VirtualArmor Reports Second Quarter 2016 Financial Results

-Q2 Revenue Increased 63% Period over Period-

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VANCOUVER, Aug. 16, 2016 /CNW/ - VirtualArmor International Inc. ("VirtualArmor" or the "Company") (CSE: VAI) today announced second quarter (Q2) financial results for the three-month period ended June 30, 2016. All figures are in USD unless otherwise stated.

"We are pleased to report a record 63% revenue growth period over period due to increased demand for our cybersecurity and advanced networking solutions," said Todd Kannegieter, CEO of VirtualArmor. "Our growth this past quarter came from both our hardware and services segments, but hardware led the way growing at 70% period over period, with managed services growing at 36%. We expect these initial hardware sales to translate into our high margin multi-year managed services agreements that will contribute to predictable and recurring cash flows in the years to come."

"Also, during the first 6 months we began our much anticipated expansion by doubling the size of our sales staff in an effort to scale our operations and gain traction in a market we believe to be very underserved," said Matthew Brennan, President of VirtualArmor. "For the duration of this year we anticipate strategically adding additional personnel to various pockets of the U.S. and Canada where we believe we will get the best return for our shareholders."

Second Quarter Financial Highlights

• Total revenue for Q2 2016 increased by 63% to $3,169,284, compared to $1,942,587 in Q2 2015. The increase in revenue was due to an increase in the number of customers served as well as the size of orders from new and existing customers. 
• Hardware and software sales revenue increased by 70% to $2,642,453 in the quarter ended June 30, 2016, compared to $1,556,825 in 2015.
• Managed and professional services revenue increased by 36% to $518,998 in the quarter ended June 30, 2016, compared to $382,560 in 2015.
• As at June 30, 2016, the Company's cash balance was $187,657 compared to $250,812 as at December 31, 2015.
• The Company recorded a net loss of $501,729 ($0.01 per share) for the quarter ended June 30, 2016 as compared to net income of $169,070 ($0.01 per share) for the quarter ended June 30, 2015.
• The Company recorded an adjusted income of $7,671 for the quarter ended June 30, 2016 as compared to an adjusted income of $171,074 for the quarter ended June 30, 2015. The table below details certain non-cash and other transactions that for the purposes of this discussion have been adjusted out of the reported (loss) income to produce an adjusted income that forms a better basis for comparing the period-over-period operating results of the Company.

Operational Highlights:

• During the quarter, the Company:
  • Announced the appointment of new sales professionals responsible for driving sales efforts in Seattle, WA, Portland, OR and the Bay Area, CA. 
  • Closed a $486,000 initial hardware sale to a leading American university.
  • Expanded its sales force to meet surging cybersecurity solution demands.
  • Closed a $330,000 hardware and software order from a leading American university hospital group.
  • Received a $450,000 three-year contract under its managed services platform from a leading specialty finance company.
• Subsequent to the quarter, the Company:
  • Announced the closing of a CAD$415,000 non-brokered private placement.
  • Announced new partnerships with leading security solutions providers.

About VirtualArmor
VirtualArmor is a cybersecurity company that delivers solutions to help enterprises build, monitor, maintain and secure their networks from cloud to core. As a managed security services provider, VirtualArmor's services run 24 hours per day, 7 days per week, 365 days per year through its primary security operations center ("SOC") located in Middlesbrough, U.K. and a secondary SOC located in Salt Lake City, Utah. Each member of VirtualArmor's team supports the three main facets of its business: managed services, professional services, and hardware sales, by handling the design, configuration and installation of advanced network and cloud architecture solutions. VirtualArmor uses best-in-breed partnerships to provide solutions for customers that are affordable, highly reliable, scalable, and backed by thorough knowledge of the related technologies, products, and platforms. VirtualArmor has secured partnerships with established technology businesses specializing in network appliances, software, and systems and provides its services to the mid- to large- enterprise and service provider markets. VirtualArmor customers include a 13-location data center provider, a Fortune 100 oil and gas company, multiple service providers with presences throughout the United States, and household name enterprise organizations located primarily in the western United States. Further information about the Company is available under its profile on the SEDAR website, www.sedar.com, on the CSE website, www.thecse.com, and on its website, http://www.virtualarmor.com/.

Forward-Looking Information:

This press release may include forward-looking information within the meaning of Canadian securities legislation. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmor.  Although VirtualArmor believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmor cannot provide any assurance that it will prove to be correct. These forward-looking statements are made as of the date of this press release and VirtualArmor disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Virtual Armor

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