Cortex Business Solutions Inc.
TSX VENTURE : CBX

Cortex Business Solutions Inc.

June 29, 2009 16:22 ET

Cortex Announces Q3 2009 Financial Results

Third Quarter 2009 Financial and Operational Highlights

CALGARY, ALBERTA--(Marketwire - June 29, 2009) - Cortex Business Solutions (TSX VENTURE:CBX)

The Company has seen an 11% increase in total revenue in the quarter ended April 30, 2009 over the previous quarter ended January 31, 2009. During the quarter ended April 30, 2009, the Company has seen a 57% growth in the access and usage revenue stream over the same quarter ended April 30, 2008. In addition, set up fees recognized in the quarter ended April 30, 2009 increased 139% over the same period ended April 30, 2008. Although the Company did not realize the growth in total revenue anticipated, the difference is associated with the timing of executed integration and professional services contracts not completed in the quarter. Cortex continues to focus and execute on the growth of our customer base and associated access and usage recurring revenue. This focus has resulted in our fourth straight quarter of growth in the access and usage revenue stream.

Highlights of Q3 are:

- Access and Usage fee recurring revenue continues to improve, showing an increase of 57% in the quarter ended April 30, 2009 over April 30, 2008. In addition set up fees recognized in the quarter increased 139% April 30, 2009 over April 30, 2008.

- During the quarter, Cortex achieved a major milestone by bringing the total number of suppliers connecting through the Cortex Trading Partner Network to over one thousand.

- Cortex announced the expansion of the previously announced project with one of Canada's top five integrated Oil & Gas companies to now onboard all its suppliers in all business units across Canada.

- Cortex experienced a slight delay in supplier on boarding during the third quarter on our current project with a major oil and gas client due to a decision to mandate the use of the Cortex Trading Partner Network to all suppliers of the major oil and gas company. This decision required a change in execution but has ultimately benefited the project and Cortex through the recent increased rate of supplier on boarding. The Company is continuing to increase the size of its Trading Partner Network, increasing the number of customers with signed contracts since January 31, 2009 from 923 to 1300 as of May 31st, 2009, an increase of 41% over the last three months. The number of suppliers on the network continues to accelerate, and as of June 18th, 2009 the number of contracted suppliers is 1,440.

- The Company announced an agreement with Wolverton Securities Ltd. to complete a brokered private placement financing, on a "commercially reasonable efforts" basis, of up to 25,000,000 units of Cortex ("Units") at a price of $0.20 per Unit for gross proceeds of up to $5,000,000. On May 12th, 2009, the Company closed the initial tranche of its private placement for a total of 11,000,000 units of Cortex ("Units") at a price of $0.20 per Unit for gross proceeds of $2,200,000. In addition, Wolverton Securities Ltd. purchased 37,500 units in lieu of $7,500 of the corporate finance fee.

- Through our strategic partnership with TELUS, an innovative and interactive video was released and posted to our website for customers to view our solution. This video will be used as a sales tool to assist in the sell of our integrative solution to major oil and gas producers and suppliers.

The Company's major project relating to the Memorandum of Understanding signed during the fiscal year ended July 31, 2008 is continuing, and together with our partnership with TELUS, our alliance with Research In Motion, the strategic partnership with Powervision Software Inc., activity in the marketplace, and the acceptance of our solutions, the Company continues to see increased demand for our solution. Sales opportunities continue to strengthen as the Company increases presence in the marketplace. Management remains focused on securing sales and executing our business plan.

The steady growth of suppliers signing on to the Cortex Trading Partner Network is encouraging and aligns with the Company's business plan. The recurring access and usage fees from these new users have been slower to materialize than expected due to circumstances beyond the Company's control. During the quarter, management continued to take action to control and reduce costs. Future cost reductions will be implemented as necessary until such time as revenue growth is back on target.

The current economic downtown may encourage companies to focus on cost savings measures. The Company's solution assists companies in this goal by providing an automated e.Procurement solution which assists in reducing their internal costs and increasing controls.

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.

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.

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