RNS Number:4921J
NRX Global Corporation
01 April 2003
1 April 2003
NRX Global Corp.
Preliminary results announcement for the year ended 31 December 2002
* First major contract for Asset Content Management (ACM) solution
(US$1.5 million) awarded by Chevron Products Company.
* Further new projects with Pacificorp, TransAlta Corporation and
Colorado Springs Utilities.
* New version of core ACM product and launch of xVIp(Visual Information
for Plants) solution scheduled for April 14, 2003 release.
* Partnership with SAP AG has been further enhanced - NRX is one of the
first SAP NetWeaver partners to participate in a new strategic partner
program for collaborative applications.
* Partnership with SAP AG has been further enhanced - NRX is one of the
first SAP NetWeaver partners to participate in a new strategic partner
program for collaborative applications.
* Software partnership agreement with Indus International Inc. the
world's leading supplier of Enterprise Asset Management solutions
completed. An integrated NRX/Indus solution was chosen by Chevron
Products Company.
Paul Gray, Chief Executive Officer, NRX Global Corp. said:
"Following completion of a number of successful proof of concept projects, we
are in the process of coming to market with the xVIp solution as well as a new
version of our ACM solution, and we are now able to offer a unique and strategic
solution set for capital-intensive industries. NRX has demonstrated solution
leadership in a market with a compelling customer need that has not been
adequately addressed to date. We have developed high profile partnerships with
some of the world's leading software companies who are actively endorsing our
products to customers and prospects. We are well positioned for a period of
rapid revenue growth.
For further information contact:
NRX Global Corp. Arbuthnot
Paul Gray, Chief Executive Officer Graeme Cull
Tel: +1 (416) 368 4567 Tel: +44 (0)207 002 4600
Results
During 2002 NRX began commercial implementation of its solutions within the
power generation, oil and gas, and mining industries, generating maiden revenues
of $310,583. Revenue from ongoing projects with new and existing customers will
continue to be recognized on a percentage of completion basis - resulting in
deferred revenue balances of $466,000 at 31 December 2002.
Higher staff costs relating to increased product development, sales and customer
implementation activities, were offset by beneficial foreign exchange movements
and reduced amortization of deferred stock-based compensation. Additionally, we
have fully written off goodwill arising from the acquisition of Business Data
Systems ("BDS") in 2001. This acceleration has resulted in a one-time charge of
$969,896. As a result, the net loss for the year increased to $7,973,212 (2001:
$7,271,643).
Product Development
NRX's product development program included the development of Asset Content
Management (ACM) which is an infrastructure toolset designed to help
capital-intensive organizations efficiently and effectively collect and maintain
asset content. ACM is a comprehensive solution that uniquely combines plant
data control and content conversion services with electronic delivery and
integration software to provide asset-intensive companies with the functionality
required to better identify and manage the asset and spare parts data needed to
maximize the return on assets (ROA) of in-plant equipment. The product
development activities have focused on commercializing the ACM toolset as a
result of intense interest by third parties and customers. Development efforts
will improve breadth and depth of functionality as well as making ACM easy to
use by customers. The release date for ACM 3.0 is April 14, 2003.
Product development is also focused on delivering our first portal based
application based on SAP's NetWeaver technology. The solution which is branded
as xVIp (Visual Information for Plants) is a cross application that leverages
SAP's technology infrastructure to easily integrate diverse plant floor and
enterprise applications into a single environment. xVIp is a strategic
application that integrates the enterprise from shop floor to top floor. The
release date for xVIp 1.0 is April 14, 2003.
Current product development activity is focused on quality assurance for ACM 3.0
and xVIp 1.0. This will effectively complete the core development of our
delivery technology infrastructure, and future releases will focus on extended
functionality based on customer needs.
Sales and Customer Implementations
Our sales activity is focused on the power generation and downstream/upstream
oil and gas markets in North America. In 2002, NRX completed projects for
Chevron Products Company., Gulf Power Company, PacifiCorp, AngloGold (Colorado)
Corporation and Colorado Springs Utilities, and has added new projects with
Chevron Products Company., TransAlta Corporation, Colorado Springs Utilities and
Pacificorp.
NRX solution implementation projects were successfully completed or are in
progress at:
* TransAlta Corporation's Centralia Power Plant and at its Calgary head office;
* Colorado Springs Utilities' Nixon Power Plant;
* Gulf Power Company's Lansing Smith Power Plant;
* PacifiCorp's Jim Bridger, Dave Johnston and Naughton Power Plants;
* AngloGold (Colorado) Corporation's Cripple Creek & Victor Mine; and
* Chevron Products Company's' Pascagoula Refinery.
We are actively engaged in additional sales cycle activity with all existing
customers. Pipeline sales activity is focused on opportunities that leverage our
existing technology partnership with SAP and Indus.
Alliances
Technology partnerships have added new go to market capabilities for NRX.
NRX has successfully progressed technology partnerships with leading enterprise
maintenance management system software developers. We recently extended our
partnership with SAP by joining their NetWeaver Partner Program. Our xVIp
application will be one of the first solutions delivered by an independent
software vendor as part of this program.
The partnership with the world's leading Enterprise Asset Management supplier -
Indus International has resulted in successful integration between ACM and Indus
Passport at Chevron Products Company.
A partnership was also formed with engineering company Black and Veatch
Corporation to assist in the deployment of ACM at Chevron Products Company.
Our strategic alliances ensure we remain on the cutting edge of integration
applications with maintenance management systems, enabling us to jointly enhance
functionality for users of these solutions and for NRX's large industrial
customers.
Organizational and Operational Infrastructure
Through 2002, NRX has focused on commercializing and bringing to market robust
and unique software applications - for the purpose of delivering repeatable and
structured value driven solutions to the marketplace which can be deployed by
NRX, its partners or customers.
NRX has progressed its services infrastructure with the development of a '
turnkey' data collection business model and an automated content management '
factory', including a complete suite of content software tools and solid project
management and workflow processes that ensure quality, consistency and
scalability.
Our current headcount stands at 69 (compared with 74 at December 31, 2001).
Focus is on tight cost control and ensuring we have the necessary human
resources with the required skill sets and industry experience.
Financial Position
As at December 31, 2002, NRX had cash balances of US$7.4 million. Expenditure
levels in fiscal 2002 were approximately 11% below the Company's 2002 budget.
This reduced level of expenditure has been continued in the Company's budget for
2003. Together these measures provided NRX with cash resources as at December
31, 2002, to meet approximately 13 months of budgeted expenditures (not
including revenues from operations). Current cash resources, at March 31, 2002
are US$6.3 million. Expenditure will continue to be evaluated on a monthly basis
relative to developments in sales.
Prospects
Notwithstanding a slow economy, asset-intensive companies continue to pursue
maintenance management strategies to automate and streamline operations. With an
aging workforce and the potential loss of corporate knowledge, asset data
collection and retention is emerging as a significant management issue, as these
strategies are very reliant on accurate information to fuel continual
improvement.
Most capital-intensive organizations do not have a good grasp of their asset
content. Asset information is unstructured, in different formats, scattered and
not readily accessible by the people that need it to ensure plant operations run
smoothly. With increasing focus on safety and the environment, organizations
are under regulatory pressures to ensure that people have ready access to
information.
Furthermore, as organizations implement asset management strategies such as
Total Productive Maintenance (TPM) and Reliability Centred Maintenance (RCM)
there is an increasing need for accurate and comprehensive asset information.
The timely availability of technical data for maintenance planning and repair
execution is key to maximizing the uptime, availability and reliability of
production equipment.
NRX is well positioned to be a leader in an emerging market for asset data
management solutions. ACM offers a unique solution to accumulate massive
amounts of asset data - efficiently and cost effectively. xVIp provides a
leading edge deployment option to leverage this asset information and use it in
conjunction with other plant floor and enterprise applications. With xVIp,
critical plant floor information is made readily accessible to facilitate
informed decision making across the enterprise.
Summary
NRX offers a unique and powerful solution in an area that has not yet been
adequately addressed in most capital-intensive organizations. Senior management
in these organizations are paying increased attention to the plant floor and
associated assets to determine ways to optimize operations to sustain a
competitive advantage. Asset information is recognized as one of the key
components to achieve this goal.
Over the past year, NRX has met the challenges of a dynamic market and has built
unique products and an organizational infrastructure to capitalize on an
emerging trend. In the coming year we will continue to pursue a focused strategy
to win customer contracts, generate revenue and build shareholder value.
NRX Global Corp.
Consolidated Balance Sheets
(Expressed in U.S. dollars)
December 31, 2001 and 2002
(Unaudited)
2001 2002
Assets
Current
Cash $13,842,362 $7,357,579
Accounts receivable 153,262 489,762
Prepaid expenses 216,152 311,533
Total current assets 14,211,776 8,158,874
Capital assets 1,254,872 816,721
Goodwill, net of accumulated amortization of $507,894 in 2001 969,895 -
Intangible assets 11,078 60,750
Total assets $16,447,621 $9,036,345
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $327,609 $296,590
Accrued liabilities 365,658 202,563
Income taxes payable 45,281 -
Deferred revenue - 466,000
Total current liabilities 738,548 965,153
Stockholders' equity:
Capital stock:
Authorized:
Unlimited preference shares
Unlimited common shares, without par value
Issued and outstanding:
33,984,379 common shares
(2001 - 33,984,379) 27,372,806 27,355,857
Contributed surplus 212,000 212,000
Share purchase loans - (113,409)
Deferred stock-based compensation (860,140) (467,110)
Accumulated other comprehensive loss (1,103,941) (1,031,282)
Accumulated deficit (9,911,652) (17,884,864)
15,709,073 8,071,192
Total liabilities and stockholders' equity $16,447,621 $9,036,345
See accompanying notes to consolidated financial statements.
NRX Global Corp.
Consolidated Statements of Operations
(Expressed in U.S. dollars)
Years ended December 31, 2000, 2001 and 2002
(Unaudited)
2000 2001 2002
Revenue $ - $ - $ 310,583
Expenses:
Wages and consulting fees 1,279,041 4,242,824 4,750,888
Office and general 270,810 1,133,801 1,244,234
Write-off of goodwill - - 969,896
Travel 381,622 687,276 649,462
Depreciation 36,106 262,508 642,200
Amortization of deferred stock-based compensation (wages 473,545 1,013,562 376,081
and consulting fees)
Professional fees 197,707 305,513 191,527
Amortization of intangible assets 77,188 547,355 4,451
Interest and net other income (177,775) (737,848) (211,412)
Foreign exchange 50,765 (183,348) (306,143)
2,589,009 7,271,643 8,311,184
Loss before income taxes (2,589,009) (7,271,643) (8,000,601)
Income taxes (recovery) 51,000 - (27,389)
Loss for the year $(2,640,009) $(7,271,643) $(7,973,212)
Basic and diluted loss per share $(0.26) $(0.23) $(0.24)
Basic and diluted weighted average number of shares 10,136,674 31,310,000 33,518,626
outstanding
See accompanying notes to consolidated financial statements.
NRX Global Corp.
Consolidated Statements of Cash Flows
(Expressed in U.S. dollars)
Years ended December 31, 2000, 2001 and 2002
(Unaudited)
2000 2001 2002
Cash provided by (used in):
Operations:
Loss for the year $(2,640,009) $(7,271,643) $(7,973,212)
Items not involving cash:
Amortization of deferred stock-based compensation
473,545 1,013,562 376,081
Stock-based compensation 278,000 - -
Depreciation 36,106 262,508 642,200
Amortization of intangible assets 77,188 547,355 4,451
Write-off of goodwill - - 969,896
Equity loss from Gengis PTY Ltd. 7,043 - -
Loss on disposal of equipment - 5,225 74,400
Change in non-cash operating working capital:
Accounts receivable (52,484) (7,827) (336,500)
Prepaid expenses (164,244) (46,137) (95,381)
Accounts payable 173,665 46,526 (31,019)
Accrued liabilities 41,435 211,259 (163,095)
Income taxes payable 51,000 - (45,281)
Deferred revenue - - 466,000
(1,718,755) (5,239,172) (6,111,460)
Financing:
Proceeds from issuance of common shares, net of issue
costs 23,232,125 200,000 -
Share purchase loans - - (113,409)
23,232,125 200,000 (113,409)
Investments:
Cash acquired in business acquisition 44,718 19,351 -
Purchase and development of capital assets (375,591) (1,158,519) (275,933)
(6,860) (42,696) (54,125)
(337,733) (1,181,864) (330,058)
Effect of currency translation adjustments on cash 3,878 (1,116,117) 70,144
Increase (decrease) in cash 21,179,515 (7,337,153) (6,484,783)
Cash, beginning of year - 21,179,515 13,842,362
Cash, end of year $21,179,515 $13,842,362 $7,357,579
Supplemental disclosure relating to non-cash
operating and investing activities:
Deferred stock-based compensation $1,417,168 $977,000 $-
Acquisition of Gengis PTY Ltd. 877,126 - -
Acquisition of Business Data Solutions Corp. - 650,307 -
See accompanying notes to consolidated financial statements.
NRX Global Corp.
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
1. Basis of presentation:
NRX Global Corp. (the "Company") provides solutions comprised of proprietary
software, services and support that enable Asset Lifecycle Management in
capital-intensive industries. The Company's solutions are marketed as ACM(TM)
and xVIp(TM).
During 2002, the Company exited the development stage and is currently in the
early go-to-market stage. Its primary activities consist of product
development, establishing strategic alliances, building a direct sales channel
and building market awareness.
The Company's accounting principles are in accordance with accounting principles
generally accepted in the United States.
Principles of consolidation:
The consolidated financial statements include the accounts of the Company and
its wholly owned subsidiaries. All significant intercompany transactions and
balances have been eliminated on consolidation.
This information is provided by RNS
The company news service from the London Stock Exchange
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