here's your answerRoute1 Reports 2008 First Quarter Results
TORONTO, ONTARIO, May 30, 2008 (MARKET WIRE via COMTEX News Network) --
Route1 Inc. (TSX VENTURE: ROI), the trusted provider of security and identity management network solutions, today announced its 2008 First Quarter financial results as at and for the three months ended March 31, 2008.
Revenues for the quarter were $194,297, a decrease of $213,488 or 52%, from $407,785 for the comparable period in the prior year. This was primarily the result of a large sale to one customer in 2007, which did not recur in the current period. Additionally, the Company's sales strategy evolved to a hybrid model and now includes direct-to-enterprise in addition to indirect through value-added resellers (VARs). The cost of revenues decreased by $190,615 or 52% to $176,595 for the quarter as compared to $367,210 for the comparable period in the prior year, which is in concert with the decrease in revenues. Operating expenses for the quarter were $1,692,427, a decrease of $66,879 or 4%, from $1,759,306 for the comparable period in the prior year. Net loss for the quarter was $1,632,550 or $nil per share, an improvement of $76,389, or 4%, from a net loss of $1,708,939 or $0.01 per share in the comparable period in the prior year.
To summarize the Company's cash flow for the quarter: i) $1,525,791 (2007 - $1,568,238) was used for operations including working capital of $159,435; ii) $46,136 (2007 - $186,023) was used for investing activities including $20,164 in the purchase of capital assets; and iii) $54,324 (2007 - $4,102,502 was generated) was used by financing activities including $52,680 in the repayment of obligations under capital lease. As at May 29, 2008, the share capital consisted of 349,388,115 common shares.
"Over the past few months, the Company has realigned its sales strategy to focus on major accounts in selected end use markets. This included the hiring of enterprise-focused sales professionals midway through the quarter. This realignment process is reflected in our first quarter's results", stated Andrew White President and CEO. "Having now shifted our focus to large strategic opportunities, the coming months will demonstrate the demand in the marketplace for our products and services and drive future revenues".
As at and for the three months ended
(in thousands of Canadian dollars,
except per share amounts)
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March March Change Change
31, 31, $ %
2008 2007
STATEMENT OF OPERATIONS
Devices $ 78 $ 294 $ (216) (73%)
Services 116 114 2 2
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Total revenues 194 408 (214) (52)
Cost of revenues 176 367 (191) (49)
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Gross margin 18 41 (23) (81)
OPERATING EXPENSES
General and administrative 717 475 242 51
Research and development 582 479 103 22
Selling and marketing 328 744 (416) (56)
Amortization 66 62 4 7
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LOSS BEFORE UNDERNOTED (1,675) (1,719) 44 2
Interest income 42 10 32 331
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Net loss for the period $ (1,633) $ (1,709) 76 4
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Loss per share $ (0.00) $ (0.01) $ 0.01 -
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CASH FLOW INFORMATION
Operating activities $ (1,526) $ (1,568)
Investing activities (46) (186)
Financing activities (54) 4,103
Net cash inflow (outflow) 1,626) 2,349
Cash, beginning of period 6,303 1,486
Cash, end of period $ 4,677 3,835
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BALANCE SHEET INFORMATION
Working capital $ 4,807 $ 3,465
Total assets $ 6,778 $ 6,031
Obligation under capital
lease $ 38 $ 253
Shareholders' equity $ 5,167 $ 4,277
ABOUT ROUTE1 INC.
Route1 delivers award-winning security and identity management solutions to customers world-wide. These solutions provide universal, secure access to all digital resources and sensitive data. At the heart of Route1's solutions is MobiNET, a communications and service delivery platform focused on identity management and entitlement-based access to resources. Route1's patent-pending solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements around privacy and security. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol: ROI). For more information, visit www.route1.com.
This news release, required by applicable Canadian laws, and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Route1's current expectations, estimates, forecasts and projections about the operating environment, legal environment, economies and markets in which Route1 operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. Unless otherwise required by applicable securities laws, Route1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Copyright2008 All rights reserved. Route1, the Route1 Logo, Mobi, Route1 MobiKEY, Route1 TruOFFICE, Route1 PurLINK, Route1 EnterpriseLIVE, and Route1 MobiNET are either registered Trademarks or Trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners.
The TSX Venture Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for its adequacy or accuracy.
Contacts: Route1 Inc. Anthony Rzepka Executive Vice President & CFO (416) 848-8391 Email: ir@route1.com Website: www.route1.com
SOURCE: Route1 Inc.