After three years in the red, March Networks Corp. is back in the black. The Ottawa-based IP video surveillance company squeezed out net earnings in the first quarter of $108,000 on sales of $26.3 million thanks in part to more layoffs.
By comparison, in the quarter before it lost $27.5 million on revenue of $24 million.
“The first quarter of fiscal 2011 [which ended July 31] was very encouraging for the company as demand returned in the North American market after a tough fiscal 2010 to deliver revenue growth and a return to profitability”, CEO Peter Strom said in a news release. “Recently announced retail and banking deals are expected to help drive continued revenue growth and profitability in the second quarter of fiscal 2011.”
The company didn't outline how many staffers were let go, but did say it took a $909,000 charge in the quarter.
The bottom line was also helped by a 38 per cent increase in revenue from U.S. customers and a 24 per cent increase in revenues from international customers, largely in Latin America and Asia-Pacific.
Of the $26 million in Q1 revenue, $9 million came from the company's biggest customer, WalMart, for installations in new stores and upgrades. Strom told financial analysts that deal in part releated to customized software March developed that WalMart tested for at least six months before approval.
While Strom remains cautious on the overall global economy, he's confident profitability will continue in the second quarter.