Nerds On Site 1st Quarter Revenue Increases by 41.7%
GROWTH IN CYBERSECURITY AND US MARKETS DRIVES $2.9 MILLION RECORD Q1
TORONTO, Oct. 31, 2019 /CNW/ - Nerds On Site Inc. ("NERDS" or the "Company") (CSE: NERD) (FSE: 3NS.F) (QTCQB: NOSUF), a mobile IT solutions company servicing the SME marketplace, announces record Q1 2019 results as the Company's cybersecurity services and US expansion build momentum, increasing revenue by 41.7% over Q1 2018.
"The NERDS team have demonstrated tremendous commitment, implementing our strategy led by cybersecurity services and US expansion to deliver record first quarter revenues," said Mr. Charles Regan, CEO of NERDS. "Our momentum is building as we capitalize on the overall growth strategy, expanding our proven model to new markets and targeting the enormous cybersecurity market as a central feature of our IT solutions business model."
First Quarter Highlights:
- Revenue of $2.931 million for 3 months ended August 31, 2019 as compared to revenue of $2.068 million for 3 months ended August 31, 2018
- Total revenue increased by 41.7%, representing 39.1% increase in service revenue and 44.7% increase in product revenue.
- Gross profit of $732 thousand improved by $164 thousand versus the prior-year period
- Loss per share of $0.068 was essentially flat versus $0.062 for the prior year period despite increase in selling, general and administrative costs by 588 thousand resulting primarily from expansion into the US market.
- Zero out of accretion expense (last period: $123 thousand) and amortization on convertible debt financing costs (last period: $56 thousand) resulting from conversion of convertible debt to equity.
"As we have previously indicated, we have had some big wins in the cybersecurity space during the quarter. The cybersecurity market is a substantial growth area for NERDS, and it will continue to grow rapidly," noted Mr. Regan. "NERDS is uniquely positioned to support the most vulnerable targets of cybercrime, small and medium sized businesses that do not have the resources to weather downtime or be faced with ransom payments. Cybersecurity solutions can open doors for our NERDS team to deliver comprehensive IT solutions that not only protect our customers, but also delivers best practices leading to greater efficiency of everyday operations."
About Nerds On Site:
Nerds On Site, a company founded in 1995, specializes in providing cost effective, leading edge solutions to Small and Medium sized Enterprise (SME), serving as the complete SME IT solution specialists. Nerds On Site was established in London, Ontario with current annual revenues of approximately $10,000,000 with normalized net earnings of about $100,000.00. The company services over 12,000 clients per year with a superb 96.5% customer satisfaction rating. NOS's business model is based on Nerds sub-contracts in Canada and a Franchise model for USA expansion.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements - Certain information set forth in this material may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
SOURCE Nerds On Site Inc.
Mr. Charles Regan, CEO of Nerds On Site, Please visit www.investors.nerdsonsite.com, Call 1-877-778-2335, or email [email protected].
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