ALEXANDRIA, VA, Nov. 25, 2015 /CNW/ – IGEN Networks Corp. (the “Company” or “IGEN”) (OTCQB: IGEN) (CSE: IGN) has filed its Q3 2015 report which included the largest quarterly revenue in the Company’s history for the second consecutive quarter. IGEN’s quarterly revenues of $337,733 were up 17% from the previous quarter and up 26% from the similar quarter in 2014. For the nine-month period, revenues of $805,347 were a 55% increase over the similar period in 2014, and reflected record revenues over the nine-month period for the Company.
The Company also reported record gross profits. Gross profits in the quarter grew to $121,683; an 18% increase over the previous quarter, though only marginally higher than the similar period in 2014. The numbers reflect increased volumes of lower-margin product in 2015. Over the nine-month period, the Company’s gross profit was $285,658, up 21% over the same period in 2014.
Quarterly gross margins were 36%, unchanged over the previous quarter, but down from 44% reported for the similar quarter last year. Margins for the nine-month period were 35%, also down from the 49% reported for the similar period last year. The Company continues to review alternative hardware suppliers and order fulfillment strategies to improve its overall margins – as the number of activations increases the company will focus on the service and residual revenue component of its business model.
The Company reported a Q3 loss of $601,287, compared with $158,220 and $211,764 losses for the previous quarter and the same quarter in 2014 respectively. A large part of these losses were due to non-cash stock-based compensation (“SBC”) of $415,600 and $448,958 incurred in 2015 Q3 and the 2015 nine-month period, respectively. Not including this non-cash SBC, losses for 2015 Q3 and the 2015 nine-month period were $185,687 and $498,138, respectively.
Neil G. Chan, President and CEO of IGEN, stated, “We are pleased that within three quarters we have already exceeded the revenue and gross profits we reported for all of last year, but are mindful that achieving profitability remains our key goal as we continue to invest as necessary in growing the Company.”
About IGEN Networks Corporation:
IGEN Networks Corporation invests in and manages companies that deliver cloud-based services through Machine-to-Machine (M2M) device technologies for the protection and management of mobile assets and commercial fleets. The Company offers a range of self-provisioning applications which are used to manage and recover stolen assets, provide access to roadside assistance programs, and improve productivity of commercial fleets.
IGEN is a fully reporting company in both Canada and the United States. It is publicly traded on the OTCQB under the symbol IGEN, and listed on the CSE under the symbol IGN. For more information, please visit www.igen-networks.com.
Forward-Looking Statements
This news release may contain forward-looking statements or forward looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities law. The terms and phrases “goal”, “commitment”, “guidance”, “expects”, “would”, “will”, “continuing”, “drive”, “believes”, “indicate”, “look forward”, “grow”, “outlook”, “forecasts”, “intend”, and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by IGEN in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that IGEN believes are appropriate in the circumstances, including but not limited to statements regarding investment liquidity, financing options and long term goals of the Company, general economic conditions, IGEN’s expectations regarding its business, customer base, strategy and prospects, and IGEN’s confidence in the cash flow generation of its business. Many factors could cause IGEN’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; IGEN’s reliance on key personnel; IGEN’s ability to maintain and enhance its brand; and difficulties in forecasting IGEN’s financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to IGEN that may cause actual results to differ are set forth in the under the heading “Risk Factors” in IGEN’s periodic filings with the British Columbia Securities Commission and the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.edgar.com). These factors should be considered carefully, and readers should not place undue reliance on IGEN’s forward-looking statements. IGEN has no intention and undertakes 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 law.