in FY18.
FY 2019
Sales and Gross
Margin – Twelve months ended
|
|
|
|
|
|
(in CAD
$000's)
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
|
|
|
Total
|
Elfiq
|
Savision
|
Remaining
balance*
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
10,360
|
2,573
|
1,853
|
5,934
|
|
|
Cost of goods
sold
|
|
707
|
355
|
113
|
239
|
|
|
Gross
margin
|
$
|
9,653
|
2,218
|
1,740
|
5,694
|
|
|
|
%
|
93.2%
|
86.2%
|
93.9%
|
96.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
FY19 v.
FY18
|
|
|
Total
|
Elfiq
|
Savision
|
Remaining
balance*
|
|
Variance
|
|
|
|
|
|
|
|
|
Sales
|
|
5,100
|
650
|
-
|
4,450
|
|
1,484
|
Cost of goods
sold
|
|
288
|
62
|
-
|
226
|
|
13
|
Gross
margin
|
$
|
4,812
|
588
|
-
|
4,224
|
|
1,471
|
|
%
|
94.3%
|
90.4%
|
|
94.9%
|
|
1.0%
|
|
* To facilitate
comparison with fiscal year 2018, the Remaining balance represents
the results of the Company's operations in fiscal year 2019 without
contributions from Savision (acquired in fiscal year 2019) and
Elfiq (acquired December 15, 2017). The analysis compares the
Remaining balance to the comparable period in
FY2018.
|
For the twelve months ended March 31,
2019 and 2018, the Company earned revenue of $10.4 million and $5.1
million, respectively and had gross margins of $9.7 million (93.2%) and $4.8 million (94.3%) respectively.
Recurring revenue, which was 78% of total revenues in the fourth
quarter of fiscal 2019 and for the year ending March 31, 2019, includes fees earned on a monthly
per-user basis, fees earned monthly from device usage and revenue
from subscription to software licenses, all from performance
analytics for unified communications ("UC"). In addition, recurring
revenue includes maintenance programs on hardware and software link
balancing and bandwidth management solutions; subscription sales,
maintenance and support on the licenses for visualization of IT
systems management data; and support for UC enterprise management
software.
Excluding Savision and Elfiq, the 33% organic revenue growth is
due primarily to an increase in the number of users for Mitel's
premium software assurance program and growth in the fees per user
received from Mitel in Q4 resulting from the amendment to the
agreement with Mitel. The gross margin at 93.2% is comparable
to the same period last year (94.9%).
Cost of goods sold represents the costs of hardware,
installation and delivery, sales commissions and web services.
Customer Growth
Sales included subscription-based software sales and renewals,
perpetual software and hardware sales, and the sales of maintenance
and support contracts.
Martello generates revenue from both new business and the
renewal of existing software and maintenance subscriptions. In the
fourth quarter of fiscal 2019, the Company earned business from
customers including Sonepar Canada, the United States Postal
Service, and the Dublin Airport Authority.
Martello has been in business since 2009, with subsidiaries in
business since 2003. In this time, the Company has developed
longstanding relationships with customers and partners that have
continued to renew and grow their Martello solutions over time.
These include Frost Bank (8 years), Leiden University Medical
Center (13 years), Mandarin Oriental Hotel Group (11 years), 4Sight
Communications (6 years) and KPMG NL (12 years).
Martello saw global sales growth in the fiscal year ended
March 31, 2019, compared with the
fiscal year ended March 31, 2018.
Significant growth was seen in Europe (198% increase), Asia (301% increase), Latin America (345%) and the United States (89%). Regional growth has
been driven by the acquisition of Savision, which is based in
Amsterdam, expansion of the Mitel
channel, and the growth of Martello's sales and marketing team.
|
March 31,
2019
|
March 31,
2018
|
|
$
|
$
|
|
|
|
Revenue for the
period ended
|
|
|
Canada
|
4,578,349
|
2,835,845
|
United
States
|
2,532,936
|
1,333,892
|
Europe
|
2,042,185
|
683,246
|
Asia
|
623,818
|
155,398
|
Latin
America
|
267,456
|
60,002
|
Australia
|
247,521
|
-
|
Other
|
67,287
|
31,612
|
Total
revenue
|
10,359,552
|
5,099,995
|
Expenses
In fiscal 2019 the Company made investments in people, research
and development and sales and marketing activities, and
foundational systems which will enable the company to scale. In
doing so, Martello has established a core capacity for future
organic growth and acquisition activity.
Expenses – Twelve
months ended
|
|
|
|
|
|
|
|
(in CAD
$000's)
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
|
|
|
Total
|
Elfiq
|
Savision
|
Remaining
balance*
|
|
|
Research and
development
|
|
4,031
|
1,052
|
584
|
2,395
|
|
|
Sales and
marketing
|
|
3,292
|
1,271
|
944
|
1,077
|
|
|
General and
administrative
|
|
4,611
|
797
|
429
|
3,385
|
|
|
Depreciation
|
|
104
|
31
|
17
|
56
|
|
|
Amortization
|
|
712
|
-
|
-
|
712
|
|
|
Acquisition-related
costs
|
|
1,172
|
-
|
-
|
1,172
|
|
|
TOTAL
|
|
13,922
|
3,150
|
1,974
|
8,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
(Increase)/
Decrease *
|
|
|
Total
|
Elfiq
|
Savision
|
Remaining
balance*
|
|
|
Research and
development
|
|
2,330
|
194
|
-
|
2,136
|
|
(259)
|
Sales and
marketing
|
|
877
|
292
|
-
|
585
|
|
(493)
|
General and
administrative
|
|
1,791
|
194
|
-
|
1,597
|
|
(1,788)
|
Depreciation
|
|
62
|
14
|
-
|
48
|
|
(8)
|
Amortization
|
|
123
|
-
|
-
|
123
|
|
(589)
|
Acquisition-related
costs
|
|
556
|
-
|
-
|
556
|
|
(616)
|
TOTAL
|
|
5,739
|
694
|
-
|
5,045
|
|
(3,753)
|
|
* To facilitate
comparison with fiscal year 2018, the remaining balance represents
the results of the Company's operations in fiscal year 2019 without
contributions from Savision (acquired in fiscal year 2019) and
Elfiq (acquired December 15, 2017). The analysis compares the
Remaining balance to the comparable period in FY2018.
|
For the twelve months ended March 31,
2019 and 2018, operating expenses totaled $13.9 million and $5.7
million, respectively. Excluding Elfiq and Savision,
expenses increased by $3.8 million.
As Savision was acquired on November 1,
2018 and Elfiq was acquired on December 15, 2017, the following year over year
analysis excludes Savision and Elfiq.
While sales increased significantly in both the three and twelve
months ended March 31, 2019, there
were also increased expenses due to a variety of factors,
including investment in sales and marketing headcount and
activities, increased acquisition costs, the complexity of
reporting requirements, and increased share-based compensation.
Research and development cost increased by $259,115 due to new headcount added during the
year in development, innovation and technical support, higher
share-based compensation costs (non-cash), general salary
increases, and an investment in additional development
tools.
The increase in sales and marketing expenses of $492,841 was due in large part to a focus on
expanding the Company's brand awareness and communications and
increased presence at industry events. The Company has invested in
a new website, increased public relations activity, and conference
and trade show sponsorship and attendance. Compensation costs also
increased year over year due to growth in the team aligned with the
above strategy, new sales resources, general salary increases and
non-cash stock-based compensation expense.
General and administrative expenses include salaries for
finance, human resources and executive staff, as well as general
corporate expenditures including consulting fees, legal and
professional fees, insurance and office rent. General and
administrative expenses increased by $1.8
million in FY19. This was due to significant investments to
enable the company to scale and establish its platform for future
growth. Director fees and professional fees for accounting, audit,
tax and legal increased due to the additional complexity associated
with the reverse acquisition transaction and public company
reporting. Costs in the current year also include investment in
research and advisory services and in new systems and
implementation costs, which were not incurred in the prior year.
Salaries and share-based compensation expense increased, relating
to additional executive staff, the accelerated vesting of certain
stock options as a result of the RTO, and an expanded finance team
required for both internal and external reporting
needs.
Amortization relates to the amortization of intangible assets
identified upon the acquisition of Elfiq and Savision. Given the
timing of the acquisitions, costs in FY18 related only to the Elfiq
acquisition whereas FY19 includes both Elfiq and Savision.
Acquisition related costs relate to the integration of Elfiq and
the acquisition of Savision, including a success fee paid to the
M&A advisor for the Savision transaction. Prior year costs
related to advisory, due diligence, legal costs and a success fee
for the acquisition of Elfiq.
Loss from Operations
The loss from operations for the three months ended March 31, 2019 and 2018 was $1.3 million and $613,395 respectively, an increase of
$698,177. For the twelve months ended
March 31, 2019 and 2018, the loss
from operations was $4.3 million and
$927,678, respectively, an increase
of $3.3 million.
Excluding the impact of Savision, the loss from operations
increased $633,017 year over year for
the three-month period ended March 31,
2019. Excluding the impact of Savision and Elfiq, the loss
from operations increased $2.3
million year over year for the twelve-month period ended
March 31, 2019.
EBITDA and Adjusted EBITDA Summary (Non-IFRS financial
measures)
The Company's "EBITDA" and "Adjusted EBITDA" are non-IFRS
financial measures used by management that do not have any
standardized meaning prescribed by IFRS and may not be comparable
to similar measures presented by other companies. EBITDA is
calculated as net loss before interest income, interest expense,
accretion of long-term debt, income tax recovery, depreciation and
amortization. Adjusted EBITDA is calculated as EBITDA excluding
share-based compensation expense, reverse acquisition costs,
acquisition-related costs and foreign exchange gain/loss.
Management believes Adjusted EBITDA is a useful financial metric to
assess its operating performance on an adjusted basis as described
above.
Adjusted EBITDA in the three months ended March 31, 2019 was a loss of $827,238, compared to a loss of $205,650 in the three months ended March 31, 2018.
Adjusted EBITDA in the twelve months ended March 31, 2019 was a loss of $1,689,272, compared to a loss of $22,120 in the twelve months ended March 31, 2018.
EBITDA and
Adjusted EBITDA
|
|
|
March
31,
2019
|
|
March 31
2018
|
|
|
March
31
2019
|
|
March 31
2018
|
|
|
|
(Three months
ended)
|
|
|
(Twelve months
ended)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(1,068,948)
|
$
|
(480,314)
|
|
$
|
(5,411,800)
|
$
|
(923,985)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(2)
|
|
(10,422)
|
|
(876)
|
|
|
(29,986)
|
|
(12,890)
|
Interest
expense
|
(2)
|
|
57,162
|
|
20,132
|
|
|
87,400
|
|
57,275
|
Accretion of
long-term debt
|
(2)
|
|
16,829
|
|
(33,931)
|
|
|
50,347
|
|
(63,111)
|
Income tax
recovery
|
(2)
|
|
(147,817)
|
|
(75,436)
|
|
|
(545,887)
|
|
(75,436)
|
Depreciation
|
(2)
|
|
32,977
|
|
26,116
|
|
|
103,899
|
|
62,261
|
Amortization
|
(2)
|
|
277,577
|
|
123,014
|
|
|
712,429
|
|
123,015
|
EBITDA
|
(1)
|
|
(842,642)
|
|
(421,295)
|
|
|
(5,033,598)
|
|
(832,871)
|
|
|
|
|
|
|
|
|
|
|
|
Reverse acquisition
costs
|
(2)
|
|
-
|
|
-
|
|
|
776,933
|
|
-
|
Reverse acquisition
transaction cost
|
(2)
|
|
-
|
|
-
|
|
|
1,040,012
|
|
-
|
Foreign exchange
(gain) loss
|
(2)
|
|
39,743
|
|
(39,299)
|
|
|
(18,632)
|
|
90,469
|
Other
income
|
(2)
|
|
(198,119)
|
|
-
|
|
|
(217,642)
|
|
-
|
Share-based
compensation expenses
|
(3)
|
|
87,957
|
|
59,535
|
|
|
591,953
|
|
164,148
|
Acquisition-related
costs
|
(2)
|
|
85,823
|
|
195,409
|
|
|
1,171,702
|
|
556,134
|
Adjusted
EBITDA
|
(1)
|
$
|
(827,238)
|
$
|
(205,650)
|
|
$
|
(1,689,272)
|
$
|
(22,120)
|
|
|
(1)
|
Non-IFRS measure.
See "Non-IFRS Financial Measures".
|
(2)
|
Per the Statements
of net loss and comprehensive loss
|
(3)
|
Share-based
compensation expense per the Statement of cash flows
|
Share Capital
The Company had 191,237,568 shares issued and outstanding as of
March 31, 2019.
The number of common shares has been retrospectively adjusted to
reflect the share exchange in connection with the reverse takeover
transaction of 3.2 shares issued in the Company for each share of
Martello Corp.
In Q4 2019, the following transactions in the share capital of
Martello occurred:
- 32,000 common shares were issued upon the exercise of options
for proceeds of $4,160 (NIL in Q4
2018);
- 64,000 unvested options were forfeited (96,000 in Q4
FY18);
- 1,281,500 options were issued with an exercise price of
$0.335 and 424,000 options were
issued with an exercise price of $0.38.
Cashflow and Capital Resources Summary
At March 31, 2019, the Company had
$6.65M of cash and restricted cash on
hand, and $4.9M of net working
capital to fund operations and growth.
Cashflow
Summary
|
|
|
(in CAD
$000's)
|
|
|
|
Twelve months
ended
March 31
|
|
2019
|
2018
|
Operating
activities
|
|
|
Loss before income
tax
|
(5,958)
|
(999)
|
Items not affecting
cash
|
1,642
|
876
|
Total cash flows
provided by (used in) operations
|
(4,315)
|
(124)
|
|
|
|
Investing
Activities
|
|
|
Proceeds from
short-term investments
|
-
|
2,024
|
Cash acquired on
reverse acquisition
|
637
|
-
|
Additions to equipment
and leasehold improvements
|
(161)
|
(68)
|
Acquisition of
subsidiary
|
(1,506)
|
(1,324)
|
Total cash flows
provided by (used in) investing activities
|
(1,030)
|
632
|
|
|
|
Financing
activities
|
|
|
Proceeds from issuance
of common shares
|
7,540
|
750
|
Proceeds from exercise
of stock options
|
82
|
-
|
Proceeds from
long-term debt
|
2,948
|
239
|
Proceeds from line of
credit
|
-
|
100
|
Repayment of line of
credit
|
(120)
|
-
|
Repayment of long-term
debt
|
(602)
|
(178)
|
Total cash flows
provided by (used in) financing activities
|
9,848
|
912
|
|
|
|
Net change in cash
and restricted cash
|
4,503
|
1,420
|
Cash, beginning of
period
|
2,141
|
721
|
Effects of currency
translation on cash and cash equivalents
|
5
|
-
|
Cash and
restricted cash, end of period
|
6,649
|
2,141
|
For the foreseeable future, the Company expects to continue
financing its operations through raising equity capital and
long-term debt to strengthen its financial position and to provide
sufficient cash reserves for growth and development of the
business. In addition, the Company is focused on generating
cashflow from operations while maintaining strong investment in
research and development to maintain current revenue and drive
increased growth.
In June 2018, the Company closed a
private placement of $7,585,311,
which is being used to fund general working capital, possible
future acquisitions and to support the reverse takeover
transaction.
In September 2018, the Company
entered into an agreement with NRC-IRAP to fund up to $2,000,000 of development costs over three years
for certain projects including the hiring of additional staff.
On November 1, 2018, in connection
with the Savision acquisition, the company closed the RBC Loan and
drew $3,000,000 on the term loan. The
RBC Loan also includes a $1,000,000
revolving facility which is undrawn as of the date of this
MD&A.
The Company believes that cashflow from operations, the receipt
of funds from the private placement, proceeds from the RBC Loan and
available cash and working capital will be sufficient to fund
organic growth over the next year.
Outlook
Martello intends to continue executing on its strategy of
organic growth and growth through acquisition activity. The Company
has enough funding for operations for the foreseeable future.
The Company continues to diversify its customer base with the
acquisition of Savision in Q32019. This reduces the proportion of
Martello's revenue from the Mitel channel, even as revenues
continue to increase from this channel.
In addition, the Company has established a strong platform for
future acquisitions with investments to expand the research and
development team, enhance sales and marketing activities, and
implement new systems to drive efficiencies. As a result, future
acquisitions will integrate more effectively, enhancing the
Company's product lines and driving additional revenue and
EBITDA.
The financial statements and notes 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.
Conference Call Details
Martello will host a conference call and audio webcast with
John Proctor, President & CEO
and Erin Crowe, CFO at 10:00 AM Eastern Time on July 17, 2019.
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 simply ask to join the Martello call.
An audio recording of the call will be available on July 17, 2019.
About Martello Technologies Group
Martello Technologies Group Inc. (TSXV: MTLO) is a technology
company that provides clarity and control of complex IT
infrastructures. The company develops products and solutions that
monitor, manage and optimize the performance of real-time
applications on networks, while giving IT teams and service
providers control and visibility of their entire IT infrastructure.
Martello's products include SD-WAN technology, network performance
management software, and IT analytics software. Martello
Technologies Group is a public company headquartered in
Ottawa, Canada with offices in
Montreal, Amsterdam, Paris, Dallas
and New York. Learn more at
http://www.martellotech.com
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.
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.
Cautionary Note Regarding Forward-Looking
Statements
The forward-looking statements contained in this news release
are made as of the date of this news release. Except as required by
law, the Company disclaims any intention and assume no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities law. Additionally, the Company
undertakes no obligation to comment on the expectations of, or
statements made, by third parties in respect of the matters
discussed above.
SOURCE Martello Technologies Group