TrackX Reports First Quarter of Fiscal 2020

DENVER, May 06, 2020 (GLOBE NEWSWIRE) -- TrackX Holdings Inc. (TSX.V:TKX | OTC: TKXHF | FRANKFURT:3TH) (“TrackX” or the “Company”), a SaaS-based enterprise asset management solution provider, announces the financial and operational highlights from its first quarter of fiscal 2020 ended December 31, 2019. All results are reported in Canadian dollars unless otherwise specified. A complete set of the December 31, 2019 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed on SEDAR (www.sedar.com).

Financial Highlights for the 3-Months Ended December 31, 2019

• Recurring revenue increased 28% over the previous year period and 3% over the prior quarter to $731,123;
• Quarterly revenue of $1.18 million versus $2.19 million in the year-ago quarter (46% decrease); largely resulting from a strategic reduction in both traditional enterprise software licensing revenue and hardware revenue;
• Gross margin of 49% compared to 40% in the year-ago quarter, resulting from the Company’s focus on higher margin recurring SaaS revenue; 
• Adjusted EBITDA loss of $192,000 compared to a $295,165 loss in Q1 FY19; and
• Net operating loss of $0.75 million versus a $0.82 million loss in Q1 FY19.

First Quarter FY20 Revenue Mix

Revenue	Q1 FY20	Q1 FY19
Recurring	62%	26%
Perpetual Software License	0%	10%
Hardware	9%	23%
Setup, implementation, and other fees	29%	37%
Services	0%	4%
TOTAL	100%	100%

Operational Highlights for the 3-Months Ended December 31, 2019

• Completed an additional installation of GAME (Global Asset Management for Enterprises) for a global household appliance manufacturer;
• Successfully installed GAME at two additional Carvana vehicle inspection and processing centers;
• Expanded the GAME solution footprint and automation of additional business processes for a large national insurance company;
• Successfully completed the phase 1 implementation of GAME to manage vehicles for a global powersports leader; and
• Entered into a letter of intent with FourKites, Inc for the purchase of the TrackX Yard Management line of business; this strategic transaction was subsequently completed and announced on March 24, 2020.

Management Commentary