TrackX Reports Third Quarter of Fiscal 2020

DENVER, Sept. 01, 2020 (GLOBE NEWSWIRE) -- TrackX Holdings Inc. (TSX.V:TKX | OTC: TKXHF | FRANKFURT:3TH) (“TrackX” or the “Company), a Software-as-a-Service (SaaS)-based enterprise asset management solution provider, announces the financial and operational highlights from its third quarter of fiscal 2020 ended June 30, 2020. All results are reported in Canadian dollars unless otherwise specified. A complete set of the June 30, 2020 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed on SEDAR (www.sedar.com).

Financial Highlights for the 3-Months Ended June 30, 2020

• Gross margin of 69%, versus 39% for the same quarter last year;
  
• Recurring revenue decreased by 47% over the previous year period to $402,492 due the reduction in yard management revenue resulting from the sale of that line of business to FourKites in Q2, 2020;
  
• Adjusted EBITDA income of $241,050 in Q3 FY20 compared to a loss of $774,964 in Q3 FY19;
  
• Net loss of $0.529 million ($0.01/share) in Q3 FY20 versus a net loss of $1.276 million ($0.02/share) in Q3 FY19 which includes amortization and depreciation of $0.592 million in the current quarter.

Third Quarter FY20 Revenue Mix

	Revenue	Q3 FY20		Q3 FY19
	Recurring	39%		54%
	Hardware	(2%)		18%
	Setup, implementation, and other fees	63%		26%
	Services	0%		2%
	TOTAL	100%		100%

Operational Highlights for the 3-Months Ended June 30, 2020

• Following the sale of its yard management line of business in Q2 2020, the Company has continued to expand its partnership with FourKites, the Chicago-based creator of the predictive supply chain visibility category. Joint sales and marketing are driving additional pipeline activity, expected to result in additional revenue in subsequent quarters.
• TrackX announced an initial three-year agreement to provide its supply chain and inventory management solutions to Shifflet Bros. Enterprises (“Shifflet”), a freight hauling provider servicing the electric utility industry.
• For a global leader in powersports, TrackX completed the Phase 1 implementation of its Global Asset Management for Enterprises (GAME) solution for the tracking of recreational vehicles and has entered into discussions regarding a Phase 2 expansion. 

Management Commentary