Phoenix, Arizona--(Newsfile Corp. - August 27, 2020) - The Stock Day Podcast welcomed Route1 Inc. (OTCQB: ROIUF) ("the Company"), an advanced North American provider of data-centric business empowerment solutions. President and CEO of Route1, Tony Busseri, joined Stock Day host Everett Jolly.
Jolly began the interview by commenting on a recent press release published by the Company announcing a purchase order for 4,000 MobiKEY application software subscriptions. "The client is a component of the Department of Defense (DOD). For confidentiality reasons, we don't disclose the particular group, but it is a new client," shared Busseri. He then explained that while COVID-19 has caused increased awareness and interest in the Company's products, the relationship with this particular client began before the pandemic.
"What does this mean for Route1 financially?" asked Jolly. "The contract on an annual basis is about $1.5 million US. It is a one-year subscription, but has three one-year extensions that go with it," said Busseri. "It's initially for 4,000 subscriptions, but they also have the ability to add in increments of 1,000 subscriptions," he continued.
Busseri then elaborated on Route1's monthly subscription revenues from MobiKEY, which have grown dramatically during the COVID-19 pandemic. "We've jumped a little more than 80%," shared Busseri.
"What I want to reiterate is that some of these initial deals take a little bit longer because you're putting the primary contract in place," said Busseri, before noting the impact this contract will have on the Company's future.
"How did your business other than the MobiKEY business, Route1's secure work-from-home technology, perform during Q2 2020 in a COVID world?" asked Jolly. Busseri explained that the COVID-19 pandemic introduced the Company to new challenges, including the delay of starting certain license plate recognition technology installations, as well as decreased revenues from rugged device sales due to factory and plant closures in Q2. "However, as we've documented very clearly, MobiKEY has done very well as a result of the requirements for employees to work from home," explained Busseri.
Jolly then noted the significant revenue potential of the Company's DOD contract paired with the results of their recent Q2 2020 report. "We've had pretty fantastic growth along all three metrics: revenue, GP, and EBITDA," said Busseri, before expressing his excitement for the Company's Q3 2020 report, which will reflect these qualities as well as revenue and EBITDA from their new contract.
To close the interview, Busseri shared that the Company intends to continue building their business model out by landing profitable contracts, taking advantage of strategic acquisitions, and continuing to add talented members to their team. "We're living in a world where our communities are quickly changing for a whole host of reasons that we've lived through in 2020," said Busseri. "We think Route1 and our data security capabilities make a lot of sense, and we're looking forward to being an active participant in building secure, smart communities," closed Busseri.
To hear Tony Busseri's entire interview, follow the link to the podcast here: https://audioboom.com/posts/7668678-route1-inc-discusses-the-significance-of-new-mobikey-contract-with-the-stock-day-podcast
Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.
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This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
© 2020 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1's intellectual property.
This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future oriented financial information. These statements are based on certain factors and assumptions, including, price and liquidity of the common shares, expected financial performance, expected subscribers and subscription-based revenue, business prospects, technological developments, and development activities and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future oriented financial information to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future oriented financial information as an assurance of future results.
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