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With integration completed, the Company expects to increase its Microsoft end user footprint by 60% during fiscal 2022.
As workers are increasingly untethered from the office,
Martello Business Lines
- DEM for Microsoft 365 cloud-based productivity suite - By teaming the Gizmo solution from GSX with the iQ service analytics software from the 2018
Savision BV acquisition,Martello aims to offer the most comprehensive DEM solution available for Microsoft 365. These solutions represented approximately 58% of total revenue in Q2 FY21 on a combined basis. As disclosed in anOctober 20, 2020 press release,Martello recently reached 2 million Microsoft users on its software, and forecasts that number to grow by 60% in FY22. - Performance analytics for Mitel unified communications - Called Mitel Performance Analytics (MPA), this solution generates 96% gross margins, over 90% recurring revenue, and represented 42% of total revenue in Q2 FY21.This early DEM solution, delivered to thousands of
Mitel Networks Corporation ("Mitel") customer networks globally has givenMartello knowledge of and insight into managing the performance and user experience of real-time cloud services. This offers the Company an advantage as it pursues DEM market leadership.Martello continues to enjoy a strong relationship with Mitel and expects moderate growth in this business line. - Legacy products with declining revenue streams. Both
Savision BV and GSX were acquired with certain products which support legacy third-party technology. As a result,Martello is seeing declines in these revenue streams, with some customers migrating toMartello's newer software platforms on renewal. In the short-term,Martello's overall growth rates will be partially offset by a decline in the revenue related to these legacy products. There are minimal expenses related to this revenue.
Growth Plan
With the integration of GSX complete,
- Meeting the demands of the 'work from anywhere' digital workforce –
Martello is improving the scalability and depth of its DEM solution, driven by the upcoming integration of Gizmo with iQ. Real user monitoring and end-to-end network visualization capabilities will provide insight into actual user activities and quickly pinpoint whether problems are related to the cloud provider, ISP, or the user's network, for better IT support of remote workers. In addition, by improving the scalability of the iQ and Gizmo products,Martello can more efficiently onboard very large enterprises. - Onboarding new Managed Service Providers (MSPs) – The integration of GSX and upcoming completion of product enhancements unlocks multi-tenant SaaS (software as a service) capacity, a key capability to capture a leading market position within the Microsoft 365 channel. The MSP channel will allow
Martello to cost-efficiently expand its reach into the mid-tier enterprise and SME (small-medium enterprise) market.Martello has been working with one of the world's largest Microsoft MSPs, onboarding their customers successfully and creating a strong and repeatable process for additional MSP onboarding. - Deepening
Martello's entrenchment in the Microsoft channel – Via the Microsoft Co-Sell program, the Company's gold partnership and other initiatives with Microsoft,Martello will further extend its reach across Microsoft globally. This provides greater access to Microsoft's enterprise, corporate and small and medium accounts, to growMartello's partner and customer base and increase users on the Company's platform.
"As more CIO's procure services like Microsoft 365 from third party cloud services vendors, monitoring employee user experience has become increasingly complex and expensive", said
Any financial outlook provided in this news release is preliminary and investors are cautioned not to place undue reliance on the foregoing information. Any financial outlooks provided in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities laws, are based on several assumptions and are subject to a number of risks and uncertainties. Actual results may differ materially. See "Cautionary Note Regarding Forward-Looking Information".
About
This press release does not constitute an offer of the securities of the Company for sale in
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 Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information can be identified by words such as:"anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking information contained in this news release include, among others, statements with respect to accelerating user growth by providing performance and user experience monitoring; the expectation to increase the number of Microsoft end users by 60% during fiscal 2022; the anticipated expenditures related to legacy product revenue streams; the Company being well-positioned to accelerate DEM user growth in fiscal 2022; the upcoming completion of product enhancements; the ability of the MSP channel to allow the Company to cost-efficiently expand; the expansion of the Company's reach across Microsoft globally, including access to partner and inside sales contacts as well as enterprise customers to grow the Company's partner and customer base and increase users; new MSP and strategic partnerships and product launches; and the timing for the release of the Company's third quarter financial results for fiscal year 2021.
Forward-looking information is neither historical fact nor assurance 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 information relates 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 information. Therefore, you should not rely on any forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:
- continued volatility in the capital or credit markets;
- our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so;
- changes in customer demand;
- 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;
- delayed purchase timelines and disruptions to customer budgets, as well as
Martello's ability to maintain business continuity as a result of COVID-19; - and other risks disclosed in the Company's filings with Canadian Securities Regulators, including the Company's annual information form for the year ended
March 31, 2020 datedDecember 24, 2020 , which is available on the Company's profile on SEDAR at www.sedar.com.
Any forward-looking information 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 information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Financial Outlooks and Future-Oriented Financial Information
To the extent any forward looking information in this press release constitute "financial outlooks" within the meaning of applicable Canadian securities legislation, such information is being provided as certain estimated financial metrics and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Financial outlooks, as with forward looking information generally, are, without limitation, based on the assumptions and subject to various risks and uncertainties as set out herein. The Company believes there is a reasonable basis for the expectations reflected in the financial outlooks, however these expectations may not prove to be correct and the Company's actual financial position and results of operations may differ materially from management's current expectations and the information provided in this press release.
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