CALGARY, ALBERTA -- (Marketwired) -- 06/26/13 -- Cortex Business Solutions Inc. (TSX VENTURE: CBX) ("Cortex" or the "Company") is pleased to announce the Company's Q3 F2013 Financial and Operational Highlights. Complete financials and MD&A are available on SEDAR (www.sedar.com).
Revenue was $1.6M in the third quarter of the Fiscal Year 2013, compared to $1.4M in the same quarter Fiscal Year 2012, reflecting a 20% growth in total revenue. Q3 F2013 total revenue grew 9% over Q2 F2013. Included in the total revenue is access and usage fee revenue of $1.4M Q3 F2013 compared to $1.1M in Q3 F2012 and $1.3M in Q2 F2013 representing a 30% and 9% respective, increase in recurring revenue growth.
The Company reduced its net cash used in operating activities to $1,093,929 in Q3 F2013 from $2,103,861 in Q3 F2012; an improvement of 48%. There was a 39% reduction in net cash used in operating activities Q3 F2013 compared to Q2 F2013 of $1,807,182.
At the end of the quarter ended April 30, 2013 ("Q3 F2013"), Cortex had signed agreements with 69 Hubs, 5 more than at the end of January 31, 2013 ("Q2 F2013"). Of those, 51 have progressed through the pilot phase and were available to receive invoices from their suppliers electronically. Hubs are the main driving force for the growth in the Company as each new hub brings a list of additional customers to the Network and provides an additional destination for existing network users to send invoices to. During the quarter, Cortex added 367 new customers.
Cortex had a net loss of $1,809,062 or $(0.01) per basic and diluted share in Q3 F2013, compared to net loss of $2,374,772 or $(0.01) per basic and diluted share in Q3 F2012. This reduction in net loss of 24% is the result of increased revenue in conjunction with a reduction of expenditures of 8% compared to Q3 2012.
"Cortex continues to grow our Network of companies, transactions and revenue during a time period when drilling activity in the oil and gas industry is down considerably from last year. This is a direct result of our investments in market expansion, productivity improvements and technology over the past year," said Art Smith, President & CEO of Cortex. "We expect 2013 to close with strong growth for the Company in terms of both revenue and productivity improvements, as we expand our Network in Canada and the United States."
Cortex is seeing increasing demand for our new 100% e-Billing service with the signing of a large initiative in February 2013. This initiative will expand the Cortex network into 5 new industries including Mining, Construction, Power Systems, Agriculture and Forestry and has the potential to add thousands of new Hubs to the Cortex network. We have seen additional demand for this service and expect more projects to be signed over the next 6 months.
Cortex expects to launch its new Portal product in the summer of 2013, which will include a collaboration environment enabling customers to create profiles, perform searches, send messages and connect with each other through the Cortex Network. The Roadmap project was the foundation required to proceed with the development of the Portal product.
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