TrackX Holdings Reports a 63% Year-over-Year Increase in Recurring Revenue for the Three Months Ended December 31, 2017

TrackX News | March 1, 2018

DENVER, CO — March 1, 2018 — TrackX Holdings Inc. (TSX.V:TKX) (“TrackX” or the “Company”), an enterprise Industrial Internet of Things (IIoT) software platform provider, announces the financial and operational highlights from its first quarter of fiscal 2018 for the three months ended December 31, 2017. All results are reported in Canadian dollars unless otherwise specified. A complete set of the December 31, 2017 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed on SEDAR (www.sedar.com).

Financial Highlights for the Quarter Ended December 31, 2017

Quarterly Revenue Breakdown by Segment

Revenue C$(000s) Q1/F2018 Q1/F2017
Recurring Software $433 $266
Setup, implementation, and other fees $521 $448
Hardware $73 $919
TOTAL $1,027 $1,633

Operational Highlights for the 3 Months Ended December 31, 2017

Highlights Subsequent to the First Quarter of F2018

Management Commentary

“We are pleased with our Q1/F2018 financial and operations results,” said TrackX President and CEO Tim Harvie. “Although revenue was down year-over-year, last year’s first quarter benefited from a significant amount of hardware revenue from our largest customer. Backing out this hardware contribution in Q1 of fiscal 2017, year-over-year sales increased in the first quarter of fiscal 2018. We remain committed to our focus of growing our high-margin, recurring SaaS revenue, which was up 63% this quarter, leading to stronger gross margins. To accomplish this, we continue to execute our ‘land and expand’ strategy to increase our footprint across our customers’ operations after completing initial contracts. TrackX will also expand GAME with additional workflows and analytics in the areas of returnable asset tracking, high value asset tracking and supply chain management. An increased focus in both high value asset tracking and returnable asset tracking is expected to yield larger revenue opportunities with higher gross margins.”

 

Selected Financial Information

C$(000s) (except per share) Three-month Period

Ended December 31

Twelve-month Period Ended September 30
  FY2018 FY2017 FY2017 FY2016
Revenue $1,027 $1,633 $5,170 $1,397
Gross Margin % 42% 27% 27% (17%)
Loss for the period ($935) ($559) ($3,974) ($4,296)
Loss per share ($0.01) ($0.01) ($0.07) ($0.15)
Adjusted EBITDA (Loss)* ($584) ($422) ($3,422) ($2,384)
* Adjusted EBITDA is a non-IFRS (international financial reporting standards) measure and excludes stock-based compensation

About TrackX

TrackX, based in Denver, Colorado, is an enterprise Industrial Internet of Things (IIoT) software platform provider leveraging multiple auto-ID technologies for the comprehensive management of physical assets. TrackX’s Global Asset Management for Enterprises (GAME) platform enables the IIoT by providing unique item level tracking, workflow processing, event management, alerts and powerful analytics to deliver solutions across a growing number of industries. This platform creates unprecedented visibility and business intelligence of man-to-machine and machine-to-machine interaction. TrackX delivers significant value to a growing list of Fortune 500 companies and for customers in industries such as transportation, beverage, brewery, healthcare, hi-tech, hospitality, mining, agriculture, horticulture, manufacturing and government.

For more information, please contact:

Gene McConnell, TrackX Holdings Inc.
gmcconnell@trackx.com
303-325-7300                                                 

Sean Peasgood, Sophic Capital
Sean@SophicCapital.com
416-565-2805

Neither TSX Venture Exchange nor its Regulations 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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.

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