Mr. Neil Chan reports

IGEN NETWORKS REPORTS RECORD QUARTERLY REVENUES AND GROSS PROFITS FOR SECOND CONSECUTIVE QUARTER

Igen Networks Corp. has filed its third quarter 2015 report which included the largest quarterly revenue in the company's history for the second consecutive quarter. Igen's quarterly revenues of $337,733 were up 17 per cent from the previous quarter and up 26 per cent from the similar quarter in 2014. For the nine-month period, revenues of $805,347 were a 55-per-cent increase over the similar period in 2014 and reflected record revenues over the nine-month period for the company.

The company also reported record gross profits. Gross profits in the quarter grew to $121,683, an 18-per-cent increase over the previous quarter, though only marginally higher than the similar period in 2014. The numbers reflect increased volumes of lower-margin product in 2015. Over the nine-month period, the company's gross profit was $285,658, up 21 per cent over the same period in 2014.

Quarterly gross margins were 36 per cent, unchanged over the previous quarter, but down from 44 per cent reported for the similar quarter last year. Margins for the nine-month period were 35 per cent, also down from the 49 per cent reported for the similar period last year. The company continues to review alternative hardware suppliers and order fulfilment strategies to improve its overall margins -- as the number of activations increases the company will focus on the service and residual revenue component of its business model.

The company reported a Q3 loss of $601,287, compared with $158,220 and $211,764 losses for the previous quarter and the same quarter in 2014, respectively. A large part of these losses was due to non-cash stock-based compensation (SBC) of $415,600 and $448,958 incurred in Q3 2015 and the 2015 nine-month period, respectively. Not including this non-cash SBC, losses for Q3 2015 and the 2015 nine-month period were $185,687 and $498,138, respectively.

Neil G. Chan, president and chief executive officer of Igen, stated, "We are pleased that within three quarters we have already exceeded the revenue and gross profits we reported for all of last year, but are mindful that achieving profitability remains our key goal as we continue to invest as necessary in growing the company."

We seek Safe Harbor.