Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

June 27, 2008 12:47 ET

Cortex Announces Q3 Results

CALGARY, ALBERTA--(Marketwire - June 27, 2008) - Cortex Business Solutions Inc. (TSX VENTURE:CBX) today announced results from the three months ended April 30, 2008 (Q3). The Company continues to focus on increasing the number of suppliers on our network, which increases our recurring revenue streams (access and usage). For the three months ended April 30, 2008 (Q3) Cortex posted an 82% increase in the recurring revenue stream from the same quarter last year. During the quarter, Cortex increased the customer base by 20%. Our customers are focused on improving operational efficiencies, controls and reducing risk. As a result, our sales pipeline has increased and opportunities with additional large organizations have emerged.

Highlights of Fiscal 2008's third quarter were;

- Achieved quarterly revenue of $609,130, an increase of 40% from $435,715 recorded in the third quarter of fiscal year 2007;

- Increased recurring revenue in the quarter to $190,355 from $104,535 in the same quarter last year (82% growth);

- Reduced cash flow used in operations after changes in non-cash working capital by 72%. The Company had a cash outflow of ($264,287) for the quarter ended April 30, 2007 and a cash outflow of ($75,233) for the quarter ended April 30, 2008;

- Continued with supplier adoption and sales program to connect suppliers to Cortex and expand our network by 20% from January 31, 2008 to current;

- Achieved 100% exercise of the remaining outstanding warrants for total cash flow from financing activities in the quarter of $1,690,849 and;

- Subsequent to Q3, the Company closed its first short form prospectus on May 29, 2008. The full amount of the prospectus was filled, including $220,000 in over-allotment. The total gross proceeds to the Company were $5,220,000, before issuance costs estimated at $725,000 for estimated net proceeds of $4,495,000.

- On June 19th 2008, the Company signed a memorandum of understanding with one of Canada's top 5 integrated oil and gas companies to expand our current initiative and become their primary e - commerce solution provider.

In the coming quarters, the Company will execute its investment plan to increase the sales and marketing resources to capture more market share and increase access and usage fees.

About Cortex Business Solutions Inc.

Cortex is an information management company whose document exchange solution saves businesses valuable time and money. Cortex products enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment. What once took a matter of months to complete can now be accomplished in a matter of days!

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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 Inc.
    Ryan Lailey
    VP Business Development & Corporate Strategy
    (403) 260-6647
    CHF Investor Relations
    Robin Cook
    Account Manager
    (416) 868-1079 ext. 228
    CHF Investor Relations
    Jacqueline Wagenaar
    Associate Account Manager
    (416) 868-1079 ext. 289