Positioned to Accelerate Growth in 2018
Murrieta, CA , April 04, 2018 (GLOBE NEWSWIRE) -- IGEN Networks Corporation (OTCQB: IGEN, CSE: IGN), a leading innovator of cloud-based and Internet of Things (IoT) automotive solutions for the protection and management of mobile assets, today announced 2017 unaudited financial results, including record revenue, strong backlog and accelerating deferred revenue as its subscriber base grows.
Full Year 2017 and Recent Highlights:
- Ramped the subscriber base 175% year-over-year, to more than 35,000 assets at December 31;
- Reported record revenue of $1.3 million for the full year 2017, an increase of 18% compared with 2016;
- Expanded subscription activity and drove deferred revenue to a record $406,000 at December 31, 2017;
- Ended 2017 with more than $95,000 in backlog orders;
- Increased full-year gross profit 38% year-over-year to $544,000, or 40% of revenue, on improved mix and increased subscription services revenue, compared with 35% gross margin in 2016;
- Maintained close control over operating expenses, totaling $1.5 million for 2017, reflecting additional investment in sales and marketing;
- Reported net loss from continuing operations of $1,062,622, or ($0.03) per basic share, including $229,220 of non-cash stock-based compensation;
- Closed IGEN’s Canadian IBS, which accounted for $237,783 of cost in 2016;
- Appointed Mark Wells to the Board of Directors, bringing 25 years of wireless industry experience;
- Launched IGEN’s first direct-to-consumer platform, Medallion GPS, expanding the company’s total addressable market;
- Completed transition of IGEN’s IT architecture onto Amazon Web Services, the industry leading cloud infrastructure; and
- Announced successful certification for Sprint’s world-class IoT Platform, including activation of more than 6,500 assets on the Sprint network.
CEO Neil Chan stated, “IGEN closed 2017 on a record pace, including an 18% increase in revenue and a 175% increase in subscribers compared with 2016. This growing base of tracked assets more than doubled deferred revenue, to $406,000 at year end, along with an excess of $95,000 in backlog orders. We are now tracking to a record first quarter as our business continues to scale, both in terms of recurring subscriber revenue and new activation revenue.
“Building on this success, we expect continued growth in installations and our subscriber base throughout 2018, in particular from our growing partnership with leading mobile carriers and continued penetration of the new and aftermarket automotive verticals. This includes continued expansion of our industry leading new dealer pre-load model, as well as launch of our first used-car dealer pre-load program.
“We also announced that IGEN will be one of the first platforms within Sprint’s innovative IoT Factory platform, set to roll out in the second quarter, rapidly expanding our reach and sales channel. We have invested in scalability preparedness for our platforms, including transition to the best-in-class Amazon Web Services platform and qualification onto Sprint’s network for data communications, enabling IGEN to immediately onboard new assets at large scales. We expect to leverage these investments throughout 2018 as we accelerate adoption of our platform across multiple current and new channels and expand our base of recurring subscriber revenue. Additionally, we are pursuing multiple strategic initiatives to rapidly enhance our subscriber scale, total assets tracked, and total addressable market opportunities in the high-growth IoT consumer automotive industry. We look forward to reporting further growth ahead.”
IGEN has filed Form NT 10-K with the United States Securities and Exchange Commission and intends to file its complete results on Form 10-K on or about April 17, 2018.
About IGEN Networks Corporation:
IGEN Networks Corporation provides peace-of-mind to automotive consumers and their families through direct access to Internet-of-Things (IoT) cloud-based services that include Stolen Vehicle Protection, Real-time updates on asset health and Driver Behavior.
IGEN is a fully reporting company in both Canada and the United States. It is publicly traded on the OTCQB under the symbol IGEN, and listed on the CSE under the symbol IGN. For more information, please visit http://igen-networks.com and www.NimboTracking.com.
Forward-Looking Statements
This news release may contain forward-looking statements or forward looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities law. The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", “intend”, and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by IGEN in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that IGEN believes are appropriate in the circumstances, including but not limited to statements regarding investment liquidity, financing options and long term goals of the Company, general economic conditions, IGEN's expectations regarding its business, customer base, strategy and prospects, and IGEN's confidence in the cash flow generation of its business. Many factors could cause IGEN's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; IGEN's reliance on key personnel; IGEN's ability to maintain and enhance its brand; and difficulties in forecasting IGEN's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to IGEN that may cause actual results to differ are set forth in the under the heading "Risk Factors" in IGEN's periodic filings with the British Columbia Securities Commission and the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on IGEN's forward-looking statements. IGEN has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.