CALGARY, ALBERTA – December 6, 2016 - Cortex Business Solutions Inc. (TSXV: CBX), the online network helping companies connect and interact with each other to transmit documents and grow their businesses, today announces its three months ended October 31, 2016 (“Q1 F2017”) Management’s Discussion and Analysis and Condensed Interim Consolidated Financial Statements.
“As we share Q1 F2017 results today, I continue to be encouraged by the progress that we have made as an organization in the past year. My confidence in this Cortex Management Team to now deliver on our growth and financial strategy has never been stronger,” commented Joel Leetzow, President and CEO. “With the restructuring and internal transformation of Cortex now being mostly complete, F2017 is going to be a year of increased sales momentum with new customers and a continued focus on increasing our value to our current customers.
Q1 results for F2017 provide further proof that our goal of profitability is within reach this fiscal year. These Q1 results were achieved despite an increase in sales and marketing expenses during the quarter. Although there were no new buyers signed in Q1 F2017, the business coming from within our current customer base was strong and the results can be seen with our 777% improvement in professional services revenue quarter over quarter. “
Q1 F2017 Highlights:
Cash Flow from Operations
• Net cash used in operating activities improved 9% to $126,248.
- Total revenue was down 6%,
- Access and usage fees were down 7%:
- Access fees grew 6%,
- Usage fees declined 22%,
- Integration and set up fees were down 82%, and
- Project management fees were up 777%.
- Total expenses were down 26%,
- Cost of sales were down 42%,
- Sales and marketing was up 32%,
- Research and development costs were down 25%,
- General and administrative costs were down 21%, and
- Severance and termination charges were down 62%.
“Q1 F2017 marked a great start to the 2017 fiscal year,” said Sandra Fawcett, CFO of Cortex. With the cost realignment behind us, the focus has moved towards generating new sales while maintaining the strict cost structure. The pipeline for sales was strong in Q1 F2017, however, no net new buyers contracts closed in the quarter. It was expected given the ongoing development of the sales team. Confidence remains in the ability to close additional buyers in the upcoming six months.”
Cortex management will host a conference call, followed by a question and answer period.
The details of the conference call are as follows:
Date: Wednesday, December 7, 2016
Time: 10:00 a.m. Eastern time (8:00 a.m. Mountain time)
Toll-free dial-in number: 1-866-225-0198
International dial-in number: 1-416-340-2216
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 December 14, 2016.
Toll-free replay number: 1-800-408-3053
Toll replay number: 1-905-694-9451
Replay ID: 6178544
About Cortex Business Solutions
Cortex Business Solutions Inc. (TSXV: CBX) is a business-to-business network that enables electronic invoicing for buying and supplying organizations. The Cortex network offers flexible connection methods to reduce the time required to process invoices 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.
Investor Relations Contacts:
|Joel Leetzow||Sandra Fawcett (formerly Weiler)||Andrew Stewart|
|President and CEO||CFO||Director, Marketing & Investor Relations|