Route1 Inc. · TSXV:ROI
Route1 — FY2016 Earnings Presentation
21 slides from Route1's earnings presentation, Apr 17, 2017
Slide 1: Fiscal Year 2016 Corporate Update
Fiscal Year 2016 Corporate Update April 17, 2017
Slide 2: Legal Notices
Legal Notices This presentation contains statements that are not current or historical factual statements that may constitute forward-looking statements. These statements are based on certain factors and assumptions, including, expected financial performance, business prospects, technological develo
Slide 3: Company Snapshot
Company Snapshot Route1 technologies enable a more productive and flexible workforce without compromising system access, data-at-rest or data-in-use. Overview Key Metrics as at March 31, 2017 Route1’s suite of patented enterprise security solutions combines Stock Price CAD $0.03 best-in-class authen
Slide 4: Annual Operating Performance
Annual Operating Performance FY 16 FY 15 FY 14 FY 13 In 000s of CAD Dollars A A A A Revenue 7,447 6,397 6,078 5,433 Services Revenue 7,080 6,218 5,470 4,948 Year Over Year Services Revenue Gr 13.9% 13.7% 10.5% 1.8% Gross Margin 5,973 5,233 4,932 4,296 Operating Income 742 718 535 (189) EBITDA 1,204
Slide 5: 2016 Year in Review
2016 Year in Review • Grew the MobiKEY user base – 10% user growth; 16,286 paid, active users to 17,883 • Received a purchase order from a component of the U.S. Department of Defense for 2,000 MobiKEY Fusion3 devices • Released two new technologies: – MobiENCRYPT: data-at-rest technology (full disk
Slide 6: Q4 Objectives
Q4 16 Objectives Released DerivID Phase I – Android OS support – iOS support to come in Q2 2017 Listed on the OTC exchange Grew the US DOI user base - US FWS paid, user base increased from 550 to 1,000 Started the renewal process for the JSP ATO for MobiKEY – ATO issued in February 2017 Ad
Slide 7: Tracking Recurring Revenue in CAD 000s
Tracking Recurring Revenue in CAD 000s 7
Slide 8: MobiKEY Paid, Active Users in CAD Dollars
MobiKEY Paid, Active Users in CAD Dollars Quarter Q4 Q3 Q2 Q1 Q4 Q3 Fiscal Year 2016 2015 Total Recurring Revenue (in thousands) $1,865 $1,808 $1,760 $1,648 $1,616 $1,572 MobiKEY Subscription Revenue (in $1,702 $1,639 $1,591 $1,496 $1,467 $1,424 thousands) Closing No. of MobiKEY Subscribers 17,883 1
Slide 9: Quarterly Operating Performance
Quarterly Operating Performance Q4 A Q3 A Q2 A Q1 A Q4 A Q3 A Q2 A Q1 A In 000s of CAD Dollars 2016 2016 2016 2016 2015 2015 2015 2015 Revenue 1,886 2,031 1,812 1,718 1,625 1,614 1,620 1,538 Services 1,865 1,808 1,760 1,648 1,616 1,572 1,569 1,461 Devices, Appliances and Other 21 223 52 70 9 42 51 7
Slide 10: Balance Sheet
Balance Sheet Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 In 000s of CAD Dollars 2016 A 2016 A 2016 A 2016 A 2015 A 2015 A 2015 A Cash 1,946 2,898 3,735 407 1,251 2,433 3,468 Total current assets 2,910 3,938 4,765 3,880 2,112 3,161 4,166 Total current liabilities 2,500 3,555 4,719 3,814 1,948 3
Slide 11: FY 2017
FY 2017
Slide 12: 2017 Plan
2017 Plan Initiative Outcome Driver • Payment/license • Infringement lawsuit against 1. IP Realization • Sale of the IP VMware/AirWatch • Strategic sales arrangement • Expect material growth in MobiKEY • DoD accounts 2. MobiKEY Organic Growth users • New account groups 3. Match Expense to Revenue •
Slide 13: Surfacing the Value Embedded in our IP
Surfacing the Value Embedded in our IP Specific Patent Infringement – the 216 Patent • Commenced analysis of possible infringement by AirWatch in Q2 2016 • AirWatch is a wholly-owned subsidiary of VMware, Inc. (NYSE: VMW) • Retained counsel in fall 2106 to provide legal analysis of infringement • An
Slide 14: U.S. Patent No. 7,814,216
U.S. Patent No. 7,814,216 • Route1’s U.S. Patent No. 7,814,216 (216 Patent), “System And Method For Accessing Host Computer Via Remote Computer”, was issued by the United States Patent and Trademark Office on October 12, 2010 and expires on March 3, 2025. – Route1 is the owner by assignment of the e
Slide 15: Surfacing the Value Embedded in our IP
Surfacing the Value Embedded in our IP • We have reached out to VMware and other parties that we believe have an interest in talking to us about our 216 Patent and more broadly, Route1’s intellectual property (patent portfolio) – The VMware complaint initiation is the first step in the process – We
Slide 16: 2017 Business Development Plan
2017 Business Development Plan The 2017 business development strategy can be summarized into three main components: 1. Protect major accounts to ensure well positioned for 2018 renewals and contract re- competes: – JSP – Navy - NGEN 2. Drive organic growth from existing accounts that are positioned
Slide 17: Market Take Aways
Market Take Aways 1. The market continues to act “bi- In President Trump’s Cybersecurity Executive Order we hope to see: polar”; expectation of data • Leadership held accountable for data breaches; not a security but enterprises / technology issue. government valuing functionality • The full impleme
Slide 18: MobiKEY Technology
MobiKEY Technology MobiKEY is a complete desktop, secure remote access technology that integrates multi- factor authentication and identity management in a mobile computing environment. Technology Differentiators: • CAC/PIV card-based multi-factor authentication in compliance with HSPD-12 mandate. •
Slide 19: How We Market
How We Market Target Markets • U.S. Government –DOD and Federal (civilian) focused. • Canadian Government on an opportunistic basis. – Attending a NATO conference at the end of April to expand our government focus beyond North America. • Certain segments of the enterprise vertical are responsive to
Slide 20: Pending MobiKEY Releases
Pending MobiKEY Releases Release Attributes Timing MobiKEY for Android 5.1 • Support for Android 5.x and 6.x Q2 2017 – Soft App and A2T • Knox support MobiKEY 5.2 • An updated version of the remote control mechanism using Q2 2017 a new version of our protocol (v2) • Multiple monitors on the Remote A
Slide 21: Fiscal Year 2016 Corporate Update
Fiscal Year 2016 Corporate Update April 17, 2017