Memex Inc. Releases Annual Financial Results

BURLINGTON, ON--(Marketwired - Dec 15, 2016) -  Memex Inc. ("Memex" or the "Company") (TSX VENTURE: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its annual financial and operational highlights for its fiscal year ended September 30, 2016. All results are reported in Canadian dollars.

Summary Financial Highlights for the Year Ended September 30, 2016:

• Memex reported revenue of $2.91 million, 51% higher than a year ago;

• Gross margin of 66.2% was up from 58.9% reported a year ago;

• Bookingsⁱ for the year were $3.42 million (with no comparative information available);

• The Company reported a net and comprehensive loss of $2.81 million for the year, equating to a $0.028 loss per share. This compares with a $2.35 million net and comprehensive loss last year, and a $0.030 loss per share; and

• At September 30, 2016, the Company had $4.16 million in current assets including $2.90 million in cash and $3.11 million in working capital. Subsequent to year-end, Memex added $464 thousand to its cash reserves through 2.33 million redeemed Warrants.

Management Commentary:

"2016 was a transition year where early adopters more fully understood the value of our data-driven manufacturing solutions. Additionally, customers expanded their current deployments of our platform, and new prospects were asking about enterprise wide deployment strategies," said David McPhail, President and CEO of Memex. "At IMTS, we introduced a whole new range of next generation IIoT products, and we believe that these products will increase MERLIN's value proposition in Cisco's Connected Machines Strategy."

2016 Fiscal Year End and Operational Highlights:

• The Company issued 11.83 million shares in the fourth quarter of 2016 through the redemption of Warrants for total proceeds of $2.03 million. 

• The Company acquired 37 new customers and received 44 follow-on orders from existing customers during fiscal 2016.

• Memex was featured at Cisco Live (Cisco's annual technology conference), where Cisco revealed that Memex's MERLIN platform would be part of Cisco's Connected Machines portfolio of solutions. A key component of Cisco's value proposition is that MERLIN facilitates the real-time calculation of Overall Equipment Effectiveness (OEE). Cisco demonstrated MERLIN's integration in Cisco's Connected Machines Strategy during IMTS 2016 while exhibiting in Memex's booth.

• Management finalized arrangements and completed the early payout of lender, Business Development Bank of Canada. The early payout eliminated future interest and royalty payments, and led to a one-time recovery adjustment of $74 thousand. Directors and Management provided most the funding to extinguish the debt by paying above market value (at the time) to redeem their expiring warrants.

• The Company showcased a new league of next generation IIoT products. These included MERLIN Tempus, MERLIN Tempus EE, MERLIN FOEE, MERLIN MTC-One, MERLIN DNC and MERLIN Continuous Improvement Roadmap, which were launched during IMTS 2016. MERLIN OPTime, a free gateway to Real-Time manufacturing analytics, was launched at MC2 conference.

• The Company was judged one of Canada's "Top 20" hottest innovative public technology companies; the recipient of the Canadian Innovation Exchange (CIX) Top 20 Award. MERLIN, a next generation IIoT platform and MEMEX's flagship product, received the 2016 Global Machine Monitoring Systems Product Leadership Award from Frost and Sullivan.

Summary Financial Highlights for Fourth Quarter Ended September 30, 2016:

• Memex reported revenue of $806 thousand, 40% higher than the same period in the prior year;

• Gross margin of 72.0% was up from 67.3% reported in the same quarter a year ago;

• Bookingsⁱ were $811 thousand, up 46% from the same quarter a year ago; and

• The Company showed a $726 thousand net and comprehensive loss for the quarter equating to a $0.007 loss per share. This compares with a $500 thousand net and comprehensive loss in the same quarter a year ago, and a $0.005 loss per share.

Selected Financial Information

	Three-month period ended Sep 30				Year ended Sep 30
(Canadian dollars - in thousands except per share and margin%)	2016	2015	Change		2016	2015	change
Revenue	806	575	+ 40%		2,910	1,929	+ 51%
Bookingsi	811	556	+ 46%		3,415	Note 1
Gross margin %	72.0	67.3	+ 7%		66.2	58.9	+ 12%
Operating expenses	1,296	987	+ 31%		4,867	3,542	+ 37%
Cash utilized in operating activities2	659	467	+ 41%		2,720	2,076	+ 31%
Net and comprehensive loss for the period	(726)	(500)	- 45%		(2,805)	(2,353)	- 19%
Basic and diluted loss per share - period	(0.007)	(0.005)	- 39%		(0.028)	(0.030)	+ 8%

1. Memex only began collecting bookings data July 1, 2015, comparable information is not available.

2. Before changes in non-cash working capital balances.

As at September 30 (Canadian dollars - in thousands except WC ratio)	2016	2015
Cash on hand	2,899	3,316
Current assets	4,156	4,219
Total assets	4,639	4,745
Current liabilities	1,047	990
Working capital*	3,109	3,229
Working capital ratio**	3.97 to 1	4.26 to 1
Backlogi	848	409

 * Working Capital = current assets - current liabilities
 ** Working Capital ratio = current assets / current liabilities

About Memex Inc.

Memex, the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time, is the global leader in machine to machine connectivity solutions. Committed to its mission of, "Successfully transforming factories of today into factories of the future", and encouraged by the accelerating adoption and success of MERLIN, Memex is relentlessly pursuing the development of increasingly innovative solutions suitable in the IIoT era. Memex envisions converting every machine into a node on the corporate networks, thereby, creating visibility from shop-floor-to-top-floor. Memex, with its deep commitment towards machine connectivity, offers solutions that are focused on finding hidden capacity by measuring and managing Real-Time data. This empowers Memex's customers to effectively quantify and manage OEE, reduce costs, and incorporate strategies for continuous lean improvement.

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 This non-IFRS financial measure is identified, defined and reconciled to the closest IFRS measure, revenue, within our Management's Discussion and Analysis for the years ended September 30, 2016 and 2015, in the section "Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.