TORONTO, April 26 /CNW/ - Route1 Inc.(TM) (TSX-V:ROI), the trusted provider of security and identity management network solutions, today announced its 2006 Fiscal Year and Fourth Quarter financial results for the period ended December 31, 2006.
Revenue for fiscal 2006 was $0.535 million, an increase of $0.465 million, from the preceding fiscal year. Deferred revenues, which reflect the sales of future MobiNET services increased to $0.18 million, from $0.016 million in the preceding fiscal year.
The Company's losses from continuing operations were $9.4 million, or $0.05 per share, up from $6.3 million for the same period last year. Operating expenses totalled $8.54 million, which consisted primarily of G&A (35%), Selling and Marketing (35%) and R&D (26%). Net loss for fiscal 2006 amounted to $8.9 million or $0.05 per share, up from a loss of $6.4 million in the preceding fiscal year.
Total Assets grew 33% to $3.6 million from $2.7 million a year earlier. This includes cash and cash equivalents of $1.49 million. As at April 19, 2007, the share capital consisted of 279,545,709 common shares outstanding.
"2006 was a very exciting year for Route1. We continued to make significant strides from an operational standpoint, and began to develop relationships that will position Route1 to recognize significant results in 2007 and beyond," said Andrew White, President and CEO of Route1. "In addition to seeding MobiKEYs into the market, we have enhanced our go-to-market strategy to better serve customer requirements. We unbundled the hardware and software components of MobiKEY, introduced the TruOFFICE service, and continue to market the MobiNET platform."
Selected Financial Information Year ended December 31 ($000s, except per share amounts) 2006 2005 Revenues 535 71 Loss from continuing operations 9,331 6,250 Net loss 8,874 6,406 Cash used by operating activities 8,686 5,601 Net loss per common share 0.05 0.05 Selected Financial Information Three months ended December 31 ($000s, except per share amounts) 2006 2005 Revenues 83 19 Loss from continuing operations 2,802 2,063 Net loss 2,802 2,211 Cash used by operating activities 2,410 873 Net loss per common share 0.01 0.01
Conference Call and Webcast
The Company will host an investor conference call and webcast today at 10:00 am EST. Andrew White, CEO; Anthony Rzepka, CFO; and Mike Larkin, SVP Worldwide Sales will lead a presentation and answer questions about the Company's progress. Investors and analysts are invited to call 416-644-3420 at least 5 minutes prior to the start of the call, or visit our investor page for a link to the webcast. The audio webcast will be archived and available for replay for 90 days at www.route1.com.
About Route1 Inc.
Route1 is the trusted provider of security and identity management network solutions that are redefining today's workplace. 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. Leveraging the power of MobiNET is the award-winning MobiKEY, an ultra-portable computing device that securely connects users to the myriad of MobiNET services from any Internet-enabled Windows-based PC. This patent-pending computing solution is embedded on a smart-card enabled, cryptographic USB device, making it one of the most powerful and easy-to-use secure computing solutions available today. Combined with TruOFFICE, Route1's secure, remote access service, MobiKEY enables users to connect to their desktop data, applications and network resources. Route1's patent-pending solutions, based on FIPS-140-2 cryptographic modules, meet the stringent security needs and high standards mandated by all levels of government. They have been evaluated by ICSA Labs and certified by the CSE. As a Company with high regard for intellectual property, Route1 continues to encourage and nurture innovation across its talented team. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol: ROI) and has offices and agents in New York, California, Florida, the UK, Germany, and Latin America. The issued and outstanding share capital of the Company as at March 26, 2007 is 271,702,684 common shares. For more information, visit www.route1.com.
This news release 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.
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(C) Route1 Inc. All rights reserved. Route1, the Route1 Logo, Mobi, MobiSecure, Route1 MobiKEY, 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.