Route1 Provides Operations Update

About this update from Route1 Inc.

[{"type":"text","content":"Route1 Provides Operations UpdateTORONTO, CANADA / ACCESSWIRE / March 19, 2020 / Route1 Inc. (OTCQB:ROIUF)(TSXV:ROI) (the \"Company\" or \"Route1\"), an advanced North American provider of data-centric business empowerment solutions, today provided an update on its business operations.Q4 2020 Revenue and Gross ProfitIn 000s of CAD dollars Q4 2019 Q32019 Q22019 Q12019 Q42018 Q32018 Revenue Subscription and services 2,133 2,136 1,610 1,576 1,628 1,684 Devices and appliances 6,270 6,576 1,819 1,883 2,440 13,207 Other 1 2 1 3 6 4 Total revenue 8,403 8,714 3,430 3,462 4,074 14,895 Cost of revenue 5,653 5,953 1,672 1,700 2,216 12,311 Gross profit 2,750 2,761 1,758 1,762 1,858 2,584 Gross Margin 33% 32% 51% 51% 46% 17%The gross margin in Q3 and Q4 2019 is directly related to the composition of the revenue subsequent to the acquisition of PCS Mobile on June 28, 2019.The fourth quarter of the calendar year also realizes a rugged device sales slowdown directly related to seasonal holidays.Q4 2019 Sales MixIn Q4 2019, Route1 had revenue of approximately CAD $8.4 million and gross profit of CAD $2.75 million. Significant drivers of revenue were as follows:A fire department in the state of Tennessee purchased 150 Panasonic Toughbook rugged laptops.Solution outcome: Our client is a repeat customer that last purchased rugged laptops six years ago. The mobile data computers or MDCs are used in all of the client's fire apparatus and vehicles.Revenue: CAD $1.16 millionAn energy generation corporation in the southeastern U.S. purchased 200 Getac rugged tablets.Solution outcome: Our client's field crews are now able to receive work orders from dispatchers in real-time enabling the field crew to optimize assignments as conditions constantly change in their environment.Revenue: CAD $0.53 millionA U.S. Department of Defense client continued its use of MobiKEY.Solution outcome: Addressed the client's secure remote access.Revenue: CAD $0.46 millionThe U.S. Department of the Navy continued its use of MobiKEY.Solution outcome: Addressed the client's secure remote access.Revenue: CAD $0.35 millionA worldwide clothing and sports equipment manufacturer purchased over 100 Zebra handheld scanners running on Android, replacing their outdated devices running on a Windows CE based operating system.Solution Outcome: Enabling our client's warehouse workers to quick...

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