SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

NexJ Systems Reports Third Quarter 2018 Results
[October 25, 2018]

NexJ Systems Reports Third Quarter 2018 Results


TORONTO, Oct. 25, 2018 /CNW/ - NexJ Systems Inc. (TSX: NXJ), a provider of intelligent customer management solutions to the financial services industry, today announced financial results for its third quarter ended September 30, 2018.

Financial Summary

  • $5.3M of revenue for the third quarter as compared to $5.7M in the third quarter last year
     
  • $686K in Adjusted EBITDA loss for the third quarter as compared to $391K of Adjusted EBITDA loss reported in the third quarter last year

  • $995K of net loss for the third quarter as compared to $1.2M of net loss reported in the third quarter last year

"I am encouraged that our focus on customer retention and acquisition has led to an increase in revenue over last quarter, however, our goal remains to return to year-over-year revenue growth", said Paul O'Donnell, CEO, NexJ Systems Inc. "We fully expect the incremental sales opportunities we are seeing will yield more positive results going forward".

Conference Call Information
NexJ will be hosting an earnings report conference call on October 25, 2018 at 5:00 p.m. ET. The call can be accessed via webcast or by phone by dialing 1-888-390-0605 (North America Toll Free). Investors should dial in approximately 10 minutes before the teleconference is scheduled to begin.  A replay of the call will be available beginning on October 25, 2018 at 8:00 p.m. ET through 11:59 p.m. on November 1, 2018 and can be accessed by dialing toll-free at 1-888-390-0541 and using password 405716.





NexJ Systems Inc.


Third Quarter Financial Results









(Expressed in thousands of Canadian dollars)









(Unaudited)









 Quarter ended September 30, 


 Nine months ended September 30, 


2018


2017


2018


2017









Revenue:

$


$


$


$


License fees

615


557


1,717


5,127


Professional services

2,425


3,109


7,904


10,180


Maintenance and support

2,280


2,037


6,641


5,948


5,320


5,703


16,262


21,255

Expenses:









Professional services

1,704


2,442


6,065


8,060


Research and development, net

2,321


1,739


6,840


5,442


Sales and marketing

788


716


2,661


3,114


General and administrative, net

1,193


1,197


3,840


4,120


6,006


6,094


19,406


20,736









Adjusted EBITDA

(686)


(391)


(3,144)


519










Share-based payment expense

76


39


165


187


Depreciation and amortization

92


229


284


695


Lease-exit charges, net

-


-


103


-


Deferred share unit expense

-


-


225


200


Restructuring costs

-


-


331


-

Loss from operations

(854)


(659)


(4,252)


(563)










Foreign exchange loss (gain)

171


517


(239)


736


Finance income

(30)


(23)


(107)


(58)

Net loss

(995)


(1,153)


(3,906)


(1,241)


 

Non-IFRS Measures
This news release includes certain measures that have not been prepared in accordance with International Financial Reporting Standards ("IFRS") such as Adjusted EBITDA and Adjusted EBITDA margin which are used to evaluate the Company's operating performance as a complement to results provided in accordance with IFRS.  The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed below.

The term "Adjusted EBITDA" refers to net income (loss) before adjusting for share-based payment expense, depreciation and amortization, lease-exit charges, net, deferred share unit expense, restructuring costs, foreign exchange gain (loss), finance income, finance costs, and income taxes.  "Adjusted EBITDA margin" refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.  

The term Adjusted EBITDA and Adjusted EBITDA margin are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS.  Therefore, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similar measures presented by other issuers.  Investors are cautioned that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income (loss) as determined in accordance with IFRS.

About NexJ Systems Inc.
NexJ Systems is a provider of Intelligent Customer Management solutions for the financial services industry. Individually, NexJ's award winning products use artificial intelligence to improve customer service and increase advisor and banker productivity.  Together, the Intelligent Customer Management suite delivers a continuously-learning, cognitive application that recommends the right intelligence-augmented actions for users to deliver personalized customer service at scale and grow their business.

Based in Toronto, NexJ has clients throughout North America, Asia Pacific and in Europe. For more information about NexJ visit www.nexj.com, e-mail info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, like us on Facebook or hang out with us on Google+.

NexJ Forward-looking Statement
Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as "could", "expects", "may", "should", "will", "anticipates", "believes", "intends", "estimates", "targets", "plans", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities laws.  These statements are based on the Company's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates.  These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different.  The Company's assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company's actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company's customers and the marketplace of new technologies and solutions; (iv) the Company's growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company's competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company's ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company's product and the extent of deployment of the company's products in the CRM marketplace.  Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; * competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) global financial market conditions; (xvii) failure to manage our growth successfully; and (xiii) failure to successfully manage and integrate acquisitions.

For additional information with respect to risks and other factors which could occur, see the Company's most recently filed Annual Information Form for the year ended December 31, 2017 dated February 21, 2018, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

NexJ Systems Inc.

Condensed Interim Statements of Financial Position

(Expressed in thousands of Canadian dollars)

(Unaudited)






September 30, 2018


December 31, 2017





Assets





$


$

Current assets:




Cash and cash equivalents

11,816


14,784

Accounts receivable

4,654


5,028

Prepaid expenses and other assets 

1,580


1,901

Total current assets

18,050


21,713





Non-current assets:




Property and equipment

1,241


1,374

Goodwill 

1,753


1,753

Contract costs

216


-

Other assets 

260


260

Total non-current assets

3,470


3,387





Total assets

21,520


25,100





Liabilities and Shareholders' Equity








Current liabilities:




Accounts payable and accrued liabilities 

3,098


3,356

Deferred revenue

5,047


4,601

Provisions

51


-

Current portion of finance lease liability

49


148

Total current liabilities

8,245


8,105





Non-current liabilities:




Provisions

26


-

Finance lease liability

-


12

Deferred revenue

-


68

Total non-current liabilities

26


80





Total liabilities

8,271


8,185





Shareholders' equity:




Share capital 

82,899


82,445

Share purchase loans 

(3,598)


(3,622)

Contributed surplus 

8,251


8,663

Deficit

(74,303)


(70,571)

Total shareholders' equity

13,249


16,915









Total liabilities and shareholders' equity

21,520


25,100

 

NexJ Systems Inc.

Condensed Interim Statements of Comprehensive Loss

(Expressed in thousands of Canadian dollars, except per share amounts)

(Unaudited)


















Quarter ended September 30,


Nine months ended September 30,


2018


2017


2018


2017

















Revenue:

$


$


$


$


License fees

615


557


1,717


5,127


Professional services                                                      

2,425


3,109


7,904


10,180


Maintenance and support

2,280


2,037


6,641


5,948


5,320


5,703


16,262


21,255









Expenses:









Professional services

1,716


2,456


6,080


8,109


Research and development, net

2,332


1,754


6,861


5,514


Sales and marketing

790


718


2,665


3,125


General and administrative, net

1,336


1,434


4,577


5,070


Restructuring costs

-


-


331


-


6,174


6,362


20,514


21,818









Loss from operations

(854)


(659)


(4,252)


(563)










Foreign exchange gain (loss)

(171)


(517)


239


(736)


Finance income 

30


23


107


58


(141)


(494)


346


(678)

















Loss for the period and 

comprehensive loss

(995)


(1,153)


(3,906)


(1,241)









Loss per share:









Basic and Diluted

(0.05)


(0.06)


(0.19)


(0.06)









Weighted average number of common shares 

outstanding, in thousands:









Basic and Diluted

20,586


20,626


20,551


20,294

 

NexJ Systems Inc.

Condensed Interim Statements of Cash Flows

(Expressed in thousands of Canadian dollars)

(Unaudited)






Nine months ended


Nine months ended


September 30, 2018


September 30, 2017









Cash flows from (used in) operating activities:

$


$


Loss for the period

(3,906)


(1,241)


Adjustments for:






Depreciation and amortization

284


695



Amortization of contract costs

31


-



Share-based payment expense

165


187



Deferred share unit expense

225


200



Finance income

(107)


(58)



Foreign exchange gain (loss)

(20)


11


Change in non-cash operating working capital:






Accounts receivable

374


7,362



Prepaid expenses and other assets

321


(904)



Accounts payable and accrued liabilities and provisions

(329)


(1,835)



Deferred revenue

378


(1,897)

Net cash flows from (used in) operating activities

(2,584)


2,520





Cash flows from (used in) financing activities:






Proceeds from repayment of share repurchase loans

24


-



Repurchase of common shares

(117)


(416)



Proceeds (costs) from exercise of stock options

(26)


86



Costs of exercise of deferred share units 

(205)


-



Payment of finance lease liability

(111)


(111)

Net cash flows used in financing activities

(435)


(441)





Cash flows from (used in) investing activities:






Purchase of property and equipment

(75)


(283)



Interest received

106


58

Net cash flows from (used in) investing activities

31


(225)







Effects of exchange rates on cash and cash equivalents

20


(11)







Decrease in cash and cash equivalents

(2,968)


1,843





Cash and cash equivalents, beginning of period

14,784


14,678





Cash and cash equivalents, end of period

11,816


16,521





Supplemental cash flow information:






Acquisition of property and equipment not yet paid

76


2

 

SOURCE NexJ Systems Inc.


[ Back To TMCnet.com's Homepage ]







Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2018 Technology Marketing Corporation. All rights reserved | Privacy Policy