2016 Revenue Growth of 21% Year over Year
Vancouver, B.C. – (May 1st, 2017) Premier Managed Services Provider, VirtualArmour International Inc. (the “Company”) (CSE:VAI), today announced fourth quarter (Q4) financial results for the three and twelve-month period ended December 31, 2016.
“With the global managed services market experiencing continued growth, VirtualArmour increased its year-over-year revenue by 21%. Our growth was driven by the addition of 34 new customers during 2016 as well as maintaining an industry-leading customer retention rate of 96%. Some of these clients became part of our managed services practice, others professional services and the majority procured hardware and software solutions from the Company,” said Todd Kannegieter, CEO of VirtualArmour.
“Looking forward into 2017 the outlook is positive as there continues to be growth within the MSP (Managed Services Provider) and cybersecurity sector that is accelerating adoption of the Company’s service offerings,” said Todd Kannegieter. “We expect to see continued margin growth from a ramp up in Managed Services sales and expansions into new markets led by a growing sales, marketing, and service organization that is 100% focused on the client experience.”
2016 Financial Highlights
Total revenue for 2016 increased by 21% to $8,897,092 compared to $7,366,309 in 2015. The increase in revenue was directly related to a significant increase in the number of customers being served.
- Hardware and software sales revenue increased by 18% to $6,827,014 in 2016, compared to $5,780,084 for in 2015. The increase in revenue was due to an increase in the number of customers served as well as the size of orders from new and existing customers.
- Managed and professional services revenue increased by 30% to $2,050,835 in 2016, compared to $1,576,965 in 2015.
- The Company recorded a net loss of $2,298,828 ($0.04 per share) for the year ended December 31, 2016 as compared to a net loss of $3,403,391 ($0.09 per share) for the year ended December 31, 2015. The table below details certain non-cash and other transactions that for the purposes of this discussion have been adjusted out of the reported loss to produce an adjusted loss that forms a better basis for comparing the year-over-year operating results of the Company.
|Loss for the year as reported||(2,298,828)||(3,403,391)|
|Gain on debt settlement, net of legal fees||(150,803)||–|
|Change in fair value of warrant derivative liabilities||1,310,520||(1,169,751)|
|G&A expense – share-based payments||226,604||399,674|
|Adjusted loss for the year (1)||(912,507)||(7,183)|
(1) Adjusted loss for the year is not a term recognized under IFRS. Non-IFRS measures do not have a standardized meaning. Accordingly, non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
- During the 4th quarter, the Company:
- Was named one of the world’s hottest cybersecurity companies to watch in 2017.
- Received a US$264,000 order from a global medical technology company.
- Expanded executive leadership with the hiring of Nick Dinsmoor, Vice President of Marketing and Business Development.
- Subsequent to the quarter, the Company:
- Expanded its sales leadership with the hiring of Russ Ambrust to its senior executive team as Vice President of Sales.
- Signed 4 additional clients in January 2017 representing over US$350,000 in initial revenue with potential for additional business to be driven through ongoing professional and managed services.
- Was awarded partner of the year by Juniper Networks.
- Strengthened its business development and client relations expertise with the addition of Kyle Duffy as Director of Client Engagement.
VirtualArmour is a premier Managed Services Provider (MSP) delivering customizable management of advanced network and security services to global businesses across numerous industry sectors. It is a trusted partner of several Fortune 500 organizations and uses only best-in-breed technology to protect and secure its clients.
VirtualArmour’s services operate around the clock through its Security Operations Centers (“SOC”) located in Middlesborough, U.K. and Salt Lake City, Utah. Further information about the Company is available under its profile on the SEDAR website, www.sedar.com, on the CSE website, www.thecse.com, and on its website www.virtualarmour.com.
This press release may include forward-looking information within the meaning of Canadian securities legislation. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.