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| | November 27, 2008
CHF Spotlight Recurring Revenue Revue
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| | CHF Spotlight
Issue No. 27 November 2008
Recurring Revenue Revue
Cortex Business Solutions (TSX-V: CBX) - technology solutions company that eliminates paper record-keeping for high-traffic, procurement operations by transacting electronically, saving money and turnaround time.
Cortex Achieved 82% Increase in Recurring Revenue Stream in Q3 by Meeting Goals Consistently
Cortex Business Solutions Inc. (TSXV: CBX) ("Cortex")is a leading eCommerce service 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 control while reducing days outstanding and administrative costs. Cortex is a low cost, low risk service solution that can be implemented quickly by leveraging its customers' existing business system.
Cortex has partnerships with TELUS, Sun Microsystems, Fujitsu Consulting, Spira Data, and Eagle Consulting, each devoted on delivering quality customer service to its customers. In the past few months, Cortex has achieved record growth, driven by the signing of Husky Energy to become its primary e-commerce provider, and has commenced the 3,000+ supplier on-boarding process. More than 650 companies are connected to the Network to date, which is growing at an accelerating rate already expanding by three times since January 31, 2008! Cortex's Q3 2008 financials for the three months ended April 30, 2008, posted an 82% increase in the recurring revenue stream, and 40% increase in quarterly revenue over the same quarter last year. Recurring revenue represented 31% of total revenue in Q3 2008, close to 50% increase over the 22% averaged over the previous four quarters.
Cortex consistently follows through, meeting its goals and targets to build shareholder value. The Company recently announced a partnership with TELUS, completed an over-subscribed financing of $5.2 million, and secured Husky Energy as its primary e-commerce solution provider. In addition to its near term goals, Cortex is seeking new strategic partnerships for market penetration and generate new sales. Part of the search may include analyzing targeted joint ventures/acquisitions to broaden the product line and customer base in the medium to long term.
Currently, there are over 1 million companies operating within Canada (source Stats Canada). Cortex anticipates its near term growth targets to reach over 10,000 customers, or 1% of total market share. Average annual recurring revenue generated per Cortex customer is approximately $1,700, which provides potential recurring revenues of $17 million annually. Cortex has the ability to scale internationally with ease, with limited legislative and/or regulatory barriers, through leveraging its relationships and growing network of users.
The Company is currently trading at $0.15 per share with 104.4 million shares outstanding; look for Q4 results by the end of November. |
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