VirtualArmour Reports Q2 2019 Results; Managed and Professional Services Revenue up 13%
Q2 2019 Financial Highlights
- Revenue for the second quarter of 2019 was
- Managed and professional services revenue increased 13% to a record
$1.3 million, due primarily to the expansion and addition of new clients signed under contracts over the last 12 months.
- Annual recurring revenue (ARR) totaled
$4.5 millionat June 30, 2019, up from $4.0 millionat June 30, 2018. The company defines ARR as the value of its service contracts normalized to a one-year period.
Q2 2019 Operational Highlights
- Engaged with Capstone Headwaters, a leading investment banking firm, in response to receipt of unsolicited inquiries.
- Expanded into the pharmaceutical market with a
ServiceNowinto Managed Security Services to quickly integrate into our customer workflows and rapidly respond to incidents leveraging automation and orchestration.
- Added new channel partnership with Advanced Systems Group expanding the range of service offerings both organizations are able to jointly pursue opportunities across the western United States.
Tianyi Luto Vice President of Product Development to focus on broadening the products and solutions we offer to our customers and automating functions within the current suite to increase efficiencies and drive down operation costs.
Q2 2019 Financial Summary
Cost of sales were
Gross profit was
Total expenses were
Net and comprehensive loss was
“We remain focused on building our recurring revenue streams and are pleased with the continued growth in managed and professional services. Seasonality impacted our product sales although our sales pipeline is strong,” said
“Our expansion into the pharmaceutical and gemological industry allowed for over
“Throughout the first half of 2019, our channel partner program has enabled us to quickly access new business development opportunities and notably, give us the ability to target, and deliver our comprehensive set of services to a new base of larger enterprise customers.”
“Looking ahead, we are very optimistic for the second half of 2019. We continue to see the growing threat of targeted breaches across all industries and business sizes driving increased cybersecurity budgets as companies prepare for 2020 and beyond.”
“We see our growing sales, marketing, and service organization driving a favorable shift in our revenue mix toward managed services sales. Margin growth should accompany this recurring revenue growth in the second half of 2019. By expanding revenues to existing customers and increasing the velocity of customer acquisition, we are firmly on track for another record year of operational and financial performance.”
The company maintains 24/7 client monitoring and service management with specialist teams located in its U.S. and
Important Cautions Regarding Forward Looking Statements
This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning a service contract
Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of the Company in performing the IT implementation and migration, performance under the contract by all parties, the ability of
Interim Consolidated Statements of Operations and Comprehensive Loss
For the three and six months ended
(Unaudited - Expressed in U.S. Dollars)
|Three months ended
|Six months ended
|Cost of sales||(2,035,882||)||(2,918,624||)||(4,501,962||)||(5,267,609||)|
|General and administrative||511,763||522,415||1,289,966||948,198|
|Research and development||52,519||52,701||101,952||88,380|
|Sales and marketing||650,378||571,153||1,256,044||1,119,159|
|Loss from Operations||(548,239||)||(61,803||)||(899,435||)||(152,603||)|
|Other Income (Expenses)|
|Change in fair value of warrant derivative liabilities||-||-||-||2,589|
|Net and Comprehensive Loss for the period||(645,775||)||(119,199||)||(1,048,701||)||(246,411||)|
|Loss per share – basic and diluted||(0.01||)||(0.00||)||(0.02||)||(0.00||)|
|Weighted average number of shares outstanding – basic and diluted||63,599,447||63,501,535||63,599,447||60,734,198|
Interim Consolidated Balance Sheets
(Unaudited - Expressed in U.S. Dollars)
|June 30,||December 31,|
|Total Current Assets||1,693,840||3,762,915|
|Property and equipment||532,239||513,984|
|Accounts payable and accrued liabilities||1,581,558||3,728,051|
|Current portion of lease obligations||467,961||679,647|
|Due to related parties||405,194||–|
|Total Current Liabilities||4,217,431||5,296,291|
|Common stock, no par value, 300,000,000 shares authorized Issued and outstanding: 63,599,447 (2018 – 63,599,447) shares||7,670,975||7,670,975|
|Additional paid-in capital||1,992,008||1,955,222|
|Total Stockholders’ Deficit||(2,187,153||)||(1,175,238||)|
|Total Liabilities and Stockholders’ Deficit||3,182,865||5,602,941|
Tel (720) 644-0913
Source: VirtualArmour International Inc.