IGEN Announces First Quarter Results

IEGN Networks Corporation (CSE:IGN;OTCQB:IGEN), a leading innovator of cloud-based and Internet of Things automotive solutions for the protection and management of mobile assets announced unaudited financial results for its first quarter ended March 31, 2018 including record revenue.

The company’s record first quarter revenue of $371,375 is a 15 percent increase compared to the same period in the prior year that they say demonstrated continued penetration in the dealer pre-loaded sales channel.

As quoted in the press release:

• 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.

Click here for the full text release.