Route1 (TSXV:ROI; OTCQB:ROIUF) has provided an update on its operations and business development activity. As quoted in the press release: Operations UpdateMobiKEY Business Development Update: Route1 experienced robust growth in the number of MobiKEY users in the third quarter of 2017 with the increase coming from both new and existing U.S. Department of Defense and … Continued
Route1 (TSXV:ROI; OTCQB:ROIUF) has provided an update on its operations and business development activity.
As quoted in the press release:
MobiKEY Business Development Update: Route1 experienced robust growth in the number of MobiKEY users in the third quarter of 2017 with the increase coming from both new and existing U.S. Department of Defense and Civilian accounts. MobiKEY paid, active users grew by 612. Average annualized revenue per subscriber for the quarter was CAD$393. Route1 also received the renewal for 1,000 MobiKEY users from U.S. Fish and Wildlife Service, a bureau in the U.S. Department of the Interior.
Recurring revenue and services
In CAD dollars
Closing number of MobiKEY subscribers 12,261 11,649 18,270 17,883 17,344 16,800 Revenue per MobiKEY subscriber $393 $391 $389 $388 $383 $383
During the third quarter, the Company received an Authority to Connect to the network of the U.S. Army and Route1 received its first order from that service branch of the Armed Forces. The U.S Army is the largest service branch of the Armed Forces and Route1 is proud to be a trusted technology provider to the Army.
In addition, the Company received an order for 2,000 MobiKEY Fusion3 devices during the quarter from the Joint Service Provider (JSP), which recently transitioned to become part of the Defense Information Systems Agency (DISA). A total of 1,000 MobiKEY Fusion3 devices were shipped during the quarter and the balance is expected to be shipped during the fourth quarter of 2017. This order reinforces JSP’s continued use of Route1’s MobiKEY technology.
Route1 continues to receive MobiKEY subscription growth from the U.S. Department of the Navy. In addition, in August 2017 the U.S. Marine Corps distributed a command-wide communication that informed personnel that the MobiKEY technology is a highly secure and extremely flexible remote access solution that is fully accredited and has been approved as a Marine Corps Certified Application by the USMC Authorizing Official. Route1 expects this communication will allow the Company to expand its paid, active user base within the Marine Corps.
From mid-September through the balance of 2017, Route1 has attended and will attend in excess of 10 conferences and technology days focusing on various U.S. Department of Defense accounts including the Navy, Army, Marine Corps and Air Force. In addition, the Company had the opportunity to present MobiKEY to a group of CIOs from several California-based health plans. This group represents a new opportunity to expand the MobiKEY technology usage into the civilian healthcare vertical. Route1 has had success in growing its MobiKEY subscriber base with the Navy’s Bureau of Medicine and Surgery.