Skip to main content

Route1 Announces Q1 2022 Financial Results

TORONTO, ON / ACCESSWIRE / May 25, 2022 / Route1 Inc. (OTCQB:ROIUF) and (TSXV:ROI) (the "Company" or "Route1"), an advanced North American provider of data-centric business empowerment solutions, today reported its financial results for the three-month period ended March 31, 2022.

The Company's operating results for Q1 2022 with comparatives are as follows:

Q12022 Q42021 Q32021 Q22021 Q12021 Q42020
Subscription and services
1,911 1,977 2,297 2,671 2,758 2,528
Devices and appliances
2,781 5,022 4,960 3,663 3,786 4,637
3 36 31 4 67 62
Total revenue
4,695 7,035 7,288 6,338 6,611 7,227
Cost of revenue
2,572 4,660 4,696 3,443 3,647 4,315
Gross profit
2,123 2,375 2,592 2,895 2,964 2,912
Operating expenses
2,012 2,382 2,437 2,451 2,542 2,469
Operating profit 1
111 (7) 155 444 422 443
Patent litigation 2
Total other expenses 3
Net income (loss)
1 (315) (61) 461 138 (936)

1 Before stock-based compensation

2 For FY 2020, the Company incurred expenses for patent litigation net of the reversal of an accounting liability reflecting the funds the Company received from its litigation funding agreement. The Company has concluded the litigation with VMWare in both Canada and the United States and will incur no additional expense for this litigation.

3 Includes gain on litigation, gain or loss on asset disposal, stock-based compensation expense, interest expense, income tax recovery, foreign exchange loss or gain, other expenses and acquisition expense.

Subscription and services revenue
in 000s of CAD dollars
Q12022 Q42021 Q32021 Q22021 Q12021 Q42020
Application software
1,483 1,504 1,628 1,724 1,977 2,015
Technology as a service (TaaS)
- 50 150 435 293 204
Other services
428 423 519 512 488 309
1,911 1,977 2,297 2,671 2,758 2,528
Other services revenue
in 000s of CAD dollars
Q12022 Q42021 Q32021 Q22021 Q12021 Q42020
Technology life-cycle maintenance and support
209 175 177 200 195 179
Professional services
219 248 342 312 293 130
428 423 519 512 488 309
Adjusted EBITDA
in 000s of CAD dollars
Q12022 Q42021 Q32021 Q22021 Q12021 Q42020
Adjusted EBITDA 4
446 341 465 760 764 768
335 348 310 316 342 325
Operating profit
111 (7) 155 444 422 443

4 Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, stock-based compensation, patent litigation, restructuring and other costs. Adjusted EBITDA does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA allows Route1 to compare its operating performance over time on a consistent basis.

Balance sheet extracts
In 000s of CAD dollars
Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
Dec 31
481 63 727 166 513 1,137
Total current assets
3,618 5,726 7,543 5,008 5,357 6,408
Total current liabilities
8,147 10,563 11,542 9,095 9,887 9,779
Net working capital
(4,529) (4,837) (3,999) (4,087) (4,530) (3,371)
Net working capital (adjusted for contract liability)
(2,337) (2,205) (228) (1,263) (853) 256
Total assets
12,574 15,097 16,833 13,739 14,386 14,176
Net bank debt and seller notes
2,297 2,926 2,194 1,673 1,215 655
Total shareholders' equity
2,774 2,728 2,982 2,906 2,443 2,141

As of May 25, 2022, there are a total of 2,925,000 options currently outstanding under the stock option plan.

"Our first quarter saw an advancement of the Company's transition into a new growth paradigm, while the macro business environment continued to be challenging. As a result, we were and continue to be short-term in focus with the underlying goal of driving new, recurring revenue derived from professional services and support contracts and to control our costs", said Tony Busseri, Route1's President and CEO. "We also expect our second quarter to show sequential improvement over the first quarter."

Route1's Growth Focus

Route1's growth focus is now tied to its core services and engineering competencies.

The Company is emphasizing its turn-key engineering services for clients using video and sensor capture technology to deliver real-time, secure actionable intelligence. We amplify our customers' return on investment by driving outcomes through the application of advanced technological solutions and by leveraging our expertise in video intelligence data. Our continued investment in data security and user authentication technologies including our flagship software application MobiKEY and service delivery platform DEFIMNET, separate us from our turn-key engineering services competitors as we bring a unique skill set as a service to our clients.

Route1 currently excels as an engineering and professional services provider for automated license plate recognition ("ALPR") clients and is seeing growth in the number of accounts, increased investment in the technology once deployed by an account, and strong demand for post-sales support from these accounts.

Technology Focus: Route1 currently is or intends to be active with its turn-key engineering and professional services to support clients investing in video and sensor capture technologies including ALPR, surveillance video, body worn cameras and drones. Further, Route1 intends to expand on its capability to support clients adopting access control technology. Genetec will continue to be an important technology partner for Route1.

Turn-key Services: Route1's turn-key engineering and professional services to support our clients are as follows:

  • Advisory and analysis including operations assessment
  • Design and engineering
  • Hardware and software procurement
  • Project management
  • Installation and configuration
  • End user and administrator training
  • Technology life-cycle maintenance and support
  • Operations optimization

Operations optimization is centered around data integration and intelligence. Areas of expertise are: (a) data transport, hosting and storage; (b) data presentation including cloud based software applications to deliver data captured in an actionable format; (c) data analytics including integration of multiple data sets; and (d) data and network security, and user authentication.

Our focus is on situations in which video and sensor intelligence, and related environmental data can augment an organization's capabilities - whether in the private or public sector. Building on our expertise in the video space, combined with our deep-rooted background in software development, system infrastructure operations and cybersecurity, Route1 has a significant competitive advantage and is in position to differentiate itself in the engineering and professional services arena.

The subscription-based revenue model for Route1's MobiKEY product was one of the first in the industry. Now, Route1 will augment and solidify that recurring revenue stream by adopting the model throughout our Company. Unlike traditional turn-key engineering and professional-services organizations, the emphasis is on engaging our customers in a way that creates an on-going interaction and drives long term recurring revenue. Our investment will be in people and relationships with independent software vendors ("ISV") and OEMs to leverage their intellectual property to gain actionable intelligence that generates exceptional outcomes for our clients.

Business Update Conference Call and Webcast

The Company will hold a conference call and web cast to provide a business update on Wednesday, May 25, 2022 at 4:30 pm Eastern Time.

Participants should dial Toll-Free 888-506-0062 or Toll/International 973-528-0011 at least 10 minutes prior to the conference call and web cast. The participant access code is 775672. For those unable to attend the call, a replay will be available at Toll-Free 877-481-4010 passcode 45656until 4:30 pm on June 8, 2022.

The webcast will be presented live at

About Route1 Inc.

Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit:

For More Information, Contact:

Tony Busseri
President and Chief Executive Officer
+1 480 500-7030

This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

© 2022 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See for notice of Route1's intellectual property.

This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future oriented financial information. These statements are based on certain factors and assumptions, including, expectations regarding the success of the private placement and the terms on which the Company will raise funds, price and liquidity of the common shares, expected financial performance, expected subscribers and subscription-based revenue, business prospects, technological developments, development activities, the ability of the Company to obtain the supersedeas bond in order to appeal the decision to the United States Court of Appeals for the Federal Circuit, and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future oriented financial information to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future oriented financial information as an assurance of future results.

SOURCE: Route1 Inc.

View source version on

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.