CALGARY, ALBERTA — (Marketwire) — 04/01/13 — Cortex Business Solutions Inc. (“Cortex” or the “Company”) (TSX VENTURE: CBX) is pleased to announce the Company-s FY 2013 Q2 Financial and Operational Highlights. Complete financials and MD&A are available on Sedar ().
Revenue was $1.5M in the second quarter of the Fiscal Year of 2013, compared to $1.1M in the same quarter Fiscal Year 2012, reflecting a 37% growth in total revenue. Included in the total revenue is access and usage fee revenue of $1.3M Q2 F2013 compared to $976K in Q2 F2012 representing a 35% increase in recurring revenue growth year over year.
At the end of the quarter ended January 31, 2013 (“Q2 F2013”), Cortex had signed agreements with 64 Hubs, 9 more than at the end of October 31, 2012 (“Q1 F2013”). Of those, 42 have progressed through the pilot phase and were available to receive invoices from their suppliers electronically. Hubs are the main driving force for the growth in the Company as each new hub brings a list of additional customers to the Network and provides an additional destination for existing network users to send invoices to. During the quarter, Cortex added 340 new customers, an increase of 4% over Q1 F2013.
Cortex had a net loss of $1,892,213 or $0.01 per basic and diluted share, compared to net loss of $2,563,428 or $0.01 per basic and diluted share. This improvement in net loss quarter over quarter is the result of increased revenue in conjunction with a reduction of expenditures of 7% compared to Q2 2012.
“Cortex continues to grow our Network of companies, transactions and revenue during a time period when drilling activity in the oil and gas industry is down considerably from last year. This is a direct result of our investments in market expansion, productivity improvements and technology over the past year”, said Art Smith President & CEO of Cortex. “We expect 2013 to be a significant year for the Company in terms of both revenue growth and productivity improvements, as we expand our Network in Canada and the United States”
Outlook
Cortex is seeing increasing demand for our new 100% e-Billing service with the signing of a large initiative in February 2013. This initiative will expand the Cortex network into 4 new industries including Mining, Construction, Power Systems and Forestry and has the potential to add thousands of new Hubs to the Cortex network. We have seen additional demand for this service and expect more projects to be signed over the next 6 months.
Cortex expects to launch the next phase of our Roadmap project in the summer of 2013, which will include a collaboration environment enabling customers to create profiles, search, message and connect with each other through the Cortex Network.
Cortex will continue to expand the Network by adding Hubs and their supplier groups through current and new partnerships. Cortex will explore new revenue, industry and partnership opportunities in Canada and the U.S.
Cortex is halfway through fiscal 2013 with 64 Hubs signed to the Network, 42 Hubs active on the Network and 8,780 contracted suppliers. F2013 continues the momentum with a focus on strong relationships with clients and partners which are expected to provide continued month over month revenue growth through increasing transaction volumes between our Hub customers and their suppliers.
Organic network growth, both in the number of customers connected and the number of transactions they do, has provided a solid revenue foundation for the Company. Management expects to see continued Hub signings in 2013 and is projecting to exit fiscal year ended July 31, 2013 with over 100 Hub customers.
Strategic partnerships with Full Circle, Powervision, Pandell, Basware, Verian Technologies, IT Canada and Concerta are providing numerous opportunities to add Hubs in both Canada and the U.S.
In fiscal 2013, management expects to complete more partnerships, launch new features to the Network and continue increasing recurring revenue.
The Company has applied to the TSX Venture Exchange for the issuance of 200,000 common shares as part of employee-s letters of offer. Of these 100,000 will be issued to an insider.
Quarterly Results Conference Call
On April 9, 2013 at 10:00 am MST, please join the live conference:
Toll-Free Dial-In Number: (877) 240-9772
Local Dial-In #: (416) 340-8527
Time: 10:00 am MST
A replay of the conference call will be available two hours after the call-s completion and will expire by 11:59 pm EST on April 16, 2013. You may listen to the recording by calling (905) 694-9451 or toll-free at 1-800-408-3053. The password for the replay is 9645422.
About Cortex Business Solutions
Cortex Business Solutions Inc. is a leading eCommerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day-s outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment – evolving business.
Forward-Looking Statements
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading “Risk Factors” and elsewhere in the Company-s periodic filings with Canadian securities regulators. Such information contained herein represents management-s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
Cortex Business Solutions Inc.
Condensed Consolidated Statements of Financial Position
(Prepared in Canadian dollars)
(unaudited)
Cortex Business Solutions Inc.
Condensed Consolidated Statements of Loss and Comprehensive Loss
For the three months and six months ended January 31, 2013 and 2012
(Prepared in Canadian dollars)
(unaudited)
Cortex Business Solutions Inc.
Condensed Consolidated Statements of Changes in Shareholders- Equity
(Prepared in Canadian dollars)
(unaudited)
Cortex Business Solutions Inc.
Condensed Consolidated Statements of Cash Flows
For the three months and six months ended January 31, 2013 and 2012
(Prepared in Canadian dollars)
(unaudited)
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Contacts:
Brisco Capital Partners
Scott Koyich
(403) 215-5979
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