Memex Inc. Releases Q2-2017 Financial Results

Strong End to the Quarter as Manufacturing Spending Begins to Recover

BURLINGTON, ON–(Marketwired – May 29, 2017) –  Memex Inc. (“Memex” or the “Company”) (TSX VENTURE: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its second quarter financial and operational highlights for its 2017 fiscal year, which ended March 31, 2017. All results are reported in Canadian dollars.

Summary Financial Highlights for the Second Quarter Ended March 31, 2017:

  • Memex reported revenue of $348 thousand, 39% lower than the same quarter a year ago;
  • Gross margin of 32.1% was down from 53.5% reported the same quarter a year ago — (excluding Amortization and Client Services labour, which was up 1.42% in the current quarter over a year ago, gross margin percentage on variable expenses is down only 4.2% in the current quarter over a year ago).
  • Bookingsi for the quarter were $573 thousand, down 31% from the same quarter a year ago;
  • The Company reported a net and comprehensive loss of $1.26 million for the quarter, equating to a $0.011 loss per share. This compares with a $991 thousand net and comprehensive loss in Q2 last year, and a $0.010 loss per share.
  • At March 31, 2017, the Company had $3.12 million in current assets including $2.23 million in cash (down from $3.00 million last quarter) and $1.97 million in working capital.
  • The final two weeks of the quarter brought in more than $400 thousand in new and follow on orders.

Management Commentary:

“During the first six-months, Memex and the broader manufacturing industry saw decreased investment due to uncertainty concerning trade both before and after the U.S. Presidential election,” said David McPhail, President and CEO of Memex. “The American Manufacturing Association (AMT) echoed our observations, but AMT anticipates that a manufacturing resurgence should occur in the Spring. We have seen recent signs of this resurgence in our sales leads and orders. Given our strong cash balance and low burn rate, we are well positioned to weather this temporary market disturbance.”

Selected Financial Information for Q2 2017
Three-months period ended
March 31
Six-months period ended
March 31
(Canadian dollars – in thousands except per share and margin%) 2017 2016 Change 2017 2016 Change
Revenue 348 571 39% 853 1,185 – 28%
Bookingsi 573 833 31% 965 1,710 – 44%
Gross margin % 32.1 53.5 40% 46.7 57.4 – 19%
Operating expenses 1,362 1,338 + 2% 2,435 2,384 + 2%
Cash utilized in operating activities1 1,172 976 + 20% 1,904 1,620 + 18%
Net and comprehensive loss for the period (1,236) (991) + 27% (2,025) (1,632) + 24%
Basic and diluted loss per share – period (0.011) (0.010) + 10% (0.018) (0.017) – 7%
1. Before changes in non-cash working capital balances.
As at
(Canadian dollars – in thousands except WC ratio)
March 31, 2017 September 30, 2016
Cash on hand 2,232 2,899
Current assets 3,124 4,156
Total assets 3,587 4,639
Current liabilities 1,150 1,047
Working capital* 1,974 3,109
Working capital ratio** 2,72 to 1 3.97 to 1
Backlogii 997 848
* Working Capital = current assets – current liabilities
** Working Capital ratio = current assets / current liabilities

Summary Financial Highlights for the Six-months Ended March 31, 2017:

  • Memex reported revenue of $853 thousand, 28% lower than the same period a year ago;
  • Gross margin of 46.7% was down from 57.4% reported the same period a year ago – – (excluding Amortization and Client Services labour, which is down 2.75% in the current YTD over a year ago, GM% on variable expenses is down only 1.8% YTD over a year ago).;
  • Bookings(1) for the period were $965 thousand, down 44% from the same period a year ago;
  • The Company reported a net and comprehensive loss of $2.03 million for the period, equating to a $0.018 loss per share. This compares with a $1.63 million net and comprehensive loss in the prior year period, and a $0.017 loss per share

Q2 2017 and Subsequent Operational Highlights:

  • Announced MERLIN Tempus First Customer Ship (FCS) during the quarter;
  • In March, successful marketing efforts at AeroDef 2017 (Fort Worth, TX) and American Manufacturing Summit (Chicago, IL) generated more than 300 quality sales leads; and
  • The final two weeks of the quarter brought in more than $400 thousand in new and follow on orders.

About Memex Inc.

MEMEX was founded with a vision to improve the way automated machine and production equipment work and connect on the factory floor. Since then MEMEX has proved itself a pioneer in IIoT time and again. The company is committed to its mission of “successfully transforming factories of today into factories of the future” and envisions converting every machine into a node on the corporate network, creating visibility from shop-floor-to-top-floor. MEMEX is the developer of MERLIN, an award-winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time. MEMEX’s software and hardware IIoT solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products have enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average. Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300 per cent. For more information, please visit: www.MemexOEE.com

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

i & ii These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management’s Discussion and Analysis for the periods ended March 31, 2017 and 2016, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.

For investor inquiries please contact:

 

Ed Crymble, Chief Financial Officer

905-331-4343

ed.crymble@MemexOEE.com

 

David McPhail, President & CEO

519-993-1114

david.mcphail@MemexOEE.com

 

 

Sean Peasgood, Investor Relations

416-565-2805

sean@sophiccapital.com

MEMEX Closed on Victoria Day

MEMEX will be closed on Monday, 22nd May 2017 to observe Victoria Day.

Normal hours will resume Tuesday, 23rd May 2017

Memex Inc. Presenting at the IMPACT Manufacturing and EASTEC Summits

BURLINGTON, ON–(Marketwired – May 4, 2017) – Memex Inc. (“MEMEX”) (TSX VENTURE: OEE) today announced that President and CEO David McPhail will present the Company’s smart manufacturing vision at IMPACT Manufacturing Spring Summit on May 7 through 9 in Las Vegas, Nevada at 11.00 am on May 8th 2017. Additionally, MEMEX will be participating at EASTEC, May 16 – 18 in West Springfield, Massachusetts and David McPhail will be presenting at the Smart Manufacturing Hub.

“The IMPACT Manufacturing and EASTEC summits are dedicated to helping manufacturers increase productivity,” said Mr. McPhail. “These forums are perfect to showcase MERLIN Tempus smart manufacturing features to an audience focused on optimizing operations. We look forward to returning to these conferences, sharing our best practices, and showing manufacturers how MERLIN can unlock value hidden within their facilities.”

About the IMPACT Manufacturing Spring Summit

Hosted twice a year, IMPACT Manufacturing Summit is the leading executive level conference for the manufacturing industry in the U.S. The program delivers a unique mixture of: strategic presentations and panels from industry thought leaders, real world customer led case studies, targeted research meetings with leading solution providers, and engaging networking opportunities with high profile industry peers. For more information, visit http://www.impactspring.com.

About EASTEC

EASTEC, New England’s premier manufacturing exposition, returns May 16 through 18, 2017. With more than 500 exhibitors, complimentary conference sessions, industry keynotes, and much more, EASTEC is an event dedicated to keeping northeast manufacturers competitive. It’s where manufacturing ideas, processes and products that make an impact in the northeast region, are highlighted through exhibits, education and networking events. The event offers a unique chance to connect with resources that can solve your company’s most pressing problems, improve productivity and increase profits. It’s clear why so many business owners, engineers, designers, production managers and purchasing executives attend EASTEC to keep their operations current. EASTEC brings human ingenuity and manufacturing brilliance together. For more information, visit http://www.easteconline.com.

About MEMEX

MEMEX was founded with a vision to improve the way automated machine and production equipment work and connect on the factory floor. Since then MEMEX has proved itself a pioneer in IIoT time and again. The company is committed to its mission of “successfully transforming factories of today into factories of the future” and envisions converting every machine into a node on the corporate network, creating visibility from shop-floor-to-top-floor. MEMEX is the developer of MERLIN, an award-winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time. MEMEX’s software and hardware IIoT solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products has enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average. Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300 per cent. For more information, please visit: www.MemexOEE.com.

Media Contact

Memex Inc.:

David McPhail, CEO

Phone: 519-993-1114

Email: david.mcphail@MemexOEE.com

 

Rashi Rathore, Marketing Manager

Phone: 905-635-3040 ext. 103

Email: Rashi.Rathore@MemexOEE.com

 

Investor Relations

Sean Peasgood, Investor Relations

Phone: 416-565-2805

Email: Sean@SophicCapital.com

 

MEMEX @ MAZAK NORTHEAST

Join us at this technology + education event to discover new ways to enhance productivity and versatility on your shop floor. As a registered attendee, you can explore the largest presentation of Mazak CNC machine tools in the region and experience the latest advancements in milling, turning, 5-axis and Multi-Tasking technologies through real-world metalworking demonstrations on a complete line-up of Mazak machines. As Mazak’s Value Inspired Partner many of their new machines tools will feature MERLIN, an award winning IIoT communication platform by MEMEX.

Date: MAY 16 – 17, 2017

Time: 9:00 AM – 7:00 PM (ET)

Venue:

NORTHEAST TECHNOLOGY CENTER

700 OLD COUNTY CIRCLE

WINDSOR LOCKS, CT 06096

Click here to learn more or register

MEMEX @ EASTEC

MEMEX is participating at EASTEC, New England’s premier manufacturing exposition.. With more than 500 exhibitors, complimentary conference sessions, industry keynotes and much more, EASTEC is an event dedicated to keeping northeast manufacturers competitive. It’s where manufacturing ideas, processes and products that make an impact in the northeast region, are highlighted through exhibits, education and networking events. The event offers a unique chance to connect with resources that can solve your company’s most pressing problems, improve productivity and increase profits.

Visit MEMEX at booth 5560 and at the Smart Manufacturing Hub (booth 5474).

David McPhail, CEO of MEMEX, will be speaking at the Smart Manufacturing Hub about:

  • Data-driven manufacturing: Making IIoT and Industry 4.0 come alive on the factory floor
  • Be a Top Shop: Shop Floor Management Best Practices
  • Leveraging Data-Driven Manufacturing for greater efficiency and profitability

Booth: 5560

Date & Time:

  • Tuesday, May 16: 9:00 am – 5:00 pm
  • Wednesday, May 17: 9:00 am – 5:00 pm
  • Thursday, May 18: 9:00 am – 3:00 pm

Venue:

Eastern States Exposition,

West Springfield, Massachusetts    

MEMEX @ MAZAK WESTERN

Discover how to enhance productivity and profitability on your shop floor. As a registered attendee, you will have the opportunity to attend intriguing TEK Talks addressing current manufacturing themes, trends, and techniques. As Mazak’s Value Inspired Partner many of their new machines tools will feature MERLIN, an award winning IIoT communication platform by MEMEX.

Date: MAY 10 – 11, 2017

TIME: 10:00 AM – 5:00 PM (PT)

Venue:

WESTERN TECHNOLOGY CENTER,

1333 WEST 190TH STREET,

GARDENA, CA 90248

 

Click here to learn more or register

MEMEX @ MAZAK MIDWEST

Discover how to enhance productivity and profitability on your shop floor. As a registered attendee, you will have the opportunity to attend educational seminars addressing current manufacturing themes, trends, and techniques as well as discuss with our experts how to easily and securely enter the world of IIoT with Mazak SmartBox. As Mazak’s Value Inspired Partner many of their new machines tools will feature MERLIN, an award winning IIoT communication platform by MEMEX.

Rick Mosca, the Chief Operations Officer at MEMEX, will be speaking about ” DEMYSTIFYING IIOT” on Thursday, May 4th 2017 at 1.00 PM.

Date: MAY 2 – 4, 2017

EVENT TIME: 9:00 AM – 5:00 PM (CT)

WHERE:

MIDWEST TECHNOLOGY CENTER,

300 EAST COMMERCE DRIVE

SCHAUMBURG, IL 60173

Click here to learn more or register

Measuring Manufacturing Excellence

The award-winning MEMEX smart manufacturing tool-kit makes the Industrial Internet of Things (IIoT) and Industry 4.0 come alive on the factory floor. MERLIN Tempus is the took-kit’s software foundation. It equips industrial machines with the necessary interfaces for data-driven manufacturing, then presents that data in Web-enabled dashboard reports so machine operators, factory managers, engineers, production managers, continuous improvement managers and senior management can work together to dramatically improve productivity and profit. MERLIN Tempus delivers a 10%-50% average productivity increase, earns 20%-plus profit improvement based on just a 10% increase in Overall Equipment Effectiveness, achieves payback in less than four months with an Internal Rate of Return greater than 300%, and ensures no machine is left behind – connecting them with MTConnect, other protocols, or MERLIN hardware adapters for older machines. Combined with MERLIN Tempus, MEMEX’s Continuous Improvement Fast-Track Services reveal ongoing factory productivity gains and ROI for years to come.

The MEMEX promise

The award-winning MEMEX smart manufacturing tool-kit makes the Industrial Internet of Things (IIoT) and Industry 4.0 come alive on the factory floor. MERLIN Tempus is the took-kit’s software foundation. It equips industrial machines with the necessary interfaces for data-driven manufacturing, then presents that data in Web-enabled dashboard reports so machine operators, factory managers, engineers, production managers, continuous improvement managers and senior management can work together to dramatically improve productivity and profit. MERLIN Tempus delivers a 10%-50% average productivity increase, earns 20%-plus profit improvement based on just a 10% increase in Overall Equipment Effectiveness, achieves payback in less than four months with an Internal Rate of Return greater than 300%, and ensures no machine is left behind – connecting them with MTConnect, other protocols, or MERLIN hardware adapters for older machines. Combined with MERLIN Tempus, MEMEX’s Continuous Improvement Fast-Track Services reveal ongoing factory productivity gains and ROI for years to come.

Part Two: Discussing the Industrial Internet of Things with David McPhail, CEO, MEMEX

Jennifer Rideout | Content Subject Matter Expert Manufacturing, Energy & Education | Cisco |April 12, 2017

Cyber-physical systems are dramatically changing the manufacturing industry. MEMEX Inc., a Canadian software and hardware provider, is helping making the factory of the future a reality for manufacturers around the world.

In part two of our conversation with David McPhail, CEO of MEMEX, we talk about how to simplify the Industrial Internet of Things (IIoT), the results MEMEX customers are experiencing with IIoT solutions and his advice for Canadian manufacturers.

Read part one of our conversation here.

Jennifer Rideout: The Industrial Internet of Things (IIoT) is still a confusing subject for many manufacturers. What are your thoughts on the IIoT and how do you explain the concept to your customers?

David McPhail, CEO, MEMEX: We recognized long ago that in order for our customers to understand and benefit from the adoption of IIoT technology and the associated business outcomes, we had to boil the perceived complexity of IIoT down to a few digestible pieces.

For the promise of IIoT to be real, there must be data. This data must be collected securely from all manufacturing assets, regardless of their type and age, utilizing a robust and secure connectivity layer consisting of either machine side hardware devices or available software protocols such as MTConnect or OPC.

This data is collected in real-time and easily displayed and reported to the entire operational management team. The use of this data must lead to tangible business outcomes, with a repeatable and demonstrable value equation or ROI.

In our case, MERLIN calculates Overall Equipment Effectiveness (OEE), the most important efficiency metric in manufacturing today.

JR: I’d like to make the IIoT real for our readers. Give me a few examples of how your customers are using MERLIN to produce tangible, measurable business outcomes.

DM: Mazak is one of the best example that comes to mind. Together with adopting MERLIN, Mazak deployed a series of 60-inch display monitors across their plant to establish a visual performance benchmark, and related training protocols, that could easily expand across their massive machine tool manufacturing plant.

For the first time, Mazak’s top management and operational teams had access to actionable reports. This led to a host of immediate valuable improvements. Their adoption of MERLIN afforded them a 42% productivity increase within the first six months, along with reducing operator overtime by 100 hours/month. Another benefit was the return of 400 hours/month of previously outsourced work.

This project also resulted in the development of SmartBox, a platform that allows for an easy and secure entrance into the IIoT for manufacturers.

JR: Thanks for your time David, I have one last question. What advice do you have for manufacturers who want to adopt IIoT solutions, but aren’t sure where to start (or how)?

DM: In any decision where there is new ground to be broken, such as the adoption of IIoT-centric technology in manufacturing, the first questions should be WHY? Unfortunately too many companies focus on the HOW first, and that is where the confusion starts, in my opinion.

When a company ignores the “why should we do this” question in favor of the “how do we do this” question, the anticipated IIoT-centric business outcome has been relegated to the second-most important piece of information. The HOW is where all the technical issues are addressed. These can include both technical specification-type details, as well as internal change management-type issues that, although important in their own right, unfortunately do not assist the decision maker in determining the net effect that an IIoT project can have on the company’s bottom line.

The WHY is the first question that should be answered, as this will accurately paint the picture of the anticipated investment in IIoT (the risk), as well as the anticipated business outcome (the reward). Only once this piece of important information, the business outcome (the WHY), is understood by decision makers, and the project “greenlighted,” is the HOW relevant.

We have many case studies of manufacturers that have blazed the IIoT trail for others to follow. The number one item to be learned from their IIoT implementation is the actual ROI received for the efforts expended.

My advice: start with the ROI value and timeline and determine if the project cost (the investment) is worth the price of success.

To view the original blog click here