Burlington, ON, Canada – January 23, 2020 – 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, 2019. All results are reported in Canadian dollars. A complete set of the Audited September 30, 2019 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, 2019:

• Memex reported revenue of $932 thousand for the three-month period, as compared to $1.08 million in the same period a year ago (a 13% decrease), but still the second highest quarterly revenue ever reported;
• Gross Bookingsⁱ for the period totalled $735 thousand, versus $421 thousand in the same period a year ago, a 75% increase (net bookings for the quarter were $503 thousand when netted against two cancelled projects that were booked in prior quarters, a 19% increase from a year ago);
• The Company finished the period with $1.19 million in project backlogⁱⁱ, $89 thousand more than at September 30, 2018;
• Gross margin was 69.5% for the period compared to 81.9% for the year-ago period;
• Cash consumed from operations in Q4-2019 (before changes in non-cash items) was $71 thousand, $67 thousand more than the same period a year ago;
• Net and comprehensive loss for the period was $137 thousand ($0.001 per share), compared to $70 thousand ($0.001 per share) for the same period a year ago; and
• The Company had $356 thousand in working capital, including $740 thousand in cash at September 30, 2019, as compared with $723 thousand in working capital and $1.048 million in cash at September 30, 2018.

 

Summary financial highlights for the Year ended September 30, 2019:

• Fiscal 2019 revenue of $3.25 million was the best annual revenue ever reported, exceeding the previous high by more than $340 thousand (12%). Year-over-year, revenue increased 14% from $2.85 million in F2018;
• Fiscal 2019 bookingsⁱ of $3.48 million set a new benchmark, exceeding the Company’s previous record of $3.42 million recorded in 2016. Year-over-year, bookingsⁱ increased 27% from $2.75 million in F2018;
• Gross margin for the year was 70.9% compared to 69.9% a year ago;
• Net and comprehensive loss was $1.07 million ($0.008 per share), compared to $2.25 million ($0.017 per share) loss a year ago.
• Cash utilized in operating activities (before changes in non-cash items) of $822 thousand in fiscal 2019 was $1.13 million (58%) lower than the prior year, its lowest level since going public in 2013.

Management commentary:

“The team at Memex executed our operational and financial plans exceedingly well in the fourth quarter and fiscal year of 2019,” said Memex CEO David McPhail. “The Company posted several records and near record metrics and did so while consuming record low cash from operations in fiscal 2019. Bookings are up, giving us increased confidence that the MERLIN suite is resonating with the manufacturing industry. In fact, demonstrations of MERLIN’s advanced analytics and agility are primary reasons for our record bookings, as these features address industry trends of streamlining production facility operations and increasing responsiveness to shifts in demand. We’re pleased with our progress, and we look forward to continued execution in fiscal 2020.”

Selected financial information:

	Three-months periods ended September 30				Year ended September 30
(Canadian dollars – in thousands except per share and margin%)	2019	2018	Change		2019	2018	Change
Revenue	932	1,077	–    13%		3,251	2,853	+    14%
Bookingsi	503	421	+    19%		3,484	2,752	+    27%
Gross margin %	69.5	81.9	+    15%		70.9	69.9	+      1%
Operating expenses	740	939	–     21%		3,260	4,195	–    22%
Cash utilized in operating activities1	71	22	+  223%		822	1,949	–    58%
Net and comprehensive loss for the period	137	70	–    96%		1,072	2,254	–    52%
Basic and diluted loss per share – period	0.001	0.001	–       0%		0.008	0.017	–    52%

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

 

 

As at (Canadian dollars – in thousands except WC ratio)	September 30, 2019	September 30, 2018
Cash on hand	740	1,048
Current assets	1,901	1,964
Total assets	2,189	2,319
Current liabilities	1,545	1,241
Working capital*	356	723
Working capital ratio**	1.23 to 1	1.58 to 1
Backlogii	1,189	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 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, 2019 and 2018, in the section “Other Financial Measures.”  That MD&A is available at www.sedar.com under our company profile.