Positioned for Record Fourth Quarter Revenue on New Dealer Wins, Expanded Activations
MURRIETA, CA / ACCESSWIRE / November 14, 2018 / 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 and record revenue for its third quarter ended September 30, 2018.
Third Quarter 2018 and Recent Highlights
- Achieved record revenue of $384,074, an increase of 20% from the prior year third quarter;
- Achieved record gross profit of $269,113, a 128% increase from the same period in 2017
- Increased gross margins to 73% from 37% from the same period in 2017
- Increased current assets to $266,409, a significant increase of 202% over the nine months
- Decreased net loss 48% quarter-over-quarter, to $135,634; smallest quartile loss reported to-date
- Net income or earnings (loss) per share for 3 months was $0.00 per share and for 9 months was $(0.01) per share
- Grew deferred revenue to $814,102, increasing revenue visibility as subscriber activations continue to grow;
- Expanded the subscriber base by 2111 asset activations;
- Announced a nationwide distribution and marketing agreement with Advantage Parts Solutions, which markets solutions to franchised automotive dealerships in the U.S., Canada and the UK;
- Continued to expand its relationship with Sprint, including the launch of CU Track, a white-label product customized for Sprint's credit union customer needs;
- Accelerated sales opportunities through an expanded sales force and geographic sales offices in Atlanta, Georgia and Dallas, Texas;
- Announced a new pre-load automotive dealership agreement with an initial $250,000 payment in the fourth quarter, the company's first East-coast based dealership relationship; and
- Launched the industry's first consumer driver scorecard and announced full integration with 9,000+ end users on Dealership Management Systems (DMS) as part of IGEN's next generation platform unveiled at SEMA 2018.
CEO Neil Chan stated, ''IGEN reported record third quarter revenue as activations continued to accelerate due to our expanded sales channels, new partnerships and growing direct sales team. In addition to record third quarter revenue and a significant reduction in net loss, we believe IGEN is now positioned for further revenue growth in the fourth quarter, driven by new activations, ramp up with additional partners and multiple new dealer pre-load sites that have been or will be announced.
''We are particularly excited as various components of our strategy are now coming together after a year of hard work by the IGEN team. This includes ramp up of our Sprint relationship, including the new white labelled CU Track platform customized for the specific needs of credit union automotive finance customers, our new relationship with Advantage Parts Solutions making our Nimbo GPS platform available in more than 9,000 dealerships across the country, and our expansion of dealer pre-load relationships, including our first east coast based dealership and multiple new dealerships in our sales pipeline, driven by increasing recognition of IGEN's significant profit contribution in new car sales.
''Finally, we have a healthy pipeline of recurring and new business revenue streams driving IGEN to new revenue records ahead. This includes our expectation for yet another revenue record in our fourth quarter as we continue to grow our business aggressively, including new dealership customers, new sales activity with our partners and recurring revenue from our growing subscriber base. While we are enthusiastic about our growth outlook, we continue to manage expenses carefully, leading to a reduction in net loss to just $135,634 in the third quarter. We look forward to continuing to grow our subscriber base and recurring revenue streams as we strive to achieve profitability and accelerate our growth curve ahead.''
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 and www.NimboTracking.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.
Darrow Associates, Inc.
IGEN Networks Corporation
SOURCE: IGEN Networks Corp.