MEMEX Continues Revenue Growth

Their Industrial Internet of Things manufacturing productivity software generates record quarterly revenue.

Memex Inc. (Burlington, ON), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, has released their financial results and operational highlights for its first quarter of fiscal 2016, which ended December 31, 2015. All results are reported in Canadian dollars. Financial Highlights for the first quarter ended December 31, 2015:

  • The company generated record quarterly revenue of $614 thousand, $113 thousand higher than the same period in the prior year, and 7 percent higher than the fourth quarter of 2015. The company also marked its fourth consecutive quarter of revenue growth.
  • Memex produced gross margin of $375 thousand, 27 percent higher than the same quarter in the prior year.
  • Unearned revenue of $482 thousand closed the quarter down $100 thousand from the company’s record high of $582 thousand at the end of Q4 2015.
  • The sales force turned in $876 thousand in product bookings for the quarter, 58 percent or $320 thousand more than Q4 2015.
  • The company showed a $641 thousand net and comprehensive loss for the quarter equating to a $0.007 loss per share. This compares with a $461 thousand net and comprehensive loss in the same quarter last year, and a similar $0.007 loss per share.

Q1 Fiscal 2016 and subsequent operational highlights include:

  • The company bolstered its sales and marketing infrastructure with the addition of a vice president of marketing and three new U.S.-based sales representatives. In January 2016 the company also added a director of manufacturing excellence to accelerate MERLIN software adoption by larger high-potential existing customers.
  • On October 27-29 and November 3-5 at DISCOVER 2015 (Mazak Corporation’s technology and education event), MERLIN software along with hardware from information technology (IT) leader Cisco Systems, Inc. (San Francisco, CA) was showcased in an industry-first collaborative platform called SmartBox. The launch took place in front of metalworking managers and C-level executives. The co-promotion with Mazak and Cisco led to multiple media stories, blogs, and videos mainly in manufacturing trade press.
  • In December, Memex received significant new orders from Aero Pacific Corporation (Placentia, CA), (30 MERLIN licenses and 28 MTConnect hardware adapters), and Homeyer Precision Manufacturing (Marthasville, MO), (23 licenses and 9 hardware adapters).
  • On January 18, the company was profiled in the National Post’s Entrepreneur section with the headline “Memex Wins Over Industry Giants.” The article explained how eight focused years of work on strategic partnerships resulted in successes with multinational giants Cisco and Mazak.
  • In February the company received a substantial follow-on order from Kuss Filtration Inc. for 43 MERLIN licenses as part of a multi-plant roll-out in the U.S., China, and Brazil. 

Management Commentary
The president and chief executive officer of Memex, David McPhail, stated, “The IIoT, represents the next industrial revolution, and our flagship software product MERLIN is planted squarely in the middle of this manufacturing mega-trend. Our latest quarterly results, representing our fourth consecutive quarter of growth strongly indicate that manufacturers around the world see the value of our unique combination of industrial connectivity and analytics to drive productivity and profit. I want to thank our customers for their trust and our employees for their hard work to achieve these results.”

www.MemexOEE.com

To see the full article click here.

 

How MEMEX got two industry giants to endorse its manufacturing connectivity platform–National Post

Rick Spence | January 18, 2016 | Last Updated: Jan 18 9:00 AM ET

The endorsement of networking giant Cisco and Japanese manufacturing titan Mazak took MEMEX Inc. CEO David McPhail and his team eight years to forge.

David McPhail, the CEO of Burlington, Ont.-based MEMEX Inc., loves showing off a new white paper from Mazak, the Japan-based machine-tool giant. Even though its title, “Complete Digital Factory Integration and the IIOT” (Industrial Internet of Things) suggests most people will find it less than a thrilling reading.

But McPhail cares mostly about the cover, and its three company logos. The stylized word mark of Mazak, with 7,800 employees and 10 factories worldwide, appears on the left side; on the right, inspired by the Golden Gate Bridge, sits the logo of Cisco, the San Francisco networking giant with 72,000 employees; and tucked proudly between the two is the logo of tiny MEMEX, with 39 employees and sales of $2.1 million.

This kind of exposure doesn’t happen by accident. The eight-page brochure promoting a new “Smart Box” that enables digital connectivity between manufacturing tools represents eight years of work by McPhail and his team. Their MERLIN communications platform collects operating data from each piece of equipment and displays it in a dashboard that lets manufacturers boost efficiency by monitoring performance, maintenance and inventory in real time.

McPhail’s solution is easy to implement, and half the price of alternative solutions. But it’s only in recent months that MEMEX has secured the endorsement of two industry giants, which should at last give the company a competitive advantage as more manufacturers embrace connectivity “from shop floor to top floor.” McPhail says MEMEX’s systems can deliver a 300 per cent ROI in the first year alone — but product excellence isn’t always enough.

MEMEX’s efforts illustrate the problems experienced by many business innovators, even when all the trends run in their direction. There’s no doubt that manufacturers around the world need MEMEX’s solution. Factories normally have a wide range of machines on their floors, from different brands and different eras, making it difficult to integrate operating data. McPhail’s unofficial motto is “No machine left behind.”

But MEMEX has had to work hard to convince prospects that data collection should no longer be done with people walking around carrying clipboards. “This is a conservative industry,” he says. “Most manufacturers are followers, not creators of trends.”

The company has been pushing the Digital Factory since 1992, but struggled at a time when machine memory was limited, and manufacturers were still sanguine about productivity. “The product was way ahead of its time,” McPhail says. “People didn’t understand what computing would mean to manufacturing. They’re still waking up to it now.”

MEMEX endured a series of jarring changes — becoming an acquisitor, going public, and going private again — before McPhail, a longtime manufacturing entrepreneur, bought the company out of receivership in 2007. Since then, it has benefited from manufacturers’ growing obsession with productivity, especially those adopting Lean production systems. “Without real-time data, you’re not really doing lean,” McPhail says.

In 2011, MEMEX released MERLIN, a data-collection platform that hooks equipment together at a cost of $5,000 to $6,000 per machine. Developed at an internal marketing meeting fuelled by $70 worth of pizza, “MERLIN” is an act of savvy branding — being the name of both a wizard and a fierce bird of prey.

MEMEX got its wings 2013, when Mazak selected MERLIN out of seven competitors to monitor its 800,000-sq.-ft. U.S. factory in Florence, Ky. It was a shootout, McPhail says. “Mazak asked for a 10 per cent productivity increase. We gave them 42 per cent.”

People didn’t understand what computing would mean to manufacturing. They’re still waking up to it now
Soon after, MEMEX went public on the TSX Venture Exchange, largely so it could raise funds and issue options to attract top talent. One of its key wins: chief technology officer Dave Edstrom, who helped develop the open-source standard for machine-to-machine communications as president and chairman of the MTConnect Institute.

The company hasn’t looked back since. In fiscal 2015, MEMEX doubled sales, to $2.1 million, and McPhail expects them to grow another 100 per cent this year. Most excitingly, last year Mazak asked MEMEX to be one of just 13 VIP partners in its worldwide iSmart manufacturing push. And in October the two companies joined with Cisco to introduce the SmartBox platform, which adds Cisco security to factories’ growing cloud-based networks.

The SmartBox, scheduled to launch in March, is the culmination of another five years of relationship-building, McPhail says. When he first met Cisco brass, they were mainly interested in selling discounted routers to MEMEX. McPhail had his eyes on a bigger prize, and in October 2014, at an Internet of Things conference in Chicago, he finally got to sell his secure-connectivity vision to Cisco executives. “I had seven people around the bar and 45 minutes to make my pitch,” he says. “We call it McPhail’s last stand.”

Cisco agreed to co-develop a product, and tested the SmartBox through 2015 at Mazak’s Florence plant. Last fall’s white paper documented how the system helped Mazak achieve an immediate 6 per cent productivity increase, as well as bring 400 hours of work back “in-house” that had previously been contracted out.

Despite the years those relationships took to build, McPhail says “It couldn’t have happened any faster. We needed to develop the technology and a value equation. I haven’t found any way to short-circuit the process.”

McPhail offers some advice to entrepreneurs looking to create dream alliances with bigger partners. First, understand your value proposition. “We kept telling Cisco, ‘we create 300 per cent internal rate of return everyplace we go.’” And secondly, never think you’re too small.

Rick Spence is a writer, consultant and speaker specializing in entrepreneurship.

rick@rickspence.ca

To see the National Post article click here 

Homeyer Precision Mfg. introduces IIoT software to the factory

Article in Today’s Medical Developments

Marthasville, Missouri – MEMEX Inc. officials announce that Homeyer Precision Manufacturing Co. has purchased MERLIN Enterprise Edition for a plant roll-out of Industrial Internet of Things (IIoT) software in Marthasville, Missouri. The sale includes 23 licenses of MERLIN for overall equipment effectiveness(OEE) and direct numerical control (DNC), plus 9 MERLIN MTConnect hardware adapters for legacy CNC manufacturing machines. 

Homeyer Precision Manufacturing is led by Herb Homeyer, who is also chairman of the Board of the National Tooling and Machining Association (NTMA). A passionate business leader, he founded his company in 1990 with a belief in the power of American manufacturing – and a commitment to bring a new level of service to his industry.

“The Industrial Internet of Things, or IIoT, is a powerful trend, and MERLIN makes IIoT real by equipping industrial machines with the necessary interfaces for connecting, collecting, and analyzing manufacturing data in real-time,” said Homeyer. “Our manufacturing team did their homework before choosing MERLIN. One of the things that most impressed us is how no machine is left behind regardless of make or vintage, and MERLIN’s ability to implement quickly on our factory floor without costly integration services or associated time lags. With this real-time visibility, we look forward to a significant boost in Overall Equipment Effectiveness, or OEE.”

“We are honored to be implementing MEMEX’s IIoT technology in the factory of a visionary manufacturing leader like Herb Homeyer,” said MEMEX CEO David McPhail. “With a correct focus on achieving business value versus simply counting connected devices, IIoT represents no less than the next industrial revolution. The previous three industrial revolutions were mechanization powered by steam engines in the 1800s, mass production powered by electricity and the assembly line in the early 1900s, and automation powered by computers in the late 1900s. Ushering in the fourth industrial revolution, IIoT is powered by the Internet and software applications like MERLIN.”

MEMEX’s flagship software product, MERLIN, is an IIoT shop-floor-to-top-floor communications platform that provides manufacturing analytics in real time. Specifically, MERLIN delivers a 10%-50% average productivity increase, and earns 20%-plus profit improvement based on just a 10% increase in Overall Equipment Effectiveness (OEE). It consistently achieves payback in less than four months with an Internal Rate of Return (IRR) greater than 300%, and connects to any machine, old or new, utilizing native MTConnect, other protocols, or MERLIN hardware adapters for older machines.

Source: MEMEX Inc.

To see the full article click here 

Manufacturing Automation Magazine–Homeyer Precision buys MEMEX MERLIN Enterprise Edition for plant roll-out

Written by MA Staff
Jan. 15, 2016 – Memex has announced that Homeyer Precision Manufacturing has purchased MERLIN Enterprise Edition for a plant roll-out of Industrial Internet of Things (IIoT) software in Marthasville, Mo. The sale includes 23 licenses of MERLIN for Overall Equipment Effectiveness (OEE) and Direct Numerical Control (DNC), plus nine MERLIN MTConnect hardware adapters for legacy CNC manufacturing machines.
Homeyer Precision Manufacturing serves a range of industries including aerospace, defence, oil and gas, and energy production. The company is led by president Herb Homeyer, who is also chairman of the board of The National Tooling and Machining Association (NTMA). He founded his company in 1990 with a belief in the power of North American manufacturing and a commitment to bring a new level of service to his industry, describes Memex.“The Industrial Internet of Things, or IIoT, is a powerful trend, and MERLIN makes IIoT real by equipping industrial machines with the necessary interfaces for connecting, collecting, and analyzing manufacturing data in real-time,” said Homeyer. “Our manufacturing team did their homework before choosing MERLIN. One of the things that most impressed us is how no machine is left behind regardless of make or vintage, and MERLIN’s ability to implement quickly on our factory floor without costly integration services or associated time-lags. With this real-time visibility, we look forward to a significant boost in Overall Equipment Effectiveness, or OEE.”

“We are honoured to be implementing Memex’s IIoT technology in the factory of a visionary manufacturing leader like Herb Homeyer,” said Memex CEO David McPhail. “With a correct focus on achieving business value versus simply counting connected devices, IIoT represents no less than the next industrial revolution. The previous three industrial revolutions were mechanization powered by steam engines in the 1800s, mass production powered by electricity and the assembly line in the early 1900s, and automation powered by computers in the late 1900s. Ushering in the fourth industrial revolution, IIoT is powered by the Internet and software applications like MERLIN.”

Memex’s flagship software product, MERLIN, is an IIoT shop-floor-to-top-floor communications platform that provides real-time manufacturing analytics. According to company representatives, MERLIN delivers an average productivity increase of 10 per cent to 50 per cent, and earns more than 20-per-cent profit improvement based on just a 10-per-cent increase in OEE. It promises to consistently achieve payback in less than four months with an Internal Rate of Return (IRR) greater than 300 per cent, and connects to any machine, old or new, utilizing native MTConnect, other protocols, or MERLIN hardware adapters for older machines.

 

To see the entire article click here:

Homeyer purchases manufacturing analytics software from MEMEX Inc.

Article from Metalforming Magazine

 

Homeyer Precision Manufacturing Co., Marthasville, MO, has purchased Merlin Enterprise Edition, an Industrial Internet of Things (IIoT) company-wide communications platform that provides manufacturing analytics in real time, from Memex Inc. The sale includes 23 licenses of Merlin for overall equipment effectiveness (OEE) and direct numerical control, as well as nine MTConnect hardware adapters for legacy CNC-manufacturing machines.
“IIoT is a powerful trend, and Merlin makes IIoT real by equipping industrial machines with the necessary interfaces for connecting, collecting and analyzing manufacturing data in real time,” says Homeyer, who also is chairman of the board for the National Tooling and Machining Association. “One of the things that most impressed us is how no machine is left behind regardless of make or vintage, and the software’s ability to implement quickly on our factory floor without costly integration services or associated time lags. With this real-time visibility, we look forward to a significant boost in OEE.”
Homeyer Precision Manufacturing produces precision metal parts for many industries, including aerospace, defense, oil and gas, and energy production. Memex provides manufacturing-productivity analytics. For more on Merlin, the company’s flagship product, visit www.memexoee.com.