Welcome!

News Feed Item

CriticalControl Announces 2013 Year End Financial Results

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

Revenue


--  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. 

Other expenses


--  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.

About CriticalControl

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.

Contacts:
CriticalControl Solutions Corp.
Alykhan Mamdani
President & CEO
(403) 705-7500

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 dev...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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. Meanwhile, 94% of enterpri...