Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

December 29, 2008 09:00 ET

Cortex Announces Q1 2009 Financial Results

CALGARY, ALBERTA--(Marketwire - Dec. 29, 2008) - Cortex Business Solutions Inc. (TSX VENTURE:CBX)

Q1 2009 Financial and Operational Highlights

Cortex had a strong quarter with a 235% increase in customers transacting on our network, a 300% increase in customers with signed contracts to join our network and the execution of a major sales and distribution agreement with TELUS Communications Inc.

Highlights of Q1 are:

- Achieved quarterly access and usage fee revenue of $196,968. This is an increase of 78% ($86,229) over the quarter ended October 31, 2007.

- Continued with supplier adoption and sales program to connect suppliers to the Cortex network and expand this network by over 500 new customers since July 31, 2008.

- Signed a sales and distribution agreement with TELUS Communications in which Cortex products and services become a core product line in the TELUS Procure to Pay(tm) solution for the oil and gas market.

- The expansion of our network by over 500 new customers, increasing the number of billable customers since July 31, 2008 from 213 to 714 as of November 30, 2008, an increase of 235%. This provided the Company with $63,000 in network set-up fees in the quarter. However, in accordance with the Company's revenue recognition policy, these fees are required to be amortized over the life of the contract. As a result, minimal revenue was recognized in the quarter for these fees with a corresponding increase in deferred revenue of $61,016. The Company currently has $91,075 in deferred revenue, which will be amortized to revenue in accordance with the terms of customer contracts.

- The Company has a net loss per share of $(0.017) for the quarter ended October 31, 2008.

Cortex continues to execute on its strategy and business plan in which management began to invest the $5.2 million raised on May 29, 2008 into our sales marketing and delivery organizations. The result of this investment began to pay off in the first quarter by adding over 500 new customers to our trading partner network. The Company's major project relating to the Memorandum of Understanding signed during the fiscal year ended July 31, 2008 is on track and together with our new partnership with TELUS, activity in the marketplace and acceptance of our solutions has increased significantly. Our sales opportunities are the strongest in Company history. Management is focused on sales and execution of our business plan.

The Company's revenue streams are based on the premise that our business assists companies in reducing their overhead and improving cash flow. The recent economic downturn may encourage companies to focus on these measures. As a result, Cortex does not anticipate that the current economic downtown would have a significant negative impact on our estimated revenue growth.

About Cortex Business Solutions Inc.

Cortex Business Solutions Inc. is an industry leading service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Trading Partner Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment - evolving business.

Cortex products and services are non-intrusive and allow our customers the freedom to leverage and optimize their existing processes and information technology assets when it makes the best business sense for them. This approach improves the productivity, cash flow and profitability of our customers, while avoiding the risk and delays associated with large information technology or business processes re-engineering initiatives.

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Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Cortex Business Solutions
    Ryan Lailey
    VP of Business Development and Corporate Strategy
    (403) 219-1504
    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 ext. 228
    CHF Investor Relations
    Jacqueline Wagenaar
    Account Manager
    (416) 868-1079 ext. 289