Datametrex Reports Record Quarter
November 28 2019 - 7:00AM
Datametrex AI Limited (the “
Company” or
“
Datametrex”)
(TSXV: DM) (FSE: D4G) (OTC:
DTMXF) today released its financial results for the third
quarter ended September 30, 2019. The Company’s cash position
improved significantly, $812,853 compared to $66,296 in the
previous quarter. In this quarter, the Company reported revenues of
$1,683,985 compared to $589,648, up by 186%. For the nine months
operations, the Company reported revenues of $2,559,068 compared to
$1,872,944, up by 37%. Operating costs were significantly reduced,
$1,034,071 compared to $2,192,822 in the third quarter, down by
53%.
“In Q3 2019, the Company achieved key milestones
and made significant strides in strengthening its AI platform and
offering. Increased sales and significant reduction in
operating costs attributed substantial improvement in the bottom
line,” said Marshall Gunter, the Chief Executive Officer of the
Company.
Further commenting on the Q3 2019 results, Jeff
Stevens, President of the Company stated “Datametrex was recently
featured on CTV for its latest findings. The company’s proven
technology sees tremendous opportunity across the North American
and Asian markets where it is gaining wide acclaim. These markets
have the potential to drive strong revenue across a variety of
multinationals.”
“We are pleased with the improvements year over
year and remain committed to increasing sales. Reducing costs and
streamlining operations will position the Company for continued
growth. The article published by Nicole Bogart of CTV further
validates and substantiates our technology in the cyber security
sector,” says Marshall Gunter, CEO of the Company.
Highlights for Q3 2019:
- The Company was successful in
securing the second contract of a multi phase R&D program
through the Department of National Defence’s Innovation for Defence
Excellence and Security (IDEaS) program with a value of
approximately $945,094.
- The Company was successful in
software licencing contract with GreenInsightz Limited for the use
of its proprietary Nexalogy’s Artificial Intelligence software
platform for a value of approximately $1 million in cash and
shares.
- The Company was successful in
securing another contract with a division of Lotte for
approximately $1,000,000.
- The Company participated in NATO
Research Task Group in Paris, France.
- Promoted Marshall Gunter to Chief
Executive Officer.
Financial Highlights
The following table reconciles income from
operations to EBITDA and Adjusted EBITDA for the three and nine
months ended September 30, 2019 and September 30, 2018:
|
Three months
ended Sep. 30, |
|
|
Nine months
ended Sep. 30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Revenue |
1,683,985 |
|
|
589,648 |
|
|
2,559,068 |
|
|
1,872,944 |
|
Net
loss |
(695,803 |
) |
|
(15,236,076 |
) |
|
(2,612,556 |
) |
|
(18,165,683 |
) |
EBITDA* |
(539,115 |
) |
|
(14,350,712 |
) |
|
(2,092,871 |
) |
|
(15,709,824 |
) |
Adjusted EBITDA* |
(539,115 |
) |
|
(1,422,731 |
) |
|
(2,092,871 |
) |
|
(1,565,323 |
) |
EBITDA per share* |
(0.002 |
) |
|
(0.072 |
) |
|
(0.009 |
) |
|
(0.079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* Note: EBITDA and Adjusted EBITDA are
non-GAAP/IFRS figures. “EBITDA” represents net income plus income
tax, finance expense and depreciation. “Adjusted EBITDA” represents
EBITDA plus share-based compensation and one-time costs. “Adjusted
Net Income” represents net income plus one-time finance
expenses.
The Company believes that Adjusted EBITDA is
useful additional information to management, the board and
investors as it provides an indication of the operational results
generated by its business activities prior to taking into
consideration how those activities are financed and taxed and also
prior to taking into consideration asset depreciation and
amortization and it excludes items that could affect the
comparability of our operational results and could potentially
alter the trends analysis in business performance. Excluding these
items does not necessarily imply they are non-recurring, infrequent
or unusual. Adjusted EBITDA is also used by some investors and
analysts for valuing a company. Investors are cautioned that
Adjusted EBITDA should not be construed as an alternative to
operating earnings or net earnings determined in accordance with
IFRS as an indicator of the Company’s financial performance or as a
measure of the Company’s liquidity and cash flows. Adjusted EBITDA
does not take into account the impact of working capital changes,
capital expenditures, debt principal reductions and other sources
and uses of cash, which are disclosed in the consolidated
statements of cash flows.
Non-GAAP financial measures do not have
standardized meaning prescribed by GAAP and are therefore unlikely
to be comparable to similar measures presented by other companies.
Specific items may only be relevant in certain periods. For
reconciliation of non-GAAP financial measures please refer to the
Company’s Management Discussion and Analysis for the period ended
June 30, 2019.
The financial statements, notes to the financial
statements and Management’s Discussion and Analysis for the
nine-month period ended September 30, 2019 are available on SEDAR
at www.sedar.com.
About Datametrex AI Limited
Datametrex AI Limited is a technology focused
company with exposure to Artificial Intelligence and Machine
Learning through its wholly owned subsidiary, Nexalogy
(www.nexalogy.com).
Additional information on Datametrex is
available at: www.datametrex.com
For further information, please
contact:
Jeffrey Stevens – President Phone: (647)
777-7974Email: jstevens@datametrex.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking Statements
This news release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
“plans”, “anticipated”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. The Company is subject
to significant risks and uncertainties which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward looking statements contained in this
release. Datametrex cannot assure investors that actual results
will be consistent with these forward looking statements and
Datametrex assumes no obligation to update or revise the forward
looking statements contained in this release to reflect actual
events or new circumstances.
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