OneSoft Solutions Inc. Reports Financial Results for the Three Months and Nine Months Ended November 30, 2017 and Provides Bu...
January 25 2018 - 7:00AM
OneSoft Solutions Inc. (the “Company” or “OSS”) (TSX-V: OSS,
OTCQB: OSSIF), a North American developer of cloud-based
business solutions, announces its financial results for the three
and nine months ended November 30, 2017 and provides a business
update. The financial results for the quarter, including a review
and update to previously published forward looking information, are
explained in detail in the Management’s Discussion and Analysis for
the quarter ended November 30, 2017 filed on SEDAR at
www.sedar.com. Unless otherwise stated, all dollar amounts are
Canadian dollars.
Q3 2018 HIGHLIGHTS
- OneSoft’s subsidiary, OneBridge Solutions Inc., entered into a
multi-year agreement to provide commercial use of Cognitive
Integrity ManagementTM (“CIM”) to Phillips 66 Company, a Fortune
500 company.
- Engaged several pilot project programs with pipeline operators,
including a U.S.A. – based Fortune 100 Company.
MANAGEMENT COMMENTARY
“We’re pleased with how the pipeline industry has begun to adopt
CIM” said OneSoft CEO Dwayne Kushniruk. “Our working relationship
with Phillips 66 to develop a new SaaS solution incorporating data
science and machine learning has commenced, Microsoft continues to
assist with our marketing and sales initiatives, and we have
several pilot programs underway that we believe will generate long
term customers. Investor reaction to this progress has been
positive, and with a current cash balance of $2.3 million and the
activity that is now underway, we have great confidence that our
Company is poised for success.”
HIGHLIGHTS SUBSEQUENT TO Q3 2018
- We entered into an agreement with Phillips 66 to develop a
comprehensive pipeline Integrity Management Program (“IMP”)
software application;
- A Fortune 500 company engaged CIM as an integral component of
its integrity management process;
- A Fortune 500 company engaged in a pilot program to use CIM on
a trial basis;
- We are working through various stages of marketing and sales
processes with approximately 30 prospective customers who
collectively operate 349,000 miles of pipeline in the USA.
MICROSOFT RELATIONSHIP CONTINUES TO GROW
- We demonstrated CIM to Microsoft field sales personnel who
focus on oil and gas customers;
- We are now working with numerous USA-based field sales
personnel to introduce CIM to enterprise level companies with whom
Microsoft has customer relationships, representing in aggregate
approximately 581,000 miles of pipeline infrastructure in the
USA;
- Microsoft has provided funding for certain OneBridge marketing
and sales programs;
- Microsoft has organized demonstrations of CIM to potential
customers in USA, Canada, Europe, Middle East and Africa;
- Microsoft hosted conferences at its technology centers in
Houston and Calgary that showcased OneBridge products, machine
learning, data science and cloud computing technologies to
potential customers;
- Microsoft has committed to co-host with OneBridge and present
CIM and Azure technologies at the Pipeline and Pigging Integrity
Management conference (“PPIM”) scheduled for the last week of
January 2018 in Houston, Texas.
ONEBRIDGE TEAMS UP WITH PHILLIPS 66 TO DEVELOP IMP AND
INCORPORATE DATA SCIENCE AND MACHINE LEARNING
- We are working collaboratively to migrate Phillips 66’s
internal solution to the cloud and integrate OneBridge proprietary
data science and machine learning components;
- We expect to benefit greatly from the expertise and
contributions of Phillips 66 personnel to this project;
- We envision IMP to be a comprehensive solution addressing the
integrity management functions that pipeline operators
require.
- We anticipate that IMP will serve Tier 1 customers who
typically develop software and systems internally to manage their
pipeline integrity management processes, as well as Tier 2 and Tier
3 companies who typically engage outside contractors to conduct
these processes;
- Teaming up with Phillips 66 provides OneBridge the opportunity
to transition and embed a significant amount of industry expertise
and enables a technology transfer from the software that Phillips
66 has developed over the years to IMP;
- OneBridge will own the intellectual property and all other
proprietary rights associated with IMP.
SELECT FINANCIAL RESULTS FOR THE 3 AND 9 MONTH PERIODS ENDED
NOVEMBER 30, 2017
UPDATED FINANCIAL GUIDANCE
In our Q4 MD&A report for fiscal year ended February 28,
2017 we disclosed financial objectives for fiscal year ending
February 28, 2018 (“Fiscal 2018”), based on our assessment of a
multitude of business assumptions and factors at that time. As the
year has progressed, we found that some of the factors we based
assumptions on did not transpire as expected, most notably the
length of sales cycles required to engage new customers. This
caused us to pivot to create and pursue our Pilot Program, allowing
us to engage new customers to trial our SaaS solution more quickly,
but at reduced revenue levels in the immediate term. As a result,
income objectives that Management believed possible and disclosed
in Q4 of the prior fiscal year have not been achieved as
anticipated during the year. Although our income objectives are not
likely to be achieved, the cash flow objective and projected cash
balances as at the end of Fiscal 2018 are likely to be met as were
predicted and published in the Q4 2017 report.
PROJECTS IN PROGRESS
OneBridge is currently tracking potential customers who
collectively operate approximately 581,000 miles of pipeline
infrastructure in the USA, of which approximately 30 prospective
customers collectively operating 349,000 miles of pipeline are in
our currently active sales process.
We also continue to have ongoing discussions with several
organizations that may potentially provide synergistic future sales
and business opportunities for OneBridge technology and products.
These potential reseller partners include consulting firms who
currently use legacy software and processes to provide contract
integrity management services to pipeline operators, engineering
consulting firms who may wish to private label OneBridge technology
and products as their own offering, joint venture partners who may
wish to work collaboratively with OneBridge to provide CIM services
to customers delineated by country or other market segmentations,
and certain other vendors that serve the pipeline industry who may
wish to pursue synergies with OneBridge. Such advancements
are currently tentative and will be disclosed should we conclude
any arrangements or contracts with these prospects.
From a corporate development perspective, we continue to pursue
and investigate initiatives that foster value creation for our
shareholders, including synergistic joint ventures and potential
merger and acquisition scenarios.
With our present cash balance of $2.3 million, management
believes that the Company will have adequate funding to execute
strategies for operational growth as envisioned, and that the
Company will be sufficiently financed to achieve cash positive
operations.
ON BEHALF OF THE BOARD OF DIRECTORS ONESOFT SOLUTIONS
INC. Douglas ThomsonChair
For more information, please contactDwayne Kushniruk,
CEOdkushniruk@onesoft.ca780-437-4950
Sean Peasgood, Investor RelationsSean@SophicCapital.com (416)
565-2805
Forward-looking Statements
This news release contains forward-looking statements relating
to the future operations and profitability of the Company and other
statements that are not historical facts. Forward-looking
statements are often identified by terms such as “may”, “should”,
“anticipate”, “expects”, “believe”, “will”, “intends”, “plans” and
similar expressions. Any statements that are contained in this news
release that are not statements of historical fact may be deemed to
be forward-looking statements. Such forward-looking information is
provided to deliver information about management's current
expectations and plans relating to the future. Investors are
cautioned that reliance on such information may not be appropriate
for other purposes, such as making investment decisions.
In respect of the forward-looking information and statements the
Company has placed reliance on certain assumptions that it believes
are reasonable at this time, including expectations and assumptions
concerning, among other things: interest and foreign exchange
rates; planned synergies, capital efficiencies and cost-savings;
applicable tax laws; the sufficiency of budgeted capital
expenditures in carrying out planned activities; the availability
and cost of labour and services; the efficacy of its software, the
success of growth projects; future operating costs; that
counterparties to material agreements will continue to perform in a
timely manner; that there are no unforeseen events preventing the
performance of contracts; and that there are no unforeseen material
development or other costs related to current growth projects or
current operations. Accordingly, readers should not place undue
reliance on the forward-looking information contained in this press
release. Since forward-looking information addresses future events
and conditions, such information by its very nature involves
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to many factors and
risks. These include, but are not limited to the risks associated
with the industries in which the Company operates in general such
as: costs and expenses; interest rate and exchange rate
fluctuations; competition; ability to access sufficient capital
from internal and external sources; and changes in legislation,
including but not limited to tax laws.Readers are cautioned that
the foregoing list of factors is not exhaustive. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement. The forward-looking statements
contained in this news release are made as of the date of this news
release, and the Company undertakes no obligation to update
publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by Canadian securities
law.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities within the United
States. The securities to be offered have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, or
any state securities laws, and may not be offered or sold in the
United States absent registration or an applicable exemption from
the registration requirements of such Act or other laws.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this
release.
(in $,000)'s, per share in $ |
Three months ended November 30, |
Nine months ended November 30, |
2017 |
2016 |
Increase /(Decrease) |
2017 |
2016 |
Increase /(Decrease) |
Continuing operations: |
$ |
$ |
% |
$ |
$ |
% |
|
|
|
|
|
|
Revenue |
260 |
173 |
50.5 |
722 |
327 |
120.4 |
Gross profit |
216 |
163 |
32.3 |
661 |
290 |
127.6 |
Expenses, net of software development costs
capitalized |
869 |
508 |
71.2 |
2,620 |
1,237 |
111.9 |
Net loss |
(629) |
(223) |
182.3 |
(1,916) |
(987) |
94.1 |
Discontinued operations: |
|
|
|
|
|
|
Net income |
- |
244 |
(100.0) |
- |
244 |
(100.0) |
Comprehensive net (loss) income |
(629) |
21 |
(3,074.8) |
(1,916) |
(743) |
(157.9) |
Weighted average common shares outstanding - basic
(OOO)'s |
83,793 |
66,612 |
|
83,110 |
65,000 |
|
Per share: |
|
|
|
|
|
|
Comprehensive net loss |
(0.01) |
- |
- |
(0.02) |
(0.02) |
- |
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