Martello Technologies Group Inc (CVE:MTLO) (OTCMKTS:DRKOF) posted fiscal fourth quarter earnings Wednesday that revealed the Canadian technology company’s acquisitions have powered revenue growth.
For the fiscal quarter ended March 31, Kanata, Ontario-based Martello posted a 99% jump in revenue to $3.4 million, compared to the same quarter a year ago.
Martello also reported revenue of $10.4 million for the year ended March 31, 2019 helped immeasurably by the acquisition of Savision which Martello snapped up in November 2018.
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Martello broke out Savision’s revenue contribution saying it added nearly $1.9 million in revenue in the 2019 fiscal year.
Savision provides enterprise software for the visualization of IT system management data such as performance metrics.
Strong and steady revenue growth
Martello had a busy year, completing its second acquisition and integrating the two acquired companies, closing a $7.5 million private placement, and going public on the TSX Venture Exchange in Canada.
"Steady and strong revenue growth in the 2019 fiscal year, both organically and through acquisitions has created the foundation to accelerate Martello's business," said Martello CEO John Proctor. "Having invested significantly in people and systems, Martello is now well positioned to target and acquire accretive assets and drive responsible growth."
The loss from operations in the fiscal fourth quarter was $1.3 million compared to a loss of $613,395 in the same period a year ago. The company explained that Martello made “significant investments” in fiscal 2019 which increased the company's operating expenses.
The company said the investments in "people and systems" have established “a strong platform” for growth, both organically and “to target and acquire revenue extension assets in the future.”
In an earlier interview with Proactive Investors, Proctor said he plans to grow Martello both “organically and through acquisitions” with former Canopy Growth Corp (NYSE:CGC) (TSE:WEED) co-founder Bruce Linton having a continued involvement in Martello.
“Bruce has been a very solid co-chair for us, guiding us on acquisitions,” said Proctor.
According to Canadian media, Linton is unlikely to have a problem raising capital and making acquisitions given his large following in the investor community.
Martello develops solutions that optimize the performance of real-time services on cloud and enterprise networks with a specialization in unified communications systems.
Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive
