TORONTO, ON / ACCESSWIRE / November 19, 2020 / AirIQ Inc. ('AirIQ') (TSXV:IQ), a supplier of wireless asset management services, today announced its financial results for the three months and six months ended September 30, 2020, reporting an 3% increase in recurring revenue, a 17% increase in gross margin, and a 10% increase in working capital, when compared to the same period the previous year.
'As the global pandemic continues, the Company continued to achieve an increase in recurring revenue compared to the previous quarter, as well as increases in gross profit and working capital, thereby maintaining a solid financial position during these extraordinary times,' stated Michael Robb, President and Chief Executive Officer of the Company. 'With the launch of the our dual facing camera solution and the signing of a new short sea shipping customer for our battery powered device on shipping containers, the Company anticipates that recurring revenue will continue to build by attracting new customers and opportunities,' continued Mr. Robb. 'The decline in total revenue primarily resulted from lower hardware revenue due to a large hardware order that shipped during the same quarter the previous year, that did not re-occur this year,' stated Mr. Robb.
Highlights for the three months ended September 30, 2020 compared to September 30, 2019 are as follows:
- Recurring revenue increase of 3% or $25,304 to $787,367 from $762,063
- Gross margin increase of 17% to 67% from 50%
- Working capital increase of 10% or $210,929 to $2,378,963 from $2,168,034 (Working capital is defined as total current assets, less total current liabilities, excluding deferred revenue and lease obligation. Deferred revenues, and lease obligations are non-cash items.)
- Cash balance increase of 10% or $174,389 to $1,991,432 from $1,817,043
- Hardware and other revenue decrease of 76% or $499,484 to $158,917 from $658,401
- Total revenue decrease of 33% or $474,180 to $946,284 from $1,420,464
- Gross profit decrease of 10% or $73,902 to $632,333 from $706,235
- Operating profits decrease of 13% or $38,136 to $263,977 from $302,113
- Net income decrease of 30% or $73,324 to $167,172 from $240,496
- Launch of fully integrated dual facing camera solution for GPS tracking and real-time video for vehicle fleets and drivers called 'IQ-CAM™' in August 2020
- Signing of a new short sea shipping customer in the transportation and logistics industry for its newly launched battery powered GPS device and solution in September 2020, representing approximately CAD$425,000 in contracted recurring revenue value over a thirty-six month period.
The Company is focusing its efforts and resources on revenue growth and profitability by continuing to offer leading-edge technology solutions for existing and new customers. We continue to focus on recurring revenues, gross profits and improving cash-flows to build a sustainable business. Recently, the Company announced the launch of a fully integrated camera and telematics solution to penetrate an under-served market which is anticipated to drive further recurring revenue growth in the future.
The Company filed a Notice of Intention to Make a Normal Course Issuer Bid (the 'Bid') with the TSX Venture Exchange ('TSXV') commencing March 27, 2020 and ending on March 26, 2021. Pursuant to the Bid, the Company proposed to purchase through the facilities of the TSXV up to 1,491,447 common shares, representing approximately 5% of the then issued and outstanding common shares of the Company. The Company's broker for the Bid is Hampton Securities Limited.
The Company's unaudited consolidated condensed interim financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
Financial Statements & MDA
The Company's unaudited consolidated condensed interim financial statements for the three months and six months ended September 30, 2020 and 2019 including notes thereto, and Management's Discussion and Analysis for the same period are being filed with the Canadian securities regulatory authorities on today's date, and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval ('SEDAR') website (www.sedar.com). The Company's financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ is an intuitive web-based platform that provides fleet operators and vehicle owners with a suite of asset management solutions to reduce cost, improve efficiency and monitor, manage and protect their assets. Services are available online or via a mobile app, and include instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. AirIQ's office is located in Pickering, Ontario, Canada. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.
This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as 'hope', 'goal', 'anticipate', 'believe', 'expect', 'plan' or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.
For more information please contact
AirIQ Inc., Michael Robb, President and Chief Executive Officer, T: (905) 831-6444, E: firstname.lastname@example.org
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: AirIQ Inc.
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