Memex Inc. Reports Q1-2019 Results Record Quarterly Bookings, $1.5M Loan Facility Term Sheet Signed

Memex Inc.


Memex Inc. Reports Q1-2019 Results Record Quarterly Bookings, $1.5M Loan Facility Term Sheet Signed

Thursday, February 28, 2019 7:00 AM

BURLINGTON, ON / ACCESSWIRE / February 28, 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 first-quarter 2019 ending December 31, 2018. All results are reported in Canadian dollars. A complete set of December 31, 2018 Consolidated Financial Statements and Management's Discussion & Analysis has been filed at www.sedar.com.

Summary financial highlights for the three-months ended December 31, 2018:

  • Memex reported revenue of $693 thousand for the three-month period, as compared to $362 thousand in the same period a year ago (a 91% increase);
  • Bookingsi for the period totalled $1.04 million - a record for the Company and versus $660 thousand in the same period a year ago, a 58% increase;
  • The Company finished the period with $1.44 million in project backlogii, $344 thousand more than at the start of the quarter;
  • Gross margin was 67% for the period compared to 43% for the year-ago period, the increase was due primarily to higher software and support services sales volume in the current quarter;
  • Cash consumed from operations in Q1-2019 (before changes in non-cash items) was $301 thousand, equating to $600 thousand or 67% less consumed than the same period a year ago;
  • Net and comprehensive loss for the period was $348 thousand ($0.003 per share), compared to $985 thousand ($0.007 per share) for the same period a year ago; and
  • The Company had $380 thousand in working capital, including $553 thousand in cash at December 31, 2018, as compared with $723 thousand in working capital and $1.05 million in cash at September 30, 2018

Operational and other highlights:

  • Memex achieved record bookings in Q1-2019, ending December 31st, 2018 with $1.043 Million in new business.
  • To strengthen the Company's working capital position and support ongoing operations, management along with the Company's Board of Directors have been actively exploring opportunities to secure funding from non-operational sources. Memex recently signed a non-binding term sheet with affiliates of G&G Private Capital ("G&G") which could provide up to $1.4 million in loan facilities in combination with an additional $100 thousand from Officers of Memex (condition of G&G financing) for a total of $1.5 million dollars in potential Loan Facility Financing. Provided G&G are satisfied with the results of their due diligence review, currently in process, the financing is estimated to close within the next 30 days. Additional information related to this potential financing was included in a previous press release dated February 20, 2019.
  • Memex joined Siemens' MindSphere Partner Program as a Silver Partner. 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. This relationship will further enable Memex to service cloud-centric enterprise customers.
  • Memex continues to expand its arrangements with Enterprise Resource Planning ("ERP") solutions providers to seamlessly integrate MERLIN Tempus with leading ERP systems.

Management commentary:

"We're pleased with the quarter's year-over-year revenue growth and record bookings," said Memex CEO David McPhail. "As we stated in our year-end press release, we anticipated that this quarter would be generally weaker due to holiday shutdowns in the manufacturing industry." Mr. McPhail went on to comment: "Subsequent to quarter-end, we are seeing increased activity that should flow through the second quarter."

Selected financial information:



Three-months periods ended
December 31

(Canadian dollars - in thousands except per share and margin%)

2018

2017

Change
Revenue


693


362
+ 91 %
Bookingsi


1,043


660
+ 58 %
Gross margin %


67.0


42.8
+ 57 %
Operating expenses


799


1,127
- 29 %
Cash utilized in operating activities1


301


901
- 67 %
Net and comprehensive loss for the period


348


985
- 65 %
Basic and diluted loss per share - period


(0.003 )

(0.007 ) - 68 %

  1. Before changes in non-cash working capital balances.

As at
(Canadian dollars - in thousands except WC ratio)

December 31, 2018

September 30, 2018
Cash on hand


553


1,048
Current assets


1,481


1,964
Total assets


1,819


2,319
Current liabilities


1,101


1,241
Working capital*


380


723
Working capital ratio**

1.35 to 1

1.58 to 1
Backlogii


1,444


1,100

* 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
905-635-1540
[email protected]

David McPhail, President & CEO
905-635-1540
[email protected]

Sean Peasgood, Investor Relations
647-977-9264
[email protected]

Forward-Looking Statements

Statements relating to the potential financing with affiliates of G&G Private Capital Inc., including statements related to the anticipated closing of the financing, are forward-looking statements. However, closing of the financing is subject to the lenders being satisfied with the results of their due diligence review, the execution of definitive binding documentation and the satisfaction of certain conditions precedent including, but not limited to, the acceptance of the TSX Venture Exchange. There can be no guarantee that closing of the financing will occur or, if closing does occur, that the Company will be able to achieve the milestones required for additional drawdowns. No forward-looking statement 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.

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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 December 31, 2018 and 2017, in the section "Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.

SOURCE: Memex Inc.


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