Burlington, ON, Canada – May 30, 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 second quarter of 2019 ending March 31, 2019. All results are reported in Canadian dollars. A complete set of March 31, 2019 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com.
Summary financial highlights for the three-months ended March 31, 2019:
- Memex reported revenue of $709 thousand for the three-month period, as compared to $764 thousand in the same period a year ago (a 7% decrease);
- Bookingsi for the period totalled $843 thousand versus $633 thousand in the same period a year ago, a 33% increase;
- The Company finished the period with $1.28 million in project backlogii, $181 thousand more than at September 30, 2018;
- Gross margin was 72% for the period compared to 71% for the year-ago period;
- Cash consumed from operations in Q2-2019 (before changes in non-cash items) was $265 thousand, equating to $151 thousand or 36% less consumed than the same period a year ago;
- Net and comprehensive loss for the period was $332 thousand ($0.002 per share), compared to $511 thousand ($0.004 per share) for the same period a year ago; and
- The Company had $759 thousand in working capital, including $1.06 million in cash at March 31, 2018, as compared with $723 thousand in working capital and $1.05 million in cash at September 30, 2018.
Summary financial highlights for the six-months ended March 31, 2019:
- Memex reported revenue of $1.40 million for the six-month period, as compared to $1.13 million in the same period a year ago (a 25% increase);
- Bookingsi for the period totalled $1.89 million – a record six-month start for the Company, versus $1.29 million in the same period a year ago, a 46% increase;
- Year-to-date (YTD) Gross margin was 70% for compared to 62% for the year-ago period;
- Cash consumed from operations in YTD-2019 (before changes in non-cash items) was $566 thousand, equating to $751 thousand or 57% less consumed than the same period a year ago; and
- YTD Net and comprehensive loss was $680 thousand ($0.005 per share), compared to $1.50 million ($0.011 per share) for the same period a year ago.
Operational and other highlights:
- On March 28th Memex completed its negotiations with affiliates of G&G Private Capital (“G&G”) who agreed to provide up to $1.4 million in loan facilities in combination with $100 thousand provided from Officers of Memex for a total of $1.5 million dollars in potential loan facility financing. An initial tranche of $750 thousand ($700 thousand from G&G) was received by Memex on March 28th.
- In March the Company secured its first significant recurring software subscription contract (Memex offers both perpetual and ongoing subscription software licensing) with a subsidiary of Ford Motor Company to provide 72 subscription licenses to use MERLIN Tempus Enterprise Edition. In addition to software the Company will be providing installation and support services which are expected to be substantially completed during the current fiscal year.
- Company President and C.E.O. David McPhail continued his series of thought leadership presentations while at EASTEC 2019 (May 14-16, 2019 | Eastern States Exposition, West Springfield, Massachusetts). His topics included “5 Steps to Success: Cashing in on the Promise of Data-Driven Manufacturing” and “Fueling Continuous Improvement with Real-time Data – The Underlying ROI / Business Case.”
- MERLIN Tempus will be available for operational deployment from the MindSphere platform, as of Mid-June 2019. Customers will be able to securely deploy and manage their own MindSphere-driven applications from this site. MindSphere is the cloud-based, open IoT operating system from Siemens that connects products, plants, systems and machines, enabling businesses to harness the wealth of data generated by the IoT with advanced analytics.
- The Company held its fiscal 2018 Annual General Meeting in Burlington on March 21, 2019 where the financial statements, re-appointment of Auditors (MNP) and Stock Option Plans were all approved, and the Board of Directors were re-appointed.
“We’re pleased that our bookings and backlog remain strong,” said Memex CEO David McPhail. “The loan facilities we negotiated with G&G have significantly strengthened our Balance Sheet. And as one of the Officers who invested alongside these loan facilities, I’m confident that Memex will capitalize on the pipeline opportunities ahead of us.”
Selected financial information:
Three-months periods ended
Six-months periods ended
|(Canadian dollars – in thousands except per share and margin%)||2019||2018||Change||
|Revenue||709||764||– 7%||1,402||1,126||+ 25%|
|Bookingsi||844||633||+ 33%||1,886||1,293||+ 46%|
|Gross margin %||72.3||71.1||+ 2%||69.7||62.0||+ 12%|
|Operating expenses||832||1,041||– 20%||1,631||2,168||– 25%|
|Cash utilized in operating activities1||265||416||– 36%||566||1,317||– 57%|
|Net and comprehensive loss for the period||332||511||– 35%||680||1,497||– 55%|
|Basic and diluted loss per share – period||(0.002)||(0.004)||– 26%||(0.005)||(0.011)||– 55%|
- Before changes in non-cash working capital balances.
(Canadian dollars – in thousands except WC ratio)
|March 31, 2019||September 30, 2018||
|Cash on hand||1,059||1,048|
|Working capital ratio**||1.45 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
The statement relating to the future delivery of products and services “…installation and support services which are expected to be substantially completed during the current fiscal year,” and the comment from David McPhail “I’m confident that Memex will capitalize on the pipeline opportunities ahead of us” are forward-looking statements. However, there is no guarantee that the contemplated installation and support services will be completed by the end of the fiscal year, or ever, nor that the Company will be able to capitalize on its current pipeline of opportunities. No forward-looking statements can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The aforementioned forward-looking statements are made as of the date of this press release and, except as required by applicable securities legislation, Memex assumes no obligation to update publicly or revise these forward-looking statements to reflect subsequent information, events, or circumstances
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 March 31, 2019 and 2018, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under