Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

November 28, 2007 13:37 ET

Cortex Announces Record Year

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2007) - Cortex Business Solutions Inc. (TSX VENTURE:CBX) announces financial results for the year ended July 31, 2007.

Fiscal 2007 Financial and Operational Highlights

Cortex had an outstanding year of achievement, record revenue and growth. The Company's disciplined approach to management, allowed the organization to invest in the core business to create a solid foundation for growth.

- Achieved record revenue of $1.6 million, an increase of 166% from $610,310 recorded in fiscal year 2006.

- Cash and accounts receivable balance of over $700,000 at July 31, 2007.

- Eliminated all corporate debt during the year ended July 31, 2007.

- Completed agreements with two of Canada's largest and most respected firms, Fujitsu Consulting and Eagle Consulting. Both these firms will provide the Company with the foundation to scale operations effectively as we grow to meet market demand.

- Completed a corporate re-branding including a corporate name change, sales and marketing development and created a new corporate message.

- Invested in development of core products and services.

- Secured consulting and pilot projects with a major oil & gas company.

During the past year, the escalating cost pressures and reduced drilling activity in the oil & gas sector has increased the demand for innovative solutions which improve cash flow and increase operational efficiencies. These changes in the marketplace are positive for Cortex as an increased number of large and mid-sized companies began exploring the benefits of our solution.

Cortex exits fiscal 2007 with the highest revenue in Company history, debt free, stable cash position and an excellent foundation for growth in 2008.

Management expects that the current cycle in the oil and gas industry will strengthen the sales pipeline and increase the growth of our trading partner network. Given these market conditions and the Company's investment in product development during 2007, management's focus for 2008 will shift to marketing and sales. Management will remain disciplined and focus on revenue growth, controlling costs and driving toward sustainable profitability.

In addition, at the request of Art Smith and Ryan Lailey, officers of the Company, the previously announced stock option grant on July 19, 2007 has been adjusted. This adjustment results in a total reduction of options granted to these officers of 350,000. This request is in response to management's expectation of future growth and the necessity of maintaining a sufficient option pool available to attract new employees and retain existing employees to execute the Company's growth strategy.

About Cortex

The Cortex Business Solutions Inc. enables the secure exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments between a large cohort of trading partners. Our customers can implement Cortex quickly and achieve the productivity improvements, enhanced cash flow and efficiencies associated with transacting electronically with their suppliers and customers.

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.

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

Contact Information

  • Cortex Business Solutions Inc.
    Ryan D. Lailey
    VP Business Development & Corporate Strategy
    (403) 260-6647