CUPERTINO, Calif., June 27,
2024 /CNW/ - (TSXV: BWLK) (OTCQB: BWLKF) -
Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a
leading digital ledger platform and enterprise software solutions
company, is pleased to report its financial results for fiscal year
2024 ended March 31, 2024. All
figures are reported in U.S. dollars, unless otherwise indicated.
Boardwalktech's financial statements are prepared in accordance
with International Financial Reporting Standards ("IFRS").
Financial Highlights:
- Revenue for Fiscal 2024 totaled $6.0
million compared to $6.5
million for Fiscal 2023, representing an 8% decrease in
annual revenue. The portion of revenue from new and recurring SaaS
licenses in Fiscal 2024 increased by 12% year-over-year but was
offset by a 60% decline in professional services revenue.
- Annual recurring revenue ("ARR"), a non-IFRS metric, at
March 31, 2024 was $5.6 million, a 3% year-over-year increase versus
ARR of $5.5 million at March 31, 2023. The Company defines ARR, a
non-IFRS metric, as the annual recurring revenue expected based on
trailing quarterly revenue from license subscriptions and recurring
services.
- Gross margin for Fiscal 2024 was 89.6%, comparable with 90.6%
in Fiscal 2023.
- Adjusted EBITDA for Fiscal 2024 was a loss of $(1.6) million, comparable with $(1.6) million loss for Fiscal 2023. However,
these annual figures do not show the quarterly progress as the
Adjusted EBITDA loss for Q4 Fiscal 2024 was $(0.3) million, a 20% improvement over the
$(0.4) million Adjusted EBITDA for Q4
Fiscal 2023 and a 10% sequential improvement over Adjusted EBITDA
for Q3 Fiscal 2024.
- Non-IFRS net loss for Fiscal 2024 (as defined in the Non-IFRS
Financial Measures section) totaling $(1.6)
million, or a loss of $(0.03)
per basic and diluted share, versus a $(1.7)
million non-IFRS loss in Fiscal 2023, or a loss of
$(0.04) per basic and diluted share.
Non-IFRS net loss for Q4 Fiscal 2024 was $(0.4) million, a 13% improvement over the
$(0.5) million Non-IFRS net loss for
Q4 Fiscal 2023
- Reported IFRS loss was $(3.1)
million in Fiscal 2024, or $(0.6) per basic and diluted share, a 13%
improvement versus a $(3.6) million
loss in Fiscal 2023, or $(0.08) per
basic and diluted share. The improvement was due to a $0.5 million decrease in adjusted operating
expenses, with the full impact of the Company's realignment and
cost efforts announced in January
2024 expected to be realized during the upcoming fiscal
year.
- The ending cash balance for as of March
31, 2024 was $2.2 million,
plus $0.4 million of trade
receivables.
- Outstanding debt as of March 31,
2024 was 2.25 million which was drawn against the previously
announced $4 million line of credit
from Celtic Bank.
Operations Highlights Exiting Fiscal 2024
- On October 2, 2023, the Company
announced a teaming agreement with Hexaware, a global technology
and business process services company, specializes in empowering
enterprises to realize the potential of digital transformation at
scale and speed by helping them build, transform, run, and optimize
technology and business processes.
- On October 26, 2023, the Company
announced a teaming agreement with LTIMindtree, a global technology
consulting and digital solutions company that enables enterprises
across industries to reimagine business models, accelerate
innovation, and maximize growth by harnessing digital
technologies.
- On November 27, 2023, the Company
announced it had extended and expanded its commercial engagement
with a Fortune 50 technology company for supply chain management,
including the execution of its first long-term license with
Boardwalk, following an ROI analysis by the customer. This is
expected to be the first of several phases/licenses to improve the
customer's supply chain execution.
- On December 28, 2023, the Company
closed the initial tranche of its Listed Issuer Financing Exemption
("LIFE") offering and concurrent non-brokered private placement,
for 7,015,353 Units at CAD $0.30 per
Unit for gross proceeds of $1,590,738
(CAD$2,104,606), pursuant to the
National Instrument 45-106 - Prospectus Exemptions ("NI 45-106").
Each Unit included one common share purchase warrant at a price of
CAD$0.50 per common share for a
period of 36 months from the closing date. Insiders of the Company
participated in the Offering for approximately CAD$53,000.
- On January 16, 2024, the Company
announced it had expanded commercial agreements with three existing
customers, including existing Digital Ledger customer Sekisui
Chemical who signed a license for Boardwalk's new Unity Central
application for supply chain solution.
- Also on January 16, 2024, the
Company announced it had executed steps to realign its internal
resources with a focus on achieving overall profitability, without
compromising sales growth, to generate approximately US$1,000,000 in annual cost savings.
- On February 26, 2024, the Company
closed the second tranche of its upsized LIFE offering and
non-brokered private placement, of which 473,400 Units were
subscribed at CAD $0.30 per Unit and
32,825 Units were subscribed by an Insider of the Company at
US$0.22 per Unit, for aggregate gross
proceeds of $112,303 (CAD
$151,868).
- On March 28, 2024, Boardwalktech
secured a US$4.0 Million Credit
Facility with Celtic Bank to provide available growth funds.
- On April 8, 2024, Boardwalktech
announced it had signed a strategic agreement with Tata Consultancy
Services (TCS), one of the world's largest IT services and
consulting companies with operations in 46 countries and over
615,000 employees, to teaming with Boardwalktech to engage
customers in financial services market for the Boardwalk Velocity
product, used to rapidly remediate and transform Excel and Access
based End User Computing ("EUC") environments into a compliant,
auditable, and scalable solution.
- On May 9, 2024 the Company
announced it had added Jay Cherrie
to its corporate Advisory Board and as a business development
asset. Mr. Cherrie's career has included senior executive roles
including Global Industry Lead (Financial Services) for Appian
Corporation, Chief Technology Officer for First Republic Bank, and
led the technology strategy department for Charles Schwab Bank. As the Company continues to
expand its presence in the financial services sector, Mr. Cherrie's
expertise and vast relationships will prove to be highly valuable
for the Company and its shareholders.
Boardwalktech CEO Andrew T.
Duncan stated, "Fiscal 2024 was a pivotal and demanding year
for Boardwalktech and certainly wasn't without its challenges. We
had to make some difficult decisions around the rationalization of
our sales and marketing teams with a focus on getting the right
people in place with a priority on new customers and growth. We saw
increased adoption of our Velocity product at a top 5 US bank, due
to a 10X ROI versus other software solutions, which bodes well for
other financial services opportunities in the next year. We also
introduced our Unity Central product with its focus on improving
enterprise supply chain visibility and order execution, through our
proprietary predictive insights and document/information management
technology currently in use by customers including a Fortune 30
company. We also added a number of new partnerships with large well
known IT services companies who will continue to source new
opportunities and deliver new incremental license contracts.
Boardwalktech is now better positioned and is on stronger
footing to see improved levels of customer and revenue growth."
Earnings Conference Call Details
Boardwalktech management will be hosting its earnings conference
call today (June 27, 2024).
Detail:
Time: 5:00PM
Eastern Time / 2:00 PM Pacific
Time
To join the call, please use the following dial-in
information:
North American
Participants: Please dial 1-888-664-6383 (Toll Free)
or 416-764-8650 (Local – Toronto)
European
Participants: 0800 724 0293 (Germany), 0800 312 635 (Switzerland), 0800 652 2435
(UK).
Rapid Connect
URL: https://emportal.ink/3V6nnJL (copy & paste to
your browser)
Webcast
URL: https://app.webinar.net/gYDaOJrOoK3 (copy &
paste to your browser)
A replay of the call will be available until July 4, 2024 and can be accessed by dialing
1-888-390-0541 and entering access code 731068#
About Boardwalktech Software Corp.
Boardwalktech has developed a patented Digital Ledger Technology
Platform currently used by Fortune 500 companies running
mission-critical applications worldwide. Boardwalktech's digital
ledger technology and its unique method of managing vast amounts of
structured and unstructured data is the only platform on the market
today where multiple parties can effectively work on the same data
simultaneously while preserving the fidelity and provenance of the
data. Boardwalktech can deliver collaborative, purpose-built
enterprise information management applications on any device or
user interface with full integration with enterprise systems of
record in a fraction of the time it takes other non-digital ledger
technology-based platforms. Boardwalktech is headquartered in
Cupertino, California with offices
in India and operations in
North America. For more
information on Boardwalktech, visit our website at
www.boardwalktech.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and statements are not
representative of historical facts or information or current
condition, but instead represent only the Company's beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of the Company's
control. Generally, such forward-looking information or statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or may contain statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks including, without limitation, the risks
discussed under the heading "Risk Factors" in the Company's filing
statement dated May 30, 2018.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE BoardwalkTech