Memex Inc. Reports Q2-2019 Results
Burlington, ON, Canada – May 30, 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 second quarter of 2019 ending March 31, 2019. All results are reported in Canadian dollars. A complete set of March 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 March 31, 2019:
- Memex reported revenue of $709 thousand for the three-month period, as compared to $764 thousand in the same period a year ago (a 7% decrease);
- Bookingsi for the period totalled $843 thousand versus $633 thousand in the same period a year ago, a 33% increase;
- The Company finished the period with $1.28 million in project backlogii, $181 thousand more than at September 30, 2018;
- Gross margin was 72% for the period compared to 71% for the year-ago period;
- Cash consumed from operations in Q2-2019 (before changes in non-cash items) was $265 thousand, equating to $151 thousand or 36% less consumed than the same period a year ago;
- Net and comprehensive loss for the period was $332 thousand ($0.002 per share), compared to $511 thousand ($0.004 per share) for the same period a year ago; and
- The Company had $759 thousand in working capital, including $1.06 million in cash at March 31, 2018, as compared with $723 thousand in working capital and $1.05 million in cash at September 30, 2018.
Summary financial highlights for the six-months ended March 31, 2019:
- Memex reported revenue of $1.40 million for the six-month period, as compared to $1.13 million in the same period a year ago (a 25% increase);
- Bookingsi for the period totalled $1.89 million – a record six-month start for the Company, versus $1.29 million in the same period a year ago, a 46% increase;
- Year-to-date (YTD) Gross margin was 70% for compared to 62% for the year-ago period;
- Cash consumed from operations in YTD-2019 (before changes in non-cash items) was $566 thousand, equating to $751 thousand or 57% less consumed than the same period a year ago; and
- YTD Net and comprehensive loss was $680 thousand ($0.005 per share), compared to $1.50 million ($0.011 per share) for the same period a year ago.
Operational and other highlights:
- On March 28th Memex completed its negotiations with affiliates of G&G Private Capital (“G&G”) who agreed to provide up to $1.4 million in loan facilities in combination with $100 thousand provided from Officers of Memex for a total of $1.5 million dollars in potential loan facility financing. An initial tranche of $750 thousand ($700 thousand from G&G) was received by Memex on March 28th.
- In March the Company secured its first significant recurring software subscription contract (Memex offers both perpetual and ongoing subscription software licensing) with a subsidiary of Ford Motor Company to provide 72 subscription licenses to use MERLIN Tempus Enterprise Edition. In addition to software the Company will be providing installation and support services which are expected to be substantially completed during the current fiscal year.
- Company President and C.E.O. David McPhail continued his series of thought leadership presentations while at EASTEC 2019 (May 14-16, 2019 | Eastern States Exposition, West Springfield, Massachusetts). His topics included “5 Steps to Success: Cashing in on the Promise of Data-Driven Manufacturing” and “Fueling Continuous Improvement with Real-time Data – The Underlying ROI / Business Case.”
- MERLIN Tempus will be available for operational deployment from the MindSphere platform, as of Mid-June 2019. Customers will be able to securely deploy and manage their own MindSphere-driven applications from this site. 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.
- The Company held its fiscal 2018 Annual General Meeting in Burlington on March 21, 2019 where the financial statements, re-appointment of Auditors (MNP) and Stock Option Plans were all approved, and the Board of Directors were re-appointed.
Management commentary:
“We’re pleased that our bookings and backlog remain strong,” said Memex CEO David McPhail. “The loan facilities we negotiated with G&G have significantly strengthened our Balance Sheet. And as one of the Officers who invested alongside these loan facilities, I’m confident that Memex will capitalize on the pipeline opportunities ahead of us.”
Selected financial information:
|
Three-months periods ended March 31
|
Six-months periods ended March 31
|
||||||
| (Canadian dollars – in thousands except per share and margin%) | 2019 | 2018 | Change |
|
2019 | 2018 | Change |
| Revenue | 709 | 764 | – 7% | 1,402 | 1,126 | + 25% | |
| Bookingsi | 844 | 633 | + 33% | 1,886 | 1,293 | + 46% | |
| Gross margin % | 72.3 | 71.1 | + 2% | 69.7 | 62.0 | + 12% | |
| Operating expenses | 832 | 1,041 | – 20% | 1,631 | 2,168 | – 25% | |
| Cash utilized in operating activities1 | 265 | 416 | – 36% | 566 | 1,317 | – 57% | |
| Net and comprehensive loss for the period | 332 | 511 | – 35% | 680 | 1,497 | – 55% | |
| Basic and diluted loss per share – period | (0.002) | (0.004) | – 26% | (0.005) | (0.011) | – 55% | |
- Before changes in non-cash working capital balances.
|
As at (Canadian dollars – in thousands except WC ratio)
|
March 31, 2019 | September 30, 2018 |
|
||||
| Cash on hand | 1,059 | 1,048 | |||||
| Current assets | 2,449 | 1,964 | |||||
| Total assets | 2,772 | 2,319 | |||||
| Current liabilities | 1,690 | 1,241 | |||||
| Working capital* | 759 | 723 | |||||
| Working capital ratio** | 1.45 to 1 | 1.58 to 1 | |||||
| Backlogii | 1,281 | 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 investor.relations@memexOEE.com
|
David McPhail, President & CEO
905-635-1540 investor.relations@memexOEE.com
|
Sean Peasgood, Investor Relations
647-977-9264
Forward-Looking Statements
The statement relating to the future delivery of products and services “…installation and support services which are expected to be substantially completed during the current fiscal year,” and the comment from David McPhail “I’m confident that Memex will capitalize on the pipeline opportunities ahead of us” are forward-looking statements. However, there is no guarantee that the contemplated installation and support services will be completed by the end of the fiscal year, or ever, nor that the Company will be able to capitalize on its current pipeline of opportunities. No forward-looking statements 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.
_________________________________
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, 2019 and 2018, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under
Memex Inc. Secures up to $1.5 Million in Loan Facilities
BURLINGTON, ON / ACCESSWIRE / March 28, 2019 / Memex Inc. (“Memex” or the “Company“) (TSX-V: OEE), a global leader in Industrial Internet of Things (“IIoT“) manufacturing productivity software, is pleased to announce it has finalized loan facilities arrangements with affiliates of G&G Private Capital (“G&G“) (for up to $1.4 million) and Officers of Memex (for up to $100 thousand) (collectively the “Lenders“), for a total of $1.5 million dollars (collectively, the “Loan“). The details of this now finalized Loan agreement were first announced February 26, 2019.
The first tranche of the loan, advanced March 28th, was for $750 thousand ($700 thousand from G&G and $50 thousand from Company Officers). Subsequent drawdowns could become available to the Company in April 2020 provided the Company achieves specific operational milestones related to bookings, revenue and operational performance and would be done in the same ratio between G&G and Company Officers. The proceeds of the Loan will be used by the Company to support ongoing operations and is secured by a first charge general security agreement against Company assets.
As previously announced, outstanding principal on the Loan bears interest at a rate of Royal Bank Prime Rate + 8% per annum payable in cash or, with a 35% premium to the cash price, payable in common shares of the Company (the “Shares“), the Shares being valued at the closing price of the Company’s Shares as traded on the TSX Venture Exchange on the last trading day preceding payment. Drawdown fees of 1.5% of the value of each tranche are payable at the time of drawdown, with a total of $11,250 being paid out already with the first tranche. No repayment of outstanding principal is required until April 2020, and the loan matures March 2022.
In connection with the initial tranche of the Loan, the Company issued the Lenders non-transferable Share purchase warrants (the “Warrants“) received a total of 3.75 million Warrants (3.5 million to G&G) exercisable at $0.05. The number of Warrants to be issued with any subsequent tranches would be equivalent to the number obtained by dividing ¼ (25%) of the drawdown amount by the closing price of the Company’s Shares as traded on the TSX Venture Exchange on the last trading day prior to the drawdown. These Warrants would have an exercise price equivalent to that trading value. Expiry of the Warrants would coincide with the maturity of the Loan.
“G&G’s engagement with Memex comes at a key moment in the company’s development,” said David McPhail, Memex’s CEO. “Operationally, while Memex is executing well on the metrics that matter-bookings, backlog, revenues, margins, and cash flow generation-we believe the share price does not currently reflect the improving trend in results reported in fiscal Q4 and confirmed in fiscal Q1.”
“Having now worked with their leadership team over the past month and developing a more in depth understanding of their business model and positioning within the Industrial Internet of Things (“IIoT”) marketspace G&G Private Capital is excited to be getting involved with Memex at this stage of their development” said Gregory Ellis, G&G Principal.
About G&G Private Capital:
G&G Private Capital Inc. (“G&G”), based in Toronto, Canada is an independent finance and investment company that provides private and public companies with debt and/or equity financing. G&G’s principals are experienced business people and former entrepreneurs focused on the capital and investments needs of high-growth technology companies. G&G works with profitable and near-profitable organizations and aligns itself with the long-term interests of its clients.
Options Grant to Sophic Capital:
As part of its ongoing capital markets advisory services arrangement with Sophic Capital (“Sophic”), on March 27, 2019 the Company granted Sophic 500,000 Stock Compensation Options (“Options”). These Options have an exercise value of $0.05, will vest in equal tranches over a twelve-month period, and expire in March 2022.
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
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
Forward-Looking Statements
Statements relating to any subsequent drawdowns under the Loan are forward-looking statements. Any subsequent drawdowns will be subject to the Company achieving specific operational milestones primarily related to bookings, revenue and operational performance. There can be no guarantee 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.
Memex Inc. Reports Q1-2019 Results Record Quarterly Bookings, $1.5M Loan Facility Term Sheet Signed
Burlington, ON, Canada – 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% | ||||
- 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 |
David McPhail, President & CEO
905-635-1540 |
Sean Peasgood, Investor Relations
647-977-9264
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.
_________________________________
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 atwww.sedar.com under our company profile.
Memex Inc. Signs Term Sheet for up to $1.5 Million in Loan Facilities
BURLINGTON, ON / ACCESSWIRE / February 26, 2019 / Memex Inc. (”Memex” or the ”Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, is pleased to announce it has signed a non-binding term sheet with affiliates of G&G Private Capital (”G&G”) (for up to $1.4 million) and Officers of Memex (for up to $100 thousand) (collectively the ”Lenders”), for a total of $1.5 million dollars (collectively, the ”Loan”), with G&G currently going through their due diligence process. Provided G&G agrees to proceed, the first tranche of the loan would be for an aggregate amount of $750 thousand ($700 thousand from G&G and $50 thousand from Company Officers). Subsequent drawdowns will be done in the same ratio between G&G and Company Officers and will be available to the Company beginning after 12 months from the initial drawdown subject to the Company achieving specific operational milestones primarily related to bookings and revenue.
Outstanding principal of the Loan would bear interest at a rate of Royal Bank Prime Rate + 8% per annum payable in cash or, with a 35% premium to the cash price, payable in common shares of the Company (the ”Shares”), the Shares being valued at the closing price of the Company’s Shares as traded on the TSX Venture Exchange on the last trading day preceding payment. Drawdown fees of 1.5% of the value of each tranche would also be payable at the time of drawdown. No repayment of outstanding principal would be required in the first twelve months of the Loan which would mature 36 months from the closing date. The proceeds of the Loan will be used by the Company to support ongoing operations. The Loan would be secured by a first charge general security agreement against Company assets.
In connection with the proposed Loan, the Company would also issue the Lenders non-transferable Share purchase warrants (the ”Warrants”) with each drawdown. For the first $750 thousand the Lenders would receive a total of 3.75 million Warrants (3.5 million to G&G ) exercisable at $0.05. The number of Warrants issued for any subsequent tranches would be equivalent to the number obtained by dividing 1/4 (25%) of the drawdown amount by the closing price of the Company’s Shares as traded on the TSX Venture Exchange on the last trading day prior to the drawdown. These Warrants would have an exercise price equivalent to that trading value. Expiry of the Warrants would coincide with the maturity of the Loan. Issuance of the Warrants is a condition of closing of the financing and is subject to the acceptance of the TSX Venture Exchange.
”Memex is very pleased to undertake this financing arrangement,” said David McPhail, Memex CEO. ”G&G’s knowledge of the software industry and their experience in the capital markets will provide tremendous strategic value.”
”Given the strength of Memex’s leadership team, their technology platform and their market presence within the digitally driven manufacturing and Industrial Internet of Things marketspace, we believe Memex is uniquely positioned with significant potential,” said Gregory Ellis, G&G Principal. ”This financing will strengthen Memex’s balance sheet and secure their position as they expand their market dominance.”
About G&G Private Capital:
G&G Private Capital Inc. (”G&G”), based in Toronto, Canada is an independent finance and investment company that provides private and public companies with debt and/or equity financing. G&G’s principals are experienced business people and former entrepreneurs focused on the capital and investments needs of high-growth technology companies. G&G works with profitable and near-profitable organizations and aligns itself with the long-term interests of its clients.
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 |
David McPhail, President & CEO
905-635-1540 |
Sean Peasgood, Investor Relations
647-977-9264
sean@sophiccapital.com
Forward-Looking Statements
Statements relating to the initial closing of the financing or any subsequent drawdowns are forward-looking statements. However, the initial 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. Further, any subsequent drawdowns will be subject to the Company achieving specific operational milestones primarily related to bookings and revenue. There can be no guarantee that closing of the financing will occur or, of 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.
Memex Inc. Reports Record Q4-2018 Results Momentum Continues with Record Bookings in Q1-2019
Monday, January 14, 2019 6:00 AM
BURLINGTON, ON / ACCESSWIRE / January 14, 2019 / Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its annual financial and operational highlights for its fiscal year ending September 30, 2018. All results are reported in Canadian dollars. A complete set of the Audited September 30, 2018 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com.
Summary financial highlights for the three-months ended September 30, 2018:
- Memex reported a record revenue quarter – $1.08 million for the three-month period, surpassing one million dollars for the first time. This compares to $626 thousand in revenue in the same period a year ago (a 72% increase) and $650 thousand in Q3-2018 (a 66% increase);
- Gross margin was 82% (77% after Q4 adjustment) for the period compared to 66% for the year-ago period, the increase was due primarily to higher sales volume;
- Cash consumed from operations in Q4-2018 (before changes in non-cash items) was $22 thousand, the lowest quarterly consumption in the Company’s history;
- Bookingsi for the period totalled $420 thousand versus $365 thousand in the same period a year ago, a 15% increase; and
- Net and comprehensive loss for the period was $70 thousand ($0.001 per share), compared to $881 thousand ($0.008 per share) for the same period a year ago, the Company’s best operational result ever.
Summary financial highlights for the year ended September 30, 2018:
- Memex reported $2.85 million in revenue for fiscal 2018, a 42% increase compared to $2.01 million in fiscal 2017;
- Gross margin was 70% versus 55% for the twelve months ended September 30, 2017;
- The Company showed a $2.2 million net and comprehensive loss for 2018, equating to an $0.017 loss per share, compared to a $3.98 million net and comprehensive loss for fiscal 2017, and a $0.034 loss per share;
- Bookings for the year totalled $2.75 million, up 16% from a year ago;
- The Company finished the year with $1.10 million in project backlog, $211 thousand less than a year ago, and $680 thousand less than the end of Q3-2018;
- Cash consumed from operating activities (before changes in working capital balances) was $1.95 million for the year, down $1.74 million (47%) from the same period last year; and
- The Company had $723 thousand in working capital, including $1.05 million in cash at September 30, 2018, as compared with $2.79 million in working capital and $3.46 million in cash at September 30, 2017.
Other operational and subsequent to year-end highlights:
- Record bookings were achieved in Q1-2019, ending December 31st, 2018 of just over $1.0 million. These strong bookings came on the back of participation at the International Manufacturing Technology Show (“IMTS”) in Chicago in September which continues to draw increased interest through inquires and requests for demos and more information about MERLIN Tempus.
- The evolution of Tempus has continued with the development of add-on feature, MERLIN Performance Management Model (“MPMM”), available for use with the latest version release. MPMM is designed to leverage existing Continuous Improvement (“CI”) resources and expertise to quickly identify and target CI initiatives enterprise wide.
- Memex has developed relationships with several large Enterprise Resource Planning (“ERP”) solutions providers to seamlessly integrate MERLIN Tempus with leading ERP systems and provide unparalleled shop floor to top floor visibility. This capability has already resulted in several new customer wins and the expansion of existing customer deployments.
Management commentary:
“Demonstrated by our record revenue quarter in the fourth quarter, we’re seeing the adoption curve for data-driven manufacturing flatten out,” said Memex CEO Dave McPhail. “We have definitely seen an increase in sales activity following IMTS, and customers who have deployed MERLIN Tempus over the last several quarters are extremely pleased with its functionality and ROI. Although our first fiscal quarter of 2019 ending December 31st, 2018 is generally weaker due to holiday shutdowns in the manufacturing industry, I am very encouraged that we ended the quarter with record bookings of just over $1.0 million. Our pipeline of opportunities continues to solidify, and we expect additional order flow from new and existing customers throughout fiscal 2019.”
Selected financial information:
| Three-months period ended September 30 |
Twelve-months period ended September 30 |
|||||
| (Canadian dollars – in thousands except per share and margin%) | 2018 | 2017 | Change | 2018 | 2017 | Change |
| Revenue | 1,077 | 626 | +72% | 2,853 | 2,008 | +42% |
| Bookingsi | 420 | 364 | +16% | 2,751 | 2,371 | +16% |
| Gross margin % | 81.9 | 66.5 | +23% | 69.9 | 55.4 | +26% |
| Operating expenses | 939 | 1,284 | -27% | 4,195 | 5,083 | -17% |
| Cash utilized in operating activities1 | 22 | 779 | -97% | 1,949 | 3,689 | -47% |
| Net and comprehensive loss for the period | 70 | 881 | -92% | 2,254 | 3,984 | -43% |
| Basic and diluted loss per share – period | 0.001 | 0.008 | -93% | 0.017 | 0.034 | -51% |
- Before changes in non-cash working capital balances.
| As at (Canadian dollars – in thousands except WC ratio) | September 30, 2018 | September 30, 2017 |
| Cash on hand | 1,048 | 3,458 |
| Current assets | 1,964 | 4,104 |
| Total assets | 2,319 | 4,522 |
| Current liabilities | 1,241 | 1,313 |
| Working capital * | 723 | 2,791 |
| Working capital ratio** | 1.58 to 1 | 3.13 to 1 |
| Backlogii | 1,100 | 1,311 |
* 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 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 years ended September 30, 2018 and 2017, in the section “Other Financial Measures.” That MD&A is available atwww.sedar.com under our company profile.
MEMEX to Unveil MERLIN Performance Management Model at IMTS 2018
BURLINGTON, ON / ACCESSWIRE / September 12, 2018 / MEMEX Inc. (“MEMEX” or the “Company”) (TSX-V: OEE) unveiled its MERLIN Performance Management Model (MPMM) this week at the International Manufacturing Technology Show (IMTS) 2018, in Chicago. MEMEX is located at booth 133368.
Building upon the power of MERLIN Tempus, MPMM is a measurement framework that quantifies the effectiveness of a Data-Driven Manufacturing strategy on identified organizational objectives.
“By adding MEMEX’s MPMM to our product portfolio, we now offer manufacturers a comprehensive start-to-end Data-Driven Manufacturing solution,” says David McPhail, CEO & President, MEMEX Inc.
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 inquiries please contact:
Sean Peasgood, Investor Relations
647-977-9264
sean@sophiccapital.com
| Rashi Rathore, Marketing Manager
905-635-1540 |
David McPhail, President & CEO
905-635-1540 |
MEMEX demonstrates MTC-One at IMTS 2018
BURLINGTON, ON / ACCESSWIRE / September 10, 2018 / MEMEX Inc. (“MEMEX” or the “Company”) (TSX-V: OEE), will be demonstrating its MTC-One all week at the International Manufacturing Technology show (IMTS) 2018, in Chicago. The MTC-One, one of world’s most advanced and easiest to configure MTConnect® connectivity boards is MEMEX’s third generation offering. This component addresses the “last meter” challenge and ensures no machine is left behind on the plant floor. MEMEX has its entire MERLIN line-up of products on display at McCormick Place booth 133368 through to September 15th.
“We believe in providing our customers with a complete solution for their Data-Driven Manufacturing needs,” says David McPhail, CEO & President, MEMEX Inc. “One of the core elements of the solution is our MTC-One IIoT hardware which allows manufactures to connect all their machines, including those older legacy devices, into their network and draw accurate real-time production data from these machines.”
About MEMEX Inc.
Established in 1992, MEMEX grew to be an industry leader in Industry Internet of Things (IIoT) through 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 inquiries please contact:
Rashi Rathore, Marketing Manager
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
MEMEX Inc. to Showcase MERLIN Tempus at IMTS 2018: The Next Generation of Data-Driven Manufacturing Software
BURLINGTON, ON / ACCESSWIRE / September 6, 2018 / MEMEX Inc. (“MEMEX” or the “Company”) (TSX-V: OEE) is proud to announce that it will be showcasing and demonstrating its latest release of MERLIN Tempus Enterprise Edition (EE) at the International Manufacturing Technology show (IMTS) 2018, being held at McCormick Place in Chicago. The show runs from September 10th through the 15th, and MEMEX will be located at booth 133368.
Developed utilizing the latest technology (HTML5, .NET, RESTful API’s), MERLIN Tempus’ real-time data collection capabilities can capture machine-generated information and real-time sensor data including alarm states, feed and speed rate overrides, as well as various other green-light metrics. This data can then be contextualized in a wide array of easy-to-read visual dashboards and KPI reports.
Tempus provides for easy navigation and has many enhanced features useful to production personnel, engineers, operators and managers for shop floor production operations, including role-based dashboards, Op-Step management functionality, priority and alternate machine routings, asset management, traceability, event manager pan and zoom, analytics, and advanced data source conditioning. The ‘enterprise edition’ allows for all this plus, with its new durable gateway architecture, allows for multi-plant operations across time zones. The EE also offers bi-directional communication to virtually all ERP systems.
“The 5-steps to success in Data-Driven Manufacturing are: Connect – Visualize – Analyze – Optimize – Monetize. MERLIN Tempus allows manufacturers to take control of this process and optimize operational efficiency at a whole new level.”, says David McPhail, CEO & President, MEMEX Inc., “This release of MERLIN is the most scalable and powerful plant monitoring software in the Company’s history.”
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 inquiries please contact:
Sean Peasgood, Investor Relations
647-977-9264
sean@sophiccapital.com
| Rashi Rathore, Marketing Manager
905-635-1540 |
David McPhail, President & CEO
905-635-1540 |
Memex Inc. Releases Q3-F2018 Financial Results and Provides Improving Outlook
Burlington, ON, Canada – August 15, 2018 – 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 highlights for the third quarter ending June 30, 2018. All results are reported in Canadian dollars. A complete set of the June 30, 2018 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com.
Summary Financial Highlights for the Three-months ended June 30, 2018:
- Memex reported $650 thousand in revenue during the third quarter, up 23% from the $529 thousand in the year-ago quarter;
- Gross margin was 64% during the quarter compared to 56% in the year-ago quarter, due to the higher gross sales and relatively flat directs costs;
- Net and comprehensive loss was $687 thousand ($0.005 per share) compared to a $1.08 million loss ($0.009 per share) in the year-ago quarter, and $511 thousand ($0.004 per share) last quarter;
- Bookingsi for the quarter were $1.04 million, similar to Q3-F2017 and an increase of 64% from $632 thousand in the prior quarter;
- Cash consumed from operating activities (before changes in working capital balances) was $610 thousand for the current period, an improvement of $396 thousand from the same period a year ago, and;
- Memex had $1.47 million in cash at June 30, 2018, as compared with $1.78 million in cash at March 31, 2018.
Management Commentary:
“Once again, I am pleased with both the sequential and year-over-year improvement in revenue, gross margin, and bookings in Q3,” said Memex President and CEO David McPhail. “Coming out of the quarter, we are seeing increased follow-on orders and demand from existing customers. We are also seeing more highly motivated new prospects than ever before and we can only expect this to grow after we showcase our technology at IMTS 2018 – North America’s largest manufacturing trade show – in Chicago this coming September. Until then, we are focusing on closing advanced sales opportunities and remain confident that we can achieve a break-even run rate by the fourth quarter of calendar 2018.”
Summary Financial Highlights for the Nine-months ended June 30, 2018:
- Memex reported $1.78 million in revenue for the nine-months ended June 30, 2018 compared to $1.38 million in revenue in the same period a year ago (a 29% increase);
- Gross margin was 63% for the period compared to 51% for the year-ago period, the increase primarily due to higher sales volume;
- Bookingsi for the period totalled $2.33 million versus $2.01 million in the same period a year ago, a 16% increase;
- Net and comprehensive loss for the period was $2.18 million ($0.016 per share), compared to $3.10 million ($0.027 per share) for the same period a year ago.
Selected Financial Information:
|
Three-months period ended June 30
|
Nine-months period ended June 30
|
||||||
| (Canadian dollars – in thousands except per share and margin%) | 2018 | 2017 | Change |
|
2018 | 2017 | Change |
| Revenue | 650 | 529 | + 23% | 1,776 | 1,381 | + 29% | |
| Bookingsi | 1,039 | 1,041 | – 0% | 2,330 | 2,005 | + 16% | |
| Gross margin % | 63.7 | 56.4 | + 13% | 62.6 | 50.5 | + 24% | |
| Operating expenses | 1,088 | 1,364 | – 20% | 3,256 | 3,799 | – 14% | |
| Cash utilized in operating activities1 | 610 | 1,006 | – 39% | 1,927 | 2,910 | – 34% | |
| Net and comprehensive loss for the period | 687 | 1,078 | – 36% | 2,183 | 3,103 | – 30% | |
| Basic and diluted loss per share – period | 0.005 | 0.009 | – 43% | 0.016 | 0.027 | – 40% | |
- Before changes in non-cash working capital balances.
|
As at (Canadian dollars – in thousands except WC ratio)
|
June 30, 2018 | September 30, 2017 |
|
||||
| Cash on hand | 1,465 | 3,458 | |||||
| Current assets | 2,199 | 4,104 | |||||
| Total assets | 2,559 | 4,522 | |||||
| Current liabilities | 1,415 | 1,313 | |||||
| Working capital* | 784 | 2,791 | |||||
| Working capital ratio** | 1.55 to 1 | 3.13 to 1 | |||||
| Backlogii | 1,780 | 1,311 |
* Working Capital = current assets – current liabilities
** Working Capital ratio = current assets / current liabilities
Outlook:
Strategic cost saving initiatives implemented in March 2018 continue to be seen in operating results. Combined with the Company’s strong bookings record backlog, management anticipates its highest grossing quarterly sales level in Q4 this year, and bottom line operating results approaching break-even.
Based upon current backlogii of $1.78 million at June 30, 2018 and estimated delivery timing, management anticipates recognizing between $1.00 and $1.20 million in revenue for its fiscal Q4-2018. Management continues to target a cash flow break-even run rate from operations in the fourth quarter of fiscal 2018.
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 its inception 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 enables 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
Forward-Looking Statements:
The statements “… management anticipates its highest grossing quarterly sales level in Q4 this year, and bottom line operating results approaching break-even “, “…management anticipates recognizing between $1.00 and $1.20 million in revenue for its fiscal Q4-2018” and “Management continues to target a cash flow break-even run rate from operations in the fourth quarter of fiscal 2018” are forward-looking statements. The intention was to communicate management’s interpretation of the Company’s backlog and the effect that their cost cutting initiatives will have on future financial results. These forward-looking statements are based upon bookings the Company has already received from its Customers that are supported by purchase orders, as well as from management’s best estimate of future bookings to be generated and converted into revenue beyond the end of the third quarter of fiscal 2018. These statements also consider internally prepared future forecasts of Company performance and take into account the spending reductions implemented since the end of December 2017. However, there is no guarantee that revenues will fall within management’s projections or if actual cost cutting initiatives can or will be maintained or will have the anticipated effect, or if other factors may prevent the Company from achieving revenue growth, a cash flow break even run rate or profitability at any point in the future. These forward-looking statements are subject to material risk factors such as anticipated future bookings not materializing, bookings not converting into revenue as quickly as management anticipates, or at all, and that unforeseen costs may be incurred delaying profitability beyond management’s expectations or achieving profitability at all. In addition, these forward-looking statements are subject to various unknown material risks and uncertainties, many of which are beyond the ability of the Company to control or predict. Such forward-looking information represents Management’s reasonable judgment based on information currently available. 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.
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
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 June 30, 2018 and 2017, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.