In a recent announcement, Root9b Technologies Inc (OTCMKTS:RTNB), a leader in technology, made public its financial report for the quarter ended on March 31, 2015. The Cyber Security company reported impressive revenues as a result of its acquisition of IPSA International, Inc on February, 2015.
First-quarter performance
The company’s revenues during the first quarter stood at $9.5 million, reflecting an increase of 97.8% year-over-year. The revenue growth can be accredited to IPSA acquisition, as the revenues showed a decrease of 23.8% to $3.6 million during the quarter without factoring the acquisition. Segment wise, the revenue generation from both Cyber Solutions and Energy Solutions declined by 43.8% and 34% year-over-year respectively during the reported period.
The primary reason for lower Cyber Solutions revenue for the period was on account of lower revenue from cyber tools and longer sales cycle. At the same time, revenues from Energy solution segment decreases as a result of the company’s shift in strategy to lay lower emphasis on the energy business. In this direction, the company also sold its energy audit business assets in the first quarter of 2015.
Cash balance
Root9b Technologies Inc (OTCMKTS:RTNB)’s Gross Margin increased to $2.2 million from $1 million during the first quarter as a result of the acquisition of IPSA. The gross margin as a percentage of revenues increased to 23.3% from 22.1% year-over-year. The company’s net income during the first quarter as $720,182, showing an improvement from year ago’s net loss of $1,737,032. The company’s cash balance as on March 31, 2015 stood at $5 million, indicating a growth of $4 million from $765,099 as on December 31, 2014. The increase in the cash balance is as a result of the receipt of proceeds from the three equity financing transactions amounting $11,300,000.
Root9b Technologies Inc (OTCMKTS:RTNB) aims to use its cash balance towards funding its day-to-day operations. Going forward, the company aims to improve its liquidity by integrating IPSA’s business into its own and focus on cyber units.
