CALGARY, May 25, 2017 /CNW/ - Acceleware®
Ltd. ("Acceleware" or the "Company") (TSX-V: AXE), a
leading developer of high performance seismic imaging applications
and RF heating technology, today announced results for the three
months ended March 31, 2017 (all
figures are in Canadian dollars unless otherwise noted).
During the three months ended March 31,
2017 (Q1 2017), Acceleware continued to invest in radio
frequency (RF) heating research and development. Activities
included completing a field test of critical components of the RF
XL technology. The achieved objectives of the 1/20 scale
field test were to successfully heat a sand formation with
parameters similar to an oil sands reservoir, to confirm the
results predicted from Acceleware's AxHeat RF heating simulation
software, and to prove innovative concepts around the transmission
of RF energy from the RF generator down to the oil bearing
formation. Increased RF heating revenue, coupled with a rebound in
software and services revenue resulted in the highest quarterly
revenue in five consecutive quarters. Notwithstanding the rebound,
the Company continues to face a challenging market for its software
and services, caused be the persistent weakness in the worldwide
price of oil.
During the three months ended March 31,
2017, Acceleware recognized revenue of $498,189 - 13% higher than the $442,537 recognized during the three months ended
March 31, 2016 (Q1 2016). The
increase is primarily a result of a 131% increase in RF heating
revenue, and despite a 16% decrease in software and services
revenue. Revenue in Q1 2017 also increased 184% relative to
the $175,639 recorded in Q4 2016. The
increase in revenue compared to the most recent quarter is due to
higher RF heating revenue, and a 70% increase in software and
services revenue, particularly higher seismic imaging maintenance
revenue, and higher training services revenue. On a segmented
basis, RF heating Revenue increased 131% to $200,000 in Q1 2017, compared to $86,648 in Q1 2016 and $nil in Q4 2017, a direct
result of a sale of the RF XL field test data. Software and
services revenue was 26% lower at $298,189 in Q1 2017 compared to $355,889 in Q1 2016, due in large part to
decreased seismic imaging product sales. However, software and
services revenue was 70% higher in Q1 2017 compared to $175,639 in Q4 2016 due to higher software
maintenance, and higher training services revenue.
The Company had total comprehensive loss for Q1 2017 of
$448,859, an increase of 23% compared
to a total comprehensive loss of $365,018 for Q1 2016. The higher total
comprehensive loss is a result of higher research and development
expense, higher general and administrative expenses in the RF
heating business, and despite lower cost of revenue in the software
and services business. Total comprehensive loss decreased 53% in Q1
2017 to $448,859 compared to
$953,737 in Q4 2016, due to higher
revenue and lower expenses in all categories.
On a segmented basis, loss from operations attributed to the RF
heating segment was 26% higher in Q1 2017 at $415,598 compared to $330,585 in Q1 2016, due to higher investment in
research and development. Operating loss for RF heating was 48%
lower in Q1 2017 compared to the loss of $796,812 recorded in Q4 2016 due to higher
revenue, and lower research and development and general and
administrative expenses. Operating income attributed to software
and services decreased to $13,612 in
Q1 2017, compared to $20,292 in Q1
2016 due to lower revenue. Software and services operating income
increased significantly compared to the operating loss of
$171,579 recorded in Q4 2016 due to
higher revenue and lower cost of revenue expenses.
At March 31, 2017, Acceleware had
$1,393,632 (December 31, 2016 - $1,616,415) in working capital, including
$1,114,844 (December 31, 2016 - $1,922,318) in cash and cash equivalents, and
$49,928 (December 31, 2016 - $58,09) in combined short-term and long-term debt
in the form of finance leases. The Company has $951,125 (December 31,
2016 - $928,800) (principal
plus accrued interest) in convertible debentures that accrue
interest at 10% per year. The decrease in cash (and consequently
working capital) is a result of the comprehensive loss incurred in
Q1 2017, and an increased investment in working capital. The
increase in working capital other than cash is a result of an
increase in trade and other receivables reflecting increased
revenue, and a decrease in accounts payable and accrued liabilities
such as deferred salaries and other payroll liabilities.
Additional information, including the unaudited financial
statements for the three months ended March
31, 2017, the management's discussion and analysis relating
thereto, the audited financial statements for the year ended
December 31, 2016, and management's
discussion and analysis relating thereto, are available on SEDAR at
www.sedar.com.
About Acceleware:
Acceleware (www.acceleware.com) develops high performance
seismic imaging and modeling software products and provides
innovative technology for radio frequency (RF) heating, an emerging
thermal enhanced oil recovery method. As experts in programming for
multi-core CPUs and massively parallel GPUs, Acceleware's
professional services team specializes in accelerating
computationally intense applications for clients to speed up
product design, analyze data and help make better business
decisions. Acceleware's products and services are used by
some of the world's largest energy and engineering companies.
Acceleware is a public company on Canada's TSX Venture Exchange under the
trading symbol AXE.
Disclaimers
This press release contains "forward-looking
information" within the meaning of Canadian securities legislation.
Forward-looking information generally means information about an
issuer's business, capital, or operations that is prospective in
nature, and includes disclosure about the issuer's prospective
financial performance or financial position.
The forward-looking information in this press
release includes information about the technical and
economic feasibility of Acceleware's RF heating technology.
Acceleware assumes that the results of simulations, testing and
economic modelling conducted to date are indicative of future
performance of the technology.
Actual results may vary from the forward-looking information
in this press release due to certain material risk
factors. These risk factors are described in detail in Acceleware's
continuous disclosure documents, which are filed on SEDAR at
www.sedar.com.
Acceleware assumes no obligation to update or revise the
forward-looking information in this press release,
unless it is required to do so under Canadian securities
legislation.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Acceleware Ltd.