BURLINGTON, ON, CANADA / ACCESSWIRE / May 28, 2020 / Memex Inc. ('Memex' or the 'Company') (TSXV:OEE), a leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released financial and operational highlights for its second quarter 2020 ending March 31, 2020. All results are reported in Canadian dollars. A complete set of March 31, 2020 Consolidated Financial Statements and Management's Discussion & Analysis has been filed at www.sedar.com.

Summary financial highlights for the three-months ended March 31, 2020:

• Memex reported revenue of $654 thousand for the three-month period, compared to $709 thousand in the same period a year ago (an 8% decrease);
• Bookingsⁱ for the period totaled $682 thousand versus $844 thousand in the year-ago period, a 19% decrease;
• Finished the period with $1.22 million in project backlogⁱⁱ, $28 thousand more than at September 30, 2019;
• Gross margin was 71.2% for the period compared to 72.3% for the year-ago period;
• Cash consumed from operations (before changes in non-cash items) was $212 thousand, $53 thousand less than the same period a year ago;
• Net and comprehensive loss for the period was $292 thousand ($0.002 per share), compared to $332 thousand ($0.002 per share) net and comprehensive loss for the same period a year ago; and
• $485 thousand working capital deficit and $602 thousand in cash on hand at March 31, 2020, compared to $356 thousand in working capital surplus and $740 thousand in cash at September 30, 2019.

Summary financial highlights for the six-months ended March 31, 2020:

• $1.20 million in revenue for the six-month period versus $1.40 million in the year-ago period (a 15% decrease);
• Bookingsⁱ totaled $1.41 million versus $1.89 million in the same period a year ago, a 25% decrease;
• Gross margin was 66.6% for the period compared to 69.7% for the year-ago period;
• Cash consumed from operations in the first two quarters of 2020 (before changes in non-cash items) was $635 thousand, $69 thousand more than the same period a year ago; and
• Net and comprehensive loss for the period was $799 thousand ($0.006 per share), compared to $680 thousand ($0.005 per share) for the same period a year ago.

Management commentary:

'Although the COVID-19 pandemic affected the last two weeks of Memex's quarter, we're satisfied with our financial results,' said Memex CEO David McPhail. 'COVID-19 began to significantly affect Memex's operations around March 16, 2020, when we closed our offices and implemented remote work procedures. We have continued to experience significant interest in our products and services and are supporting our customers and prospects well. However certain sales activities cannot progress due to the closure of the Canada / U.S. border. Further, the COVID-19 infused economy will inevitably make it more challenging for some (prospective) customers to continue to make discretionary spending on products such as MERLIN, or in some cases, just to continue in business themselves. We expect to have more clarity within the next few weeks regarding when we could resume normal business activities.'

Selected financial information:

1. Before changes in non-cash working capital balances.

* Working Capital = current assets - current liabilities
** Working Capital ratio = current assets / current liabilities

About Memex Inc.:

Established in 1992, Memex grew to be an industry leader in Industry Internet of Things (IIoT) through the development of MERLIN Tempus, an award-winning platform that delivers real-time, tangible increases in manufacturing productivity. Memex is on the leading edge of industry trends in computing power, machine connectivity, industry standards, advanced software technology, and manufacturing domain expertise.

Our persistent pursuit of innovative IIoT solutions led to a comprehensive understanding of the challenge's manufacturers face. We made it our mission to, 'successfully transform factories of today into factories of the future.' As the global leader in Machine to Machine (M2M) connectivity solutions, our hardware and software products create unparalleled visibility at all levels, from 'Shop-Floor-to-Top-Floor.'

The MERLIN Tempus Suite provides effective quantification and management of Overall Equipment Effectiveness (OEE) by revealing hidden capacity using real-time objective data. Further, it offers sustainable benefits that enable world-class OEE such as reducing costs, incorporating strategies for continuous LEAN improvement, and boosting bottom-line financial performance. For more information, please visit: www.MemexOEE.com

For investor inquiries please contact:

Ed Crymble, Chief Financial Officer
905-635-1540
investor.relations@memexOEE.com

David McPhail, President & CEO
905-635-1540
investor.relations@memexOEE.com

Sean Peasgood, Investor Relations
647-977-9264
sean@sophiccapital.com

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

i & ii These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management's Discussion and Analysis for the periods ended March 31, 2020 and 2019, in the section 'Other Financial Measures.' That MD&A is available at www.sedar.com under our company profile.

SOURCE: Memex Inc.