BURLINGTON, ON / ACCESSWIRE / August 28, 2017 / Memex Inc. ("Memex" or the "Company") (TSX-V: OEE), a global leader in
Industrial Internet of Things (IIoT) manufacturing productivity software, today released its third quarter financial and
operational highlights for its 2017 fiscal year, which ended June 30, 2017. All results are reported in Canadian dollars.
Summary Financial Highlights for the Third Quarter Ended June 30, 2017:
- Memex reported revenue of $529 thousand, 42% lower
than the same quarter a year ago, but up 52% sequentially; - Gross margin of 56.4% was down from 72.5% reported the same quarter a
year ago - (excluding Amortization and Client Services labour, which was down 16.1% in Q3-2017 vs 2016, gross margin is down only
7.3%). - Bookings[i] for the quarter were a record $1.04 million, up 16% from the same quarter a year ago, and 82% higher than
Q2-2017; - The Company reported a net and comprehensive loss of $1.078 million for the quarter, equating to a $0.009 loss per
share. This compares with a $447 thousand net and comprehensive loss in Q3 last year, and a $0.004 loss per share. - At June 30,
2017, the Company had $2.34 million in current assets including $1.60 million in cash and $976 thousand in working capital.
Management Commentary:
"Memex began F2017 with clients sitting on the side-lines due to uncertainties introduced during the 2016 U.S. election that
impacted much of the discretionary spending within the US manufacturing sector. Mid-way through our third quarter this client
behaviour appears to have shifted and we experienced a significant ramp in current and new customer engagement. Although our third
quarter results were down year-over-year, we did improve by more than 50% over the prior quarter and are pleased to report record
bookings of $1 million during Q3, as well as exiting the quarter with record backlog near $1.6 million," said David McPhail,
President and CEO of Memex. "In addition, since the end of June we have announced over $480 thousand in purchase orders as demand
from the U.S. manufacturing sector continues to ramp and more importantly, we recently announced our largest single-customer
deployment with a plant wide adoption of our technology. Recent industry data also portrays an improving macro picture, with a U.S
Commerce Department survey that showed factory activity rising to a 3-year high, and the U.S. Cutting Tool Institute report that
June consumption increased 6% year-over-year, and year-to-date was up 5.8% compared to the same period in 2016. Based on our
conversations with customers and prospects, we expect these trends to continue."
Selected Financial Information for Q3 2017
Three-months period ended June 30 Nine-months period ended June 30 (Canadian
dollars – in thousands except per share and margin%) 2017 2016 Change 2017 2016 Change Revenue 529 919 - 42 % 1,381 2,104 - 34 %
Bookingsi 1,041 895 + 16 % 2,004 2,605 - 23 % Gross margin % 56.4 72.5 50.5 64.0 Operating expenses 1,364 1,188 + 15 % 3,799 3,571
+ 6 % Cash utilized in operating activities1 1,005 441 + 128 % (2,910 ) (2,061 ) + 41 % Net and comprehensive loss for the period
(1,078 ) (447 ) + 141 % (3,103 ) (2,079 ) + 49 % Basic and diluted loss per share - period (0.009 ) (0.004 ) + 113 % (0.027 )
(0.021 ) - 29 %
1. Before changes in non-cash working capital balances.
As at (Canadian dollars – in thousands except WC ratio) June 30, 2017
September 30, 2016 Cash on hand 1,601 2,899 Current assets 2,339 4,156 Total assets 2,782 4,639 Current liabilities 1,363 1,047
Working capital* 976 3,109 Working capital ratio** 1.72 to 1 3.97 to 1 Backlogii 1,567 848
* Working Capital = current assets – current liabilities
** Working Capital ratio = current assets / current liabilities
Summary Financial Highlights for the Nine-months Ended June 30, 2017:
- Memex reported revenue of $1.381 million, 34% lower
than the same period a year ago; - Gross margin of 50.5% was down from 64.0% reported the same period a year ago (excluding
Amortization and Client Services labour, which is up 1.3% in the current YTD, GM% is down only 3.9% YTD over a year ago).; -
Bookings[ii] for the period were $2.00 million, down 23% from the same period a year ago; - The Company reported a net and
comprehensive loss of $3.10 million for the period, equating to a $0.027 loss per share. This compares with a $2.08 million net and
comprehensive loss in the prior year period, and a $0.021 loss per share; and
Q3 2017 and Subsequent Operational Highlights:
- Memex generated $1.04 million in bookings for Q3-2017, its highest ever
quarterly achievement, and finished the quarter with $1.57 million in backlog, the highest level the Company has ever seen; - The
Company secured its largest ever single-customer project, SEW Eurodrive, worth more than $450 thousand dollars for a plant-wide
MERLIN implementation; - The Company restructured its Sales Management and hired new VP of Sales, John Artman, to mine Memex's
existing U.S. Pipeline, and to develop new markets and growth opportunities; - The Company engaged SalesForce to assist and monitor
the Company's sales development activities; and - The Company announced (via Press Release) August 21, 2017 its engagement of Eight
Capital to assist in raising $1.5 million to $2.0 million in capital through the sale of Memex securities.
About Memex Inc.
Memex was founded with a vision to improve the way automated machine and production equipment work and connect on the factory
floor. Since then Memex has proved itself a pioneer in IIoT time and again. The company is committed to its mission of
"successfully transforming factories of today into factories of the future" and envisions converting every machine into a node on
the corporate network, creating visibility from shop-floor-to-top-floor. Memex is the developer of MERLIN, an award-winning IIoT
technology platform that delivers tangible increases in manufacturing productivity in Real-Time. Memex's software and hardware IIoT
solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products
have enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average.
Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300
per cent. For more information, please visit: www.MemexOEE.com.
For investor inquiries please contact:
Ed Crymble, Chief Financial Officer 905-331-4343 ed.crymble@MemexOEE.com
David McPhail, President & CEO 519-993-1114 david.mcphail@MemexOEE.com
Sean Peasgood, Investor Relations 416-565-2801 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 March 31, 2017 and 2016, in the section
"Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.
SOURCE: Memex Inc.
