First Major Korbyt Sale Validates Management’s Expectations for New SaaS Platform
DALLAS, Jan. 25, 2018 (GLOBE NEWSWIRE) -- RMG Networks Holding Corporation (NASDAQ:RMGN), or RMG, a global leader in technology-driven visual communications, announced a five-year, $460,000 contract with a large resort & casino company to provide an interactive digital signage and 3D wayfinding solution powered by RMG’s next generation KorbytTM SaaS platform.
“We are pleased to announce within 90 days of launching Korbyt, we have signed a significant, long-term contract with one of our key customers to migrate onto the Korbyt platform,” said Robert Michelson, Chief Executive Officer and President of RMG.
The customer currently operates RMG’s legacy on-premises digital signage software platform to power digital displays throughout its casinos and hotels. After extensive evaluation of Korbyt, the customer was attracted to Korbyt’s easy to use web-based interface, simple content creation and high scalability resulting in the decision to migrate to the Korbyt platform.
In addition to migrating to the Korbyt platform, the customer expanded its system with a new, custom 3D wayfinding solution that will allow casino patrons to view interactive maps of casino floors, meeting rooms, retail shops and other resort amenities. This additional solution is expected to further improve the customer experience throughout the properties.
The $460,000 contract included five years of SaaS, which accounted for approximately 60% of the total contract value and will be recognized as revenue evenly over the term of the contract. The remainder of the contract included wayfinding software, hardware and professional & creative services, a portion of which was recognized in December and the remainder to be recognized during Q1 2018.
“We believe this key customer migration validates that Korbyt is the future for RMG,” stated Michelson. “This deal highlights the attractiveness of the Korbyt platform’s features and functionality to the retail and hospitality markets, which represent a key strategic growth area for the company. With the migration to the Korbyt platform, our customer has significant new expansion opportunities, including KorbytGO™, our internal communications mobile solution, and the addition of MAX LED screens to its large casino floor and hotels.”
© 2018 RMG Networks Holding Corporation. RMG, RMG Networks and its logo are trademarks and/or service marks of RMG Networks Holding Corporation.
RMG goes beyond traditional communications to help businesses increase productivity, efficiency and engagement through digital messaging. By combining best-in-class software, hardware, business applications and services, RMG offers a single point of accountability for integrated data visualization and real-time performance management. The company is headquartered in Dallas, Texas, with additional offices in the United Kingdom and the United Arab Emirates. For more information, visit www.rmgnetworks.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information contained herein, the matters set forth in this release are "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "develop," "position," "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our success in launching the new Korbyt platform, the Korbyt platform’s ability to help with expanding into new markets, distribution channels, customers and customer opportunities, further penetrating existing markets, distribution channels and customers, the Company’s ability to implement Korbyt at this customer facility, the company’s ability to grow, the company’s plans and expectations of growth, expected future operating results, such as generating revenue therefrom, developing new technology or solutions, and our ability to win new customers. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-Looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
Brett Maas/Rob Fink
RMG Networks Holding Corporation