Martello NEWS

Quarterly revenues of $2.0 million represent 92% growth year-over-year, including organic growth of 21% from increased network performance management software revenues.


 Ottawa, Ontario (November 27, 2018) – Martello Technologies Group Inc., (“Martello” or the “Company”), a leading provider of network performance management solutions for real-time communications, today released financial results for the second quarter of its 2019 fiscal year, including the three and six months ended September 30, 2018.

Q2 Highlights

  • Reported three and six month revenues of $2.0 million and $3.9 million, representing a year-over-year increase of 92% and 86% respectively. This included organic growth of 21%, from increased network performance management software revenues.
  • Gross margin was stable at 93.6% for the three months ended September 30, 2018, compared to 93.4% for the corresponding quarter in the 2018 fiscal year.
  • Martello’s revenue base continued to diversify in this reporting period, with 67.9% of revenues from network performance management software, a decrease of 32% from the corresponding quarter in the 2018 fiscal year.
  • Adjusted EBITDA, which assesses operating performance before the impact of costs associated with acquisition activity and other non-cash costs, amounted to a loss of $343,298 for the three months ended September 30, 2018 compared to income of $17,114 for the corresponding quarter in the 2018 fiscal year.

“Martello is doing exactly what we said we’d do, and growth in this reporting period reflects the successful execution of the Company’s strategy, which includes organic growth and growth through acquisitions”, said John Proctor, President and CEO of Martello. “This is a testament to our team, the strength of our solutions, and our acquisition and integration capabilities. Growth in revenue year-over-year demonstrates the integration of Elfiq Networks after the December 2017 acquisition, in addition to increased sales of recurring, subscription-based product licenses”.

The Company is well positioned for future growth. Access to public capital markets following the completion of Martello’s reverse takeover (RTO) transaction in this reporting period will fuel new growth opportunities with future merger and acquisition activity. The announced acquisition of Dutch-based software company, Savision on November 1, 2018 is intended to accelerate recurring revenues and provide opportunities to grow Martello’s European sales.

Financial Information

Martello reported revenues of $2.0 million and $3.9 million for the three and six months ending September 30, 2018, representing a year over year increase of 92% and 86% respectively. The growth in revenue is due to organic growth of 21% from network performance management software through the Mitel channel, and revenue from the acquisition of Elfiq Inc. in December 2017.

Statement of operations – Highlights

(in CAD $000’s)


For the three and six-months ended


  3 months ended 6 months ended
    September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017


1,964 1,022 3,901 2,101

Loss from operations

(858) (65) (1,620) (295)

Adjusted EBITDA (1)

(343) 17 (592) (72)

Net loss and comprehensive net loss

(2,150) (141) (3,324) (451)

(1)Adjusted EBITDA is a non-GAAP measure defined by management as the Income/(Loss) from operations, as reported, before interest, tax, and adjusted for removing share-based compensation expense, depreciation, amortization and further adjusted to remove acquisition-related costs. Please refer to the September 30, 2018 Management’s Discussion & Analysis under “Adjusted EBITDA (Non-GAAP Measure) for further discussion on this area and a reconciliation of Loss from operations to Adjusted EBITDA.

Balance Sheet – Highlights

(in CAD$000’s)

As at

September 30, 2018

March 31,2018

Cash and Cash Equivalents



Working Capital



Martello had approximately $9.3 million in working capital as of September 30, 2018 available to fund acquisitions and organic growth, after closing a $7.5 million private placement in June 2018.


Martello realized growth in organic sales for its network performance management software and for the SD-WAN business of Elfiq Networks, which Martello acquired in December 2017.

Sales represent the sale of network performance management solutions for real-time communications and the sale of hardware and software link balancing and bandwidth management solutions, and maintenance and support services for these solutions.   Martello’s sales are principally indirect, via distributors and value-added resellers.  The Company’s network performance management software is included in Mitel Networks’ Premium Software Assurance plan and Martello earns a fee for each subscriber of the plan.

For the three months ended September 30, 2018 and 2017, the Company earned revenue of $1,964,795 and $1,022,215 respectively.  For the six months ended September 30, 2018 and 2017, the Company earned revenue of $3,901,949 and $2,101,686 respectively.  The year-over-year increases of $942,580 and $1,800,263 for the three and six-months ended September 30, 2018 are driven primarily by the following:

  • Growth in the number of users for Mitel’s premium software assurance program as more customers are requesting to use this platform. Growth year over year on revenue from network performance management is 21% for the six months ended September 30, 2018.
  • The acquisition of Elfiq. Elfiq contributed $639,064 and $1,257,006 in sales in the three and six-months ended September 30, 2018, whereas there was no Elfiq revenue in Q2 FY18.


Expenses – Snapshot

(in CAD$000’s)


3 months ended September 30

6 months ended September 30



2017 2018


Research and development


526 1,659


Sales and marketing


109 1,087


General and administrative


336 1,893


Depreciation of equipment and leasehold improvements


11 41


Amortization of intangible assets



Acquisition-related costs


38 379




1,020 5,270


Delivering on the Company’s aggressive build and buy strategy, Martello incurred expenses during this reporting period related to acquisitions and the reverse takeover transaction. In addition, the Company had non-cash expenses such as share-based compensation.

For the three months ended September 30, 2018 and 2017, operating expenses totaled $2,697,176 and $1,019,625 respectively, an increase of $1,677,551.   For the six months ended September 30, 2018 and 2017, operating expenses totaled $5,270,530 and $2,276,025 respectively.Delivering on the Company’s aggressive build and buy strategy, Martello incurred expenses during this reporting period related to acquisitions and the reverse takeover transaction. In addition, the Company had non-cash expenses such as share-based compensation.

The expenses for the quarter and six months ended September 30, 2018 include $799,082 and $1,632,621 in Elfiq expenses, respectively.  Elfiq was acquired in December 2017, so no related expenses were included in the three and six months ended September 30, 2017. Excluding the impact of Elfiq, increases total $936,469 and $1,419,884 for the three and six months ended Sept 30, 2018 respectively.

Acquisition related costs increased year over year by $104,668 for the three months ended September 30, and $248,543 for the six months ended September 30.  Costs in the current year in both Q1 and Q2 relate to the integration of Elfiq and the acquisition of Savision and prior year costs related to advisory, due diligence and legal costs for the acquisition of Elfiq.

Adjusted EBITDA Summary (Non-GAAP measure)

Adjusted EBITDA for the three months ended September 30, 2018 amounted to a loss of $343,298 compared to income of $17,114 for the same quarter last year.

For the six months ended September 30, 2018, Adjusted EBITDA amounted to a loss of $592,330 compared to a loss of $72,054 in the same period last year.

Adjusted EBITDA is reconciled and explained in the Management’s Discussion & Analysis under “Adjusted EBITDA (Non-GAAP Measure)”.  Management believes Adjusted EBITDA is a useful financial metric to assess its operating performance before the impact of costs associated with acquisition activity and other non-cash costs, and therefore provides a more useful tool for comparison between reporting periods.

 Subsequent Activities

  • On November 1, 2018, the Company completed the acquisition of Savision B.V., which will enhance its already strong customer base and network performance management capabilities, while expanding its sales presence in Europe.
  • In conjunction with the acquisition of Savision, the Company closed a financing with Royal Bank of Canada (RBC), including a $3 million term loan.

The financial statements and notes are available under the Company’s profile on SEDAR at, and on Martello’s website at The financial statements include the wholly-owned subsidiaries of Martello, excluding Savision, which was acquired on November 1, 2018. All amounts are reported in Canadian dollars.

About Martello Technologies Group

Martello Technologies Group Inc. (TSXV: MTLO) delivers confidence in network performance. Our solutions manage and optimize the performance of real-time services on cloud and enterprise networks and include network and IT performance management software as well as SD-WAN technology. Over the top (OTT) service providers and enterprises around the world rely on Martello’s technology to deliver better service quality and a reliable user experience. Designed for real-time communications such as voice and video, Martello’s solutions detect, identify and address network performance problems BEFORE service quality is impacted. Martello Technologies Group is a public company headquartered in Ottawa, Canada with offices in Montreal, Amsterdam, Paris, Dallas and New York. Learn more at

This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the “1933 Act”) as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Statements

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assume 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 applicable securities law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.

Meagan Simpson

November 23rd, 2018

Annoyingly bad hotel WiFi connections are something every business person can relate to, and since Ottawa’s Martello Technologies Group Inc. can make hotel networks less painful it’s no wonder the company is raking in the awards and investments.

Martello provides cloud and enterprise network performance management products that help IT professionals ensure networks are performing properly.

From unified communications management software as a service (SaaS) to SD-WAN technology, and IT systems visualization software, its products help detect, identify, and address network performance issues.

A whirlwind year

It’s been a whirlwind year for Martello, rife with acquisitions, investments and global expansion. In the past 11 months, Martello has seen a new CEO, gone public, and made acquisitions that furthered its reach in Europe.

John Proctor, Martello’s CEO through all these changes, spoke with ITWC about what this year has been like for the tech company and its plans for the future.

“We have a solid business, and a solid market already. Now the case is to use that solid foundation as a stepping stone to grow,” Proctor says. He attributes part of the company’s successful year to its investors understanding the importance of Martello’s technology.

“We’re not a fad, we’re not something that may or may not be here in five or even 10 years… the requirement to make applications and network perform better, that’s not something that’s going to go away anytime soon. In fact, making it more efficient and effective becomes more important as the bandwidth demand goes up,” he tells ITWC.

Headquartered in Kanata outside of Ottawa, Martello also has offices in the U.S., Paris and Amsterdam thanks to a number of partnerships and acquisitions.

Its latest acquisition saw it acquiring Netherlands-based Savision B.V. which provides enterprise software that tracks performance metrics, and outage information for IT data management systems.

Savision’s complete acquisition was announced earlier this month, but that was just one announcement in Martello’s eventful year.

“We want to become a staple of the internet” – Proctor

Proctor joined the company as its new CEO in December, and in the 11 months he’s been at the helm has helped implement a “buy and build” strategy as he calls it.

His first task as leader, helping to integrate Montreal-based SD-WAN network performance company Elfiq after a merger was announced between the two companies, making Elfiq a Martello subsidiary.

Next up the company decided to do a round of private funding, which saw Martello reaching out to a number of institutional and individual investors and ended up being oversubscribed, says Proctor.

Then in April, the Kanata company made another move, announcing a reverse takeover of Newcastle Energy Corp. From there, Martello went straight into launching its public listing on the TSX Venture Exchange, making it the first technology company in Ottawa to go public in three years.

Then in September, Martello received $2 million in funding from the National Research Council of Canada’s Industrial Research Assistance Program, which supports small and medium-size enterprises commercializing new technology.

Proctor says this was all part of the company’s long-term plan of creating liquidity, continuing to buy and build and raising the profile of the company.

Despite investor interest and the moves Martello has made this year Proctor says it still has some way to go in making people more aware of Martello and what it’s technology does. He explained that at a recent meeting with the federal government they were very honest with him and stated, “the reason nobody from the federal government is buying anything from Martello, we don’t know who you are.”

“[We need to] raise the profile of Canadian technology companies such that you can go and have a seat at the table and present your capabilities. Because if nobody knows who you are, you won’t even get noticed when they’re looking to find solutions,” Proctor explains about the importance of continuing to raise Martello’s profile in Canada and globally.

Making hotel WiFi better

But Martello is getting recognized, being named Ottawa Fastest Growing Company on the Growth 500 list and receiving numerous awards this year from the Ottawa businesses community.

Martello also has a number of large organizations around the world using its network performance technology.

Mandarin Oriental Hotel Group, for example, uses Martello’s Elfiq Link Balancing to help with bandwidth problems. According to a case study report from Martello, the link balancing helped Mandarin not only solve the bandwidth challenges, but it also helped “protect hotels against both planned and unplanned outages alike.”

Proctor also noted that Marriott Hotels has been a customer for close to four years to ensure the quality of its WiFi networks. “If you stay at a Marriott, we make the experience better. It’s really is as simple as that,” Proctor claims, “if you’re the general manager of a hotel, what you care about is how many heads you put on beds. One of the biggest complaints most people have staying in a hotel is network. [People] care less about pillows and lighting then [they] do about connecting to WiFi.

Martello also names among its customers, academic institutions like Carleton University, as well as organizations like Fujitsu and the United Nations, which is quoted on Martello’s website as saying, “Martello is a quite useful tool. We have more than 13 call MX-ONE systems monitored, and it is key to our proactive maintenance model. It also gives us a way to provide key performance indicator (KPI) reports on the entire system to our management.”

From Kanata to Europe

Martello was founded in 2009 when Niall Gallagher and Emilio DiLorenzo, Martello’s chief technology officers and vice presidents, were introduced by Terry Matthews, founder and chairman of Wesley Clover. Martello is backed by global investment management firm Wesley Clover.

Since then it has grown, with reach in more than 150 countries and deploying its software on more than 5,000 networks. Previous acquisition of a software development company in France and a partnership with Mitel Networks Corp. has helped globalize the company, expanding its reach to Europe. The recent acquisition of Savision helps broaden that reach even further.

No sign of stopping

Proctor tells ITWC that Martello isn’t done with its buy and build strategy just yet.

“You’ll certainly see more conversations happening there and some news around this strategy as we go down that path,” he says.

Martello also plans to use its growing sales and marketing team to hash out more deals with customers and partnerships with other technology firms.  The overall goal, says Proctor is to raise the company’s profile and help Martello become “a staple of the internet.”

November 22, 2018

Ottawa Business Journal

Ten deserving Ottawa companies, across sectors from high tech to retail, will be recognized this December as outstanding workplaces and employers.

Next month the Ottawa Board of Trade and OBJ, in partnership with Meldrum Home & Associates, will present the 2018 Employees’ Choice Awards to ten local firms voted by their own staff as the best places to work in the National Capital Region this year.

The annual awards are open to for-profit companies, non-profits and government entities in the National Capital Region with 15 or more full- or part-time employees that have been in business for more than a year.

The following companies will be honoured on Dec. 6 at the Marshes Golf Club in Kanata for their dedication to making Ottawa-Gatineau a fantastic place to work. Tickets are available now to attend the evening of celebration.

2018 Employees’ Choice Awards winners:

  • Rewind

  • Keynote Group

  • Martello Technologies


  • Crank Software Inc.

  • The Fireplace Center & Patio Shop

  • Fusebill

  • InGenius Software

  • Dilfo Mechanical

  • Decisive Technologies