(MENAFN- ProactiveInvestors - Australia) MGM Wireless (ASX: MWR) has reported high sales activity during the September 2012 quarter which is rapidly driving the company towards 1,000 schools signed onto its SMS messaging service.
During the quarter the company signed 65 new schools, taking the total number of schools the company is servicing to 940, including 30 in New Zealand, and of which 824 were operational.
Those that weren't operational will be progressively brought on line over the next few months as installation and training programs are implemented.
During the quarter, MGM received an R&D rebate which contributed to the cash balance of $301,000 as at 30 September 2012.
MGM's patented SMS School communication solutions allow schools to communicate to parents and caregivers using SMS text messaging to improve student attendance, welfare, safety and parent engagement.
The company is now focused on gaining sales traction with the recently launched new products Rollmarker and School News Channel.
School News Channel allows parents to actively request school SMS notifications online.
Parents pay a small monthly fee, around the price of a cup of coffee, for the service, and School News Channel is installed free of charge for the school when a certain number of parent requests are received.
Discussions are in progress with a number of schools regarding participation in the School News Channel.
FY2012 performance
For the 2012 financial year MGM reported a 153% increase in net profit to a record $603,000.
By the end of the financial year the company had improved its net asset position by over $600,000 to $1.3 million.
Total current liabilities were 37% lower than a year earlier at $615,929.
The company's SMS messaging service played an important role in helping schools maintain communications with parents during the floods in south-eastern Australia earlier this year.
Over a critical 48 hour period MGM delivered over 200,000 messages compared to a typical school day average of about 35,000, Australia-wide.
The launch of the School News Channel is expected to be a major contributor to growth with the potential to greatly expand the company's market penetration.
MGM expects that the first schools to launch the new model based on the School News Channel will be operating in early in 2013.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.