CALGARY, ALBERTA — (Marketwired) — 12/12/13 — Cortex Business Solutions Inc. (TSX VENTURE: CBX) (Cortex), an enterprise eProcurement solutions company, reported financial results for the fiscal first quarter ended October 31, 2013.
Fiscal Q1 2014 Financial Highlights vs. Same Year-Ago Quarter
Fiscal Q1 2014 Financial Results
Total revenues in the fiscal first quarter of 2014 increased 28% to $1.8 million, compared to $1.4 million in the fiscal first quarter of 2013. The increase in revenues was primarily due to increased recurring access and usage fees, which grew 34% in the first quarter to $1.7 million from $1.2 million in the year-ago quarter.
On a sequential basis, total revenues in the first quarter increased 10% from $1.6 million in the fourth quarter of 2013. Recurring access and usage fees increased 13% from $1.5 million in the fourth quarter of 2013.
Total expenses in the first quarter increased marginally to $3.3 million as compared to the same year-ago quarter. Excluding one-time severance costs of $133,000, total expenses would have decreased 2% to $3.2 million.
Net loss in the first quarter improved to $1.5 million or $(0.01) per diluted common share, compared to a net loss of $1.8 million or $(0.01) per diluted common share in the year-ago quarter. The improvement was primarily due to the increase in revenues and prudent expense management.
At October 31, 2013, cash totaled $3.8 million, compared to $5.2 million at July 31, 2013. The company continues to carry no debt.
Fiscal Q1 2014 Operational Metrics
Management Commentary
“The solid momentum we built throughout fiscal 2013 continued into the first quarter of 2014,” said Art Smith, president and CEO of Cortex. “During the first quarter, total revenues grew by 28% and were the highest in the company-s history. The quarter was highlighted by the continued growth in our Cortex Trading Partner Network, which resulted in our record quarterly revenue and transaction volume. In fact, we were able to achieve these results while keeping expenses nearly flat.
“We continue to gain market share throughout the U.S. and Canada, supplemented by the introduction of new revenue and industry opportunities, such as our 100% e-billing solution, which is experiencing strong demand in the marketplace. In fact, we recently went live with our first e-billing customer and the rollout is progressing as planned, with revenues expected to materialize as we move though fiscal 2014.
“So far in our fiscal second quarter, overall activity in the marketplace remains strong, both in terms of transaction volume and the onboarding of new customers. As the Cortex Network expands, we are confident the combination of our prudent expense management and continued introduction of value added services will result in steady, recurring revenue growth.”
Conference Call
Cortex will hold a conference call today at 4:30 p.m. Eastern time (2:30 p.m. Mountain time) to discuss its financial results for the first quarter ended October 31, 2013. The Company-s President and CEO Art Smith and Senior Vice President of U.S. Operations & Business Development Ryan Lailey will host the conference call, followed by a question and answer period.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
A replay of the conference call will be available after 7:30 p.m. Eastern time through December 19, 2013.
About Cortex Business Solutions Inc.
Cortex Business Solutions Inc. (TSX VENTURE: CBX) is an enterprise eProcurement solutions 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 clients- existing business environment. For more information, please visit .
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:
Liolios Group, Inc. – Investor Relations Contact
Cody Slach or Greg Falesnik
1-949-574-3860
Brisco Capital Partners – Investor Relations Contact
Scott Koyich
1-403-215-5979
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