CALGARY, Oct. 31, 2017 /CNW/ - Trakopolis IoT Corp.
("Trakopolis" or the "Company") (TSXV: TRAK) is
pleased to report its financial and operating results for the
period ended September 30, 2017.
Third quarter financial highlights include:
- Subscription sales (recurring revenue) of $990 thousand, which represents 9% growth
quarter-over-quarter and a 25% increase compared to the prior year
period.
- Monthly subscription sales (recurring revenue) of $347 thousand, representing 14% growth
quarter-over-quarter and a 26% increase compared to the prior year
period.
- Revenue of $4.63 million for the
quarter, which represents 192% growth quarter-over-quarter and a
299% increase compared to the prior year period.
- Hardware sales revenue of $3.61
million, which represents 491% growth quarter-over-quarter
and a 904% increase compared to the prior year period.
- An increase in our enterprise subscriber base from 32% in the
prior quarter to 38% in the current quarter.
- A reduction in net loss from $1.36
million in the prior year period to $1.19 million in the current quarter,
representing an 8% improvement quarter-over-quarter and a 12%
improvement over the prior year period.
- Net addition of 1,345 subscribers, representing 11% growth
quarter-over-quarter and a 26% increase compared to the prior year
period.
- Average revenue per unit of $24.57, representing 2% growth
quarter-over-quarter and a 3% increase compared to the prior year
period.
Third quarter operating highlights include:
- Completion of a major enterprise customer roll-out of the
Trakopolis-enabled Honeywell ConneXt LoneWorkerTM
device, deployed across 19 cities in 6 states.
- Successful launch of Trakopolis' Electronic Logging Device
("ELD") resulting in over 300 total active ELD subscribers,
an enterprise win and a strong sales funnel.
- Successful negotiation and execution of a strategic
relationship with Mullen Group Ltd., one of the leading suppliers
of trucking and logistics services in Canada, to advance the ongoing development of
a logistics platform which incorporates load sharing technology
developed by Trakopolis.
- Successful completion of private placement financing resulting
in an additional $2.02 million of
capital with institutional, strategic and director
participation.
"The third quarter of 2017 produced record hardware revenue as
we continued our focus on the enterprise segment and we expect the
strong hardware sales in the third quarter to translate into
increased recurring subscription sales revenue going forward.
Completing the large enterprise customer implementation in record
time proves that current operations can handle further sale
velocity" stated Brent Moore, CEO of
Trakopolis.
"We're also very pleased to be moving forward with our partner
Honeywell on the integration of the entire wireless gas detection
portfolio of RAE Systems, a wholly-owned Honeywell
subsidiary. We know that major corporations require an
enterprise grade platform that can connect everyone and everything
and we are pleased to separate ourselves even further from our
industry peers in that regard. Having the Honeywell wireless
portfolio connected to Trakopolis enables the Company to provide
substantially more to customers while opening the
multi-billion-dollar global gas detection market to us. Our
partnership with Honeywell gives Trakopolis brand name recognition,
established global sales and support channels, major marketing
horsepower and access to an unrivalled selection of proven
technologies, all with only a minimal R&D spend."
"Our long-held strategy of collaboration continues to create
crucial differentiation in the global safety and productivity
market, and we look forward to working with clients to deliver
unmatched, comprehensive, end-to-end industrial internet of things
solutions." An updated Trakopolis corporate presentation
highlighting our growth strategy is now available on the
Company's
website and can be accessed at:
http://trakopoliscorp.com/wp-content/uploads/2016/08/TRAK_CorporatePresentation_November01-2017.pdf
Trakopolis' third quarter financial statements and MD&A have
been posted to the Company's website and can be accessed at
http://trakopoliscorp.com/investors/. The MD&A and Financial
Statements have also been filed with SEDAR and will be accessible
at www.sedar.com.
About Trakopolis
Trakopolis is a Software as a Service (SaaS) company with
proprietary, cloud-based solutions for real-time tracking, data
analysis and management of corporate assets such as equipment,
devices, vehicles and workers. The Company's asset management
platform works across a variety of networks and devices. Trakopolis
has a diversified revenue stream from many verticals including oil
and gas, forestry, transportation, construction, rentals, urban
services, mining, government and others.
Forward-Looking Information
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation that
are not historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements regarding: growth in subscription
revenue going forward; increasing the Company's enterprise sales
funnel; and integration of the Honeywell wireless portfolio.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties and other factors
which may cause actual results and future events to differ
materially from those expressed or implied by such forward-looking
statements. Such factors include, but are not limited to:
activation of units by end users; commercial success of our
products and services; adoption of new Honeywell devices by
customers; general business, economic and social uncertainties;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; those
additional risks set out in the Company's public documents filed on
SEDAR at www.sedar.com; and other matters discussed in this news
release. Although the Company believes that the assumptions and
factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by
law, the Company disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Non-GAAP Measures
This news release contains references to certain financial
measures that do not have any standardized meaning prescribed by
IFRS and may not be comparable to similar measures presented by
other entities. These non-GAAP financial performance measures
should be viewed as a supplement to, and not a substitute for, the
Company's results of operations reported under IFRS. These
financial measures are identified and defined below:
"Recurring Revenue" includes monthly software subscriptions,
and resale of cellular and satellite data. Recurring revenue is
recognized monthly as services are delivered and is derived from
the subscription revenue category within the Company's financial
statements. The Company believes that Recurring Revenue provides
useful information to investors because it shows the long-term
nature of recurring service revenue.
Please refer to the Company's September 30, 2017 MD&A dated October 30, 2017 for additional information
regarding these non-GAAP measures.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Trakopolis IoT Corp.