Constellation is a large public company focused on, through its operating groups including the Harris operating group, investing in, and managing, software companies with mission-critical products and a strong industry presence and has been operating in a variety of vertical markets for over 25 years.

NexJ is joining a financially stable and growing portfolio of companies that will support our future growth objectives. The Constellation business philosophy of long-term value realization and commitment to the companies they acquire will protect our customer’s existing and future investments in NexJ technology.

With strong financial backing, NexJ will continue to focus on building world-class CRM and Integrated Advisor Desktop (IAD) solutions for Wealth Management and Private Banking (B2C) and Corporate and Commercial Banking (B2B).

“Constellation’s buy and hold investment strategy and commitment to providing customers software for life makes Harris a perfect permanent owner of NexJ,” said Paul O’Donnell, NexJ CEO. “NexJ prides itself in its ‘customer-first’ mentality. Once NexJ is acquired by Harris, our customers who rely on our technology to support the day-to-day operations of their business will continue to receive exceptional dedicated support and services for all NexJ products.”

Under the terms of the Arrangement Agreement, each NexJ shareholder will receive cash consideration of C$0.55, on a fully diluted basis, for each NexJ share held (the “Consideration”).  The Consideration represents an approximate 45% premium to the closing price of the NexJ shares on the Toronto Stock Exchange (the “TSX”) on August 26, 2022, and an approximate 35% premium to the volume weighted average price of the NexJ shares over the last 20 trading days.

“The acquisition by Harris, a wholly owned subsidiary of Constellation (TSX:CSU) will provide the financial strength and operational support required as NexJ continues its transition to a subscription-based license model and seeks to grow its global competitiveness and provides a secure future for our customers and employees,” said Scott Beattie, Chair of NexJ’s Board.

Special Committee and Board of Directors Recommendations

NexJ’s Board of Directors (the “Board”) established a special committee of independent directors (the “Special Committee”) comprised of E. Scott Beattie (Chair), William F. Morris and David Yach, to consider the Transaction. INFOR Financial Inc. has provided a fairness opinion to the Special Committee (the “Fairness Opinion”) stating that in its opinion as of the date thereof, and based upon and subject to the assumptions, limitations and qualifications set forth therein, the Consideration to be received by the NexJ Shareholders pursuant to the Transaction is fair, from a financial point of view, to the NexJ Shareholders.

The Board, after receiving financial and legal advice, and following receipt of the Fairness Opinion and the unanimous recommendation of the Special Committee, has unanimously determined that the Transaction is in the best interests of NexJ and is unanimously recommending that NexJ Shareholders vote in favour of the Transaction.

The Transaction was approved by the Board based on consideration of the recommendation of the Special Committee, Bill Tatham abstaining as a result of his role as Executive Chairman of NexJ Health Holdings Inc., which as part of the Transaction will release the Company from certain non-competition and customer non-solicitation covenants in exchange for the release of NexJ Health Holdings Inc. from certain non-competition and customer non-solicitation covenants, surrender of certain of its shares and release of certain accounts payable owing to the Company.

In recommending the Transaction, the Special Committee and the Board considered and evaluated a number of factors, including those listed below:

• Review of Strategic Alternatives Process. Prior to recommending the transaction, the Special Committee considered the extensive nature of NexJ’s strategic alternatives process (the “Strategic Alternatives Process”) to identify a strategic partner or purchaser for the Company which, over the period of the process, did not secure a transaction on terms considered to provide greater value with an appropriate degree of risk than the terms proposed by NHC, and in particular, (i) the public disclosure of the Company’s intent to undertake the Strategic Alternatives Process in September 2019, and the period of time over which interested parties could assess their interest in considering a potential transaction with the Company; (ii) the volatility in the capital markets which negatively impacted the process throughout 2020 and subsequently in early 2022, (iii) the extent of the efforts made by the Company and its financial advisors to identify and engage with parties having interest in a potential transaction with the Company, and, (iv) the assessment of potential transactions and their associated financial risk resulting from discussions and negotiations with parties, other than NHC, that did express interest but did not result in a transaction.
• No Brokerage Fees or Commissions. The Transaction will allow each NexJ Shareholder to dispose of their common shares without incurring brokerage fees or commissions.
• Company Performance and Financial Condition. The Special Committee recognized that the market dynamics and commercial challenges facing the company could not be ameliorated without additional capital to improve its competitiveness. The Special Committee considered the low likelihood of obtaining any additional equity financing for the Company, and the uncertainty and cost that would be associated with obtaining debt financing. The Special Committee has therefore concluded that without additional capital, the risk to shareholders would likely increase in the future.
• Fairness Opinion. The Special Committee considered and relied on the Fairness Opinion and its conclusion that, as of the date thereof, and subject to the assumptions, limitations and qualifications contained therein, the consideration to be received by the NexJ Shareholders pursuant to the Transaction is fair from a financial point of view to the NexJ Shareholders.
• Shareholder and Court Approval. The Transaction must be approved by the affirmative vote of at least 66⅔% of the votes cast by NexJ Shareholders at a special meeting to be held to consider and approve the Transaction, as well as by the Ontario court.
• Arm’s Length Negotiations. The Transaction and the Arrangement Agreement are the result of a comprehensive negotiation process that was undertaken at arm’s length with the oversight and participation of the Special Committee and the Board and the participation of legal counsel, which resulted in an agreement with terms and conditions that are reasonable in the judgment of the Special Committee and the Board.
• Ability to Respond to Superior Proposals. The terms and conditions of the Arrangement Agreement do not prevent a third party from making an unsolicited Acquisition Proposal (as defined in the Arrangement Agreement) and, subject to compliance with the terms of the Arrangement Agreement, the Board is not precluded from considering and responding to an unsolicited Acquisition Proposal that constitutes, or could reasonably be expected to constitute, a Superior Proposal at any time prior to obtaining the approval by NexJ Shareholders of the Transaction.
• Interim Period Restrictions. The restrictions on the Company’s business until the Transaction is completed or the Arrangement Agreement is terminated are reasonable and are not expected to impair or materially affect the Company’s business during such period.
• Deal Certainty. The Special Committee considered the likelihood that the Transaction would be completed in light of the customary nature of the conditions to closing under the Arrangement Agreement, and the fact that the Transaction is not subject to a financing condition.

In addition, directors, executive officers and other shareholders of NexJ, who as of the date hereof collectively hold approximately 43.8% of the NexJ Shares, have entered into voting support agreements to support the Transaction and vote their NexJ Shares in favour of the Transaction.

Transaction Details

The Transaction will be implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act and will require the approval of 66 2/3% of the votes cast by NexJ Shareholders at a special meeting of NexJ Shareholders to be called to approve the Transaction (the “Special Meeting”). Pursuant to the “minority approval” requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, the Transaction must also be approved by a simple majority of the votes validly cast by the NexJ Shareholders present in person or by proxy at the Meeting, excluding the votes of Paul O’Donnell, President and CEO of NexJ, and Richard J. Broley, Chief Operating Officer of NexJ, each of whom is deemed to receive a “collateral benefit” pursuant to the Transaction as a result of the trigger of the change of control payments stipulated in their respective employment agreements.

The completion of the Transaction will also be subject to obtaining required court and other approvals and satisfaction of closing conditions customary for a transaction of this nature.  The Arrangement Agreement includes customary deal-protection provisions.  NexJ is subject to non-solicitation provisions and in certain circumstances, the Board may terminate the Arrangement Agreement in favour of an unsolicited superior proposal, subject to the payment of a termination fee of C$800,000 and subject to a right of NHC to match such superior proposal.  Such a termination fee is also payable by NexJ if the Arrangement Agreement is terminated in certain other specified circumstances, including if the Board changes its recommendation or NexJ wilfully or intentionally breaches its non-solicitation covenant.

It is anticipated that the Special Meeting will be held in October 2022. Following closing of the Transaction, the NexJ Shares would be delisted from the TSX. The Transaction is expected to close in the fourth quarter of 2022.

Advisors and Counsel

INFOR Financial Inc. provided the Fairness Opinion in connection with the Transaction. Blake, Cassels & Graydon LLP is acting as counsel to NexJ and Cassels Brock & Blackwell LLP is acting as counsel to NHC.

Additional Information about the Proposed Transaction

A copy of the written Fairness Opinion, and a description of the various factors considered by the Board in its determination to approve the Transaction, as well as other relevant background information, will be included in the management information circular to be sent to NexJ’s shareholders in advance of the Special Meeting. The management information circular, the Arrangement Agreement, including the plan of arrangement, and certain related documents will be filed with the Canadian securities regulators and will be available on SEDAR at www.sedar.com.

About N. Harris Computer Corporation

Harris acquires vertical market software businesses, manages them using industry best practices, and builds them for the future. Through acquisitions, Harris has grown extensively from its roots in the utilities, local government, education, and healthcare sectors to operate over 180 businesses globally across more than twenty industries. Harris is an operating group of Constellation Software Inc. (TSX: CSU), one of North America’s most active acquirers of software businesses.

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 info@nexj.com, or call 416­222-5611.

Notice on Forward-looking Statements

This press release includes forward-looking statements regarding NexJ. In some cases, the forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language. Forward looking statements in this press release include those related to the Transaction, the anticipated date of the Special Meeting,  timing for closing of the Transaction, the expected de-listing of the NexJ common shares on the TSX following completion of the Transaction, protection of customer investments in NexJ products and continuing focus by NexJ on its solutions and support and services for its customers; the delivery of financial strength and operating support by Constellation to NexJ and the continued ownership of NexJ by Constellation. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the ability to secure the required shareholder or court approvals; (ii) the occurrence of a “Material Adverse Effect” (as defined in the Arrangement Agreement) or the failure to satisfy any other closing condition in favour of NHC provided for in the Arrangement Agreement, which condition is not waived by NHC; (iii) general business, economic, competitive, political and social uncertainties; and (iv) the future performance, financial and otherwise, of NexJ. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) risks relating to the receipt of all requisite approvals for the Transaction; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xi) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) general economic conditions; (xvii) failure to manage our growth successfully; (xviii) breach of our security measures and unauthorized access to data; and (xix) litigation, including litigation relating to the proposed Transaction, and commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2021 dated March 8, 2022 and NexJ’s June 30, 2022 MD&A, and other securities filings with the Canadian securities regulators available on www.sedar.com. Unless otherwise required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The post NexJ Systems to be Acquired by Harris appeared first on NexJ Systems.

First Quarter Summary

• The Company continued its planned transition from a perpetual license model to a more predictable subscription license model generating $691K in license and subscription revenue for the first quarter, an increase of $645K as compared to $43K in the first quarter of the previous year
• Continued to increase the recurring subscription license revenue by delivering new subscription license product to a leading US wealth management firm that supports real-time data streaming for enhanced analytics and reporting
• Unbilled contracted subscription license revenue of $954K will be recognized as revenue in future quarters as compared to zero in the first quarter of the previous year
• $4.03M of revenue for the first quarter as compared to $3.93M in the first quarter of the previous year
• $406K in Adjusted EBITDA loss for the first quarter as compared to $96K profit in the first quarter of the previous year
• $565K of net loss for the first quarter as compared to $283K of net loss in the first quarter of the previous year
• The Company has rationalized its real estate requirements during the quarter which will result in significant cost savings commencing in the second half of 2022

“Our focus on building subscription-based license revenue continued, delivering 17% of total revenue for the quarter and contributing strongly to an overall increase in revenue versus the same period last year.  With over 85% recurring revenues and continued prudent expense management, we have established a strong foundation for future growth”, said Paul O’Donnell, CEO.  “As the market responds to increasing demand for a more cohesive, data-rich advisor experience, NexJ’s core technology and domain expertise in delivering a truly integrated advisor workstation position us well to further capitalize on that demand.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems Reports First Quarter 2022 Results appeared first on NexJ Systems.

Fourth Quarter Summary

• The Company continued its planned transition from a perpetual license model to a more predictable subscription license model generating $551K in license and subscription revenue for the fourth quarter, an increase of $505K as compared to $46K in the fourth quarter of the previous year
• Unbilled contracted subscription license revenue of $964K will be recognized as revenue in future quarters as compared to zero in the previous year
• $3.6M of revenue for the fourth quarter as compared to $4.2M in the fourth quarter of the previous year
• $225K in Adjusted EBITDA for the fourth quarter as compared to $836K in the fourth quarter of the previous year
• $186K of net loss for the fourth quarter as compared to $417K of net income in the fourth quarter of the previous year
• $1.5M in license and subscription revenue for the year, an increase of $1.3M as compared to $156K in the previous year
• $15.3M in revenue for the year as compared to $16.9M in the previous year
• $821K in Adjusted EBITDA for the year as compared to $985K in the previous year
• $468K in net loss for the year is a $1.0M improvement over $1.5M of net loss in the previous year
• Continued to increase the recurring subscription license revenue by delivering two new subscription license products to a leading bank based in Australia and New Zealand that support multiple cloud deployment options and real-time data streaming for enhanced analytics and reporting

“In 2021 our subscription-based license model continued to grow with subscription software licenses making up approximately 15% of total revenue in Q4 and 10% for 2021,” said Paul O’Donnell, CEO. “The new software pricing model introduced in January 2021 resulted in the deferral of revenue recognition on new software contracts which would otherwise have been recognized as revenue under the previous perpetual license model.  Our strategic partnerships in globally recognizable financial services firms, growing subscription license opportunities, and prudent management of expenses have established a strong foundation for 2022.”

Non-IFRS Measures

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 financial services productivity software is designed to help Wealth Management, Private Banking, Corporate and Commercial Banking firms revolutionize their business. Powered by artificial intelligence, our products help drive productivity, boost client engagement, and help drive increased revenues. With users in over 60 countries, our customers benefit from our deep expertise across financial services sub-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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems Reports Fourth Quarter 2021 Results appeared first on NexJ Systems.

Third Quarter Summary

• $4.0M of revenue for the third quarter as compared to $4.3M in the third quarter of the previous year
• $370K in Adjusted EBITDA profit for the third quarter as compared to $900K in the third quarter of the previous year
• $180K of net income for the third quarter as compared to $539K of net income in the third quarter of the previous year
• Continued to increase the recurring subscription license revenue by delivering two new subscription license products to a leading US wealth management firm that support multiple cloud deployment options and real-time data streaming for enhanced analytics and reporting
• Continued to leverage eco-system partnerships to service the rapidly expanding RIA market, driving new customers and incremental subscription license revenue
• Unbilled contracted subscription license revenue that will be recognized as revenue in future quarters stands at $1.4M as compared to zero in the previous year

“The increase in subscription license revenue and unbilled deferred revenue demonstrates our continued commitment to transition the business to a recurring license revenue model,” said Paul O’Donnell, CEO of NexJ, “As we continue to focus our efforts on the remainder of the year we fully expect that we will add additional subscription license revenue, providing the strongest foundation for sustainable growth.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

NexJ Forward-looking Statement
Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) general economic conditions; (xvii) failure to manage our growth successfully; (xviii) failure to successfully manage and integrate acquisitions; (xix) breach of our security measures and unauthorized access to data; (xx) employee retention and (xxi) litigation, including commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2020 dated February 18, 2021, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The post NexJ Systems Reports Third Quarter 2021 Results appeared first on NexJ Systems.

First Quarter Summary

• $3.8M of revenue for the second quarter as compared to $4.3M in the second quarter of the previous year
• $130K in Adjusted EBITDA profit for the second quarter as compared to $582K in the second quarter of the previous year
• $179K of net loss for the second quarter as compared to $1.2M of net loss in the second quarter of the previous year
• Generated new subscription license revenue from our relationship with a leading US brokerage firm by delivering new technology that seamlessly supports multiple deployment options including public, private and hybrid clouds
• Delivered our new reporting and dashboarding platform to a multi-national European headquartered wealth management firm
• Entered the rapidly expanding RIA market through our eco-system partnership, driving more new customers onto our cloud service adding to our subscription license revenue in the past three months
• Building on our partnership with IBM, our products were released on IBM Cloud for Financial Services, designed to help address financial services institutions regulatory compliance, security and resiliency requirements

“New client acquisition and the shifting revenue mix to new subscription-based product revenue within our client base and our partner ecosystem is contributing towards higher recurring revenue,” said Paul O’Donnell, CEO of NexJ, “The journey we began in 2019 is beginning to have a positive impact and while our recognized revenue is lower than last year at this time our subscription license revenue and software contract backlog continues to grow.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems Reports Second Quarter 2021 Results appeared first on NexJ Systems.

First Quarter Summary

• $3.93M of revenue for the first quarter as compared to $3.98M in the first quarter of the previous year
• $96K in Adjusted EBITDA profit for the first quarter is a $1.43M improvement over Adjusted EBITDA loss of $1.33M in the previous year
• $283K of net loss for the first quarter is a $971K improvement over $1.25M of net loss in the first quarter of the previous year
• Cash balance increased by $2.5M to $7.9M at the end of the quarter
• Established three strategic partnerships:
  • AdvisorStream to deliver our Inform product that enables hyper-personalized content to drive improved client acquisition, engagement and retention resulting in greater share of wallet. Click here for more information
  • Bill Good Marketing as a reseller of NexJ’s cloud-based CRM for wealth management creating opportunities for firms of all sizes to take advantage of our deep vertical product functionality to achieve their growth objectives. Click here for more information
  • Sand Hill East LLC, to identify incremental sales opportunities and leverage their business development capabilities in the financial services market to drive revenue acceleration. Click here for more information

“Many of the world’s most recognized financial services firms continue to benefit from our solutions. This underpins our ability to generate revenue as we commercialize new products”, said Paul O’Donnell, CEO of NexJ Systems. “We remain committed to expanding our go-to-market initiatives, as evidenced by our new partnerships and our expectation is that these new initiatives will contribute to our goal of increasing our subscription license revenue this year and beyond.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems Reports First Quarter 2021 Results appeared first on NexJ Systems.

Fourth Quarter Summary

• $4.2M of revenue for the fourth quarter as compared to $4.6M in the fourth quarter of the previous year
• $836K in Adjusted EBITDA profit for the fourth quarter is a $1.0M improvement over $164K in Adjusted EBITDA loss in the fourth quarter of the previous year
• $417K of net income for the fourth quarter is a $1.0M improvement over $632K of net loss in the fourth quarter of the previous year
• $16.9M in revenue for the year as compared to $17.2M in the previous year
• $985K in Adjusted EBITDA profit for the year is a $6.2M improvement over Adjusted EBITDA loss of $5.2M in the previous year
• $1.5M in net loss for the year is a $6.2M improvement over $7.7M of net loss in the previous year

“Despite the many challenges faced by the business community throughout 2020 resulting from the global pandemic, we are pleased with our improving quarterly results and the continued support of our customers,” said Paul O’Donnell, CEO. “Our continued investments in AI-driven advisor and relationship manager tools that deliver hyper-personalization at scale to improve client acquisition, engagement and retention are completely aligned with current market demands.  In support of our go-to-market efforts to maximize this opportunity, we have established a partnership with a highly-specialized firm with deep domain knowledge and a strong network in financial services which we expect will have a positive contribution to subscription license revenue in 2021.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

NexJ Forward-looking Statement
Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) general economic conditions; (xvii) failure to manage our growth successfully; (xviii) failure to successfully manage and integrate acquisitions; (xix) breach of our security measures and unauthorized access to data; (xx) employee retention and (xxi) litigation, including commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2020 dated February 18, 2021, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The post NexJ Systems Reports Fourth Quarter 2020 Results appeared first on NexJ Systems.

The Company’s quarterly results will be disseminated via press release and made available on the Company’s website (www.nexj.com) and SEDAR.  As outlined in NexJ’s press release on May 31, 2019, NexJ has ceased holding conference calls to discuss the Company’s quarterly financial results.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems to Report Fourth Quarter Fiscal 2020 Financial Results on Thursday, February 18, 2021 appeared first on NexJ Systems.

“Ian has been a long-standing member of the board of directors, and we appreciate his valuable guidance and advice during his 14 years of service,” said E. Scott Beattie, Chairman of the NexJ board of directors. “Over this time, he has made many contributions and always provided thoughtful and thorough analysis of issues affecting NexJ. On behalf of the board of directors, the management team and our shareholders, I thank Ian and wish him all the best in the future.”

“I am pleased to have served NexJ on its board since 2006, said K. Ian McPhee.  “The addition of two excellent new directors this year makes this an opportune time to transition. I wish NexJ and all my colleagues every success”.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems Announces Retirement of Board Member appeared first on NexJ Systems.

Third Quarter Summary

• $4.3M of revenue for the third quarter as compared to $4.0M in the third quarter of the previous year
• $900K in Adjusted EBITDA profit for the third quarter is a $2.2M improvement over $1.3M in Adjusted EBITDA loss in the third quarter of the previous year
• $539K of net income for the third quarter is a $2.3M improvement over $1.8M of net loss in the third quarter of the previous year

“Our continued focus on our key clients has delivered another quarter of stable revenue which is providing a solid foundation for building sustainable future growth,” said Paul O’Donnell, CEO of NexJ Systems. “As we continue to release new and innovative modular digital assistants to drive incremental software license revenue we are encouraged that the financial services industry is continuing to invest in digital technology to drive higher quality relationships and improved client engagement.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

NexJ Forward-looking Statement
Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) general economic conditions; (xvii) failure to manage our growth successfully; (xviii) failure to successfully manage and integrate acquisitions; (xix) breach of our security measures and unauthorized access to data; (xx) employee retention and (xxi) litigation, including commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2019 dated March 26, 2020, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

###

The post NexJ Systems Reports Third Quarter 2020 Results appeared first on NexJ Systems.

The Company’s quarterly results will be disseminated via press release and made available on the Company’s website (www.nexj.com) and SEDAR. As outlined in NexJ’s press release on May 31, 2019, NexJ has ceased holding conference calls to discuss the Company’s quarterly financial results.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

###

The post NexJ Systems to Report Third Quarter Fiscal 2020 Financial Results on Thursday, October 29, 2020 appeared first on NexJ Systems.

Second Quarter Summary

• $4.3M of revenue for the second quarter as compared to $4.4M in the second quarter of the previous year
• $582K in Adjusted EBITDA profit for the second quarter is a $2.2M improvement over $1.6M in Adjusted EBITDA loss in the second quarter of the previous year
• $1.2M of net loss for the second quarter is a $1.5M improvement over $2.7M of net loss in the second quarter of the previous year

“We are pleased that we have been able to maintain a consistent revenue stream and improved year on year results through the recent challenges in the financial markets. This consistency is a reflection of the underlying stability of our business and the strong relationships we have with our customers,” said Paul O’Donnell, CEO. “This is a strong foundation from which to grow as we continue to focus on bringing real business value to our customers and prospects through accelerated product development and innovation.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

NexJ Forward-looking Statement

Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) general economic conditions; (xvii) failure to manage our growth successfully; (xviii) failure to successfully manage and integrate acquisitions; (xix) breach of our security measures and unauthorized access to data; (xx) employee retention and (xxi) litigation, including commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2019 dated March 26, 2020, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

###

The post NexJ Systems Reports Second Quarter 2020 Results appeared first on NexJ Systems.

New independent Director, William F. Morris elected to the Board

William F. Morris to Chair Governance and Human Resources Committee

Toronto, ON (June 29, 2020) — NexJ Systems Inc., (TSX: NXJ), delivering intelligent customer management solutions to the financial services industry, today announced changes to its Board of Directors, including appointing E. Scott Beattie as independent Chair of the Board succeeding William M. Tatham effective June 25, 2020.

William M. Tatham, Founder and former CEO of the Company who was appointed as non-independent Chair of the Board of NexJ in June, 2018, has chosen to stand down as Chair of the Board so that he can focus on his growing responsibilities as Founder and Executive Chair of NexJ Health Holdings Inc.  Mr. Tatham will continue to serve as a Director of NexJ.

“It has been a privilege to serve as Chair of the Board of NexJ and I look forward to providing my full support to Scott as the incoming Chair,” said William M. Tatham. “Scott’s significant capital markets experience will greatly benefit NexJ as we continue to execute our business objectives and enhance value for all NexJ shareholders.”

“On behalf of our shareholders and the Board, I would like to thank Bill for the leadership and contribution he has made as Chair of the Board.” said E. Scott Beattie. “I am very proud to have been asked to succeed Bill and I am excited to support NexJ as it seeks to build success for shareholders, customers and employees.”

As a result of the appointment of an independent Chair of the Board, David Yach will no longer serve in the position of Lead Independent Director.  Mr. Yach will continue to serve as Chair of the Audit Committee of the Board.

Addition of New Independent Director

At the Company’s annual meeting of the shareholders held on June 25, 2020, William F. Morris was elected to the Board. Mr. Morris is the former President of Accenture Canada and his extensive business experience will be of great value to both the Board and the NexJ executive management team.

Committee Leadership and Composition Changes

The Board has made changes to the leadership and composition of its Board committees effective June 25, 2020:

• Governance and Human Resources Committee (GHRC): William F. Morris has joined and succeeded K. Ian McPhee as Chair of the Committee and the GHRC is composed of William F. Morris (Chair), E. Scott Beattie, K. Ian McPhee, and David Yach.

• Audit Committee: William F. Morris was added as a new member of the Committee and the Audit Committee is composed of David Yach (Chair), E. Scott Beattie, K. Ian McPhee and William F. Morris.

About NexJ Systems Inc.

NexJ Systems provides Intelligent Customer Management. 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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Announces Board Changes appeared first on NexJ Systems.

The proxies received by management were as follows:

Scott Beattie — Votes FOR: 12,053,216 — WITHHELD: 411,597
Ian McPhee — Votes FOR: 12,056,351 — WITHHELD: 408,462
William F. Morris — Votes FOR: 12,100,101 — WITHHELD: 364,712
William M. Tatham — Votes FOR: 11,351,816 — WITHHELD: 1,112,997
David Yach — Votes FOR: 12,097,001 — WITHHELD: 367,812

About NexJ Systems Inc.

NexJ Systems provides Intelligent Customer Management. 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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Announces Election of Directors appeared first on NexJ Systems.

We remind shareholders that the proxy voting instructions are included in the Management Information Circular accompanying the Notice of Meeting that was mailed to shareholders in connection with the Meeting.  The proxy vote cut-off remains 4:00 pm ET on Tuesday, June 23, 2020.

The Company will only conduct the formal business of the Meeting, and there will not be a presentation by management or the Chair of the Board at the Meeting.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

###

The post NexJ Systems AGM and the Impact of COVID-19 appeared first on NexJ Systems.

“We are pleased to welcome Scott as a new independent director to the NexJ Board,” said William M. Tatham, Chairman. “Scott is a proven business leader with significant capital markets experience. We look forward to benefiting from his contributions as we continue to execute our business objectives and enhance value for all NexJ shareholders.”

About E. Scott Beattie

Scott Beattieis currently a member of the Board of Directors for Revlon, Inc. serving as a non-executive Vice-Chairman. He formerly served as the Chairman, President and CEO of Elizabeth Arden, Inc., a Nasdaq listed global beauty products company from 1995 to 2016 until the sale of the company to Revlon, Inc. in September 2016. Mr. Beattie was a board member and investor of Janna Systems Inc., a TSX listed CRM company until its acquisition by Siebel Systems in 2000. He has been involved in the financing, management and development of a number of private and publicly traded businesses in the financial services, information technology, consumer product and retailing sectors through Bedford Capital, a Toronto-based private equity firm he co-founded in 1989. Prior to that, he served as a Vice President in the Mergers and Acquisitions group of Merrill Lynch, Inc. and as a Manager of Accenture Consulting. He holds an M.B.A and a degree in Honours Business Administration from The Ivey School of Business at the University of Western Ontario.

The Board of Directors also accepted the resignation of Mr. Michael Cardiff effective April 29, 2020.  Management and the Board of Directors of NexJ would like to thank Mr. Cardiff for his service and wish him well in the future.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

###

The post NexJ Systems Appoints New Board Member appeared first on NexJ Systems.

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.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook

The post NexJ Systems Reports First Quarter 2020 Results appeared first on NexJ Systems.

Fourth Quarter Summary

• $4.6M of revenue for the fourth quarter as compared to $6.2M in the fourth quarter of the previous year
• $164K in Adjusted EBITDA loss for the fourth quarter as compared to $170K in Adjusted EBITDA loss in the fourth quarter of the previous year
• $632K of net loss for the fourth quarter as compared to $15K of net income in the fourth quarter of the previous year
• $17.2M in revenue for the year represents 23% decrease over the prior year
• $5.2M in Adjusted EBITDA loss for the year as compared to Adjusted EBITDA loss of $3.3M in the prior year
• $7.7M in net loss for the year as compared to net loss of $3.9M in the prior year

“In 2019 we realized material gains in productivity that resulted in accelerated product development to underpin our strategic business objectives,” said Paul O’Donnell, CEO of NexJ. “Our highly valued customer base continues to provide a predictable baseline revenue contribution and we have introduced a vertical specific, easy to consume cloud-native CRM for Wealth Management product and an exciting CRM agnostic AI product suite to improve client engagement to expand our addressable market for 2020 and beyond. As this transition continues, we remain focused on concluding our strategic alternative initiative and positioning ourselves to deliver against the demand for vertical specific intelligent customer management products.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

NexJ Forward-looking Statement

Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) general economic conditions; (xvii) failure to manage our growth successfully; (xviii) failure to successfully manage and integrate acquisitions; (xix) breach of our security measures and unauthorized access to data; (xx) employee retention and (xxi) litigation, including commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2019 dated March 26, 2020, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

###

The post NexJ Systems Reports Fourth Quarter 2019 Results appeared first on NexJ Systems.

Third Quarter Summary

• $4.0M of revenue for the third quarter as compared to $5.3M in the third quarter of the previous year
• $1.3M in Adjusted EBITDA loss for the third quarter as compared to $686K in Adjusted EBITDA loss in the third quarter of the previous year
• $1.8M of net loss for the third quarter as compared to $995K of net loss in the third quarter of the previous year
• Initiated review of strategic and financial alternatives to explore options to accelerate growth and enhance shareholder value

“During the quarter we achieved significant product delivery milestones announcing availability of our new NexJ Nudge-AI product for intelligent investment recommendations and automated compliance as well as our next generation CRM for wealth management”, said Paul O’Donnell, CEO, NexJ Systems Inc. “With early adoption by UBS and ENBD, and other large customers committed for 2020, our core recurring revenue will remain solid.  In addition, we are excited by the positive feedback we have received from new prospects and are confident we will see pipeline traction in the coming quarter.”

Non-IFRS Measures

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

The post NexJ Systems Reports Third Quarter 2019 Results appeared first on NexJ Systems.

Toronto, ON (September 10, 2019) — NexJ Systems Inc.  (TSX: NXJ) today announced that in recognition of the demand within the financial services market for intelligent customer management solutions, and in support of the upcoming launch of their innovative cloud CRM and Machine Learning initiatives, the Company’s Board of Directors has initiated a review of strategic and financial alternatives to accelerate scale and enhance shareholder value.

The Board of Directors of NexJ Systems is committed to fully evaluating appropriate strategic alternatives while simultaneously supporting management and employees in their ongoing efforts to deliver disruptive new Fintech solutions.  The Board believes that pursuing these complementary paths is in the best interests of NexJ Systems’ shareholders, customers and employees and is designed to maximize value.

The Company has appointed a Special Committee to review and consider alternatives which may include, among others, recapitalization, joint ventures, strategic partnerships or alliances or other possible transactions.  The Special Committee is comprised of three independent directors of the Company, namely Michael Cardiff as Chairman of the Committee, Ian McPhee and David Yach. The Company further announced that it has engaged TD Securities Inc. as its financial advisor and Blake, Cassels & Graydon as its legal advisor.

It should be noted that the Company has not set a definitive schedule to complete its evaluation and no decision on any particular transaction or alternative has been reached at this time.  Equally, there is no certainty that any transaction or alternative will be undertaken or pursued.  The Company does not intend to make further announcements regarding the strategic review process unless it concludes they are warranted by the circumstances or are expressly required by law.

About NexJ Systems Inc.

NexJ Systems delivers intelligent customer management software to the financial services industry.  Its award-winning CRM delivers financial services-specific capabilities powered by artificial intelligence to increase productivity, improve client engagement and increase revenue. Together, the Intelligent Customer Management suite delivers a continuously-learning, cognitive application that recommends the right intelligence-augmented actions for users to deliver personalized customer service at scale and grow their business.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, like us on Facebook or hang out with us on Google+.

NexJ Forward-looking Statement

This press release contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”), including forward-looking statements relating to the Company’s strategic review process; the consequences of completion of a transaction; and other expectations and assumptions concerning any transaction.  Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, the failure of NexJ Systems to find a suitable counterparty; failure to satisfy the conditions to the completion of a transaction, in a timely manner, or at all; and other risks, factors and assumptions discussed in NexJ Systems Annual Information Form and other documents filed by the Company with the Ontario Securities Commission and other securities regulators across Canada.  If any such risks actually occur, they could impact the potential for discussion, agreement or completion of a transaction and/or materially adversely affect the Company’s business, financial condition or results of operations.  In that case, the trading price of the Company’s common shares could decline, perhaps materially.  Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.  Forward-looking statements are provided for the purposes of providing information about management’s current expectations and plans relating to the future.  Readers are cautioned that such information may not be appropriate for other purposes.  The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

For more information:

Matthew Bogart
Vice President, Marketing
NexJ Systems Inc.
Tel. +1 416-227-3708
Email: Matthew.bogart@nexj.com

The post NexJ Systems Initiates Review of Strategic and Financial Alternatives appeared first on NexJ Systems.

Second Quarter Summary

• $4.4M of revenue for the second quarter as compared to $5M in the second quarter of the previous year
• $1.6M in Adjusted EBITDA loss for the second quarter as compared to $1.4M in Adjusted EBITDA loss in the second quarter of the previous year
• $2.7M of net loss for the second quarter as compared to $1.9M of net loss in the second quarter of the previous year
• Invested in and partnering with Boosted.ai to accelerate product delivery using AI and Machine Learning capabilities

“The selection process for large enterprise opportunities is naturally lengthy and continues to impact revenue.  We remain encouraged by the growth in our sales pipeline, specifically in Europe where data residency and security are of greater consideration”, said Paul O’Donnell, CEO, NexJ Systems Inc. “Particularly, through our partnership with Boosted.ai, we are expanding our product portfolio and are excited about the prospects of introducing a sophisticated AI and machine learning investment portfolio optimization product, which we expect to release in Q4 this year”.

Non-IFRS Measures

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 is the pioneer of Intelligent Customer Management. Its award-winning CRM delivers financial services-specific capabilities powered by artificial intelligence to increase productivity, improve client engagement and increase revenue. Together, the Intelligent Customer Management suite delivers a continuously-learning, cognitive application that recommends the right intelligence-augmented actions for users to deliver personalized customer service at scale and grow their business.

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 info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.

NexJ Forward-looking Statement

Certain statements in this press release, including statements about the financial conditions, and results of operations and earnings, may contain words such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to”, “could”, “should”, “target”, “envision”, and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. The Company’s assumptions, although considered reasonable by the Company at the date of this press release, may provide to be inaccurate and consequently the Company’s actual results could differ materially from the expectations set out herein.

Actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following: (i) the future performance, financial and otherwise, of NexJ; (ii) the ability of NexJ to protect, maintain and enforce its intellectual property rights; (iii) the acceptance by the Company’s customers and the marketplace of new technologies and solutions; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the CRM market; (vi) the Company’s competitive position in the CRM market and its ability to take advantage of future opportunities in this market; (vii) the Company’s ability to attract new customers and develop and maintain existing customers; and (viii) the demand for the Company’s product and the extent of deployment of the company’s products in the CRM marketplace. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances.

The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our dependence on a limited number of customers and large project size; (ii) fluctuation in our quarterly operating results; (iii) our dependence on key personnel and our compensation structure; (iv) risks associated with managing large and complex software implementation projects; (v) uncertainties and assumptions in our sales forecasts, including the extent to which sales proposals are converted into sales; (vi) risks associated with our ability to design, develop, test, market, license and support our software products on a timely basis; (vii) market acceptance of our products and services; (viii) commercial success of products resulting from our investment in research and development; (ix) our success in expanding sales into new international markets; (x) competition in our industry; (xi) failure to protect our intellectual property or infringement of intellectual property rights of third parties; (xii) reliance upon a limited number of third-party software products to develop our products; (xiii) defects or disruptions in our products and services; (xiv) currency exchange rate fluctuations; (xv) lengthy sales cycles for our software; (xvi) global financial market conditions; (xvii) failure to manage our growth successfully; (xviii) failure to successfully manage and integrate acquisitions; (xix) breach of our security measures and unauthorized access to data; (xx) employee retention and (xxi) litigation, including commercial, product liability, employment, class action and other litigation and claims.

For additional information with respect to risks and other factors which could occur, see the Company’s most recently filed Annual Information Form for the year ended December 31, 2018 dated February 14, 2019, and other securities filings with the Canadian securities regulators available on www.sedar.com.  Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

###

The post NexJ Systems Reports Second Quarter 2019 Results appeared first on NexJ Systems.