CALGARY, ALBERTA — (Marketwired) — 11/20/13 — Cortex Business Solutions Inc. (“Cortex” or the “Company”) (TSX VENTURE: CBX) is pleased to announce the Company-s July 31, 2013 Financial and Operational Highlights. A copy of the 2013 Consolidated Financial Statements and Management-s Discussion and Analysis are available on Sedar ().
Revenue was $6.2 million in fiscal 2013, compared to $4.9 million in fiscal 2012, reflecting a 25% growth in total revenue. Included in this revenue was a 33% growth in access and usage fees recurring revenue. While increasing revenue, the Company was able to reduce overall expenses by 6%. The combination of the revenue increase and expense decrease resulted in a 21% decrease in cash outflow from operating activities from $7,860,067 in fiscal 2012 to $6,198,720 in fiscal 2013. The impact to net loss was a 23% improvement from $9,303,590 in fiscal 2012 to $7,146,691 in fiscal 2013.
At the end of the fiscal 2013, Cortex had signed agreements with 74 buying organizations (“Hubs”), 31 more than at the end of fiscal 2012. At the end of fiscal 2013, 56 of the 74 Hubs 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 additional destinations for existing users to send to.
“I-m pleased with our revenue growth in fiscal 2013. When you consider the downturn in the oil and gas sector, a 25% total revenue increase is a good accomplishment”, said Art Smith President and CEO of Cortex. “Our investment in market expansion and the new technology platform generated excellent results. Productivity improvement and efficiencies gained from the new platform allowed us to reduce our cash outflow from operating activities by 21% while improving customer satisfaction and introducing new services”.
Art Smith went on to say “fiscal 2014 is shaping up to be another positive year. The oil and gas sector has stabilized and activity is increasing. There is increased interest in both the existing and new services. Cortex continues to experience significant productivity and efficiency gains from the new platform. The combination of these factors should enable Cortex to drive forward on its business plan effectively in fiscal 2014”.
Outlook
Cortex is seeing an increasing demand for our growing suite of solutions in the market place. With the launch of our new portal platform in July 2013, Cortex is raising the standard with the new interface, ease of use and ability to easily message others on the Network. There has been excellent feedback from our current customer base suggesting a functional advantage over competitors in this space and a solid product to introduce to the market place in addition to Cortex- current offerings.
Transactions over the Network continued to increase fiscal 2013 over fiscal 2012. The increased functionality of Portal, allowing customers self-propagation, profiling and messaging, is creating greater participation in the Network; resulting in more connections and higher transactions. Cortex will continue to release value added functionality into the Platform during fiscal 2014 that will provide additional revenue opportunities.
Cortex continues to see demand for the 100% eBilling solution and expects sales from this product line to accelerate. The first 100% eBilling customer is now live and the opportunities from this project will begin to materialize during the remainder of fiscal 2014.
Management expects fiscal 2014 to be a pivotal year as we capture additional market share and continue to grow the Network. Management will continue to balance investment in growth with operational cash flow.
A replay of the conference call will be available two hours after the call-s completion and will expire by 9:59 pm MST on November 29, 2013. You may listen to the recording by calling toll-free (800) 408-3053 or (905) 694-9451. The password for the replay is 4243485.
About Cortex Business Solutions Inc.
Cortex Business Solutions Inc. is an industry-leading service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Trading Partner 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. For more information please visit our website at
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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.
Contacts:
Brisco Capital Partners
Scott Koyich
Tel: (403) 262-9888
Email:
Liolios Group Inc.
Scott Liolios or Cody Slach
Tel: (949) 574-3860
Email:
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