Cortex Business Solutions Inc.
TSX VENTURE : CBX

Cortex Business Solutions Inc.

March 10, 2008 14:28 ET

Cortex Announces Record Revenue in Second Quarter

CALGARY, ALBERTA--(Marketwire - March 10, 2008) - Cortex Business Solutions Inc. (TSX VENTURE:CBX) today announced its continued growth in the three months ended January 31, 2008 (Q2), with record sales. During the quarter, Cortex secured the largest contract in Company history with a major integrated oil and gas company, validating our growth strategy. This customer provides access to 1000's of other potential customers by employing Cortex solutions to achieve productivity improvements, enhanced cash flow and efficiencies to both buyers and suppliers on the Cortex network.



Three months ended January 31
(Restated) $ %
2008 2007 Change Change
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Total Revenues $ 816,652 $ 370,068 $446,584 121%
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Total Expenses 964,270 492,997 471,273 96%
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Net loss (147,618) (122,929) 24,689 20%
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Net loss per share $ (0.003) $ (0.002) $ 0.001 50%
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Total assets 1,013,047 982,218 30,829 31%
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Six months ended January 31
(Restated) $ %
2008 2007 Change Change
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Total Revenues $1,436,140 $ 768,421 $667,719 87%
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Total Expenses 1,780,808 1,037,069 743,739 72%
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Net loss (344,668) (268,648) 76,020 28%
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Net loss per share $ (0.006) $ (0.010) $ 0.004 40%
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Total assets 1,013,047 982,218 30,829 31%
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Highlights of Fiscal 2008's second quarter were;

- Achieved record quarterly revenue of $816,652, an increase of 32% from $619,488 recorded in the first three months of fiscal year 2008 and a 121% ($446,584) increase from the same three month period 2007;

- Cash flow from operations, prior to changes in non-cash working capital, for the six months ended January 31, 2008 was $24,048. $43,978 of this relates to the quarter ended January 31, 2008 and $(20,930) cash used in operations for the quarter ended October 31, 2007;

- Q2 loss of ($147,618) or ($0.003) per share(January 31, 2007- restated, Q2 - $(122,929)) and a six month loss of $(344,668) or $(0.006) per share (January 31, 2007 restated six months - $(268,648))compared to first quarter loss of ($197,050) or ($0.004) per share;

- The Company's income before stock based compensation for the three months ended January 31, 2008 was $35,092 (January 31, 2007 - $(94,679)(restated)) and income before stock based compensation for the six months ended January 31, 2008 was $9,244 (January 31, 2007 - $(106,848) restated);

- Secured contract to expand automation project with a major oil and gas company and within 60 days successfully launched the Cortex system into production;

- Began a supplier adoption and sales program to connect suppliers to Cortex and expand our network; and

- Engaged CHF IR to implement an Investor Relations program to extend the reach of Cortex in the investment community.

Cortex is entering into an accelerated growth phase. Over the next few quarters, the company will focus on sales and marketing programs to drive new connections and capture market share. Management anticipates validation from the major contract last quarter generating new projects and connections with other major companies in our target markets. Through this next phase, management will continue to employ a disciplined approach to cost controls, operational efficiencies and investments.

"We continue to generate record top line performance on a quarter over quarter and year over year basis." said Ryan D. Lailey VP Business Development "We are encouraged with our sales pipeline and will focus on increasing the number of customers on the Cortex network through a concentrated sales and marketing program this year."

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!

To receive Company press releases, please email jacqueline@chfir.com and mention "Cortex News" on the subject line.

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
    Email: rlailey@cortex.net
    Website: www.cortex.net
    or
    CHF Investor Relations
    Robin Cook
    Account Manager
    (416) 868-1079 ext. 228
    Email: robin@chfir.com
    or
    CHF Investor Relations
    Jacqueline Wagenaar
    Associate Account Manager
    (416) 868-1079 ext. 289
    Email: jacqueline@chfir.com