Edmonton, Alberta, Canada , Jan. 25, 2018 (GLOBE NEWSWIRE) --
OneSoft Solutions Inc. (the “Company” or “OSS”) (TSX-V: OSS, OTCQB: OSSIF), a North American developer of cloud-based business solutions, announces its financial results for the three and nine months ended November 30, 2017 and provides a business update. The financial results for the quarter, including a review and update to previously published forward looking information, are explained in detail in the Management’s Discussion and Analysis for the quarter ended November 30, 2017 filed on SEDAR at www.sedar.com. Unless otherwise stated, all dollar amounts are Canadian dollars.
Q3 2018 HIGHLIGHTS
- OneSoft’s subsidiary, OneBridge Solutions Inc., entered into a multi-year agreement to provide commercial use of Cognitive Integrity ManagementTM (“CIM”) to Phillips 66 Company, a Fortune 500 company.
- Engaged several pilot project programs with pipeline operators, including a U.S.A. – based Fortune 100 Company.
MANAGEMENT COMMENTARY
“We’re pleased with how the pipeline industry has begun to adopt CIM” said OneSoft CEO Dwayne Kushniruk. “Our working relationship with Phillips 66 to develop a new SaaS solution incorporating data science and machine learning has commenced, Microsoft continues to assist with our marketing and sales initiatives, and we have several pilot programs underway that we believe will generate long term customers. Investor reaction to this progress has been positive, and with a current cash balance of $2.3 million and the activity that is now underway, we have great confidence that our Company is poised for success.”
HIGHLIGHTS SUBSEQUENT TO Q3 2018
- We entered into an agreement with Phillips 66 to develop a comprehensive pipeline Integrity Management Program (“IMP”) software application;
- A Fortune 500 company engaged CIM as an integral component of its integrity management process;
- A Fortune 500 company engaged in a pilot program to use CIM on a trial basis;
- We are working through various stages of marketing and sales processes with approximately 30 prospective customers who collectively operate 349,000 miles of pipeline in the USA.
MICROSOFT RELATIONSHIP CONTINUES TO GROW
- We demonstrated CIM to Microsoft field sales personnel who focus on oil and gas customers;
- We are now working with numerous USA-based field sales personnel to introduce CIM to enterprise level companies with whom Microsoft has customer relationships, representing in aggregate approximately 581,000 miles of pipeline infrastructure in the USA;
- Microsoft has provided funding for certain OneBridge marketing and sales programs;
- Microsoft has organized demonstrations of CIM to potential customers in USA, Canada, Europe, Middle East and Africa;
- Microsoft hosted conferences at its technology centers in Houston and Calgary that showcased OneBridge products, machine learning, data science and cloud computing technologies to potential customers;
- Microsoft has committed to co-host with OneBridge and present CIM and Azure technologies at the Pipeline and Pigging Integrity Management conference (“PPIM”) scheduled for the last week of January 2018 in Houston, Texas.
ONEBRIDGE TEAMS UP WITH PHILLIPS 66 TO DEVELOP IMP AND INCORPORATE DATA SCIENCE AND MACHINE LEARNING
- We are working collaboratively to migrate Phillips 66’s internal solution to the cloud and integrate OneBridge proprietary data science and machine learning components;
- We expect to benefit greatly from the expertise and contributions of Phillips 66 personnel to this project;
- We envision IMP to be a comprehensive solution addressing the integrity management functions that pipeline operators require.
- We anticipate that IMP will serve Tier 1 customers who typically develop software and systems internally to manage their pipeline integrity management processes, as well as Tier 2 and Tier 3 companies who typically engage outside contractors to conduct these processes;
- Teaming up with Phillips 66 provides OneBridge the opportunity to transition and embed a significant amount of industry expertise and enables a technology transfer from the software that Phillips 66 has developed over the years to IMP;
- OneBridge will own the intellectual property and all other proprietary rights associated with IMP.
SELECT FINANCIAL RESULTS FOR THE 3 AND 9 MONTH PERIODS ENDED NOVEMBER 30, 2017
UPDATED FINANCIAL GUIDANCE
In our Q4 MD&A report for fiscal year ended February 28, 2017 we disclosed financial objectives for fiscal year ending February 28, 2018 (“Fiscal 2018”), based on our assessment of a multitude of business assumptions and factors at that time. As the year has progressed, we found that some of the factors we based assumptions on did not transpire as expected, most notably the length of sales cycles required to engage new customers. This caused us to pivot to create and pursue our Pilot Program, allowing us to engage new customers to trial our SaaS solution more quickly, but at reduced revenue levels in the immediate term. As a result, income objectives that Management believed possible and disclosed in Q4 of the prior fiscal year have not been achieved as anticipated during the year. Although our income objectives are not likely to be achieved, the cash flow objective and projected cash balances as at the end of Fiscal 2018 are likely to be met as were predicted and published in the Q4 2017 report.
PROJECTS IN PROGRESS
OneBridge is currently tracking potential customers who collectively operate approximately 581,000 miles of pipeline infrastructure in the USA, of which approximately 30 prospective customers collectively operating 349,000 miles of pipeline are in our currently active sales process.
We also continue to have ongoing discussions with several organizations that may potentially provide synergistic future sales and business opportunities for OneBridge technology and products. These potential reseller partners include consulting firms who currently use legacy software and processes to provide contract integrity management services to pipeline operators, engineering consulting firms who may wish to private label OneBridge technology and products as their own offering, joint venture partners who may wish to work collaboratively with OneBridge to provide CIM services to customers delineated by country or other market segmentations, and certain other vendors that serve the pipeline industry who may wish to pursue synergies with OneBridge. Such advancements are currently tentative and will be disclosed should we conclude any arrangements or contracts with these prospects.
From a corporate development perspective, we continue to pursue and investigate initiatives that foster value creation for our shareholders, including synergistic joint ventures and potential merger and acquisition scenarios.
With our present cash balance of $2.3 million, management believes that the Company will have adequate funding to execute strategies for operational growth as envisioned, and that the Company will be sufficiently financed to achieve cash positive operations.
ON BEHALF OF THE BOARD OF DIRECTORS
ONESOFT SOLUTIONS INC.
Douglas Thomson
Chair
For more information, please contact
Dwayne Kushniruk, CEO
dkushniruk@onesoft.ca
780-437-4950
Sean Peasgood, Investor Relations
Sean@SophicCapital.com
(416) 565-2805
Forward-looking Statements
This news release contains forward-looking statements relating to the future operations and profitability of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, “believe”, “will”, “intends”, “plans” and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking information is provided to deliver information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.
In respect of the forward-looking information and statements the Company has placed reliance on certain assumptions that it believes are reasonable at this time, including expectations and assumptions concerning, among other things: interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; the efficacy of its software, the success of growth projects; future operating costs; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; and that there are no unforeseen material development or other costs related to current growth projects or current operations. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to many factors and risks. These include, but are not limited to the risks associated with the industries in which the Company operates in general such as: costs and expenses; interest rate and exchange rate fluctuations; competition; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws.
Readers are cautioned that the foregoing list of factors is not exhaustive. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act or other laws.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
| (in $,000)'s, per share in $ | Three months ended November 30, | Nine months ended November 30, | ||||
| 2017 | 2016 | Increase / (Decrease) | 2017 | 2016 | Increase / (Decrease) | |
| Continuing operations: | $ | $ | % | $ | $ | % |
| Revenue | 260 | 173 | 50.5 | 722 | 327 | 120.4 |
| Gross profit | 216 | 163 | 32.3 | 661 | 290 | 127.6 |
| Expenses, net of software development costs capitalized | 869 | 508 | 71.2 | 2,620 | 1,237 | 111.9 |
| Net loss | (629) | (223) | 182.3 | (1,916) | (987) | 94.1 |
| Discontinued operations: | ||||||
| Net income | - | 244 | (100.0) | - | 244 | (100.0) |
| Comprehensive net (loss) income | (629) | 21 | (3,074.8) | (1,916) | (743) | (157.9) |
| Weighted average common shares outstanding - basic (OOO)'s | 83,793 | 66,612 | 83,110 | 65,000 | ||
| Per share: | ||||||
| Comprehensive net loss | (0.01) | - | - | (0.02) | (0.02) | - |