Toronto, November 13, 2017 – Route1 Inc. (OTCQB: ROIUF and TSXV: ROI) (the “Company” or “Route1”), a world-leader in secure data protection technologies and user authentication for government and enterprise, today announced its third quarter (Q3) financial results for the three and nine months ended September 30, 2017.
Revenue from the recurring revenue and services segment for the three months ended September 30, 2017 decreased $461,000 from the same period in 2016. The decrease is a result of a reduction in the number of paid, active MobiKEY application software users with U.S. Customs and Border Protection, an agency of the U.S. Department of Homeland Security.
Earnings before interest, taxes, depreciation amortization, patent litigation expense and stock-based compensation (Adjusted EBITDA) during the third quarter of 2017 amounted to $(46,000) compared to $447,000 in Q3 2016.
Route1 used cash from operating activities of $0.2 million during Q3 2017 compared with cash generated from operating activities of $0.5 million in Q3 2016. As at September 30, 2017, the Company had no bank debt and a cash balance of $1.4 million.
Route1’s cash position is at its highest level during the second quarter of the fiscal year as a direct result of the timing of certain annual enterprise user subscription renewal payments.
Route1 provided a Q3 2017 Operations Update through a news release issued on October 23, 2017 that provided highlights on operations and business development activities. The news release is archived on the Company’s website and can be found at www.route1.com/route1-provides-q3-2017-operations-update/.
Route1 Annual and Special Meeting
The Company’s annual and special meeting will be held at 9 am on November 27, 2017 at the offices of Fasken Martineau DuMoulin LLP – Suite 2400, 333 Bay Street, Toronto, Ontario. Management will be available after the meeting to answer questions from shareholders.
About Route1 Inc.
Route1 Inc. is a world-leader in secure data protection technologies and user authentication for government and enterprise. Route1 solutions enable the workforce to be more productive and more flexible without compromising system access, data-at-rest, or data-in-use. The Company’s suite of patented enterprise security solutions combines best-in-class authentication, data security and secure communications with streamlined administration tools, running on a proven, trusted infrastructure. From mobile access to business continuity to best-in-class full system encryption, Route1 offers the most effective, affordable methods to secure the digital fortress, while meeting or exceeding the highest standards for government and industry. Route1 has Full Authority to Operate from the U.S. Department of Defense, the U.S. Department of the Navy, the U.S. Department of the Interior, and other government agencies. The Company is also trusted by enterprise security teams in the banking, healthcare, legal and education sectors, among others. With offices in Washington, D.C., Boca Raton, FL and Toronto, Canada, Route1 serves public and private sector clients around the world. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.
For More Information Contact:
EVP and CFO, Route1 Inc.
+1 416 814-2619
This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements that are not current or historical factual statements that may constitute forward-looking statements. These statements are based on certain factors and assumptions, including, expected financial performance, business prospects, technological developments, and development activities and like matters. While Route1 Inc. considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this news release are from Company sources.
© 2017 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1’s intellectual property.