CALGARY, May 26, 2016 /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, 2016 (all
figures are in Canadian dollars unless otherwise noted).
Acceleware continued to face very challenging market conditions
in the three months ended March 31,
2016 ("Q1 2016"), caused by the persistent decline in the
worldwide price of oil. Similar to the three months ended
March 31, 2015 ("Q1 2015"), the
Company's customers have started the new year in a cautious manner,
delaying and in some cases, cancelling, plans to invest in seismic
imaging software, HPC consulting services, and RF heating research
and development. The caution however, is not as pronounced as it
was in 2015 and as a result, Acceleware's revenue in Q1 2016
increased by 35% to $442,537 compared
to $328,774 in Q1 2015. Revenue was
56% lower when compared to the $1,016,424 recorded in the most recently
completed quarter ended December 31,
2015 ("Q4 2015"). The decrease compared to Q4 2015 was due
to significant decrease in seismic imaging product revenue.
Despite the increase in revenue, Acceleware's total
comprehensive loss increased to $365,018 in Q1 2016 compared to $357,834 in Q1 2015 primarily due to higher
foreign exchange loss caused by an appreciation of the Canadian
dollar relative to the US dollar at the end of Q1 2016. Total
comprehensive income for Q4 2015 was $158,746, due to the higher revenue noted
above.
Acceleware continued to develop its patent pending RF heating
technology in Q1 2016. A patent application was recently filed
protecting a concept that directly applies to Alberta's oil sands deposits. It is believed
that the new concept can assist in improving the economics and
environmental impact of oil sands production. The Company is now
looking for industry and government partners to further develop
this and previously developed technology.
At March 31, 2016, Acceleware had
$234,574 in working capital compared
to December 31, 2015 when it was
$585,117. Cash and cash equivalents
have decreased since December 31,
2015 from $361,957 to $237,858
as at March 31, 2016. At March 31, 2016 the Company had $31,900 (December 31,
2015 - $37,160) in combined
short-term and long-term debt in the form of finance leases. The
reduction in working capital is related to a decrease in trade and
other receivables and lower cash both caused by lower revenue.
During this challenging time, the Company actively manages its cash
flow and investment in new products to match its cash requirements
to cash generated from operations. In order to maximize cash
generated from operations, the Company plans to continue to focus
on high gross margin revenue streams such as those from software
products, consulting services and training; focus on selected core
vertical markets; minimize operating expenses where possible; and
limit capital expenditure.
The outlook for Acceleware's oil and gas technology business in
2016 remains uncertain. As the Company's customers grapple with the
prolonged collapse in the world price of oil, we have seen caution
among our customers resulting in delayed purchase decisions at the
beginning of the year, similar to the beginning of 2015. More
recently we have seen increased demand for both seismic products
and RF heating solutions. The Company has taken steps to further
steps to reduce operating and capital expenditures during this time
of uncertainty.
Additional information, including the unaudited financial
statements for the three months ended March
31, 2016, the management's discussion and analysis related
thereto, the audited financial statements for the year ended
December 31, 2015, 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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Acceleware Ltd.