BURLINGTON, ON--(Marketwired - Aug 22, 2016) - Memex Inc. ("Memex" or the "Company") (
Summary Financial Highlights for the Third Quarter Ended June 30, 2016:
- Memex reported revenue of $919 thousand, 104% higher than the same period in the prior year. Third quarter revenue was 61% higher than Q2-2016. Year-to-date sales of $2.1 million eclipsed the $2 million level for the first time in the Company's history, with one quarter still remaining in the fiscal year.
- Gross margin of 72.5% was up from 50.4% reported in the same quarter a year ago.
- Bookings 1 were $895 thousand, up 7% from the prior quarter, with year-to-date bookings exceeding $2.6 million.
- The Company showed a $447 thousand net and comprehensive loss for the quarter equating to a $0.004 loss per share. This compares with a $880 thousand net and comprehensive loss in the same quarter last year, and a $0.011 loss per share.
- At June 30, 2016 the Company had $2.7 million in current assets including more than $1.5 million in cash and $1.8 million in working capital. Subsequent to quarter end, Memex added $790 thousand to its cash reserves through 5.0 million exercised warrants primarily associated with a private placement completed in August 2014.
Q3 Fiscal 2016 and Subsequent Operational Highlights:
- In July, Memex was featured at Cisco Live (Cisco's annual technology conference), where Cisco revealed that Memex's MERLIN platform would be part of Cisco's Connected Machines portfolio of solutions. A key component of Cisco's value proposition is that MERLIN facilitates the real-time calculation of Overall Equipment Effectiveness (OEE).
- Q3 saw Memex collect 5 new customer project orders and 5 follow on orders from its current customer group. Since quarter-end Memex has added another 3 new customer projects and 2 follow on orders, including a significant project from Pioneer Products Inc.
- In April, Sun Hydraulics Corp. placed an 89 machine follow-on order for MERLIN MES Enterprise Edition Software, after completing an 11 machine initial phase.
- In June, Company Management finalized arrangements and completed the early payout of lender Business Development Bank of Canada (the "BDC"). The early payout eliminated future interest and royalty payments, and led to a one-time recovery adjustment of $74 thousand for the period.
Management Commentary:
"Our third quarter financial and operational results show that manufacturers see MERLIN's compelling value equation of delivering real returns from data-driven manufacturing," said CEO David McPhail. "We are seeing an increase of follow-on orders as existing customers transition to company-wide deployments. This organic growth along with our recent partnership announcements positon the Company to continue on its current trajectory, delivering positive IIoT centric business outcomes."
Selected Financial Information
| Three-month period ended June 30 | Nine-month period ended June 30 | |||||||||||
| (Canadian dollars - in thousands except per share and margin%) | 2016 | 2015 | change | 2016 | 2015 | change | ||||||
| Revenue | 919 | 451 | + 104% | 2,104 | 1,354 | + 55% | ||||||
| Bookings 1 | 895 | Note 1 | 2,603 | Note 1 | ||||||||
| Gross margin % | 72.5 | 50.4 | + 44% | 64.0 | 55.4 | + 16% | ||||||
| Operating expenses | 1,188 | 1,095 | + 8% | 3,571 | 2,555 | + 40% | ||||||
| Cash utilized in operating activities 2 | 565 | 724 | - 22% | 2,186 | 1,608 | + 36% | ||||||
| Net and comprehensive loss for the period | (447) | (880) | - 49% | (2,079) | (1,853) | + 12% | ||||||
| Basic and diluted loss per share - period | (0.004) | (0.011) | - 62% | (0.021) | (0.026) | - 19% | ||||||
| 1. | Memex only began collecting bookings data July 1, 2015, comparable information is not available. | |
| 2. | Before changes in non-cash working capital balances. | |
| As at (Canadian dollars - in thousands except WC ratio) | Jun 30, 2016 | Sep 30, 2015 | ||
| Cash on hand | 1,516 | 3,316 | ||
| Current assets | 2,740 | 4,219 | ||
| Total assets | 3,235 | 4,745 | ||
| Current liabilities | 985 | 990 | ||
| Working capital * | 1,755 | 3,229 | ||
| Working capital ratio ** | 2.78 to 1 | 4.26 to 1 | ||
| Backlog 1 | 782 | 409 | ||
* Working Capital = current assets - current liabilities ** Working Capital ratio = current assets / current liabilities
About Memex Inc.
Memex Inc., the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time, is the global leader in machine to machine connectivity solutions. Committed to its mission of "Successfully transforming factories of today into factories of the future" and encouraged by the accelerating adoption and success of MERLIN, Memex is relentlessly pursuing the development of increasingly innovative solutions suitable in the IIoT era. Memex envisions converting every machine into a node on the corporate network, thereby, creating visibility from shop-floor-to-top-floor. Memex, with its deep commitment towards machine connectivity, offers solutions that are focused on finding hidden capacity by measuring and managing Real-Time data. This empowers Memex's customers to effectively quantify and manage OEE, reduce costs and incorporate strategies for continuous lean improvement. For more information, please visit: www.MemexOEE.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.
1 This non-IFRS financial measure is identified, defined and reconciled to the closest IFRS measure, revenue, within our Management's Discussion and Analysis for the three and nine month periods ended June 30, 2016 and 2015, in the section "Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.
For investor inquiries please contact: Ed Crymble Chief Financial Officer 905-331-4343 Email Contact David McPhail President & CEO 519-993-1114 Email Contact Sean Peasgood Investor Relations 416-565-2801 Email Contact
