Martello Technologies Group, Inc. (CVE:MTLO) stock has tumbled over 39% on the CSE since its reverse takeover transaction (RTO) on September 12, 2018. The stock fallen from $0.44 to $0.27.
Martello Technologies Group Inc. delivered impressive financial results for Q3 FY2019 helped by customer growth across all business lines. Expansion into high growth markets as well as the successful integration of acquisitions helped the company post a 44% increase in sales.
Q3 Financial Results
Revenue in the quarter totaled $3.1 million, representing a 136% year over year increase and 57% improvement from second quarter levels. Revenue for the first nine months of FY2019 totaled $7 million, representing a 105% increase.
Gross margin for the first nine months of the year totaled 93.7%, a 1% drop from 94.7% for the corresponding period last year. Amidst the robust revenue growth and solid gross margin, Martello plunged into a net operating loss of -$1.3 million compared to a net loss of -$18,961 as of the third quarter last year.
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Chief Executive Officer, John Proctor, has quashed concerns about the wider than expected net loss reiterating that investments made throughout the year have positioned the company for robust growth going forward.
During the year, the company achieved significant milestones expected to expand the addressable market, ideal for supporting revenue growth going forward. For instance, the company inked a strategic partnership with Paessler expected to make the company’s products available in the German market. Close ties with Mitel also continues to blossom depicted by the launch of Mitel Performance Analytics developed by Martello
An aggressive expansion drive has resulted in the deployment of Martello’s IT solutions in over 150 countries, creating a reliable stream of revenues. In addition, the company has diversified its revenue base on accruing a customer base made up of more than 5,000 customers.
The Company’s IT solutions and infrastructure continues to elicit strong demand from national as well as central bank institutions and hotels. Martello also continues to see an uptick in orders from large organizations such as the United Nations, KPMG, and United Postal Office.
Martello is also increasingly developing products to cater to the ongoing migration into the Cloud. The Company’s long-term vision is to become a leading provider of solutions for managing the performance of services in public, private, and hybrid cloud environments.