2016 Revenue Growth of 21% Year over Year
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, May 02, 2017 (GLOBE NEWSWIRE) -- Premier Managed Services Provider, VirtualArmour
International Inc. (the “Company”) (CSE:VAI), today announced fourth quarter (Q4) financial results for the three
and twelve-month period ended December 31, 2016.
“With the global managed services market experiencing continued growth, VirtualArmour increased its
year-over-year revenue by 21%. Our growth was driven by the addition of 34 new customers during 2016 as well as maintaining an
industry-leading customer retention rate of 96%. Some of these clients became part of our managed services practice, others
professional services and the majority procured hardware and software solutions from the Company,” said Todd Kannegieter, CEO of
VirtualArmour.
“Looking forward into 2017 the outlook is positive as there continues to be growth within the MSP (Managed
Services Provider) and cybersecurity sector that is accelerating adoption of the Company’s service offerings,” said Todd
Kannegieter. “We expect to see continued margin growth from a ramp up in Managed Services sales and expansions into new markets led
by a growing sales, marketing, and service organization that is 100% focused on the client experience.”
2016 Financial
Highlights
- Total revenue for 2016 increased by 21% to $8,897,092 compared to $7,366,309 in 2015. The increase in revenue was directly
related to a significant increase in the number of customers being served.
- Hardware and software sales revenue increased by 18% to $6,827,014 in 2016, compared to $5,780,084 for in 2015. The increase
in revenue was due to an increase in the number of customers served as well as the size of orders from new and existing
customers.
- Managed and professional services revenue increased by 30% to $2,050,835 in 2016, compared to $1,576,965 in 2015.
- The Company recorded a net loss of $2,298,828 ($0.04 per share) for the year ended December 31, 2016 as compared to a net
loss of $3,403,391 ($0.09 per share) for the year ended December 31, 2015. The table below details certain non-cash and
other transactions that for the purposes of this discussion have been adjusted out of the reported loss to produce an adjusted
loss that forms a better basis for comparing the year-over-year operating results of the Company.
| |
2016 $ |
2015 $ |
| Loss for the year as reported |
(2,298,828 |
) |
(3,403,391 |
) |
| Add (deduct): |
|
|
| Listing expense |
- |
|
4,166,285 |
|
| Gain on debt settlement, net of legal fees |
(150,803 |
) |
- |
|
| Change in fair value of warrant derivative liabilities |
1,310,520 |
|
(1,169,751 |
) |
| G&A expense – share-based payments |
226,604 |
|
399,674 |
|
| Adjusted loss for the year
(1) |
(912,507 |
) |
(7,183 |
) |
(1) Adjusted loss for the year is not a term recognized under IFRS. Non-IFRS measures do
not have a standardized meaning. Accordingly, non-IFRS measures should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Operational Highlights:
- During the 4th quarter, the Company:
- Was named one of the world’s hottest cybersecurity companies to watch in 2017.
- Received a US$264,000 order from a global medical technology company.
- Expanded executive leadership with the hiring of Nick Dinsmoor, Vice President of Marketing and Business
Development.
- Subsequent to the quarter, the Company:
- Expanded its sales leadership with the hiring of Russ Ambrust to its senior executive team as Vice President of
Sales.
- Signed 4 additional clients in January 2017 representing over US$350,000 in initial revenue with potential for additional
business to be driven through ongoing professional and managed services.
- Was awarded partner of the year by Juniper Networks.
- Strengthened its business development and client relations expertise with the addition of Kyle Duffy as Director of
Client Engagement.
About VirtualArmour
VirtualArmour is a premier Managed Services Provider (MSP) delivering customizable management of advanced network and security
services to global businesses across numerous industry sectors. It is a trusted partner of several Fortune 500 organizations and
uses only best-in-breed technology to protect and secure its clients.
VirtualArmour’s services operate around the clock through its Security Operations Centers (“SOC”) located in
Middlesborough, U.K. and Salt Lake City, Utah. Further information about the Company is available under its profile on the SEDAR
website, www.sedar.com, on the CSE website, www.thecse.com, and on its website www.virtualarmour.com.
Forward-Looking Information:
This press release may include forward-looking information within the meaning of Canadian securities legislation. The
forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour.
Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance
that it will prove to be correct. These forward-looking statements are made as of the date of this press release and VirtualArmour
disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information,
future events or results or otherwise, other than as required by applicable securities laws.
Company Contact: Nick Dinsmoor Office: 720-644-0913 nick.dinsmoor@virtualarmour.com
