Route1 Inc.
TSX VENTURE : ROI

Route1 Inc.

April 19, 2016 11:00 ET

Route1 Provides Q1 2016 Operations Update

TORONTO, ONTARIO--(Marketwired - April 19, 2016) - Route1 Inc. (TSX VENTURE:ROI) (the Company or Route1), a leading provider of secure access technologies for the mobile workspace to protect businesses and government agencies, today provided an update on market drivers, its operations and business development activity.

MobiKEY Paid, Active Subscribers

As at March 31, 2016, Route1 had 16,490 paying, active subscribers.

Services Revenue
In 000s of CAD dollars
Mar 31
2016
Dec 31
2015
Sep 30
2015
Jun 30
2015
Mar 31
2015
Closing number of subscribers 16,490 16,286 15,989 15,410 15,012
Revenue per subscriber $367 $361 $362 $353 $334
Subscriber Revenue $1,496 $1,467 $1,424 $1,346 $1,252
Other Services Revenue $152 $149 $148 $223 $209
Total Services Revenue $1,648 $1,616 $1,572 $1,569 $1,461

Revenue from services includes MobiKEY application software, as well as the DEFIMNET platform and other appliance licensing or yearly maintenance. The net increase in MobiKEY application software users primarily came from agencies and components within the U.S. Department of Defense, the U.S. Navy, and the U.S. Department of the Interior.

For the above noted 16,490 MobiKEY subscribers, Route1's average revenue per subscriber will increase in Q2 2016 to CAD $375 or better as a result of the improved exchange rate Route1 has realized since renewing certain U.S. government accounts in March and April 2016.

"I continue to be pleased with the number and quality of business development opportunities we are involved in. We have seen a number of quality sales opportunities advance in Q1, and we expect to see increased growth from current and new accounts within the U.S. government over the next few months," said Brian Brunetti, President, Route1 Inc. "Our current and potential government customers continue to be operationally focused on Cybersecurity Sprints, as mandated by the Obama Administration. These so-called sprints involve scanning, patching and hardening deployed systems within very short turnaround times, typically within 30 days. These sprints and other cybersecurity initiatives within the U.S. government create substantial opportunities for MobiKEY deployment as departments and agencies look to improve their security best practices."

Business and Product Development Highlights

The Company provided an update on April 5, 2016. The presentation can be found on Route1's website at www.route1.com/investors/company-presentations.html.

Upcoming Business Development Events

Route1 will be attending the following vendor days, conferences, webinars and tradeshows over the next 90 days:

  • AFCEA TechNet Fort Bragg
    April 19-21, 2016, Crown Complex, Fayetteville, NC

  • USPTO IT Security Awareness Day
    April 27, 2016, USPTO Carlyle Campus Conference Center, (Madison Building), Alexandria, VA

  • Cyber Risk Summit - The NetDiligence Forum on Cyber Risk and Privacy Liability
    April 29, 2016, Ritz-Carlton, Toronto, Canada

  • 2016 FONOM - MMAH Northeastern Municipal Conference
    May 11-13, 2016, McIntyre Community Centre, Timmins, Canada

  • "Prevention is the Best Medicine" - Mobile Data Security
    May 18, 2016, Webinar

  • Eielson Air Force Base - Regional Technology & Cyber Security Day
    May 20, 2016, Yukon Club, Fairbanks, AK

  • USDA Cyber Security Symposium and Expo 2016
    May 24-25, 2016, USDA HQ Jamie L. Whitten Patio, Washington, DC

  • NIST NOAA Department of Commerce Campus Boulder
    June 8, 2016, Department of Commerce Campus, Boulder, CO

  • Denver Federal Center Technology Day
    June 9, 2016, Building 25 Lecture Hall, Lakewood, CO

  • JBLM - AFCEA PNC Tech & Cyber Security Day
    June 16, 2016, Tacoma, WA

Further information on these events can be found on Route1's website at: www.route1.com/company/upcoming-events.html.

Share Repurchase Program

On September 22, 2015, the Company announced with approval from the TSX Venture Exchange its intention to make a Normal Course Issuer Bid (NCIB). The NCIB permits the Company to purchase for cancellation up to 5% 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 September 27, 2015 and will end September 26, 2016, or the date upon which the maximum number of common shares have been purchased by the Company. As of April 15, 2016 the Company had purchased a total of 4,495,000 common shares under the NCIB.

Since the first NCIB was announced on February 28, 2012, Route1 has repurchased a total of 28,164,200 of its common shares, representing 7.2% of Route1's common shares outstanding as at February 28, 2012.

As at April 15, 2016, Route1 has 360,756,414 common shares outstanding.

About Route1, Inc.

Route1 enables the mobile workspace without compromising on security. Its flagship technology MobiKEY uniquely combines secure mobile access, with high assurance identity validation and plug-and-play usability. Remote and mobile workers are able to securely and cost-effectively access their workspace from any device without exposing the organization to the risk of data spillage or malware propagation. MobiKEY customers include Fortune 500 enterprises as well as the U.S. Department of Defense, the Department of Homeland Security, the Department of Energy and the Government of Canada. Headquartered in Toronto, Canada, Route1 is listed on the TSX Venture Exchange.

For more information, visit: www.route1.com.

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.

© Route1 Inc., 2016. All rights reserved. Route1, Route 1, the Route1 and shield design Logo, MobiDESK, Mobi, Route1 MobiVDI, Route1 MobiDESK, Route1 MobiBOOK, Route1 MobiKEY, Route1 MobiNET, IBAD, MobiVDI, MobiNET, DEFIMNET, Powered by MobiNET, Route1 Mobi, Route1 MobiLINK, TruOFFICE, MobiLINK, EnterpriseLIVE, PurLINK, TruCOMMAND, MobiMICRO and MobiKEY are either registered trademarks or trademarks of Route1 Inc. in the United States and/or Canada. All other trademarks and trade names are the property of their respective owners.

The DEFIMNET and MobiNET platforms, the MobiKEY, MobiKEY Classic, MobiKEY Classic 2, MobiKEY Classic 3, MobiKEY Fusion, MobiKEY Fusion2, and MobiKEY Fusion3 devices, and MobiLINK are protected by U.S. Patents 7,814,216, 7,739,726, 9,059,962 and 9,059,997, Canadian Patent 2,578,053, and other patents pending. The MobiKEY Classic 2 and MobiKEY Classic 3 devices are also protected by U.S. Patents 6,748,541 and 6,763,399, and European Patent 1001329 of Aladdin Knowledge Systems Ltd. and used under license. Other patents are registered or pending in various countries around the world.

Other product and company names mentioned herein may be trademarks of their respective companies.

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