Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

News Feed Item

Cortex Announces Fiscal 2012 Annual Financial Results

CALGARY, ALBERTA -- (Marketwire) -- 11/22/12 -- Cortex Business Solutions Inc. ("Cortex" or the "Company") (TSX VENTURE:CBX) is pleased to announce the Company's FY 2012 Financial and Operational Highlights. Complete financials and MD&A are available on Sedar (www.sedar.com).

Revenue was $4.9 million in the Fiscal Year of 2012, compared to $3.1 million in the Fiscal Year 2011, reflecting a 61% growth in total revenue and a 63% recurring revenue growth year over year.

At the end of the 2012 fiscal year, Cortex had signed agreements with 43 buying organizations ("Hubs"), 28 more than at the end of fiscal 2011. At the end of fiscal 2012, 21 of the 43 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. Cortex added 2,860 new customers and increased total transactions through the system 65%.

Cortex had a net loss of $9,303,590 or $0.05 per basic and diluted share, compared to net loss of $9,548,936 or $0.06 per basic and diluted share. This modest improvement in net loss year over year is the result of the Company's continued investment into US expansion, market development and the new technology platform. The expenditure in these areas has been declining over the last two quarters of fiscal 2012 and are expected to continue to decline for fiscal 2013.

"Cortex continues to grow our network of companies with excellent growth in 2012 specifically in the areas of new Hub signings and transaction growth," said Art Smith, President & CEO of Cortex. "Our revenue growth is accelerating with the network effect of our recurring revenue and we expect 2013 to be a significant year for the company as we expand our network in Canada and the United States."

Outlook

Cortex will continue to expand the Network by adding buying organizations (Hubs) and their supplier groups through current and new partnerships. Cortex will explore new sources of revenue, industry and partnership opportunities in Canada and the U.S.

Building on the strong Network growth in 2012, Cortex begins fiscal 2013 with 43 buying organizations signed to the Network, 21 Hubs active on the Network and 7,933 contracted suppliers. This is a strong improvement over where we started fiscal 2012 with 15 buying organizations and 5,073 suppliers. Our continued strong relationship with our clients will provide continued month over month revenue growth from increasing transaction volumes between our 43 Hub customers and their suppliers.

Organic Network growth, both in the number of customers connected and the number of transactions they do, has provided a solid revenue foundation for the Company. Management expects to see continued Hub signings in 2013 projecting to exit fiscal year ended July 31, 2013 with over 100 Hub customers.

Strategic partnerships with Full Circle, Powervision, Pandell, Basware, and Verian Technologies are providing numerous opportunities to add buying organizations in both Canada and the U.S.

With the addition of multiple buying organizations to the Network, management expects the growth of access and usage fee revenue stream to accelerate. This growth was 63% Fiscal year 2012 over Fiscal year 2011.

In the coming year, Management expects to complete more partnerships, launch new features to the Network and continue increasing recurring revenue.

Organic Network growth, both in the number of customers connected and the number of transactions they do, has provided a solid revenue foundation for the Company. Management expects to see continued Hub signings in 2013 projecting to exit fiscal year ended July 31, 2013 with over 100 Hub customers.

The Company has applied to the TSX Venture Exchange for the issuance of 2,207,900 common shares in alignment with the Company's Employee Performance Management ("EPM") Program. The issuance of these shares was voted on at the Company's AGM on June 11, 2012. These shares were applied for at a deemed price of $0.225. Of this amount 366,500 are to be issued to insiders.

Annual Results Conference Call

To call in for the live conference call please contact:

Toll-Free Dial-In Number: (877) 440-9795

Local Dial-In #: (416) 340-9432 (Toronto)

Time: 2:00 PM MST

A replay of the conference call will be available two hours after the call's completion and will expire by 11:59 pm EST on November 29, 2012. You may listen to the recording by calling (905) 694-9451 or toll-free at 1-800-408-3053. The password for the replay is 6143140.

About Cortex Business Solutions

Cortex Business Solutions Inc. is a leading eCommerce service 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 its customers existing business environment - evolving business. For more information please visit our website at www.cortex.net.

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.


                                                                            
Cortex Business Solutions Inc.                                              
Consolidated Statements of Financial Position                               
(Prepared in Canadian dollars)                                              
                                                                            
                                               July 31 2012    July 31 2011 
Assets                                                                      
  Cash                                        $   6,750,970   $   9,695,210 
  Accounts receivable                               847,847         514,877 
  Prepaids and deposits                             168,160         213,063 
                                              --------------  --------------
                                                  7,766,977      10,423,150 
Property and equipment                              611,082         744,565 
Intangible asset                                  2,970,245       1,833,019 
                                              --------------  --------------
                                              $  11,348,304   $  13,000,734 
                                              --------------  --------------
                                              --------------  --------------
Liabilities                                                                 
Current liabilities                                                         
  Accounts payable and accrued liabilities    $   1,842,431   $   1,613,030 
  Current portion of deferred revenue               710,598         688,766 
                                              --------------  --------------
                                                  2,553,029       2,301,796 
Deferred revenue                                    342,368         771,843 
                                              --------------  --------------
                                                  2,895,397       3,073,639 
Shareholders' Equity                                                        
Share capital                                    41,858,963      33,851,308 
Warrants                                            753,202       1,135,282 
Contributed surplus                               5,029,271       4,825,444 
Deficit                                         (39,188,529)    (29,884,939)
                                              --------------  --------------
                                                  8,452,907       9,927,095 
                                                                            
                                              $  11,348,304   $  13,000,734 
                                              --------------  --------------
                                              --------------  --------------
                                                                            
                                                                            
Cortex Business Solutions Inc.                                              
Consolidated Statements of Loss and Comprehensive Loss                      
For the years ended July 31, 2012 and 2011                                  
(Prepared in Canadian dollars)                                              
                                                                            
                                                       2012            2011 
Revenue                                                                     
  Access and usage fee                        $   4,093,869   $   2,512,978 
  Integration fees                                  552,601               - 
  Set-up fees                                       290,847         399,527 
  Project management                                      -         150,000 
                                              --------------  --------------
                                                  4,937,317       3,062,505 
                                              --------------  --------------
Expenses                                                                    
  General and administrative                      1,356,068         734,477 
  Internet and hosting costs                        124,363          85,696 
  Market expansion and product development        2,273,850       1,875,279 
  Professional fees                                 181,896         163,642 
  Rent                                              322,493         317,849 
  Salaries, employee benefits and subcontract     8,922,904       8,032,615 
  Stock-based compensation                          496,396       1,233,010 
  Amortization                                      603,562         224,763 
                                              --------------  --------------
                                                 14,281,532      12,667,331 
                                              --------------  --------------
Loss before the following                        (9,344,215)     (9,604,826)
Finance income                                       40,625          55,890 
                                              --------------  --------------
Net loss and comprehensive loss               $  (9,303,590)  $  (9,548,936)
                                              --------------  --------------
                                              --------------  --------------
Net loss per share-basic and diluted          $       (0.05)  $       (0.06)
                                              --------------  --------------
                                              --------------  --------------
                                                                            
                                                                            
Cortex Business Solutions Inc.                                              
Consolidated Statements of Cash Flows                                       
For the years ended July 31, 2012 and 2011                                  
(Prepared in Canadian dollars)                                              
                                                                            
                                                       2012            2011 
Cash provided by (used in)                                                  
Operating activities                                                        
Net loss                                      $  (9,303,590)  $  (9,548,936)
Items not affecting cash                                                    
  Stock-based compensation                          496,396       1,233,010 
  Amortization                                      603,562         224,763 
  Salaries paid in shares                            10,687         133,711 
                                              --------------  --------------
                                                 (8,192,945)     (7,957,452)
  Changes in non-cash working capital               332,878        (265,966)
                                              --------------  --------------
Net cash used in operating activities            (7,860,067)     (8,223,418)
                                              --------------  --------------
Financing activity                                                          
  Proceeds from issuance of shares and                                      
   warrants, net of issue costs                   6,647,402       8,431,249 
                                              --------------  --------------
Net cash from financing activity                  6,647,402       8,431,249 
                                              --------------  --------------
Investing activities                                                        
  Acquisition of property and equipment            (125,364)       (406,498)
  Software development costs                     (1,481,941)     (1,833,019)
  Changes in non-cash working capital              (124,270)         84,012 
                                              --------------  --------------
Net cash used in investing activities            (1,731,575)     (2,155,505)
                                              --------------  --------------
Cash outflow                                     (2,944,240)     (1,947,674)
Cash, beginning of year                           9,695,210      11,642,884 
                                              --------------  --------------
Cash, end of year                             $   6,750,970   $   9,695,210 
                                              --------------  --------------
                                              --------------  --------------

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....