RMG Networks (RMGN) Misses Q4 EPS by 11c

RMG Networks (NASDAQ: RMGN) reported Q4 EPS of ($0.13), $0.11 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $10.7 million versus the consensus estimate of $12.84 million.

• Total revenues of $10.7 million increased 12% sequentially
• Loss from continuing operations of $1.0 million; Adj. EBITDA(1) increased sequentially to $223 thousand
• Announced approx. $1 million in contracts with two Global Healthcare Providers
• Success with Supply Chain pilot, with customer contracting ($250 thousand sales order) for first phase of rollout with potential for many additional locations
• Generated over $100 thousand dollars in initial sales with our new channel partner Airbus DS Communications
• Closed initial sale of newly-launched RMG MAX, a customizable LED display solution for indoor and outdoor market applications
• Completed oversubscribed rights offering and related private placement, generating net proceeds of approximately $4.4 million

Business Outlook

"We remain optimistic about our growth prospects and believe we are well positioned to increase annual revenues year-over-year and achieve positive Adj. EBITDA on an annual basis in 2017," commented Mr. Michelson. "We are committed to investing in our products, advancing our technology roadmap, improving our business efficiency, generating ROI for our customers and achieving long-term growth and shareholder value. We have established a track record of continued, measurable progress and improvement in our financial results, and outside of expected lower revenue in the first quarter due to seasonality, we expect these trends to continue."

For earnings history and earnings-related data on RMG Networks (RMGN) click here.

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