Toronto (April 29, 2020) — NexJ Systems Inc. (TSX: NXJ), delivering intelligent customer management software to the financial services industry, today announced financial results for its first quarter ended March 31, 2020.
First Quarter Summary
- Cash balance increased by $4.1M to $9.2M at the end of the quarter
- $4.0M of revenue for the first quarter as compared to $4.3M in the first quarter of the previous year
- $1.3M in Adjusted EBITDA loss for the first quarter is a $800K improvement over $2.1M in Adjusted EBITDA loss in the first quarter of the previous year
- $1.3M of net loss for the first quarter is a $1.3M improvement over $2.6M of net loss in the first quarter of the previous year
“As a global business we were alerted to the COVID-19 crisis early in Q1 and took immediate steps to ensure our customers receive the necessary support. Maintaining the customer base will remain a high priority and will serve to protect revenue expectations for 2020,” said Paul O’Donnell, CEO. “Recent industry research indicates that managing customer relationships has become the top priority for all businesses and, in wealth management and banking specifically, that digital engagement will play a pivotal role in the current crisis and beyond. With NexJ’s continued focus on AI-driven client interaction products, we are well-positioned to take advantage of the opportunity that this represents.”
This news release includes certain measures that have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as Adjusted EBITDA and Adjusted EBITDA margin which are used to evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS. The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed below.
The term “Adjusted EBITDA” refers to net income (loss) before adjusting for share-based payment expense, depreciation and amortization, deferred share unit expense, restructuring costs, foreign exchange gain (loss), finance income, finance costs, and income taxes. “Adjusted EBITDA margin” refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.
The term Adjusted EBITDA and Adjusted EBITDA margin are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income (loss) as determined in accordance with IFRS.
About NexJ Systems Inc.
NexJ Systems provides Intelligent Customer Management to the financial services industry. Our award-winning CRM is designed to help Wealth Management, Private Banking, Corporate and Commercial Banking, and Insurance firms revolutionize their business. Powered by artificial intelligence, our products help drive productivity, boost client engagement, and increase revenue. With users in over 60 countries, our customers benefit from our deep expertise across financial services verticals, strategic investment in innovation, and commitment to their success.
Based in Toronto, NexJ has clients throughout North America, Asia Pacific and in Europe. For more information about NexJ visit www.nexj.com, e-mail email@example.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook