IGEN (OTCQB: IGEN) (CSE: IGN) Announces Record First Quarter Revenue
Key Initiatives Accelerate Growth in 2018
Murrieta, California - May 22, 2018 (Newsfile Corp.) (Investorideas.com Newswire) IGEN Networks Corporation (OTCQB: IGEN) (CSE: IGN), a leading innovator of cloud-based and Internet of Things (IoT) automotive solutions for the protection and management of mobile assets, today announced unaudited financial results for its first quarter ended March 31, 2018, including record revenue.
First Quarter 2018 and Recent Highlights:
- Achieved record first quarter revenue of $371,375, a 15% increase compared to the same period in the prior year, demonstrating continued penetration in the dealer pre-load sales channel;
- Continued to ramp the subscriber base, at more than 38,000 assets tracked as of March 31;
- Further improved revenue visibility as accounts receivable increased to $157,000 and deferred revenue to more than $203,000 during the quarter, reflecting the rapidly growing subscriber base;
- Increased gross margin to 55% from 41% in the same period in the prior year;
- Maintained close control over operating expenses, totaling $465,000 for the quarter, as IGEN continues to increase investment in sales and marketing;
- Reported an operating loss of $261,000, compared with $212,000 in the prior year first quarter;
- Grew current assets to $524,014, a significant increase of 296% over the prior-year quarter;
- Received certification on Sprint's world-class IoT Platform for IGEN's mobile platform;
- Completed IGEN's transition to Amazon Web Services to facilitate growth, scalability, and its next generation platform; and
- Joined the Sprint IoT Factory to expand its access to automotive dealerships and small business customers across the United States.
CEO Neil Chan stated, "During the first quarter of 2018 the Company continued to focus on initiatives to grow revenue, expand the customer base, and develop new channels through our wholly owned subsidiaries Nimbo Tracking and Medallion GPS. We have made significant progress through these efforts, with greater impacts expected in the quarters ahead. Our successes include a key Sprint relationship that provides a national sales channel as a ready-to-implement enterprise and commercial solution, as well as further opportunities for IGEN within the Sprint organization. We are furthering our business in the dealer pre-load model, which is a proven opportunity for new car dealers to significantly increase profitability. We are also now positioned for significant sales opportunities in the used vehicle marketplace.
"We recently rolled out as part of the Sprint IoT Factory, which provides an exciting opportunity to expand our reach through an exciting sales channel. This positions IGEN alongside some of the best IoT solutions in the market, and alongside a partner rapidly becoming known as a leader in corporate and enterprise mobility solutions. We expect adoption of our platform to accelerate throughout 2018 as our channels ramp up, expanding our revenue from recurring subscriber revenue."
Expenses for Q1 2018 totaled $609,686, of which $464,969 were operating expenses representing a 35% increase reported the same period in 2017. The increase in operating expenses reflected additional investment in sales and marketing and other categories to drive growth throughout 2018, including investments to support partnership sales such as the company's relationship with Sprint IoT Factory and other planned partnerships. Expenses included $120,000 of non-cash accretion of discounts on convertible debentures. The Company reported a net loss of $406,000 in the first quarter 2018.
About IGEN Networks Corporation:
IGEN Networks Corporation provides peace-of-mind to automotive consumers and their families through direct access to Internet-of-Things (IoT) cloud-based services that include Stolen Vehicle Protection, Real-time updates on asset health and Driver Behavior.
IGEN is a fully reporting company in both Canada and the United States. It is publicly traded on the OTCQB under the symbol IGEN, and listed on the CSE under the symbol IGN. For more information, please visit http://igen-networks.com, www.NimboTracking.com or www.Medalliongps.com.
This news release may contain forward-looking statements or forward looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities law. The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", "intend", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by IGEN in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that IGEN believes are appropriate in the circumstances, including but not limited to statements regarding investment liquidity, financing options and long term goals of the Company, general economic conditions, IGEN's expectations regarding its business, customer base, strategy and prospects, and IGEN's confidence in the cash flow generation of its business. Many factors could cause IGEN's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; IGEN's reliance on key personnel; IGEN's ability to maintain and enhance its brand; and difficulties in forecasting IGEN's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to IGEN that may cause actual results to differ are set forth in the under the heading "Risk Factors" in IGEN's periodic filings with the British Columbia Securities Commission and the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on IGEN's forward-looking statements. IGEN has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
IGEN Networks Corporation
Darrow Associates, Inc.
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