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Memex Inc. Reports Q4-2020 Results

·6 min read

BURLINGTON, ON / ACCESSWIRE / January 14, 2021 / Memex Inc. ("Memex" or the "Company") (TSX-V:OEE), a 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, 2020. All results are reported in Canadian dollars. A complete set of Audited September 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 September 30, 2020:

  • Memex reported revenue of $500 thousand for the three-month period, compared to $932 thousand in the same period a year ago (a 46% decrease);

  • Bookingsi for the period totalled $532 thousand versus $503 thousand in the year ago period, a 6% increase;

  • Finished the period (and year) with $1.25 million in project backlogii, $63 thousand more than September 30, 2019;

  • Gross margin was 87.8% for the period compared to 69.5% for the year-ago period;

  • Cash generated from operations (before changes in non-cash items) of $20 thousand was a $91 thousand improvement from the $71 thousand consumed from operations in the same period a year ago;

  • Income from operations for the period of $3 thousand was a $96 thousand improvement from the same period a year ago, and the second consecutive quarter of profit from operations;

  • Net and comprehensive loss for the period of $11 thousand ($0.000 per share) is a $126 thousand improvement from the to $137 thousand ($0.001 per share) net and comprehensive loss for the same period a year ago;

  • $267 thousand working capital deficit and $549 thousand in cash on hand at September 30, 2020, compared to $356 thousand in working capital surplus and $740 thousand in cash at September 30, 2019; and

  • The Company received $181 thousand from Government of Canada's Canada Emergency Wage Subsidy ("CEWS") as well as a $102 thousand Regional Relief and Recovery Fund Loan ("RRRF") which helped stabilize its financial position in the wake of the COVID-19 Pandemic.

Summary financial highlights for the year ended September 30, 2020:

  • $2.25 million in revenue for the fiscal year versus $3.25 million a year ago (a 31% decrease);

  • Bookingsi totalled $2.41 million versus $3.48. million a year ago, also a 31% decrease;

  • Gross margin was 76.4% for the year compared to 70.9% a year-ago;

  • Cash consumed from operations in the fiscal 2020 year (before changes in non-cash items) was $600 thousand, $222 thousand less than a year ago; and

  • Net and comprehensive loss for the year was $749 thousand ($0.006 per share), compared to $1.07 million ($0.008 per share) a year ago.

Management commentary:

"Memex has been able to maintain its working capital since the onset of the pandemic, due in part from Canadian COVID-19 relief programs (CEWS and RRRF)," commented Memex CFO Ed Crymble. "And in light of COVID-19 and its effects on commerce across North America, we are satisfied with our year end results and are highly motivated to improve on them in 2021."

Like most organizations we had to adjust our business model to accommodate operating through this global pandemic and stay relevant. Our product delivery strategy and a more digitally focused sales and marketing approach have enabled us to stay engaged with our customers and prospects, and to think positively about the future," said Memex CEO David McPhail. "We continue to see strong interest from new opportunities as well as a growing number of follow-on opportunities from our established customer base.

Selected financial information:

For the

Three-months periods ended

September 30

Years ended

September 30

(Canadian dollars - in thousands except per share and margin%)

2020

2019

Change

2020

2019

Change

Revenue

500

932

- 46

%

2,252

3,251

- 31

%

Bookingsi

532

503

+ 6

%

2,412

3,484

- 31

%

Gross margin %

87.8

69.5

+ 26

%

76.4

70.9

+ 8

%

Operating expenses

436

740

- 41

%

2,353

3,260

- 28

%

Cash generated (utilized) in ops activities1

20

(71

)

+ 128

%

(600

)

(822

)

+ 27

%

Net and comprehensive (loss) for the period

(11

)

(137

)

+ 92

%

(749

)

(1,072

)

+ 30

%

Basic and diluted loss per share - period

(0.000

)

(0.001

)

+ 98

%

(0.006

)

(0.008

)

+ 30

%

  1. Before changes in non-cash working capital balances.

As at

(Canadian dollars - in thousands except WC ratio)

September 30, 2020

September 30, 2019

Cash on hand

549

740

Current assets

1,140

1,901

Total assets

1,692

2,189

Current liabilities

1,407

1,545

Working capital surplus (deficit)*

(267

)

356

Working capital ratio**

0.81 to 1

1.23 to 1

Backlogii

1,252

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

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, 2020 and 2019, in the section "Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.

SOURCE: Memex Inc.



View source version on accesswire.com:
https://www.accesswire.com/624208/Memex-Inc-Reports-Q4-2020-Results