|By Marketwired .||
|March 10, 2014 08:24 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 03/11/14 -- CriticalControl Solutions Corp. (TSX:CCZ) today reported its financial results for the year ended December 31, 2013.
"Our operations improved in 2013 as we paid down $2.2 million in debt and made significant investments in new products and sales capability in the United States," said Alykhan Mamdani, President & CEO of CriticalControl. "The new sales we have already announced in Q1 2014 are early success indicators of our new product strategy."
Annual 2013 highlights
-- Total revenue was $45.7 million in 2013 compared to $46.8 million in 2012. A decline of $2.2 million in Q1 2013 compared to Q1 2012 was offset by $1.1 million in growth in the subsequent three quarters driven by an increase of $0.4 million in recurring revenue from Canadian and US Energy Services. -- Revenue from the Canadian Energy Services was stable at $12.6 million in 2013 compared to $12.8 million in 2012. Recurring revenue increased by $0.3 million and non-recurring revenue decreased by $0.5 million. -- Revenue from the US Energy Services business increased to $17.8 million in 2013 from $17.7 million in 2012. -- Revenue from the Corporation's Service Bureau Operations decreased by $1.1 million from $16.4 million in 2012 to $15.3 million in 2013. This decline was primarily related to Q1 2013.
Gross margin percentage
-- Gross margin percentage for the Corporation was 36.7% in 2013 compared to 37.2% in 2012. -- Canadian Energy Services gross margin percentage decreased from 57.1% in 2012 to 55.3% in 2013. The decline is attributable to a number of unrelated factors, some of which should be non-recurring. The decline was partially attributable to increased infrastructure associated with customer support and client relationship management necessary for additional growth in the Corporation's existing and new service offerings. -- US Energy Services gross margin percentage increased from 28.5% in 2012 to 30.0% in 2013. -- Service Bureau Operations gross margin percentage decreased from 31.1% in 2012 to 29.3% in 2013 due to a combination of factors impacting margins on hardware, software and related service agreements in Q4 2013 compared to Q4 2012, and a change in the mix of projects in Q1 2013 compared to Q1 2012.
Selling and administrative expenses
-- Selling and administrative expenses for the Corporation increased by $0.5 million from $14.3 million in 2012 to $14.8 million in 2013. The increase is primarily attributable to increased sales and marketing costs incurred to fuel future growth in the Corporation's US Energy Services business.
-- Research and development costs decreased by $0.1 million compared to 2012. The Corporation was required under IFRS to capitalize certain development costs starting in 2013, resulting in $424 thousand being capitalized in 2013. The impact of this was to normalize research and development expenses in relation to 2012. The decline for the year is attributable to an increase in Scientific Research and Experimental Development (SR&ED) tax credits recognized in 2013 compared to 2012. -- Finance costs in 2013 decreased by $0.5 million compared to 2012. The decrease was primarily attributable to a favorable swing in foreign exchange rates, decreasing debt levels and lower bad debt expense. -- Other operating expenses in 2013 decreased by $0.5 million compared to 2012, primarily due to non-recurring items in 2012.
Earnings and net earnings
-- Earnings before income tax for 2013 compared to 2012 remained stable at $0.3 million. -- Net earnings for 2013 was $0.2 million compared to $0.3 million in 2012.
Cash flow, working capital and debt
-- Working capital increased slightly to $2.3 million at December 31, 2013. -- Annual net cash from operating activities increased to $4.1 million in 2013 from $3.4 million in 2012. -- The Corporation paid down debt resulting in a drop of $2.2 million in total loans and borrowings, net of cash, from December 31, 2012 to December 31, 2013.
Outlook and forward looking statements
Revenue growth will be dependent upon the Corporation successfully exploiting products it has recently brought to market, innovation of existing solutions, and the introduction of new products in order to replace revenue from depleted or shut-in wells. Current interest in the Corporation's new products and innovations on existing products provides management optimism for growth in its Canadian Energy Services business segment. Management believes that the expenditure on building these new tools is essential for the Corporation's long term growth prospects and will fuel recurring revenue growth later in 2014 and beyond.
Continued growth in the Corporation's Canadian Energy Services business segment is dependent upon the continued success of the Corporation's sales effort, market acceptance of the Company's innovations and new products, the successful deployment of the Corporation's ProMonitor platform and the successful and timely development of its field data capture solution, all of which are risk factors that may negatively impact growth.
The Corporation is building a sales team and reinforcing its management team in the Appalachian basin to maximize penetration in the region with its products and services. The costs associated with this expansion are necessary for the Corporation's long term growth prospects and are expected to result in increased sales in 2014.
The Corporation is in the process of rolling out its existing technologies in the US and, given the investment in development, sales and potential channel partnerships, expects evidence of success to become material in 2014.
Growth from the Corporation's US Energy Services business segment is dependent upon acceptance of the Corporation's technology solutions, the success of its sales capability and the successful hiring and training of staff to manage growth, none of which can be guaranteed. These risk factors, if they arise, will have a negative impact on management's outlook and the Corporation's profitability.
Management has attempted to drive efficiencies from its existing Service Bureau Operations to become more competitive. Management has also attempted to target its solutions away from commoditized imaging and data entry services and into outsourcing day-forward business processes in order to improve margins.
Based on a change in operational management for the Service Bureau Operations and recent success in establishing new customer revenue, which is expected to ramp up over 2014, management is optimistic that it can generate revenue and profit growth in 2014.
Management's longer term outlook for the Service Bureau Operations is subject to the successful change in its sales strategy and the success of its sales capability, which cannot be assured. Failure to mitigate these risks would result in reduced performance from expectations. In addition, expected growth from a contract signed with a large financial institution for day-forward imaging is dependent upon the successful ramp up of volume resulting from a change in the client's current process, the timing of which carries uncertainty, which may in turn push revenue expectations to a later date.
In a world of escalating globalization, with an increasingly transient workforce, enterprises have difficulty maintaining their knowledge and are forced to focus on their key market advantages to remain competitive. CriticalControl provides these enterprises with secure and cost-effective solutions for the completion of document and information intensive business processes through an integrated offering of software, outsourced services and optimized business processes.
CriticalControl Solutions Corp.
President & CEO
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
Jan. 18, 2017 03:45 PM EST Reads: 4,633
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 18, 2017 03:30 PM EST Reads: 3,665
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Jan. 18, 2017 03:30 PM EST Reads: 3,395
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 18, 2017 02:45 PM EST Reads: 1,582
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Jan. 18, 2017 02:15 PM EST Reads: 965
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Jan. 18, 2017 02:00 PM EST Reads: 354
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Jan. 18, 2017 02:00 PM EST Reads: 915
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 18, 2017 01:00 PM EST Reads: 5,589
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 18, 2017 01:00 PM EST Reads: 5,096
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 18, 2017 01:00 PM EST Reads: 3,460
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jan. 18, 2017 01:00 PM EST Reads: 4,441
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 18, 2017 12:30 PM EST Reads: 6,302
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Jan. 18, 2017 12:30 PM EST Reads: 2,489
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 18, 2017 12:15 PM EST Reads: 1,518
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 18, 2017 12:00 PM EST Reads: 4,224