Memex Inc. Reports Q2-2021 Results; Anticipate achieving profitability for fiscal 2021
BURLINGTON, ON / ACCESSWIRE / May 27, 2021 / 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 second quarter 2021 ending March 31, 2021. All results are reported in Canadian dollars. A complete set of its March 31, 2021 Condensed Interim 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, 2021:
- Memex reported its highest ever 2nd quarter revenue of $878 thousand versus $654 thousand in the year-ago quarter (a 34% increase), a 54% increase over the prior quarter ending December 31, 2020 and the highest reported quarterly revenue since Q4-2019;
- Memex also reported its highest ever 2nd quarter bookingsi, totalling $867 thousand versus $682 thousand in the year ago period, a 27% increase;
- Finished the quarter with $912 thousand in project backlogii, down 27% from September 30, 2020;
- Gross margin was 83.1% for the period compared to 71.2% for the year-ago period;
- Cash generated from operations (before changes in non-cash items) of $194 thousand was a $414 thousand improvement from the $220 thousand in cash consumed from operations in the same period a year ago;
- Income from operations for the period of $185 thousand was a $420 thousand improvement from the same period a year ago, and a $280 thousand improvement over Q1-2021;
- Net and comprehensive income for the period of $141 thousand ($0.001 per share) was a $430 thousand improvement from the $289 thousand ($0.002 per share) net and comprehensive loss for the same period a year ago; and
- $301 thousand working capital deficit and $636 thousand in cash on hand at March 31, 2021, compared to $267 thousand working capital deficit and $549 thousand in cash at September 30, 2020; however, when excluding unearned revenue (customer deposits) from the working capital determination, the Company currently has a $1.05 million surplus as compared to only $780 thousand to start the current fiscal year.
Summary financial highlights for the six-months ended March 31, 2021:
- $1.45 million in revenue for the six-month period (highest ever result after the first two quarters) versus $1.20 million in the year ago period (a 21% increase);
- Bookingsi totalled $1.35 million versus $1.41 million in the same period a year ago, a 4% decrease;
- Gross margin was 80.6% for the current year-to-date compared to 66.6% for the year-ago period;
- Cash generated from operations in the first two quarters of 2021 (before changes in non-cash items) of $109 thousand, was a $755 thousand improvement from the first six months of fiscal 2020; and
- Net and comprehensive income for the current year-to-date of $11 thousand ($0.001 per share), is an $800 thousand improvement from the $0.005 loss per share for the same period a year ago.
“Delivering two significant projects during the quarter drove our record second-quarter revenue,” said Memex CEO David McPhail. “And without any further government funding, we achieved our best-ever single quarterly bottom line and record operational cash flow. We continue to see strong interest in MERLIN, our data-driven solution for manufacturers, especially as our U.S. customers return to more normal operations post pandemic. Looking forward, we anticipate our current backlog combined with new business to be secured over the next two quarters to generate the revenue necessary to achieve our first profitable annual result since becoming a reporting issuer.”
Selected financial information:
|For the||Three-months periods ended
|Six-months periods ended
|(Canadian dollars – in thousands except per share and margin%)||2021||2020||Change||2021||2020||Change|
|Revenue||878||654||+ 34%||1,448||1,198||+ 21%|
|Bookingsi||867||682||+ 27%||1,345||1,408||– 4%|
|Gross margin %||83.1||71.2||+ 17%||80.6||66.6||+ 21%|
|Operating expenses||544||700||– 22%||1,077||1,482||– 27%|
|Cash provided (utilized) in operations1||194||(220)||+ 188%||109||(646)||+ 117%|
|Net & comprehensive income (loss) – period||141||(289)||+ 149%||11||(789)||+ 101%|
|Basic & diluted income (loss)/share – period||0.001||(0.002)||+ 139%||0.000||(0.006)||+ 101%|
- Before changes in non-cash working capital balances.
(Canadian dollars – in thousands except WC ratio)
|September 30, 2020|
|Cash on hand||636||549|
|Working capital (deficit)*||(301)||(267)|
|Working capital* (excl. unearned rev)||1,047||780|
|Working capital ratio**||0.82 to 1||0.81 to 1|
* 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
The statement “Looking forward, we anticipate our current backlog combined with new business to be secured over the next two quarters to generate the revenue necessary to achieve our first profitable annual result since becoming a reporting issuer” is a forward-looking statement. The intention was to communicate management’s interpretation of the Company’s backlog and future bookings into revenue combined with the effect that their cost cutting initiatives will have on future financial results. This forward-looking statement is 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 over the third and fourth quarters of fiscal 2021. These statements also consider internally prepared future forecasts of Company performance and take into account the spending levels experienced since the onset of COVID in March 2020. However, there is no guarantee that revenues will fall within management’s projections or if spending levels can or will be maintained or produce the anticipated result, or if other factors may prevent the Company from achieving revenue necessary to break even in fiscal 2021. This forward-looking statement is 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, this forward-looking statement is 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 statement is 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 this forward-looking statement to reflect subsequent information, events, or circumstances.
For investor inquiries please contact:
Ed Crymble, Chief Financial Officer
David McPhail, President & CEO
Sean Peasgood, Investor Relations
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, 2021 and 2020, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.