Memex Inc. Reports Q1-2020 Results

BURLINGTON, ON / ACCESSWIRE / February 27, 2020 / 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 2020 ending December 31, 2019. All results are reported in Canadian dollars. A complete set of December 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 December 31, 2019:

Memex reported revenue of $544 thousand for the three-month period, compared to $693 thousand in the same period a year ago (a 22% decrease);
Bookingsi for the period totalled $727 thousand versus $1.04 million in the same period a year ago, a 30% decrease;
The Company finished the period with $1.41 million in project backlogii, $217 thousand more than at September 30, 2019;
Gross margin was 61.0% for the period compared to 67.0% for the year-ago period;
Cash consumed from operations in Q1-2020 (before changes in non-cash items) was $423 thousand, $122 thousand more than the same period a year ago;
Net and comprehensive loss for the period was $506 thousand ($0.004 per share), compared to $348 thousand ($0.003 per share) for the same period a year ago; and
The Company had a $139 thousand working capital deficit and $529 thousand in cash on hand at December 31, 2019, compared to $356 thousand in working capital surplus and $740 thousand in cash at September 30, 2019.

Management commentary:

"Although year-over-year bookings were lower than expected, they were within management's internal forecast range and close to the 5-year average of past Q1 bookings," said Memex CEO David McPhail. "And our lower year-over-year revenue was due primarily to technical issues that we have now resolved in the deployment of significant projects in Q1. We are pleased to see our $1.41 million backlog continue to grow, which we believe will allow us to improve upon our current results in the remainder of 2020."

Selected financial information:

Three-months periods ended
December 31

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

 
2019
 
 
2018
 
 
Change
 

Revenue

 
 
544
 
 
 
693
 
 
 
– 22
%

Bookingsi

 
 
727
 
 
 
1,043
 
 
 
– 30
%

Gross margin %

 
 
61.0
 
 
 
67.0
 
 
 
– 9
%

Operating expenses

 
 
777
 
 
 
799
 
 
 
– 3
%

Cash utilized in operating activities1

 
 
423
 
 
 
301
 
 
 
+ 41
%

Net and comprehensive loss for the period

 
 
506
 
 
 
348
 
 
 
+ 45
%

Basic and diluted loss per share – period

 
 
(0.004
)
 
 
(0.003
)
 
 
– 39
%

1. Before changes in non-cash working capital balances

As at

(Canadian dollars – in thousands except WC ratio)

 
December 31,
2019
 
 
September 30, 2019
 

Cash on hand

 
 
529
 
 
 
740
 

Current assets

 
 
1,352
 
 
 
1,901
 

Total assets

 
 
2,335
 
 
 
2,189
 

Current liabilities

 
 
1,491
 
 
 
1,545
 

Working capital surplus (deficit)*

 
 
(139
)
 
 
356
 

Working capital ratio**

 
0.91 to 1
 
 
1.23 to 1
 

Backlogii

 
 
1,406
 
 
 
1,189
 

*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 challenge's 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
investor.relations@memexOEE.com

David McPhail, President & CEO
905-635-1540
investor.relations@memexOEE.com

Sean Peasgood, Investor Relations
647-977-9264
sean@sophiccapital.com

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 December 31, 2019 and 2018, in the section "Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.

SOURCE: Memex Inc.

ReleaseID: 577997