TORONTO, Nov. 28, 2019 (GLOBE NEWSWIRE) -- Datametrex AI Limited (the “Company” or “Datametrex”) (TSXV: DM) (FSE: D4G) (OTC: DTMXF) today released its financial results for the third quarter ended September 30, 2019. The Company’s cash position improved significantly, $812,853 compared to $66,296 in the previous quarter. In this quarter, the Company reported revenues of $1,683,985 compared to $589,648, up by 186%. For the nine months operations, the Company reported revenues of $2,559,068 compared to $1,872,944, up by 37%. Operating costs were significantly reduced, $1,034,071 compared to $2,192,822 in the third quarter, down by 53%.
“In Q3 2019, the Company achieved key milestones and made significant strides in strengthening its AI platform and offering. Increased sales and significant reduction in operating costs attributed substantial improvement in the bottom line,” said Marshall Gunter, the Chief Executive Officer of the Company.
Further commenting on the Q3 2019 results, Jeff Stevens, President of the Company stated “Datametrex was recently featured on CTV for its latest findings. The company’s proven technology sees tremendous opportunity across the North American and Asian markets where it is gaining wide acclaim. These markets have the potential to drive strong revenue across a variety of multinationals.”
“We are pleased with the improvements year over year and remain committed to increasing sales. Reducing costs and streamlining operations will position the Company for continued growth. The article published by Nicole Bogart of CTV further validates and substantiates our technology in the cyber security sector,” says Marshall Gunter, CEO of the Company.
Highlights for Q3 2019:
- The Company was successful in securing the second contract of a multi phase R&D program through the Department of National Defence’s Innovation for Defence Excellence and Security (IDEaS) program with a value of approximately $945,094.
- The Company was successful in software licencing contract with GreenInsightz Limited for the use of its proprietary Nexalogy’s Artificial Intelligence software platform for a value of approximately $1 million in cash and shares.
- The Company was successful in securing another contract with a division of Lotte for approximately $1,000,000.
- The Company participated in NATO Research Task Group in Paris, France.
- Promoted Marshall Gunter to Chief Executive Officer.
Financial Highlights
The following table reconciles income from operations to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2019 and September 30, 2018:
| Three months ended Sep. 30, | Nine months ended Sep. 30, | ||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||
| $ | $ | $ | $ | ||||||||
| Revenue | 1,683,985 | 589,648 | 2,559,068 | 1,872,944 | |||||||
| Net loss | (695,803 | ) | (15,236,076 | ) | (2,612,556 | ) | (18,165,683 | ) | |||
| EBITDA* | (539,115 | ) | (14,350,712 | ) | (2,092,871 | ) | (15,709,824 | ) | |||
| Adjusted EBITDA* | (539,115 | ) | (1,422,731 | ) | (2,092,871 | ) | (1,565,323 | ) | |||
| EBITDA per share* | (0.002 | ) | (0.072 | ) | (0.009 | ) | (0.079 | ) | |||
* Note: EBITDA and Adjusted EBITDA are non-GAAP/IFRS figures. “EBITDA” represents net income plus income tax, finance expense and depreciation. “Adjusted EBITDA” represents EBITDA plus share-based compensation and one-time costs. “Adjusted Net Income” represents net income plus one-time finance expenses.
The Company believes that Adjusted EBITDA is useful additional information to management, the board and investors as it provides an indication of the operational results generated by its business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization and it excludes items that could affect the comparability of our operational results and could potentially alter the trends analysis in business performance. Excluding these items does not necessarily imply they are non-recurring, infrequent or unusual. Adjusted EBITDA is also used by some investors and analysts for valuing a company. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to operating earnings or net earnings determined in accordance with IFRS as an indicator of the Company’s financial performance or as a measure of the Company’s liquidity and cash flows. Adjusted EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.
Non-GAAP financial measures do not have standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Specific items may only be relevant in certain periods. For reconciliation of non-GAAP financial measures please refer to the Company’s Management Discussion and Analysis for the period ended June 30, 2019.
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the nine-month period ended September 30, 2019 are available on SEDAR at www.sedar.com.
About Datametrex AI Limited
Datametrex AI Limited is a technology focused company with exposure to Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy (www.nexalogy.com).
Additional information on Datametrex is available at: www.datametrex.com
For further information, please contact:
Jeffrey Stevens – President
Phone: (647) 777-7974
Email: jstevens@datametrex.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. The Company is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Datametrex cannot assure investors that actual results will be consistent with these forward looking statements and Datametrex assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.