March Quarter Results
Released
Released
Announcement PDF
ASX Market Announcements
ASX Limited
20 Bridge Street
Sydney NSW 2000
ASX Release
MGM Wireless Ltd
5 May 2015
March Quarter results.
Strong growth continues, new products released.
March quarter revenue up 30% on pcp
March YTD sales revenue up 35% on pcp
New product releases about to launch:
-
Pinpoint Apple Watch Family Locator app
-
MGM School Events and Bookings
Mobile technology specialist MGM Wireless (ASX:MWR) has reported strong growth
in third quarter sales revenue and two new products about to launch in a quarterly
update to the ASX today.
March Quarter Trading Results
$’000
Sales revenue
Mar Qtr
15
403.0
Mar Qtr
14
310.4
Cash balances
1,112.4
823.3
▲35%
School numbers
1,156
1,109
▲5%
Change
▲30%
YTD
Mar 15
2,609.0
YTD
Mar 14
1,931.9
change
▲35%
Sales revenue for the 3 months to 31 March was $403,002, 30% higher than the
2014 March quarter sales of $310,418. The March quarter results brings FY15 year
to date revenue to $2.61 million, 35% above the previous corresponding three
quarter total of $1.93 million.
MGM Wireless CEO Mark Fortunatow said that the result was consistent with the
seasonal trends of the school calendar and confirmed MGM Wireless was
maintaining solid ongoing growth momentum, driven by product innovation and
greater customer acceptance of MGM’s leading edge technology solutions. New
school customers continue to sign up, with a 5% increase to 1,156 at end March.
Mr Fortunatow said that the March quarter was typically the weakest sales quarter
for MGM Wireless due to the timing of the 5-week summer school holidays. End
quarter cash at bank amounted to $1.1m, a 35% increase on last year.
2
New Products about to launch
The MGM Pinpoint Family Locator app, which is to be launched within 1-2 weeks,
was timed to coincide with the release of the Apple Watch. The app is the first major
upgrade to MGM Pinpoint, and expands the company’s addressable market well
beyond schools to the broader family care market by providing a technology solution
for the safety and location of all family members.
“Advance interest in the MGM Pinpoint Family Locator app is very encouraging and
we are keenly looking forward to the launch date later this month when it will go on
sale in the Apple App Store in all major international markets,” Mr Fortunatow said.
The app will also be available in Android format and other ranges of smart watches.
MGM School Events and Bookings
The company is also pleased to announce the release of a major new product –
MGM School Events and Bookings.
This exciting new product allows schools to create, schedule and manage events –
including the all-important parent-teacher interviews – all tightly integrated with the
Outreach+ smartphone messaging capability. Schools, teachers and parents can
arrange and manage these important face-to-face meetings and manage other
events using smartphone technology.
“This is a great leap forward in parent-teacher communication and productivity,
dramatically enhancing the value of Outreach+,” Mr Fortunatow said.
“Using MGM Outreach+, schools inform parents by SMS (or email and even social
media formats) of the event. Parents can then immediately make a booking for the
event directly on their smartphone - all in one simple, integrated process.”
SMS messages to parents contain a personalised, secure link, which when clicked
by parents takes them securely and directly to the event pre-loaded with all their
relevant personal information such as classes, teachers and available seats.
In development for over 2.5 years, MGM School Events and Bookings has been very
well received after demonstrations to a limited number of schools. One large
customer has already purchased and implemented the system.
Last week, the Adelaide based School of Languages, a large education provider with
complex operations and over 20 campuses, went live with an SMS to parents. Over
200 bookings were made and automatically processed by the app within hours of the
message being sent. High satisfaction feedback was received from both school and
parents.
For schools, MGM School Events and Bookings is a solution that delivers cost
savings, large productivity improvements and better engagement within their
community. For MGM Wireless it introduces another product to our suite that
leverages off our existing messaging systems and increases revenues, message
traffic and yields per customer.
3
“Through developing and successfully launching products such as MGM School
Events and Bookings, Outreach Plus and Pinpoint, we have been able to capitalise
on the massive societal shift in adoption of smartphones with products that offer
savings to schools and provide convenience, mobility and peace of mind for users,”
Mr Fortunatow said.
“Each new product provides a solution to an identified need and offers MGM
Wireless the prospect of another revenue stream from existing customer and user
relationships. The financial benefits of this are apparent in our current year results.”
MGM Wireless, which has been listed on the Australian Securities Exchange for
almost 12 years, announced December half-year revenue up 36% to $2.20 million
and half year net profit after tax up 383% to $0.64 million.
Mr Fortunatow said the company will innovate and expand in the emerging Internet
of Things sector to further develop new opportunities that use smartphone
technology to enhance safety and security
FY15 Profit outlook
Results for the year to date have the company on track for a record full year revenue
and earnings outlook, the major share of which is expected to have been generated
in the first half.
About MGM Wireless Ltd and Messageyou, LLC
MGM Wireless is recognised in Australia and internationally as a pioneer of socially
responsible technology-enabled school communications with a proven track record in
designing, developing and successfully commercialising innovative world-class technology
products.
The company’s patented SMS school communication solutions empower schools to
communicate effectively with parents and caregivers using SMS text messaging to improve
student attendance, welfare and safety. Measurable benefits for schools include reduced
operating costs, increased productivity and improved parent and community engagement,
which ultimately improve student learning and social outcomes.
Schools in Australia and New Zealand use Messageyou software in their day-to-day
operations.
For further information contact:
MGM Wireless Ltd. - (ASX:MWR)
Mark Fortunatow, CEO
Mobile: 0421 328 984
Phone: 08 8104 9508
Email: mfortunatow@mgmwireless.com
Web: www.mgmwireless.com
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