Ottawa-based Martello boosts revenues, trims losses in Q1
Martello Technologies (TSX-V:MTLO) saw a sizeable jump in its revenues this past quarter as the firm’s organic and inorganic strategies paid off.
On Wednesday the Ottawa-based communications technology firm reported revenues of $3.3 million for the three months ended June 30, an increase of 73 per cent year-over-year.
Those earnings include results from Savision, a Dutch firm Martello acquired in Octoberof last year that develops a troubleshooting dashboard for Microsoft applications. Without Savision, revenues were up 23 per cent.
Acquisitions aside, however, the company’s organic revenues were up as well. Martello credited an increase in business with fellow Kanata tech firm Mitel for fuelling revenue growth.
The company’s SD-WAN revenues saw a slight drop, however, as Martello said in a statement that the firm is undertaking a “strategic shift” to convert its business focused on optimizing real-time services into a recurring revenue stream.
Martello said the combination of its organic and inorganic growth strategies is paying off. Acquiring companies allows the firm to sell its in-house products down new sales channels – the Savision deal gave Martello a foothold in the European market, for example – and products and service lines added through these deals can be offered to customers through existing channels.
Meanwhile, Martello also cut its losses this past quarter. The company’s net loss stood at $890,000 for the period, compared with $1.2 million a year ago.
Martello shares surged as high as 59 cents on the TSX Venture Exchange earlier this summer, as the firm’s co-chairman Bruce Linton spotlighted the company during exit interviews from his role at cannabis firm Canopy Growth. While the stock has settled somewhat since, Martello’s share price stood at 44 cents before markets opened on Tuesday, nearly double where it began the year.