Ottawa-based IT and network services firm Avalon Works Corp. posted stronger revenues in its Q3 results issued Friday.
The company posted revenues of $2.8 million for the May quarter, compared to $1.5 million in last year's Q3.
But earnings fell to $77,000 from $210,000 as the company made an acquisition. Avalon bought out a regional franchisee operation, further consolidating its presence in Eastern Ontario.
In June, after the end of the third quarter, Avalon acquired Texar Corp. for $250,000 in cash, with plans to use the firm's technology to launch a new business line called Secure Works. Terms of the deal with Avalon include a commitment to service $4.2 million of Texar technology only recourse debt and an interest from future software sales. The four-year-old, privately-held developer of network security technology was supported by venture cash.
Chairman Jirka Danek the Texar acquisition will be reflected in Avalon's next earnings release.
"We made satisfactory progress during the quarter, securing a new $1.2 million architecture engagement with the federal government and qualifying as a system integrator,” Danek said.
Avalon relocated to Ottawa from Montreal last year after it acquired Information Gateway Services, a private provider of Internet access throughout Ontario, for $1.5 million in cash and stock.
The company posted revenues of $2.8 million for the May quarter, compared to $1.5 million in last year's Q3.
But earnings fell to $77,000 from $210,000 as the company made an acquisition. Avalon bought out a regional franchisee operation, further consolidating its presence in Eastern Ontario.
In June, after the end of the third quarter, Avalon acquired Texar Corp. for $250,000 in cash, with plans to use the firm's technology to launch a new business line called Secure Works. Terms of the deal with Avalon include a commitment to service $4.2 million of Texar technology only recourse debt and an interest from future software sales. The four-year-old, privately-held developer of network security technology was supported by venture cash.
Chairman Jirka Danek the Texar acquisition will be reflected in Avalon's next earnings release.
"We made satisfactory progress during the quarter, securing a new $1.2 million architecture engagement with the federal government and qualifying as a system integrator,” Danek said.
Avalon relocated to Ottawa from Montreal last year after it acquired Information Gateway Services, a private provider of Internet access throughout Ontario, for $1.5 million in cash and stock.
