Click here to close now.

Welcome!

Microsoft Cloud Authors: Aleksei Gavrilenko, Elizabeth White, Liz McMillan, Pat Romanski, Jaynesh Shah

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
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context wi...
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th 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 an...