Route1 has 16,286 active subscribers at Dec. 31
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Jan 29, 2016 03:48PM
Route1 is the trusted provider of security and identity management network solutions that are redefining today's digital landscape
Route1 has 16,286 active subscribers at Dec. 31
2016-01-28 11:08 ET - News Release
Mr. Tony Busseri reports
ROUTE1 PROVIDES Q4 OPERATIONS UPDATE
Route1 Inc. has provided an update on market drivers, its operations and business development activity.
MobiKey paid, active subscribers
As at Dec. 31, 2015, Route1 had 16,286 paying, active subscribers.
Paid, active Closing Quarterly Quarterly Quarterly Quarterly subscribers subscriber subscriber average subscriber subscriber count growth revenue per revenue revenue count subscriber growth Dec. 31, 2015 16,286 297 $361 $1,466,000 $42,000 Sept. 30, 2015 15,989 579 $362 $1,424,000 $78,000 June 30, 2015 15,410 398 $353 $1,346,000 $94,000 March 31, 2015 15,012 220 $334 $1,252,000 $31,000 Dec. 31, 2014 14,792 147 $334 $1,221,000 $10,000 Sept. 30, 2014 14,645 184 $332 $1,211,000 $26,000
"The fourth quarter was another good quarter for Route1, especially as this is seasonally a weaker quarter for user growth within the U.S. government. Growth in the quarter principally came from the U.S. Navy," said Tony Busseri, Route1's chief executive officer. "We continue to build and strengthen our relationship with the prime contractor, and have dedicated meaningful additional sales and marketing resources to support the expansion of this account."
Business development highlights
Last week's historic and powerful winter snowstorm that hit much of the northeastern United States reinforced the important role Route1 has within the U.S. government to deliver secure mobile access for government employees and contractors accessing enterprise data, tools and resources by leveraging their office computer from a remote location as a matter of necessity or preference. Route1 realized very strong usage for its MobiKey technology from its U.S. government customer base, the Department of Defense, and numerous civilian departments and agencies.
"Several of our government customers requested MobiKey usage statistics, some as frequently as hourly. MobiKey enabled U.S. government employees and contractors to be fully productive in spite of weather-related government shutdowns spanning a five-day period," said Brian Brunetti, Route1's president. "Our service delivery platforms, MobiNet and DefimNet, are built to operate in a high-availability, fully redundant fashion so that they can operate at full capacity even with the failure of any single component, without impact to concurrency or capacity. The infrastructure has been designed to support capacities larger than currently being utilized by our existing customers. Further, it is architected in a way that every component is easily scalable to support increased demand."
Route1 has continued to see strong interest in its MobiKey technology from civilian, intelligence and defence components within the U.S. government.
Route1 expects that these and other civilian and DOD proof of concepts and pilots may lead to further paid user adoption of the MobiKey technology in 2016 and beyond. If and when procurement occurs, it will most likely follow past Route1 experiences of initial orders in the tens or hundreds of users followed by user growth over time.
Upcoming business development events
Product development update
Route1 technology releases during the fourth quarter of 2015 and the first three weeks of calendar 2016 are shown in the associated table.
Technology release Attributes Description MobiKey 5.0 Bootable a new security feature built into the MobiKey MobiKey Fusion3 and MobiKey Classic 3 devices that provides the user the option to boot from the MobiKey device; bypasses the remote asset's existing operating system Secure storage a new feature that provides an encrypted partition available for secure file storage on the MobiKey Fusion3 and MC3 devices, encrypted to the user's PIV, CAC or embedded smart card; the encrypted partition only becomes accessible after successful authentication Remote assets added Linux support using the MobiKey Fusion3 operating and MC3 devices; Linux operating systems system support supported include Mint, Fedora, Ubuntu and CentOS; extended Mac OS X 10.11 El Capitan support; Mac OS X operating systems supported include: 10.7 Lion, 10.8 Mountain Lion, 10.9 Mavericks, 10.10 Yosemite and 10.11 El Capitan; extended Windows 10 support; Windows operating systems supported include: Windows XP (32 bit), Windows Vista (32 and 64 bit), Windows 7, 8.0, 8.1 and 10 (32 and 64 bit) Host assets extended Windows 10 support; Windows audio support operating systems supported include: Windows Vista (32 and 64 bit), Windows 7, 8.1 and 10 (32 and 64 bit), Windows Server 2008 R2 (64 bit), Windows Server 2012 R2 (64 bit) Remote audio added remote audio support for users support connecting from remote assets using Mac OS X enhancement 10.10 or higher Mac OS X operating systems to host assets with the MobiNet Agent software Version 5.0 installed remote audio support was first promoted for MobiKey 4.4 users connecting from a Windows remote asset Internet added IPv6 is the most recent version of the protocol Internet protocol, the communications Version 6 protocol that provides an identification and support location system for computers on networks and routes traffic across the Internet Other other bug fixes and enhancements MobiKey 5.1 Multiple smart for environments requiring the use of a card readers second smart card to elevate access or support execution privileges, remote users can now use a secondary MobiKey Fusion3 device to support this functionality; this feature is available on the Windows versions that MobiKey supports with the exception of Vista on the host assets; both the MobiKey application software and the MobiNet Agent software must be at Version 5.1 or higher Map 3.0 Improved user MobiNet administration and provisioning; experience, a Web-based portal and suite of tools that bug fixes and allows IT administrators to provision, other monitor and manage the identity, entitlement enhancements and services of subscribers to the MobiNet platform; this simple-to-use administration system enables organizations to cost-effectively manage large-scale deployments of Route1's solutions EXPECTED ROUTE1 TECHNOLOGY RELEASES DURING THE FIRST QUARTER OF 2016 Technology release Attributes Target release date MobiKey 5.0 for iOS support iOS 9 before Feb. 28, improved UX 2016 bug fixes and other enhancements MobiKey 5.0 for improved UX before March 31, Android bug fixes and other enhancements 2016 MobiEncrypt full disk encryption technology before March 31, that encrypts the Windows 2016 operating system leveraging smart card-based credentials the MobiKey Fusion3 device will leverage government issued PIV or CAC credentials to enhance HSPD-12 and FIPS-201 compliance features: preboot authentication, key recovery, identification of non-encrypted assets, remote key revocation, UEFI with GPT and transparent FDE
Route1 also has a number of additional continuing development initiatives that for competitive reasons it cannot disclose to the marketplace at this time. The new technologies centre around a current Route1 core competency -- public key infrastructure-based mutual authentication (a fundamental component to achieving a high level of assurance in communication), life cycle management of credentials and access to data.
One area of focus for Route1 will be to make mobility less cumbersome, but not less secure. As Major General Sarah Zabel, the Defense Information Systems Agency's vice-director, communicated at an AFCEA mobile technology event held last week in Washington, DISA plans on using derived credentials that are stored on the mobile device. PKI is at the core of derived credentials and Route1 plans on bringing to market its own derived credential offering in calendar 2016.
Share repurchase program
On Sept. 22, 2015, the company announced with approval from the TSX Venture Exchange its intention to make a normal course issuer bid. The NCIB permits the company to purchase for cancellation up to 5 per cent of the common shares in the public float. The maximum number of shares allowed for repurchase is 18,262,570. Purchases under the NCIB commenced Sept. 27, 2015, and will end Sept. 26, 2016, or the date upon which the maximum number of common shares have been purchased by the company. As of Dec. 31, 2015, the company has purchased a total of 2,592,000 common shares under the NCIB.
Since the first NCIB was announced on Feb. 28, 2012, Route1 has repurchased a total of 26,261,200 of its common shares, representing 6.8 per cent of Route1's common shares outstanding as at Feb. 28, 2012.
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