Business
Route1 Reports 2007 Second Quarter Results
Route1 Reports 2007 Second Quarter Results.
About this update from Route1 Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 16 /CNW/ - Route1 Inc.(TM) (TSX-V:ROI), the trusted\nprovider of security and identity management network solutions, today\nannounced its 2007 Second Quarter financial results as at and for the three\nand six months ended June 30, 2007.\n\n\nRevenue for three months ended June 30, 2007 was $488,000, an increase of\n$334,000 or 217%, from $154,000 for the comparable period in the preceding\nyear and an increase of $80,000 or 20% for the previous quarter ended\nMarch 31, 2007. Included in revenues this quarter is higher percentage of\nhardware revenues that reflects the Company's recent unbundling in its pricing\nstrategy of hardware and services. Under this new strategy, resellers are now\nplacing stock orders for the hardware and carrying inventory whereas in the\npast they would wait until they had an order in hand before purchasing the\ncombined hardware and services. The subscription-based services revenue\nassociated with these hardware revenues will be recognized into revenue over\nthe next few months when these subscriptions become activated.\n\n\nGross loss for three months ended June 30, 2007 was $9,000, an\nimprovement of $255,000, from a $264,000 loss for the comparable period in the\npreceding year. The negative gross margin for the quarter is due primarily to\nthe higher percentage of hardware revenues to subscription-based services\nrevenues as discussed above and combined with volume discounts offered to\nresellers for placing stock orders in the quarter. The cost of revenue number\nincludes the variable/direct cost of hardware and software licenses, and also\nthe fixed/indirect costs of providing the MobiNET subscription services which\nincludes but is not limited to support personnel, system hardware amortization\nand facilities which are not directly variable and are not expected to\nincrease significantly in the short term as the number of subscribers\nincreases. The Company anticipates that the gross margin as a percentage of\nrevenue will increase as the Company builds its subscriber base.\n\n\nThe Company's losses for the quarter were $2.0 million ($0.01 per share),\nwhich is an improvement of $400,000, from a $2.4 million ($0.01 per share) for\ncomparable period in the preceding year. Operating expenses totalled\n$2.0 million for the quarter, which is an improvement of $200,000 or 6%, ...