Route1 Reports 2018 First Quarter Financial Results

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Route1 Inc (TSXV:ROI), a leading technology solutions innovator dedicated to delivering secure data protection technologies and mobility solutions for government and enterprise sector announced its first quarter financial results for the period ending March 31, 2018. The company said that it used cash in operating activities of approximately $0.2 million during Q1 2018 as compared …

The company said that it used cash in operating activities of approximately $0.2 million during Q1 2018 as compared with cash generated from operating activities of $0.4 million in Q1 2017.

As quoted in the press release:

Statement of operations In 000s of CAD dollars	Q1 2018		Q4 2017		Q3 2017		Q2 2017		Q1 2017
Revenue
Subscription revenue and services	1,264		1,263		1,177		1,347		1,911
Devices and appliances	388		109		159		24		30
Other	32		48		2		–		–
Total revenue	1,684		1,420		1,338		1,371		1,941
Cost of revenue	585		331		362		298		335
Gross profit	1,100		1,089		976		1,073		1,606
Operating expenses	1,136		1,164		1,131		1,151		1,289
Operating (loss) profit¹	(36	)	(75	)	(155	)	(78	)	317
Total other expenses ²	(24	)	170		183		157		109
Comprehensive net (loss) gain	(60	)	(245	)	(338	)	(235	)	208

¹Before stock based compensation and patent litigation
² Includes stock based compensation, AirWatch litigation, gain on acquisition and foreign exchange


Subscription revenue and services by quarter in 000s of CAD dollars	Q1 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017
Application software	1,260	1,263	1,177	1,347	1,759
Appliance licensing or yearly maintenance	–	–	–	–	152
Technology as a service (TaaS)	–	–	–	–	–
Other services	4	–	–	–	–
Total	1,264	1,263	1,177	1,347	1,911

Adjusted EBITDA reconciliation in 000s of CAD dollars	Q1 2018		Q4 2017		Q3 2017		Q2 2017		Q1 2017
Gross Profit	1,100		1,089		976		1,073		1,606
Adjusted EBITDA ³	46		24		(46	)	16		406
Amortization	82		99		109		94		89
Operating (loss) profit	(36	)	(75	)	(155	)	(78	)	317

Net cash used in the day–to-day operations for the three months ended March 31, 2018 was $0.6 million compared to $1.2 million in Q1 2017, a decrease of $0.6 million. The decrease in net cash used was a result of an increase in deferred revenue for the three months ended March 31, 2018 and the working capital balances acquired with the acquisition of Group Mobile.

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