CALGARY, ALBERTA — (Marketwired) — 03/15/16 — Cortex Business Solutions Inc. (TSX VENTURE: CBX), an online business-to-business, network as a service, that helps companies reduce invoice processing times by connecting and interacting with each other, today announces its Q2 F2016 results.
“It has been an incredibly difficult time in the oil and gas market over the past several months. The continued instability in the market has made it imperative for some companies to look at drastic cost cutting measures in an attempt to weather the storm.” said Joel Leetzow, President and CEO of Cortex. “In our last market update, I spoke of the difficult decisions Cortex had made to right-size the business, and improve our internal processes as part of our commitment to shareholders. Through those actions, we find ourselves in a stable position where we can maintain our support of customers in the energy sector, while pushing ahead with our vertical expansion strategy.
I continue to be proud of the results we have achieved, and although we have seen a slight decrease in total revenue, it was not unexpected given the considerable downturn in the oil and gas market. Our improved cash position and financial results provide the stability and ability to not only weather the economic storm, but to focus on growing the business by offering savings to our current and future customers.”
Q2 F2016 Operational Highlights:
Operational highlights for the three months ended January 31, 2016 compared to the three months ended January 31, 2015 are summarized below:
Operational highlights for the six months ended January 31, 2016 compared to the six months ended January 31, 2015 are summarized below:
Three months ended January 31, 2016
Revenue
96% of the total revenue of the Company comes from access and usage fees. Although these fees declined 2% Q2 F2016 over Q2 F2015, this says a lot about the value our Customers see in the Cortex Network. During cost cutting times, our customers are renewing their contracts with Cortex as they see the value even when their transaction volumes are down due to the downturn in the energy sector.
Gross Profit and Cost of Sales
Cost of sales, as reported, decreased 9% Q2 F2016 over Q2 F2015 resulting in gross profit, as reported, remaining at 45% of total revenue.
There was some restructuring in the delivery organization at the end of Q2 F2016, which will further reduce costs in Q3 F2016 forward.
Other Expenses
Cash Position
At January 31, 2016, Cortex Business Solutions Inc. held $6,479,876 in cash and $60,000 in short-term investments, compared to $3,986,950 and $60,000, respectively, at July 31, 2015.
Six months ended January 31, 2016
Revenue – six month period
96% of the total revenue of the Company comes from access and usage fees. These fees were flat for the six months ended January 31, 2016 compared to the six months ended January 31, 2015.
Gross Profit and Cost of Sales – six month period
Cost of sales, as reported, decreased 13% for the six month period ended January 31, 2016 over the six month period ended January 31, F2015 resulting in gross profit, as reported, improving 8% to 45% of total revenue.
Other Expenses – six month period
Cash Position – six month period
At January 31, 2016, Cortex Business Solutions Inc. held $6,479,876 in cash and $60,000 in short-term investments, compared to $3,986,950 and $60,000, respectively, at July 31, 2015.
Conference Call
Cortex management will host a conference call, followed by a question and answer period.
The details of the conference call are as follows:
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 Cortex Business Solutions at 403-219-2838.
A replay of the conference call will be available after the call through March 23, 2016
About Cortex Business Solutions
Cortex Business Solutions Inc. (TSX VENTURE: CBX) is an enterprise business-to-business network that enables electronic invoicing for buying and suppling organizations, to reduce the time required to process invoices through the use of flexible connections methods and tools that leverage existing customer technologies and processes. Access to the Cortex Network enhances the exchange of documents allowing companies to connect and interact with each other to grow their businesses. For more information, please visit .
Contacts:
Investor Relations Contacts:
Joel Leetzow
President and CEO
403-219-2838
Sandra Weiler
CFO
403-219-2838
Andrew Stewart
Director, Marketing & Investor Relations
403-219-2838
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