VirtualArmor reports first quarter 2016 financial results

-Q1 Revenue Increased 53% Year over Year-

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VANCOUVER, May 30, 2016 /CNW/ - VirtualArmor International Inc. ("VirtualArmor" or the "Company") (CSE: VAI) today announced first quarter (Q1) financial results for the three month period ended March 31, 2016. All figures are in USD.

"We had a great Q1 that saw our top line revenue grow 53% year over year due to an increase in both our hardware/software sales and our managed services platform," said Todd Kannegieter, CEO of VirtualArmor. "In addition, due to the expanding number of companies looking to upgrade their security posture and the limited number of competitors currently providing a full service managed security services platform we began investing into our sales and marketing capacity over the quarter in an effort to capture a growing and untapped market throughout the U.S."

"For the duration of the year, our focus will be on aggressively expanding our sales force in key areas of the U.S. while continuing to grow and service our existing customer base and onboard leading edge cyber security platforms that would benefit our current and prospective customer base," continued Todd Kannegieter.

First Quarter Financial Highlights

• Total revenue for Q1 2016 increased by 53% to $1,677,492, compared to $1,090,603 in Q1 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 69% to $1,256,640 in the quarter ended March 31, 2016, compared to $743,353 in 2015.
• Managed and professional services revenue increased by 20% to $415,624 in the quarter ended March 31, 2016, compared to $345,510 in 2015.
• As at March 31, 2016, the Company's cash balance was $66,275 compared to $250,812 as at December 31, 2015.
• The Company recorded a net loss of $2,632,616 (0.05 per share) for the quarter ended March 31, 2016 as compared to a net loss of $27,162 (0.00 per share) for the quarter ended March 31, 2015.
• The Company recorded an adjusted loss of $273,956 for the quarter ended March 31, 2016 as compared to an adjusted loss of $22,304 for the quarter ended March 31, 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 to produce an adjusted loss that forms a better basis for comparing the year-over-year operating results of the Company.

Operational Highlights:

• During the quarter, the Company:
  
  
  • Closed approximately $2,400,000 USD in orders over a 90 day period beginning December 1^st, 2015.
  • Reduced shares outstanding with the voluntary escrow of free trading shares and canceled a previously announced private placement due to a favourable exercise of warrants.
  • Added three leading cybersecurity solutions to managed services platform.
    
    
• Subsequent to the quarter, the Company:
  
  
  • Received a USD $450,000 three year contract under its managed services platform from a leading specialty finance company.
  • Closed a USD $330,000 hardware and software order from a leading American university hospital group.

About VirtualArmor
VirtualArmor is a cyber security 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 VirtualArmor

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