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Ottawa, Ontario (October 22, 2019) – Martello Technologies Group Inc. (TSXV:MTLO) (“Martello” or the “Company”), a leading provider of technology solutions that deliver clarity and control of complex IT environments deployed in thousands of locations around the world, is pleased to invite investors, analysts and brokers to its first Investor Day hosted by Co-Chairmen Sir Terry Matthews and Bruce Linton on Wednesday, December 4th. As the Company prepares to provide insight into its business and growth strategy at the Investor Day, it also offers an interim update on business activities.
Investor Day and Capital Markets
Martello Co-Chairmen Sir Terry Matthews and Bruce Linton will host an Investor Day on Wednesday, December 4th in Toronto. The Investor Day is an opportunity to connect with Martello’s broader senior leadership team, and learn more about the Company’s product roadmap, growth strategy and financial performance. Investors can ask questions of the Martello senior leadership team during a Q & A session.
Martello’s Q2 fiscal 2020 financial results will be released on November 20, 2019.
On September 27, 2019, Martello announced the closing of a $4.6 million overnight marketed public offering of 15,333,332 common shares of the Company (the “Common Shares”) at a price of $0.30 per Common Share. The Company intends to use the net proceeds of the Offering to identify and fund acquisitions, accelerate R&D activities, increase sales capacity and for general corporate purposes.
Martello continues to execute on its ‘build and buy’ growth strategy, with the objective of incrementally growing revenues both organically and through acquisitions. The Company’s technology stack continues to expand through acquisitions, and with 81% of revenues recurring in the last twelve months, gross margins over 90% and thousands of customers around the world using Martello’s products, the Company believes it has a strong foundation from which to drive business in new and existing sales channels.
Martello’s organic growth plan includes strategies that will accelerate growth of existing product lines, as well as the development of new solutions. Our new solutions will leverage our current technology stack to optimize performance management for real-time enterprise applications such as unified communications. At the same time, Martello continues to pursue acquisitions, and is in early stage talks with a short list of targets whose technology, channel and expertise have been identified by management as potentially accretive to the Company’s mission to clarify and control complex IT environments. There is no guarantee that an acquisition will occur in the near future.
Martello is focused on increasing the proportion of its revenue that is recurring across all lines of business and incrementally growing this revenue base. Together with the Company’s high gross margins, management believes that this provides greater stability, predictability and downside protection.
The growth of strategic partnerships is helping to drive Martello’s recurring revenue stream. The Company’s 10 year partnership with Mitel has yielded more than one million users on Martello’s software in Mitel’s global network operations center (NOC). This demonstrates the operational value of Martello’s software for managed service providers.
Martello announced in July that it has teamed with Paessler AG, a German headquartered company, to offer a solution that addresses the growing demand from large enterprises and managed service providers (MSPs) globally, to simplify IT service assurance.
Martello is focused on activities that will grow and develop its channel of service providers, value added resellers and MSPs. Early adopter 4Sight Communications in the UK recently noted it had achieved a 98% remote fix rate after standardizing on Martello’s UC performance analytics software.
In addition, global expansion continues to create diversity in the Company’s revenue stream, with Martello products now deployed in more than 175 countries around the world. Martello has expanded revenue in Europe by more than 300% (Q1 F2019 to Q1 F2020) and is focused on developing the Middle East market. Sales and marketing efforts in the Middle East this quarter include industry trade shows in hospitality and other markets, and a sales mission to meet partners and potential clients in the region.
Martello’s growing position as a Canadian technology leader has been recognized by the industry. In September, the Company placed No. 206 on the inaugural Globe and Mail Report on Business ranking of Canada’s Top Growing Companies, which ranks Canadian Companies on three-year revenue growth. Martello also earned a spot on the Growth 500 in September for the third consecutive year, taking the No. 46 rank on the list of the top 500 Canadian companies with five-year revenue growth of 1,692%. In June of 2019, Martello moved up 20 spots on the widely respected Branham300 listing of Canada’s top ICT (Information and Communications Technology) companies.
About Martello Technologies Group
Martello Technologies Group Inc. is a technology company that provides clarity and control of complex IT infrastructures. The Company develops products and solutions that monitor, manage and optimize the performance of real-time applications on networks, while giving IT teams and service providers control and visibility of their entire IT infrastructure. Martello’s products include SD-WAN technology, network performance management software, and IT analytics software. Martello is a public company headquartered in Ottawa, Canada with offices in Montreal, Amsterdam, Paris, Dallas and New York. Learn more at http://www.martellotech.com
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
This news release contains “forward-looking statements”. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “objective,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding strategy for customer retention, growth, product development, market position, financial results and reserves.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
- Economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets.
- The level of demand and financial performance of the unified communication and technology industry.
- Strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses
- Changes in customer demand.
- The extent to which we are successful in gaining new long-term relationships with customers or retaining existing ones and the level of service failures that could lead customers to use competitors’ services.
- Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment.
- Such other factors as discussed in our interim management’s discussion and analysis for the quarter ended June 30, 2019 and annual information form dated July 26, 2019.
Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Vice President of Marketing
613.271.5989 x 2112
President & CEO