Memex Inc. Reports Q3-2020 Results
BURLINGTON, ON / ACCESSWIRE / August 27, 2020 / Memex Inc. ("Memex" or the "Company") (TSX-V:OEE), a leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released financial and operational highlights for its third quarter 2020 ending June 30, 2020. All results are reported in Canadian dollars. A complete set of June 30, 2020 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, 2020:
Memex reported revenue of $554 thousand for the three-month period, compared to $916 thousand in the same period a year ago (a 40% decrease);
Bookingsi for the period totalled $471 thousand versus $1.09 million in the year ago period, a 57% decrease;
Finished the period with $1.11 million in project backlogii, $82 thousand less than at September 30, 2019;
Gross margin was 87.3% for the period compared to 74.3% for the year-ago period;
Cash generated from operations (before changes in non-cash items) of $34 thousand was a $218 thousand improvement from the $184 thousand consumed from operations in the same period a year ago;
Net and comprehensive income for the period of $49 thousand ($0.000 per share) is a $303 thousand improvement from the to $254 thousand ($0.002 per share) net and comprehensive loss for the same period a year ago;
$352 thousand working capital deficit and $565 thousand in cash on hand at June 30, 2020, compared to $356 thousand in working capital surplus and $740 thousand in cash at September 30, 2019;
The Company was able to take advantage of Government of Canada's Canada Emergency Wage Subsidy ("CEWS") and Regional Relief and Recovery Fund Loan ("RRRF") initiatives to stabilize its financial position in the wake of the COVID-19 Pandemic; and
In June, FedDev finalized changes to the Company's IBI term loan repayment schedule which included the repayment term being extended by 14 months to November 2024, payment reductions of $84 thousand in the current fiscal year and $114 thousand in fiscal 2021; the restructuring required a $57 thousand present value discount adjustment (reduction of interest expense) during the quarter.
Summary financial highlights for the six-months ended June 30, 2020:
$1.75 million in revenue for the nine-month period versus $2.32 million in the year ago period (a 24% decrease);
Bookingsi totalled $1.88 million versus $2.98. million in the same period a year ago, a 37% decrease;
Gross margin was 73.1% for the period compared to 71.4% for the year-ago period;
Cash consumed from operations in the first three quarters of 2020 (before changes in non-cash items) was $601 thousand, $150 thousand less than the same period a year ago; and
Net and comprehensive loss for the period was $749 thousand ($0.006 per share), compared to $934 thousand ($0.007 per share) for the same period a year ago.
Management commentary:
"In the wake of the COVID-19 pandemic, we remain satisfied with our financial results," said Memex CEO David McPhail. "The combination of the closure of the U.S./ Canada border and a great deal of U.S. manufacturing grinding to a halt due to COVID-19 have continued to negatively affect our ability to both generate and recognize revenue. We believe this lag in customer willingness and/or ability to make purchase commitments will continue into Q4. However, interest in MERLIN remains constant and sales conversations continue, even with prospects that have temporarily closed their facilities. We have been able to reduce our costs to react to the current situation, and hope to resume more normal activities once the border opens."
Selected financial information:
For the | Three-months periods ended | Nine-months periods ended | ||||||||||||||||||||||
(Canadian dollars - in thousands except per share and margin%) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||
Revenue | 554 | 916 | - 40 | % | 1,752 | 2,319 | - 24 | % | ||||||||||||||||
Bookingsi | 471 | 1,094 | - 57 | % | 1,879 | 2,981 | - 37 | % | ||||||||||||||||
Gross margin % | 87.3 | 74.3 | + 17 | % | 73.1 | 71.4 | + 2 | % | ||||||||||||||||
Operating expenses | 432 | 889 | - 51 | % | 1,905 | 2,520 | - 24 | % | ||||||||||||||||
Cash generated (utilized) in ops activities1 | 34 | (184 | ) | + 118 | % | (601 | ) | (751 | ) | + 20 | % | |||||||||||||
Net and comp income (loss) for the period | 49 | (254 | ) | + 119 | % | (749 | ) | (934 | ) | + 20 | % | |||||||||||||
Basic and diluted loss per share - period | 0.000 | (0.002 | ) | + 106 | % | (0.006 | ) | (0.007 | ) | + 20 | % | |||||||||||||
Before changes in non-cash working capital balances
As at (Canadian dollars - in thousands except WC ratio) | June 30, | September 30, 2019 | ||||||
Cash on hand | 565 | 740 | ||||||
Current assets | 1,003 | 1,901 | ||||||
Total assets | 1,890 | 2,189 | ||||||
Current liabilities | 1,355 | 1,545 | ||||||
Working capital surplus (deficit)* | (352 | ) | 356 | |||||
Working capital ratio** | 0.74 to 1 | 1.23 to 1 | ||||||
Backlogii | 1,107 | 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
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, 2020 and 2019, 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
905-635-1540
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
SOURCE: Memex Inc.
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