Burlington, ON, Canada – August 29, 2019 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released financial and operational highlights for its third quarter of 2019 ending June 30, 2019. All results are reported in Canadian dollars. A complete set of June 30, 2019 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com.
Summary financial highlights for the three-months ended June 30, 2019:
- Memex reported revenue of $916 thousand for the three-month period, as compared to $650 thousand in the same period a year ago (a 41% increase);
- Bookingsi for the period totalled $1.094 million, a new quarterly high, versus $1.039 million in the same period a year ago, a 5% increase;
- The Company finished the period with $1.567 million in project backlogii, $467 thousand more than at September 30, 2018;
- Gross margin was 74% for the period compared to 64% for the year-ago period;
- Cash consumed from operations in Q3-2019 (before changes in non-cash items) was $184 thousand, equating to $426 thousand or 70% less consumed than the same period a year ago;
- Net and comprehensive loss for the period was $254 thousand ($0.002 per share), compared to $687 thousand ($0.005 per share) for the same period a year ago; and
- The Company had $501 thousand in working capital, including $967 thousand in cash at June 30, 2019, as compared with $723 thousand in working capital and $1.048 million in cash at September 30, 2018.
Operational and other highlights:
- The Company’s Q3 bookings of $1.094 million set a new benchmark, exceeding the Company’s previous record of $1.042 million recorded in Q1 this year. Reported year-to-date bookings of $2.980 million was also Company best nine-month start to a year, exceeding the prior benchmark by over $375 thousand.
- Year-to-date revenue of $2.319 million was a nine-month best, exceeding the previous high by more than $200 thousand.
- The Company finalized a collection of new customer orders worth over $300 thousand in total from a Tier 1 Automotive supplier during the quarter. Although successful in a variety of manufacturing sectors, the orders with this customer represents Memex’s largest foray into the Auto sector thus far.
- Through fiscal 2019, Memex has focused on converting previously generated customer leads into sales. Year-to-date results reflect that conversion success, and also provided a $172 thousand reduction in YTD marketing spend. Reduced attendance at tradeshows in favour of lower cost on-line marketing campaigns and thought leadership events were key factors, although the Company will be attending the Canadian Manufacturing Trade Show (“CMTS”) in Mississauga this September.
“Our success in converting sales funnel prospects into revenues is demonstrated by our record bookings, 31% year-to-date revenue growth over 2018, and backlog worth almost $1.6 million,” said Memex CEO David McPhail. “I am pleased that our focus on re-tooling our sales process has paid off and yielded these results. Looking ahead we have good visibility on a growing funnel of new business opportunities and anticipate several new orders to close in the coming quarters.”
Summary financial highlights for the nine-months ended June 30, 2019:
- Memex reported revenue of $2.319 million for the nine-month period, a new nine-month high, as compared to $1.776 million in the same period a year ago (a 31% increase);
- Bookingsi for the period totalled $2.980 million – a record nine-month start for the Company, versus $2.331 million in the same period a year ago, a 28% increase;
- Year-to-date (YTD) Gross margin was 71% compared to 63% for the year-ago period;
- Cash consumed from operations in YTD-2019 (before changes in non-cash items) was $751 thousand, equating to $1.176 million or 61% less consumed than the same period a year ago; and
- YTD Net and comprehensive loss was $934 thousand ($0.007 per share), compared to $2.183 million ($0.016 per share) loss for the same period a year ago.
Selected financial information:
Three-months periods ended
Nine-months periods ended
|(Canadian dollars – in thousands except per share and margin%)||2019||2018||Change||
|Revenue||916||650||+ 41%||2,319||1,776||+ 31%|
|Bookingsi||1,094||1,039||+ 5%||2,980||2,331||+ 28%|
|Gross margin %||74.3||63.7||+ 17%||71.4||62.6||+ 14%|
|Operating expenses||889||1,088||– 18%||2,520||3,256||– 23%|
|Cash utilized in operating activities1||184||610||– 70%||751||1,927||– 61%|
|Net and comprehensive loss for the period||254||687||– 63%||934||2,183||– 57%|
|Basic and diluted loss per share – period||(0.002)||(0.005)||– 59%||(0.007)||(0.016)||– 57%|
- Before changes in non-cash working capital balances.
(Canadian dollars – in thousands except WC ratio)
|June 30, 2019||September 30, 2018||
|Cash on hand||967||1,048|
|Working capital ratio**||1.3 to 1||1.58 to 1|
* Working Capital = current assets – current liabilities
** Working Capital ratio = current assets / current liabilities
About Memex Inc.:
Established in 1992, Memex grew to be an industry leader in Industry Internet of Things (IIoT) through the development of MERLIN Tempus, an award-winning platform that delivers real-time, tangible increases in manufacturing productivity. Memex is on the leading edge of industry trends in computing power, machine connectivity, industry standards, advanced software technology, and manufacturing domain expertise.
Our persistent pursuit of innovative IIoT solutions led to a comprehensive understanding of the challenges manufacturers face. We made it our mission to, “successfully transform factories of today into factories of the future.” As the global leader in Machine to Machine (M2M) connectivity solutions, our hardware and software products create unparalleled visibility at all levels, from “Shop-Floor-to-Top-Floor.”
The MERLIN Tempus Suite provides effective quantification and management of Overall Equipment Effectiveness (OEE) by revealing hidden capacity using real-time objective data. Further, it offers sustainable benefits that enable world-class OEE such as reducing costs, incorporating strategies for continuous LEAN improvement, and boosting bottom-line financial performance. For more information, please visit: www.MemexOEE.com
For investor inquiries please contact:
|Ed Crymble, Chief Financial Officer
|David McPhail, President & CEO
Sean Peasgood, Investor Relations
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.
i & ii These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management’s Discussion and Analysis for the periods ended June 30, 2019 and 2018, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.