Route1 Reports 2018 Second Quarter Financial Results

Route 1 (TSXV:ROI), advanced provider of industrial grade data intelligence, user authentication and ultra secure mobile workforce stations announced its second quarter financial results for the three and six months ended June 30, 2018.

The company generated cash from operating activities of approximately $0.4 million during Q2 2018 as compared with $0.1 million cash used in Q2 2017.

As quoted in the press release:

Acquisition of Group Mobile Int’l, LLC

On March 22, 2018, Route1 completed the acquisition of 100% of the membership interest of Group Mobile Int’l, LLC (“Group Mobile”).  During the second quarter of 2018, the Company revised the net purchase gain on acquisition to reflect changes in the balance of certain accounts based on information that was not readily available at the time of the acquisition; these adjustments are now reflected in the balances as at March 22, 2018.  The net purchase gain on acquisition is now $3,667 versus $106,692 as presented in the Company’s Q1 2018 financial statements.  For additional information, see the “BUSINESS COMBINATION” section of Route1’s Q2 2018 Management Discussion and Analysis (“MD&A”).

Revenue
Subscription revenue and services	1,633		1,264		1,263		1,177		1,347
Devices and appliances	3,936		388		109		159		24
Other	7		32		48		2		–
Total revenue	5,577		1,684		1,420		1,338		1,371
Cost of revenue	3,620		585		331		362		298
Gross profit	1,957		1,100		1,089		976		1,073
Operating expenses	1,891		1,136		1,164		1,131		1,151
Operating profit (loss) 1	65		(36	)	(75	)	(155	)	(78	)
Total other expenses 2	(144	)	114		170		183		157
Net income gain (loss)	209		(150	)	(245	)	(338	)	(235	)

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