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Route1's Q1 2016 services revenues at $1.64-million

2016-04-19 11:12 ET - News Release

Mr. Tony Busseri reports


Route1 Inc. has provided an update on market drivers, its operations and business development activity.

MobiKEY paid, active subscribers

As at March 31, 2016, Route1 had 16,490 paying, active subscribers.

Services revenue              March 31,   Dec. 31,   Sept. 30,   June 30,   March 31,
(in 000s of dollars)              2016       2015        2015       2015        2015
Closing number of                                                           
subscribers                     16,490     16,286      15,989     15,410      15,012
Revenue per subscriber            $367       $361        $362       $353        $334
                                ------     ------      ------     ------      ------
Subscriber revenue              $1,496     $1,467      $1,424     $1,346      $1,252
Other services revenue            $152       $149        $148       $223        $209
                                ------     ------      ------     ------      ------                          
Total services revenue          $1,648     $1,616      $1,572     $1,569      $1,461
                                ======     ======      ======     ======      ======

Revenue from services includes MobiKEY application software, as well as the Defimnet platform and other appliance licensing or yearly maintenance. The net increase in MobiKEY application software users primarily came from agencies and components within the U.S. Department of Defense, the U.S. Navy, and the U.S. Department of the Interior.

For the above-noted 16,490 MobiKEY subscribers, Route1's average revenue per subscriber will increase in the second quarter of 2016 to $375 or better as a result of the improved exchange rate Route1 has realized since renewing certain U.S. government accounts in March and April, 2016.

"I continue to be pleased with the number and quality of business development opportunities we are involved in. We have seen a number of quality sales opportunities advance in the first quarter, and we expect to see increased growth from current and new accounts within the U.S. government over the next few months," said Brian Brunetti, president of Route1. "Our current and potential government customers continue to be operationally focused on cybersecurity sprints, as mandated by the Obama administration. These so-called sprints involve scanning, patching and hardening deployed systems within very short turnaround times, typically within 30 days. These sprints and other cybersecurity initiatives within the U.S. government create substantial opportunities for MobiKEY deployment as departments and agencies look to improve their security best practices."

Business and product development highlights

The company provided an update on April 5, 2016. The presentation can be found on Route1's website.

Coming business development events

Route1 will be attending the following vendor days, conferences, webinars and trade shows over the next 90 days:

  • AFCEA (Armed Forces Communications and Electronics Association) TechNet Fort Bragg -- April 19 to April 21, 2016, Crown Complex, Fayetteville, N.C.;
  • USPTO (U.S. Patent and Trademark Office) IT Security Awareness Day -- April 27, 2016, USPTO Carlyle campus conference centre (Madison building), Alexandria, Va.;
  • Cyber Risk Summit -- the NetDiligence forum on cyber risk and privacy liability -- April 29, 2016, Ritz-Carlton, Toronto, Canada;
  • 2016 FONOM/MMAH (Federation of Northern Ontario Municipalities/Ministry of Municipal Affairs and Housing) Northeastern Municipal Conference -- May 11 to May 13, 2016, McIntyre community centre, Timmins, Canada;
  • "Prevention is the Best Medicine" -- Mobile Data Security -- May 18, 2016, webinar;
  • Eielson Air Force Base -- Regional Technology and Cyber Security Day -- May 20, 2016, Yukon Club, Fairbanks, Alaska;
  • USDA (U.S. Department of Agriculture) Cyber Security Symposium and Expo 2016 -- May 24 to May 25, 2016, USDA headquarters, Jamie L. Whitten patio, Washington;
  • NIST/NOAA (National Institute of Standards and Technology/National Oceanic and Atmospheric Administration), Department of Commerce campus, Boulder -- June 8, 2016, Department of Commerce campus, Boulder, Colo.;
  • Denver Federal Center Technology Day -- June 9, 2016, Building 25 lecture hall, Lakewood, Colo.;
  • JBLM (Joint Base Lewis McChord)/AFCEA PNC Tech and Cyber Security Day -- June 16, 2016, Tacoma, Wash.

Further information on these events can be found on Route1's website.

Share repurchase program

On Sept. 22, 2015, the company announced, with approval from the TSX Venture Exchange, its intention to make a normal course issuer bid. The normal course issuer bid permits the company to purchase for cancellation up to 5 per cent of the common shares in the public float. The maximum number of shares allowed for repurchase is 18,262,570. Purchases under the normal course issuer bid commenced Sept. 27, 2015, and will end Sept. 26, 2016, or the date upon which the maximum number of common shares have been purchased by the company. As of April 15, 2016, the company had purchased a total of 4,495,000 common shares under the normal course issuer bid.

Since the first normal course issuer bid was announced on Feb. 28, 2012, Route1 has repurchased a total of 28,164,200 of its common shares, representing 7.2 per cent of Route1's common shares outstanding as at Feb. 28, 2012.

As at April 15, 2016, Route1 has 360,756,414 common shares outstanding.

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