Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

September 07, 2011 16:05 ET

Cortex Continues to See Strong Growth in All Key Metrics

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2011) - Cortex Business Solutions Inc. (TSX VENTURE:CBX), a Canadian based eProcurement solutions and service provider, announced strong growth across the business in 2011, highlighted by an increase in the number of customers and transaction volume on its trading partner network.

The number of buying organizations (Oil & Gas producers) joining the Cortex Network grew by 130% from 2010 to 2011. Cortex added 7 new buying organizations in the last 12 months. The Company ended the year with 10 buying organizations connected to a highly active supply-chain of over 5,000 suppliers. From August 2010 to July 2011, Cortex enrolled 2,416 new customers onto its cloud-based procurement network, resulting in a growth rate of 89% in 12 months.

Online transactions between trading partners has also doubled in 2011 due to the viral nature of the Cortex Network. This has resulted in consistent increase in recurring revenue of over 10% quarter over quarter in 2011.

The financial strength of the Company has been reinforced by revenue growth, sound capital decisions and principal investments. The recent closing of a $7.5 million bought deal financing has strengthened its balance sheet, and has enabled the company to take advantage of organic growth opportunities, market expansion and product development initiatives.

Managing overhead and operations efficiently will also support the Company's financial strength. Since the beginning of fiscal 2011, the Company has seen a 39% reduction in cost per supplier and expects the trend to continue with efficiency gains implemented operationally throughout the organization. The Company is also seeing a significant reduction in support calls which has been achieved through continuous improvement initiatives with buying organizations and their suppliers. The average support call per supplier has been reduced to under one per month. Keeping fixed-costs down while leveraging operational efficiencies will enable the Company to see continued growth in profitability.

Cortex will continue to focus on expansion in the Oil & Gas industry in both Canada and the U.S. With the signing of 7 new producers and a strong pipeline of potential sales in both Canada and the US, Cortex is well-positioned to move forward with expansion going into financial year 2012 and further develop its network, customer-base and overall market share.

Cortex is in a position of continued growth and with additional expansion opportunities. To maintain and surpass the current momentum, the Company will continue to:

  • Expand its Network by adding more buying organizations and their supplier groups through current and new partnerships;
  • Continue to build stronger relationships with major Oil & Gas producers like Husky Energy, Apache Corporation, Bonavista, Murphy, Petro-Hunt, Energen, Hilcorp and their suppliers;
  • Expand solutions together with technology partners like Full Circle, Basware, Verian Technologies, American Express, and Powervision.
  • Explore new revenue, industry and partnership opportunities in Canada and the USA;

Cortex, in alignment with its 2010 Hub Resolution award as voted on by shareholders at the 2009 AGM on 14 June 2010, has issued 666,667 common shares to non-insiders as compensation in lieu of cash for the signing of significant hub accounts to our Network.

About Cortex Business Solutions

Cortex Business Solutions Inc. is an Enterprise eProcurement solutions company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex 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 clients' existing business environment.

For more information please visit our website at

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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