TORONTO, May 24 /CNW/ - Route1 Inc.(TM) (TSX-V:ROI), the trusted provider of security and identity management network solutions, today announced its 2007 First Quarter financial results as at and for the three months ended March 31, 2007.
Revenues for the three months ended March 31, 2007 was $408,000, an increase of $281,000 or 221%, from $127,000 for the comparable period in the preceding year. Gross margin for the quarter was $41,000, an increase of $302,000, from a $261,000 loss for the comparable period in the preceding year.
The Company's losses from continuing operations for the quarter were $1.709 million, or $0.01 per share, which is an improvement of $194,000, from a $1.903 million loss for the same period last year. Operating expenses totalled $1.759 million, which consisted primarily of G&A (27%), Selling and Marketing (42%) and R&D (27%). Net loss for the quarter amounted to $1.709 million or $0.01 per share, up from a loss of $1.446 million for the comparable period in the preceding year which included non-recurring income of $457,000 from discontinued operations.
Total Assets grew 68% to $6.031 million from $3.589 million a year earlier. This includes cash and cash equivalents of $3.835 million. As at May 24, 2007, the share capital consisted of 280,817,382 common shares outstanding.
"We have set demanding objectives for ourselves," said Andrew White, President and CEO of Route1. "From the talent we have on board, to the patents pending and intellectual property we have developed, Route1 is being recognized as the leader in identity and entitlement-based access to digital resources. 2007 started off on a high note, when we announced both the signing of Nerds on Site and IT Weapons for white-labeled MobiKEYs. Also, the impending licenses of branded MobiNETs will solidify us as market leaders."
As at and for the Selected Financial Information three months ended March 31 ($000s, except per share amounts) 2007 2006 Statements of Operations ------------------------ Revenues 408 127 Loss from continuing operations 1,709 1,912 Net loss 1,709 1,446 Cash used by operating activities 1,568 1,622 Net loss per common share 0.01 0.01 Cash flow statements -------------------- Operations (including non-cash items) (1,568) (1,622) Financing 4,103 4,492 Investing (186) 19 Cash flow 2,348 2,889 Balance sheet data ------------------ Working capital 3,465 3,622 Total assets 6,031 5,361 Shareholders' equity 4,277 4,381
Conference Call and Webcast
The Company will host an investor conference call and webcast today at 10 am EDT. Andrew White, CEO and Anthony Rzepka, CFO, will lead a presentation and answer questions about the Company's progress. Investors and analysts are invited to call 416-644-3419 at least 5 minutes prior to the start of the call, or visit our investor page at www.route1.com/investors for a link to the live audio webcast. The audio webcast will be archived and available for replay for 90 days.
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 awardwinning MobiKEY, an ultra-portable computing device that securely connects users to the myriad of MobiNET services from any Internet-enabled Windows-based PC. This patentpending 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. 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, Route1 MobiKEY, Route1 MobiNET, and Route1 TruOFFICE 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.