WELL Health
Trending >

Route 1 rides a Wave with the US Navy

Canadian Stock News Cantech
Tony Busseri, President and CEO of Route 1 (TSXV:ROI)
Tony Busseri, President and CEO of Route 1 (TSXV:ROI)

ROI; a familiar acronym for Return on Investment. ROI also happens to be the ticker symbol for Toronto’s Route 1, a maker of remote access software solutions. For years, from the stock’s slide from a high of $.85 cents in 2004, to lows of under three cents in late 2008, the two seemed to have nothing in common. Lately, it’s seems like more than coincidence.

Shares of Route 1 have been on the march since August, closing at $.25 cents on November 22nd The reason? A razor sharp focus on sales of Route 1’s TrueOffice solution to the government sector, including sales to Netherlands Ministry of Foreign Affairs, boosted revenue from $1.17 million in 2008 to $5.21 million in 2009. The real reason? The US Navy.

In late September, Route 1 completed a pilot project to deploy the company’s DEFIMNET platform, TruOFFICE application software and MobiKEY Fusion devices to the U.S. Navy Reserve Forces Command (RESFOR). Days later, Route 1 President and chief executive officer Tony Busseri confirmed the company had received a purchase order from the same organization.

Details on the deal were somewhat vague, the company pegged it somewhere between one and six months, and the value between (U.S.) $225,000 and $1.35-million. That was enough for investors, however. Between September 29th and October 25th Shares of ROI added ten cents, often amid volume that exceeded two million shares per day.

In the conference call following the company’s Q3 2010 results, in which revenue, incidentally, slipped to $1.4 million from $1.5 in the corresponding period in 2009, Busseri downplayed the notion that sales to one sector of the US Goverment might easily lead to another. In fact, he said, the exact opposite is true. Busseri also pointed out that because “security solutions are mission critical solutions” the company is often handcuffed to talk about not only sales on the horizon, but in some cases details of past sales.

The Q3, conference call, however, was far from a doom and gloom . Busseri said but did say he expects “significant revenue and earnings growth for Route 1” that the company’s cash position has improved significantly because of a leap in receivables, that the company is seeing more opportunities with government agencies and that the company has “nothing new to do to be cash flow positive in Q4”.

We Hate Paywalls Too!

At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.

Make a one-time or recurring donation

About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
insta twitter facebook

Comment

One thought on “Route 1 rides a Wave with the US Navy

  1. This is a really is a great stock. Excellent gross profit percentage, making money at a very low level of keys…man when those orders start getting bigger (and you know they will) this baby is going to print money. Patent product ownership in a world where security will become a much, much larger expenditure in the next ten years. Wow. How the previous board didn’t increase revenue 5X is beyond me. Good job Tony.

Leave a Reply