Tickers: XTSX:ES
Tags: Blockchain, Technology
VANCOUVER BC / TheNewswire / April 30, 2018 -- Eight Solutions Inc. (TSXV:ES) ("Eight Solutions" or the "Company") announced the release of its audited consolidated financial results for the year ended December 31, 2017. All figures are in Canadian dollars.
2017 Financial and Business Highlights
-Revenue for the year ended December 31, 2017 was $3,541,627, up 2% compared to the year ended December 31, 2016. The increase was driven by Cumul8 licensing and support revenue, which was up 40% compared to the year ended December 31, 2016.
-On May 30, 2017, the Company closed the sale of its 3D Technology (the "Transaction") to Prime Focus and terminated its prior licensing agreement with Prime Focus. Upon completing the Transaction, the Company received $2 million for the sale and $3 million for the termination of the original license agreement. The Company also signed an 18-month Technology Support Agreement with Prime Focus totaling approximately $810,000 with an option for Prime Focus to renew for further one-year terms.
-The Company's net loss attributable to shareholders was $3,846,104 for the year ended December 31, 2017. Excluding all one-time gains and losses, net loss attributable to shareholders of the Company improved by 18% for the year ended December 31, 2017 with the Company's EBITDA improving by 33% compared to the year ended December 31, 2016.
-The Company reduced its operating expenses by 11%, exceeding the Company's 10% operating costs reduction goal. In line with the reduced operating expenses, the Company's net cash used in operating activities was 30% less for the year ended December 31, 2017 when compared to the year ended December 31, 2016.
-The Company added an Asset Health module to its Cumul8 Industrial Internet of Things (IIoT) data platform, allowing users to monitor the performance of their machines and predict machine failures before they happen, thereby reducing unnecessary operational downtime. In addition, the Company signed a two-year licensing agreement to integrate its Cumul8 IIoT platform within each new piece of equipment sold by BID Group of Companies.
-The Company launched version 1.3 of its Cumul8:Jetstream high speed data transfer platform, which introduced sandboxing for defining user security and permissions, super user and group capabilities, and additional APIs for managing manifests. The Company also signed Prime Focus, the largest integrated media services company in the world, as a Jetstream customer.
2018 Outlook
-The Company's 2018 focus is on generating Monthly Recurring Revenue ("MRR"). With both the Cumul8 IIoT platform and Cumu8:Jetstream having Software as a Service ("SaaS") licensing, the Company's goal is to have MRR equating to approximately $5 million of annual recurring revenue by the end of the year.
-The Company expects its Cumul8 IIoT platform to be licensed into at least 3 other industries beyond Forestry by the end of the year.
-The Cumul8 IIoT platform is delivering a feature set that will enhance the Artificial Intelligence (AI) systems for machine health prediction and for allowing clients to see events before they happen based on the AI models created. Clients will use the Sentinel AI system powering the Cumul8 platform for driving full prediction, monitoring, forecasting, and discovery.
-An editor feature for the Cumul8 IIoT platform will also be launched to execute on the Company's vision of "self-serve" analytics. The editor will enable clients to imagine a solution for deep value gains and then easily create a model (or formula) using live data to deliver the modeled outcomes. This modeling system is unique and will bring rich and fast value to a client's disparate data.
-With a distribution agreement in place with JB&A, a leader in the field of Video and Content Management, the Company expects its Cumul8:Jetstream high speed data transfer platform to have over 75 users by the end of the 2018.
Financial Summary for the fiscal year ended December 31, 2017
Year ended December 31 | ||
2017 | 2016 | |
Revenue | $ 3,541,627 | $ 3,456,435 |
Net loss and comprehensive loss attributable to the shareholders of the Company | $ 3,846,104 | $ 3,096,388 |
Basic loss per share | $ 0.06 | $0.06 |
About Eight Solutions
Eight Solutions is a technology company on a mission to make data easy. With a focus on data analytics and data distribution, Eight Solutions brings together highly visual and user-centric solutions designed and developed by a team of Media & Entertainment industry veterans with a combined 60+ years of experience working on the world's most successful films and video games. The Eight Solutions product portfolio includes Cumul8, an Industrial Internet of Things (IIoT) data analytics platform providing real-time and predictive insights that help businesses imagine and realize speed to value with their data; and Jetstream, a secure high speed file transfer application enabling users to focus on their own work product rather than how it is delivered. For more information, visit www.eightsolutions.com.
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On Behalf of the Board of Directors
(signed) "Rory Armes"
Rory Armes
Chief Executive Officer, President and Director
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
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Although Eight believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
For more Information, please contact:
Investor Relations
investor.relations@eightsolutions.com
Suite 100, 138 East 7th Avenue
Vancouver, British Columbia, V5T 1M6
Phone: (604) 669-8885
Fax: (604) 669-8855
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