Q3 Results, @RMGNetworks
Gail Chiasson, North American Editor
Dallas, Texas-based RMG Networks Holding Corporation, provider of technology-driven visual communications solutions, last week announced its financial results for the third quarter ended September
Q3 Highlights included:
- Total revenues of $10.2 million increased 9% sequentially;
- Product revenues increased 10% sequentially;
- Cash operating expenses1 reduced 10% sequentially;
- Announced a multimillion dollar contract to provide transformational retail solution;
- Professional Services revenue increased 38% sequentially, reflecting increased realization rates;
- Experienced strong customer acceptance following the launch of largest software platform upgrade in over five years;
- Completed strategic divestiture of Airline Media Network business.
By combining best-in-class software, business applications, services and hardware, RMG Networks offers a single point of accountability for integrated data visualization and real-time performance management.
“In the third quarter, we saw solid progress in our strategy to reinvigorate growth and build towards achieving sustainable profitability,” said Robert Michelson, CEO. “During the quarter, our Enterprise revenues increased 9% sequentially, and for the first quarter since Q1 2014, revenues remained stable on a year-over-year basis. In addition to increasing revenue, we also further reduced our overall cost structure, positioning us closer to generating positive EBITDA.
“During the third quarter, we increased sales in the U.S., our largest market, on a year-over-year basis time in almost two years. Globally, we increased new sales orders per sales person by over 90% versus the same quarter last year. We also brought to market the largest enhancement to our software platform in over five years, are delivering on our goal of diversifying away from contact center solutions and won several large contracts from high profile clients. Our introduction of new, innovative solutions that help organizations increase productivity and reduce costs is driving much of this progress.
“This quarter marks the end of my first year with the company. It has been a productive year for RMG Networks, and I believe we are a much stronger company today than we were a year ago. Over the past several quarters, we have significantly enhanced our leadership team, strengthened our balance sheet, rationalized our cost structure and refined our focus with the strategic divestiture of our Airline Media Network business. Today, our sales and pipeline trends are encouraging, and we have a broader suite of solutions for an increasingly efficient and effective sales organization to sell. I believe that we can further reduce our cost structure and capitalize on growth opportunities in our pipeline. I also expect that the effect of our work will be evident in improving financial results going forward.”
“We continue to make tremendous operational progress in executing our financial turnaround strategy at RMG Networks. While we are not yet satisfied with our results, we believe the foundation we have laid and the progress we continue to make each quarter have put us on the right track toward delivering revenue growth and generating positive adjusted EBITDA over time, Although we expect we can achieve profitability by increasing revenue and reducing our operating costs, the exact timing remains difficult to predict. We are, however, confident that we are getting closer to our ultimate goal of reaching long-term sustainable profitability.”
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