Acceleware Reports Results for the Three and Nine Months ended September 30, 2017

Acceleware Reports Results for the Three and Nine Months ended September 30, 2017

Canada NewsWire

CALGARY, Nov. 23, 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 and nine months ended September 30, 2017 (all figures are in Canadian dollars unless otherwise noted).

During the three months ended September 30, 2017 (Q3 2017), Acceleware continued to invest in RF heating research and development. After a successful 1/20 scale field test, activities were focused on preparation for a commercial-scale test of the RF XL technology. Development activities included filing one new patent application, preparation of five additional potential patent applications, and working with service companies on proprietary well and well pad designs. On November 3, 2017, the Company announced that it had been awarded $10 million in financing for the commercial-scale test from Sustainable Development Technology Canada and Emissions Reduction Alberta. The funding is conditional on securing a suitable oil sands partner and test site. In addition to the funding announcement and technology development activities, the Company also made progress in the identification of an oil sands partner and the selection of a commercial-scale test site. Acceleware has been in discussions with three potential oil sands operating partners, and several simulations were conducted of potential oil sands test sites using the Company’s AxHeat software. Acceleware generated revenue in its RF heating segment through the sale of AxHeat in the three months ended September 30, 2017 (Q3 2017). The Company’s software and services business experienced a challenging oil and gas market in Q3 2017, with decreased software product revenue compared to the three months ended September 30, 2016 (Q3 2016), however a slight rebound was recorded compared to the three months ended June 30, 2017 (Q2 2017). Software maintenance, particularly seismic imaging software increased in Q3 2017 compared to both Q2 2017 and Q3 2016. Software consulting services revenue decreased significantly in Q3 2017 compared to both Q3 2016, and Q2 2017 due to decreased training revenue. For the nine months ended September 30, 2017, revenue was lower than for the nine months ended September 30, 2016 due to lower product revenue and despite higher maintenance and consulting revenue.

During the three months ended September 30, 2017, Acceleware recognized revenue of $237,576 – 35% lower than the $366,675 recognized during the three months ended September 30, 2016. The decrease is a result of lower software product and software services revenue. Revenue in Q3 2017 also decreased 24% compared to the $312,612 recorded in Q2 2017 due to lower software product and software services revenue including notably lower consulting services for training. On a segmented basis, the Company recorded $20,700 in RF heating revenue in Q3 2017 compared to no revenue in either Q3 2016 or Q2 2017. Software and services revenue was 41% lower at $216,876 in Q3 2017 compared to $366,675 in Q3 2016, due in large part to decreased services revenue including training. Software and services revenue was also 31% lower in Q3 2017 compared to $312,612 in Q2 2017 again due to lower training services revenue. For the nine months ended September 30, 2017 revenue decreased 14% to $1,048,377 from $1,219,530 in the nine months ended September 30, 2016 due to lower seismic imaging product revenue.

The Company had total comprehensive loss for Q3 2017 of $913,738, an increase of 181% compared to a total comprehensive loss of $324,722 for Q3 2016.  The higher total comprehensive loss is a result of higher research and development (R&D) investment, higher general and administrative (G&A) expenses in the RF heating business, and lower revenue in the software and services business, combined with a significant loss on derivative instruments associated with the Company’s convertible debentures. Total comprehensive loss increased 43% in Q3 2017 to $913,738 compared to $641,197 in Q2 2017, due to lower revenue and the loss on derivatives (the Company recorded a gain on derivative instruments in Q2 2017).

For the nine months ended September 30, 2017 total comprehensive loss was $2,003,794, an increase of 90% compared to a loss of $1,056,272 recorded in the nine months ended September 30, 2016. The increase is a result of greater investment in research and development (R&D) and higher general and administrative (G&A) expenses, and higher finance expense (accrued interest and accretion) associated with convertible debentures.

On a segmented basis, loss from operations attributed to the RF heating segment was 39% higher in Q3 2017 at $537,838 compared to $385,802 in Q3 2016, due to higher investment in R&D and higher G&A expense. Operating loss for RF heating was 26% lower in Q3 2017 compared to the loss of $753,686 recorded in Q2 2017 due to lower R&D and G&A expenses. Operating income attributed to software and services decreased to a loss of $136,436 in Q3 2017, compared to income of $79,434 in Q3 2016 due to lower revenue, higher investment in R&D, and higher G&A expense. Software and services operating loss was also lower in Q3 2017 compared to the loss of $23,107 recorded in Q2 2017 due to lower revenue.

For the nine months ended September 30, 2017, RF heating operating loss increased 43% to $1,684,016 from $1,176,754 for the nine months ended September 30, 2016 due to higher R&D investment, higher G&A expense related to stock based compensation, and despite higher revenue. For the nine months ended September 30, 2017 software and services operating loss was $145,930 compared to operating income of $192,282 for the nine months ended September 30, 2016 due to lower seismic product revenue.

Cash flow used in operating activities increased 502% to $721,543 in Q3 2017 compared to $256,971 in Q3 2016 due to the loss and a higher investment in working capital. Cash flow used in operations was also significantly higher in Q3 2017 compared to Q2 2017, rising 623% from $99,769 due to increased investment in working capital. During the nine months ended September 30, 2017 cash used in operations was significantly higher at $1,684,306 compared to $491,825 used in the nine months ended September 30, 2016. The increase is a result of increased loss and higher investment in working capital.

At September 30, 2017, Acceleware had $1,058,126 (December 31, 2016$1,616,415) in working capital, including $1,094,132 (December 31, 2016$1,922,318) in cash and cash equivalents, and $61,046 (December 31, 2016$58,095) in combined short-term and long-term debt in the form of finance leases. On September 26, 2017, the Company closed a non-brokered private placement consisting of 4,651,066 units at a price of $0.18 per unit for gross proceeds of $837,192, and proceeds net of issue costs of $823,486. Each unit consisted of one common share and one-half common share purchase warrant. Each warrant entitles the holder to purchase an additional common share of the Company at a price of $0.27 per common share for a period of two years. At September 30, 2017, the Company had $998,175 (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 the nine months ended September 30, 2017, and an increased investment in working capital, offset by the proceeds from the private placement. The increase in working capital other than cash is a result of the decrease in accounts payable and accrued liabilities such as deferred salaries and other payroll liabilities. On November 17, 2017, the Company forced conversion of the convertible debentures, exercising the option to convert all outstanding principal and accrued interest into 6,762,014 units of one common share of the Company plus ½ common share purchase warrant.

Additional information, including the unaudited financial statements for the three months ended September 30, 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.

View original content: http://www.newswire.ca/en/releases/archive/November2017/23/c7528.html

Finalists Revealed for Natural Resources Category at 2017 BC Export Awards

VANCOUVER, British Columbia, Nov. 23, 2017 (GLOBE NEWSWIRE) — SYSPRO, a global provider of industry-built ERP software, today announced their customer, ATCO Wood Products Ltd., was named a finalist for the 2017 BC Export Awards in the Natural Resources category, recognizing their outstanding achievement delivering superior products manufactured from natural resources. Through innovation, ATCO Wood Products produces custom softwood veneer for plywood and engineered wood products for customers both in Canada and the United States. SYSPRO Canada is proud to be a premier sponsor once again at this year’s awards.

The BC Export Awards are the province’s most prestigious awards paying tribute to the success, achievements, and innovative approaches of BC’s top exporting companies. Created in 1982, the program was initiated by the Ministry of Economic Development to raise the awareness and recognize the contribution that the manufacturing and service sectors were making to the economy of British Columbia. Since that time, the number and categories of the awards have changed and varied to reflect the changes that have taken place in the economy of the province. Business in Vancouver currently organizes the annual event.

“The success of this program, which has recognized over 300 companies since its inception, has reflected the growth and diversity of BC’s economy over the past 30 years. With substantial markets now in every region of the world, BC’s exporting companies have become truly international in their scope as well as their vision,” according to Sue Belisle, President & Publisher, Business in Vancouver Media Group.

“It is a great honor to be selected as a finalist for the 2017 British Columbia Export Awards,” said Scott Weatherford, CEO, ATCO Wood Products. “As a leading purveyor of custom softwood veneer wood products, we strive to be innovative in our approach to providing our customers with superior goods, while respecting the company’s reforestation record and our commitment to sustainability. We are pleased to be recognized for our success in the marketplace.”

“This year’s finalists exemplify the strength and depth of the BC export community,” according to James Weir, Vice President of Sales for SYSPRO Canada. “Regardless of the sector they serve, this year’s finalists have all raised the bar of excellence for their companies and the local BC economy. We are very proud of ATCO’s team for their success in persevering with their innovation, and leading the way with their solutions, while maintaining their dedication to cultivating a renewable and sustainable forest industry in the region.”

Winners will be announced at the BC Export Awards Luncheon on Friday, November 24th, 2017 from 12:00 – 2:30 p.m. PT, at the Hyatt Regency Hotel.

More details about the BC Export Awards can be found at: http://www.bcexportawards.com/

The complete list of finalists for the 2017 BC Export Awards can be found at: http://www.bcexportawards.com/2017-finalists/

About ATCO Wood Products Ltd.

Located in the West Kootenays of British Columbia, ATCO Wood Products is a leading producer of softwood veneers and related by-products. We specialize in producing custom softwood veneer for plywood and engineered wood products customers in both Canada and the United States. 

ATCO Wood Products, a third-generation family-owned business, is also one of the largest forestry management companies in the West Kootenays, with licenses and contracts to sustainably manage approximately 315,000 acres (127,000 hectares).

Please visit our website at http://www.atcowoodproducts.com/index.html for further information on our company, our products and services.

About SYSPRO

SYSPRO is a global, independent provider of industry-built ERP software designed to simplify business complexity for manufacturers and distributors. Focused on delivering optimized performance and complete business visibility, the SYSPRO solution is highly scalable, and can be deployed on-premise, in the cloud, or accessed via a mobile device. SYSPRO’s strengths lie in a simplified approach to technology, expertise in a range of industries, and a commitment to future-proofing customer and partner success. 

SYSPRO has more than 15,000 licensed companies in over 60 countries across six continents.

For more information on SYSPRO Canada visit: https://ca.syspro.com/ or contact SYSPRO Canada’s Head Office at Toll Free: +1 (888) 259-6666.

Discover helpful content to help you grow your business for Canadian manufacturers by visiting the SYSPRO Canada Resource Hub: http://resources.syspro.com/h/ and the SYSPRO Canada Blog: http://canadablog.syspro.com.

Follow SYSPRO Canada on social:

Media Contacts:

Melanie Aizer 
SYSPRO Canada 
1.888.259.6666 Ext: 5228
melanie.aizer@ca.syspro.com

ATCO Wood Products Ltd. Contact:

Scott Weatherford
ATCO Wood Products Ltd.
250-367-2517
Scott.weatherford@atcowoodproducts.com

All company names and products mentioned in this release are trademarks or registered trademarks of their respective holders.

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Finalists Revealed for Consumer Products Category at 2017 BC Export Awards

VANCOUVER, British Columbia, Nov. 23, 2017 (GLOBE NEWSWIRE) — SYSPRO, a global provider of industry-built ERP software, today announced their customer, Prepac Manufacturing Ltd., was named a finalist for the 2017 BC Export Awards in the Consumer Products category, recognizing their achievement delivering innovative consumer products to meet market demand. For over a decade Prepac has transformed itself from a traditional ‘bricks and mortar’ furniture manufacturer serving regional customers into a leading international supplier to most major North American online retailers. SYSPRO Canada is proud to be a premier sponsor once again at this year’s awards.

The BC Export Awards are the province’s most prestigious awards paying tribute to the success, achievements, and innovative approaches of BC’s top exporting companies. Created in 1982, the program was initiated by the Ministry of Economic Development to raise the awareness and recognize the contribution that the manufacturing and service sectors were making to the economy of British Columbia. Since that time, the number and categories of the awards have changed and varied to reflect the changes that have taken place in the economy of the province. Business in Vancouver currently organizes the annual event.

“The success of this program, which has recognized over 300 companies since its inception, has reflected the growth and diversity of BC’s economy over the past 30 years. With substantial markets now in every region of the world, BC’s exporting companies have become truly international in their scope as well as their vision,” according to Sue Belisle, President & Publisher, Business in Vancouver Media Group.

“It is an honor to be recognized as a finalist for the 2017 British Columbia Export Awards,” says Michelle MacKinnon, VP, Finance & IT, Prepac Manufacturing. “As a BC company that has grown organically to become one of North America’s largest Ready-to-Assemble furniture manufacturers and e-commerce direct to consumer specialists, we are proud to be recognized amongst the best of BC’s exporting elite.”

“This year’s finalists exemplify the strength and depth of the BC export community,” according to James Weir, Vice President of Sales for SYSPRO Canada. “Regardless of the sector they serve, this year’s finalists have all raised the bar of excellence for their companies and the local BC economy. We congratulate the team at Prepac on this outstanding recognition and laud their achievement through the innovation their team continues to forge.”

Winners will be announced at the BC Export Awards Luncheon on Friday, November 24th, 2017 from 12:00 – 2:30 p.m. PT, at the Hyatt Regency Hotel.

More details about the BC Export Awards can be found at: http://www.bcexportawards.com/

The complete list of finalists for the 2017 BC Export Awards can be found at: http://www.bcexportawards.com/2017-finalists/

About Prepac Manufacturing Ltd.

Prepac Manufacturing Ltd. is a privately owned first generation start-up company that was incorporated in Vancouver BC in 1979. Since that time it has grown organically to become one of North America’s largest RTA (Ready-to-Assemble) furniture manufacturers and e-commerce “drop ship” (direct to consumer) specialists.  Its product categories include Bedroom, Entertainment, Entryway, Home Office, Living/Dining Room and Utility Storage Furniture.

Please visit our website at http://www.prepacmfg.com/ for further information on our company, our products and services.

About SYSPRO

SYSPRO is a global, independent provider of industry-built ERP software designed to simplify business complexity for manufacturers and distributors. Focused on delivering optimized performance and complete business visibility, the SYSPRO solution is highly scalable, and can be deployed on-premise, in the cloud, or accessed via a mobile device. SYSPRO’s strengths lie in a simplified approach to technology, expertise in a range of industries, and a commitment to future-proofing customer and partner success. 

SYSPRO has more than 15,000 licensed companies in over 60 countries across six continents.

For more information on SYSPRO Canada visit: https://ca.syspro.com/ or contact SYSPRO Canada’s Head Office at Toll Free: +1 (888) 259-6666.

Discover helpful content to help you grow your business for Canadian manufacturers by visiting the SYSPRO Canada Resource Hub: http://resources.syspro.com/h/ and the SYSPRO Canada Blog: http://canadablog.syspro.com.

Follow SYSPRO Canada on social:

Media Contacts:

Melanie Aizer 
SYSPRO Canada 
1.888.259.6666 Ext: 5228
melanie.aizer@ca.syspro.com

Prepac Manufacturing Contact:

Michelle MacKinnon
Prepac Manufacturing Ltd.
604.940.2300 Ext: 112
M.MacKinnon@prepacmfg.com 

All company names and products mentioned in this release are trademarks or registered trademarks of their respective holders.

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