CALGARY, ALBERTA — (Marketwired) — 12/15/14 — Cortex Business Solutions Inc. (TSX VENTURE: CBX)(OTCQX: CTPNF), an enterprise e-Procurement solutions company, reported financial results for the fiscal first quarter ended October 31, 2014.
Fiscal Q1 2015 Financial Highlights
Fiscal Q1 2014 Operational Metrics
Management Commentary
“Cortex is committed to monetizing the investment it has made in its Procurement to Payment platform,” said Jim Barker, interim President and CEO. “The Company–s commercialization focus is increasingly directed toward product and market expansion while exploring complimentary verticals that benefit from Cortex–s portfolio of products and services.” The first quarter was the ninth consecutive quarter of increased recurring access and usage fees and we continue to exceed our goal of growing this number at 10% sequentially. These results were driven by continued robust growth in suppliers transacting on the network, strong growth in both the U.S. and Canadian markets, and the rollout of value-added services.
“As we move through 2015, we will continue to develop new products to further enhance the Cortex Network. In fact Field Ticket Mobile Approver is expected to be released during the fall of 2015. This product introduction is being driven by customer feedback and market demand. Cortex expects this product to continue to expand the growth opportunities of the network.”
Fiscal Q1 2015 Financial Results
Total revenue in Q1 F2015 increased 47% to $2.6 million compared to $1.8 million in Q1 F2014. The key growth driver was in the recurring access and usage revenue stream, which increased 47% as a result of increased billable suppliers on the network and increased billable transactions flowing through the network.
On a sequential basis, total revenue decreased 6% compared to $2.8 million in the fourth quarter of 2014 due to the completion of a large AP service initiative in the fourth quarter, which was classified within project management revenue. Recurring access and usage fees increased 15% to $2.4 million in the first quarter of 2015. This growth can be attributed to an increase in the number of suppliers transacting on the network.
Gross margin net of amortization increased significantly to 52% compared to 47% in the year-ago quarter and 38% in the fourth quarter of 2014.
Net loss in Q1 F2015 was $1.9 million or $(0.01) per diluted common share, compared to a net loss of $1.5 million or $(0.01) per diluted common share in Q1 F2014.
At October 31, 2014, cash totaled $8.6 million compared to $3.8 million at October 31, 2013. The company continues to carry no debt.
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 fiscal first quarter ended October 31, 2014. The company–s Interim President and CEO, Jim Barker, CFO, Sandra Weiler, and Senior Vice President of U.S. Operations and Business Development, Ryan Lailey, will host the conference call, followed by a question and answer period.
Please call the conference telephone number ten 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 the call through December 22, 2014.
About Cortex Business Solutions
Cortex Business Solutions Inc. (TSX VENTURE: CBX)(OTCQX: CTPNF) is an enterprise e-Procurement 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
Certain statements contained in this press release may constitute forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. In particular, this press release contains forward-looking statements pertaining to meaning revenue growth from e-billing solution and recurring revenue growth. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Cortex believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. With respect to forward-looking statements contained in this press release, Cortex has made assumptions regarding, among other things: Cortex–s continued success in gaining new customers in Canada and the United States, general economic and financial conditions, and other assumptions as set forth in the company–s annual filings. Cortex–s actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: worse than expected general economic conditions in Canada and the United States, the inability of management to execute its business plan and manage growth successfully and the risk of slow service adoption. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Cortex–s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ().
The forward-looking statements contained in this press release speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement. Readers should not place undue reliance on forward-looking information. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements.
Contacts:
Investor Relations Contacts:
Cortex Business Solutions Inc.
Jim Barker
Interim President and CEO
1-403-219-1503
Cortex Business Solutions Inc.
Ryan Lailey
SR VP US Operations and Business Development
1-403-219-1504
Cortex Business Solutions Inc.
Sandra Weiler
CFO
1-403-219-1500
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