Technology has meant that employees can now work outside the office with the mobile workspace now emerging as a major trend in recent years, driven by growing use of tablets, smartphones and laptops. It is possible that in a few years the corporate office might become redundant as more and more workers choose to work remotely.
For mobile workspace to replace the corporate office though, one thing is absolutely necessary. This one thing is security. Security is a major concern for organizations that allow their workers to work remotely. According to Citrix, 72% of employees do not feel equipped with the required technology to get their jobs done outside the office. Further, over three-quarters of mobile applications will fail basic security tests. Citrix notes that over two-thirds of technology decision makers say they are concerned about lack of data protection capabilities on mobile devices.
Despite these concerns, there is a strong case for adopting mobile workspace. The first is it reduces the cost of leasing expensive office premises for companies. For employees, it means the freedom to work from any location they prefer and where they feel they can be the most productive. The main issue that needs to be addressed is security and data protection.
Several companies are now offering solutions to secure and protect data in the mobile workspace environment. Route1 Inc. (TSX-Venture:ROI) is one such company. Based in Toronto, Canada, ROI provides secure access technologies for the mobile workspace that protects businesses and government agencies. The company’s customers include the U.S. Department of Defense, the Department of Homeland Security, the Department of Energy and the Government of Canada.
On Tuesday, ROI reported its financial results for the quarter ended March 31, 2015. The first quarter of 2015 was the fourth successive one in which ROI realized further growth in revenue from subscribers, which is recurring revenue.
Total revenue for the March quarter was $1.54 million, compared to $1.76 million reported for the same period in the previous year. The decline in total revenue was mainly due to a sharp drop in devices revenue, which was partially offset by services and other revenue.
Gross profit for the first quarter was $1.27 million, compared to $1.41 million reported for the same period in the previous year. Gross margin was 83%, up from 80% reported in the first quarter of 2014. Net income for the first quarter was $0.6 million, compared to $0.4 million reported for the same period in the previous year.
While the numbers look to be stalling, margins continue to be really healthy and with the growing need for more mobile security and the trend towards mobile workplaces, the trend looks to still be in the Company’s favour.
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