Memex Inc. Releases Q2 – 2016 : Results Investment in Sales Infrastructure Paying Off

Burlington, ON, Canada – May 16, 2016 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE) a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its financial results and operational highlights for its second quarter of fiscal 2016 which ended March 31, 2016. All results are reported in Canadian dollars.

Financial Highlights for the Second Quarter Ended March 31, 2016:

·         Memex generated quarterly revenue of $571 thousand, 42% or $169 thousand, higher than the same period in the prior year, and 7% lower than Q1-2016.

·         Memex 53.4% gross margin for the quarter ($305 thousand in gross profit), was down 3.3% from the same quarter a year ago and 7.7% from Q1-2016. A higher hardware to software sales mix in the current quarter accounts for the decline.

·         Unearned revenue of $536 thousand closed the quarter up $54 thousand from December 31, 2016’s close and was $46 thousand off its highest level of $582 thousand at September 30, 2015.

·         Bookings[i] for the quarter were $833 thousand, down 5% from the prior quarter, but up 50% or $276 thousand from Q4-2015.

·         The Company showed a $991 thousand net and comprehensive loss for the quarter equating to a $0.01 loss per share.  This compares with a $512 thousand net and comprehensive loss in the same quarter last year, and a $0.007 loss per share.

·         At the end of the Q2 the Company had more than $3.0 million in current assets including more than $2.2 million in cash and $2.1 million in working capital.

 

Q2 Fiscal 2016 and Subsequent Operational Highlights:

  • In February, Memex received a substantial follow-on order from Kuss Filtration Inc. for 43 MERLIN licences as part of a multi-plant roll-out in the US, China, and Brazil. Memex also generated 5 new customer orders, and more than ten follow on orders from existing customers in the quarter.
  • Memex’s CEO and CTO were recognized by Smart Manufacturing Magazine as two of the top 30 advanced manufacturing visionaries.
  • In April, Memex launched MERLIN OPTime, a free downloadable real-time dashboard for manufacturing analytics.
  • In April, Sun Hydraulics Corp. placed an 89 machine follow-on order for MERLIN MES Enterprise Edition Software, after an 11 machine initial phase.

 

Management Commentary:

Memex’s President & CEO David McPhail said, “We continue to see strong interest in MERLIN with both follow-on orders from existing customers and new customers buying our solutions. Our investment into sales and marketing is paying off with substantial revenue gains over prior periods, and no reason not to expect the trend to continue.”

 

About Memex Inc.

Memex is a leading Industrial Internet of Things (IIoT) technology platform provider that delivers real-time manufacturing productivity analytics. Industrial strength MERLIN software provides Overall Equipment Effectiveness (OEE) efficiency metrics in real time, from shop-floor-to-top-floor. Specifically, MERLIN delivers a 10%-50% average productivity increase, and earns 20%-plus profit improvement based on just a 10% increase in OEE. It consistently achieves payback in less than four months with an Internal Rate of Return (IRR) greater than 300%, and connects to any machine, old or new, utilizing native MTConnect, other protocols or MERLIN hardware adapters for older machines. For more information, please visit: www.MemexOEE.com

 

For investor inquiries please contact:

 

Ed Crymble, Chief Financial Officer

905-635-1540 ext. 110

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] 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 six month periods ended March 31, 2016 and 2015, in the section “Other Financial Measures.”  That MD&A is available at www.sedar.com under our company profile.

Memex Inc. Grants Share Options

Burlington, ON, Canada – February 29, 2016 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE) a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, announces that, effective Friday, February 26, 2016, it has granted an aggregate of 480,000 share options to four directors of the Company. The share options are exercisable at a price of $0.14 per share and vest over the next three years. One-third vested immediately upon grant, another third vest on February 26, 2017 and the remaining third vest on February 26, 2018. The share options expire on February 26, 2021.

About Memex Inc.

Memex is a leading Industrial Internet of Things (IIoT) technology platform provider that delivers real-time manufacturing productivity analytics. Industrial strength MERLIN software provides Overall Equipment Effectiveness (OEE) efficiency metrics in real time, from shop-floor-to-top-floor. Specifically, MERLIN delivers a 10%-50% average productivity increase, and earns 20%-plus profit improvement based on just a 10% increase in OEE. It consistently achieves payback in less than four months with an Internal Rate of Return (IRR) greater than 300%, and connects to any machine, old or new, utilizing native MTConnect, other protocols or MERLIN hardware adapters for older machines. For more information, please visit: www.MemexOEE.com

For investor inquiries please contact:

David McPhail, President & CEO, Memex Inc.

519-993-1114

david.mcphail@MemexOEE.com

Ed Crymble, Chief Financial Officer, Memex Inc.

905-635-1540 ext. 110

ed.crymble@MemexOEE.com

Sean Peasgood, Investor Relations, Sophic Capital

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.

Memex Inc. Releases Q1 – 2016 Results with Fourth Consecutive Quarter of Revenue Growth

Burlington, ON, Canada – February 22, 2016 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE) a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its financial results and operational highlights for its first quarter of fiscal 2016 which ended December 31, 2015. All results are reported in Canadian dollars.

Financial Highlights for the First Quarter Ended December 31, 2015:

  • Memex generated record quarterly revenue of $614 thousand, $113 thousand higher than the same period in the prior year, and 7% higher than the fourth quarter of 2015. The Company also marked its fourth consecutive quarter of revenue growth.
  • Memex produced gross margin of $375 thousand, 27% higher than the same quarter in the prior year.
  • Unearned revenue of $482 thousand closed the quarter down $100 thousand from the Company’s record high of $582 thousand at the end of Q4-2015.
  • Memex’s sales force turned in $876 thousand in product bookings[i] for the quarter, 58% or $320 thousand more than Q4-2015.
  • The Company showed a $641 thousand net and comprehensive loss for the quarter equating to a $0.007 loss per share. This compares with a $461 thousand net and comprehensive loss in the same quarter last year, and a similar $0.007 loss per share.

Q1 Fiscal 2016 and Subsequent Operational Highlights:

  • Memex bolstered its sales and marketing infrastructure with the addition of a VP Marketing and three new US-based sales representatives. In January 2016 the Company also added a Director of Manufacturing Excellence to accelerate MERLIN adoption by larger high-potential existing customers.
  • On October 27-29 and November 3-5 at DISCOVER 2015 (Mazak Corporation’s Technology and Education event), MERLIN software along with hardware from information technology (IT) leader Cisco Systems, Inc. was showcased in an industry-first collaborative platform called SmartBox. The launch took place in front of metalworking managers and C-level executives. The co-promotion with Mazak and Cisco led to multiple media stories, blogs, and videos mainly in manufacturing trade press.
  • In December Memex received significant new orders from Aero Pacific Corporation in Placentia, CA. (30 MERLIN licenses and 28 MTConnect hardware adapters), and Homeyer Precision Manufacturing Co. in Marthasville, MO (23 licenses and 9 hardware adapters).
  • On January 18th, Memex was profiled in the National Post’s Entrepreneur section with the headline “Memex wins over industry giants.” The article explained how eight focused years of work on strategic partnerships resulted in successes with multinational giants Cisco and Mazak.
  • In February Memex received a substantial follow-on order from Kuss Filtration Inc. for 43 MERLIN licences as part of a multi-plant roll-out in the US, China, and Brazil. 

Management Commentary:

Memex’s President & CEO David McPhail stated, “The Industrial Internet of Things, or IIoT, represents the next industrial revolution, and Memex’s flagship software product MERLIN is planted squarely in the middle of this manufacturing mega-trend. Our latest quarterly results, representing our fourth consecutive quarter of growth strongly indicate that manufacturers around the world see the value of our unique combination of industrial connectivity and analytics to drive productivity and profit. I want to thank our customers for their trust and our employees for their hard work to achieve these results.”

About Memex Inc.

Memex is a leading Industrial Internet of Things (IIoT) technology platform provider that delivers real-time manufacturing productivity analytics. Industrial strength MERLIN software provides Overall Equipment Effectiveness (OEE) efficiency metrics in real time, from shop-floor-to-top-floor. Specifically, MERLIN delivers a 10%-50% average productivity increase, and earns 20%-plus profit improvement based on just a 10% increase in OEE. It consistently achieves payback in less than four months with an Internal Rate of Return (IRR) greater than 300%, and connects to any machine, old or new, utilizing native MTConnect, other protocols or MERLIN hardware adapters for older machines. For more information, please visit: www.MemexOEE.com

For investor inquiries please contact:

David McPhail, President & CEO

519-993-1114

david.mcphail@MemexOEE.com

Ed Crymble, Chief Financial Officer

905-635-1540 ext. 110

ed.crymble@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] 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 month periods ended December 31, 2015 and 2014, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.