|By Marketwired .||
|July 29, 2014 06:01 PM EDT||
EDMONTON, ALBERTA -- (Marketwired) -- 07/29/14 -- Wavefront Technology Solutions Inc. (Wavefront or the Corporation) (TSX VENTURE: WEE)(OTCQX: WFTSF) a technology provider offering fluid delivery processes to oil and gas producers that are widely effective methods for maximizing reserves in mature field revitalization (enhanced oil recovery or "EOR") as well as increasing single well productivity through more effective well stimulation announces its financial results for the third quarter ending May 31, 2014.
Wavefront's business operates in a market where there is increasing demand to bring economically beneficial solutions to exploration and production companies (or "E&P" companies) to maximize oil and gas productivity. Central to Wavefront's broad portfolio of technologies is the fluid delivery process, Powerwave.
Wavefront is uniquely positioned to capitalize on significant growth opportunities. By leveraging Powerwave across multiple oil industry applications including EOR; well stimulation; and, drilling among other applications, Wavefront is seeking to minimize technology risk and accelerate commercialization timelines. Alberta Energy's recently announced reduce royalty program aimed at boosting oil production from enhanced oil recovery projects is expected to encourage producers to re-enter previously produced fields to draw out more of the original oil in place(1) and may enhance producer economics, and thus have a positive impact of Powerwave demand.
Third quarter revenues were affected by the client timing for the installation of international Powerwave mature field revitalization projects, which include: an approximate US $1.25 million contract with Petrobras; an approximate US $353,500 contract with Pan American Energy; and an approximate US $1,337,700 contract with EcoPetrol. It is anticipated that commencement of these international Powerwave mature field revitalization projects worth US $2,941,200 in contracts will commence in late summer 2014.
The basic and diluted net loss, before the non-cash impairment loss, for the nine months ended May 31, 2014 was $2,866,714 ($0.035 per share), a decrease of $466,787 from the comparative period in 2013 of $3,333,501 ($0.040). The basic and diluted net loss, including the non-cash impairment loss, for the nine months ended May 31, 2014 was $4,205,298 ($0.051 per share) compared to $3,333,502 ($0.040 per share) in 2013.
(1) Enhanced Oil Recovery Plan Offers Royalty Relief, by Dan Healing, Calgary Herald, July 28, 2014
The financial highlights for the three months ended May 31, 2014 include:
-- The basic and diluted net loss, before the non-cash impairment loss, for the three months ended May 31, 2014 was $937,657 ($0.011 per share), a decrease of $30,398 from the comparative period in 2013 of $968,055 ($0.012 per share). The basic and diluted net loss, including the non- cash impairment loss, for the three months ended May 31, 2014 was $2,276,241 ($0.027 per share) compared to $968,055 ($0.012 per share) in 2013. -- Cash used in operating activities(2) was $587,066 compared to $423,039 for the comparative period. Management believes that over time, the funds used in operations should decrease as revenue grows and as it focuses expenditures on nearer term revenues. Wavefront continues to strive toward sustainability while endeavouring to accelerate revenue growth in its core focus marketing regions. -- Total revenues were $1,499,056 an increase of $252,008 (20%) over second quarter revenues of $1,247,048 but a decrease of $159,965 over the comparative revenues of 2013 of $1,659,021. -- Revenues attributed only to Powerwave single well stimulations were $882,010, an increase of $74,967 over revenues in the comparative period of $807,043. (For the nine months ended May 31, 2014, Powerwave revenues related to single well stimulations totalled $1,965,685, an increase of $451,416 or 29.8%, compared to $1,514,269 in the comparative period.) -- Costs of sales were $460,075 or 30.7% of revenues compared to $298,162 or 18.0% of revenues in the comparative period. The increase in costs of sales of $161,912 relates to a prior period adoption of a field incentive and commission program designed at enhancing sales. -- During the third quarter the Corporation undertook impairment testing of its goodwill and the associated assets of the Tubing Pump and Bailers cash generating unit ("CGU") to which the Corporation's goodwill is solely attributed. As at May 31, 2014, the Corporation's market capitalization was below the carrying value of its net assets, which represents a potential impairment indicator. More over the impairment testing was required as Tubing Pump and Bailers CGU's financial performance was weaker than expected as a result of the higher heavy oil price differential in prior periods, which impacted drilling(3) and thus affected the Tubing Pump and Bailers CGU.
Based on the results of Management's impairment testing, the Corporation recorded a non-cash impairment loss of $1,338,584, which is included as a line item of the condensed consolidated interim statements of net loss and comprehensive loss. Since the resulting impairment loss from the Tubing Pump and Bailers CGU exceeded the goodwill allocated to the CGU, the Corporation was required to allocate the additional impairment to certain other assets of the Tubing Pump and Bailers CGU. As the goodwill had a carrying value of $1,222,217, the Corporation applied the additional impairment amounts to the Tubing Pump and Bailers CGU's property, plant and equipment in the amount of $116,367.
The non-cash impairment charge does not have an impact on the Corporation's cash flows from operating activities and will not have an impact on the Tubing Pump and Bailers CGU's future operations, as WTI - WCS differentials(4) return to prior levels. The Corporation assessed impairment indicators for the Powerwave, Performance Drilling, and Primawave CGUs and concluded no additional impairment indicators were present at May 31, 2014, and as such, the determination of the recoverable amount for the Powerwave, Primawave and Performance Drilling CGUs was not required.
-- Total current assets decreased by $1,927,205 to $11,824,408 from the prior year end. Of the net decrease, $2,341,665 relates to a reduction of cash resource, of which $1,925,154 was used to fund operations, $347,456 was used for the acquisition of additional Powerwave tools and equipment, $84,351 relates to the acquisition of intellectual property licences and patents, less proceeds on disposition of property, plant and equipment of $15,296. Offsetting the reduction in cash resources were increases in trade and other receivables of $227,473 and prepaid expenses of $178,754 that related to accruals related to international Powerwave mature field revitalization projects.
(2) Cash flow used in operating activities is a measure of the total cash generated from the Corporation's operations and is calculated by adding back amortization, share based payments and other non-cash items to net income and then adjusting for changes in working capital. Cash flow used in operating activities is a component of the IFRS consolidated statement of cash flows.
(3) TD Economics, Drilling Down on Crude Oil Price Differentials, March 14, 2013 page 3
(4) Bloomberg and USB Estimates for calendar 2016 a differential of US$16.50/bbl and US$15.50/bbl for 2018
The above financial highlights should be read in conjunction with the audited consolidated financial statements and Management Discussion and Analysis of results for Wavefront for the third quarter ended May 31, 2014, which were filed on SEDAR on July 29, 2014.
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
D. Brad Paterson, CFO & Director
Wavefront is a technology based world leader in fluid injection technology for improved/enhanced oil recovery and groundwater restoration. Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and on the OTCQX under the symbol WFTSF. The Company's website is www.onthewavefront.com.
Cautionary Disclaimer - Forward-Looking Statement
Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "believe", "continue" or the negative of these terms or other comparable terminology. We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at www.sedar.com. Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.
©2013 Wavefront Technology Solutions Inc. All rights reserved. From Bit To Last Drop, Powerwave and Primawave are registered trademarks of Wavefront Technology Solutions Inc.
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.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 31, 2016 05:30 AM EDT Reads: 1,499
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jul. 31, 2016 05:15 AM EDT Reads: 1,509
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jul. 31, 2016 05:00 AM EDT Reads: 2,603
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Jul. 31, 2016 04:15 AM EDT Reads: 1,093
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 31, 2016 03:15 AM EDT Reads: 1,703
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Jul. 31, 2016 02:30 AM EDT Reads: 1,227
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Jul. 31, 2016 01:30 AM EDT Reads: 1,031
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jul. 31, 2016 12:45 AM EDT Reads: 2,044
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Jul. 30, 2016 11:30 PM EDT Reads: 1,348
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Jul. 30, 2016 10:30 PM EDT Reads: 1,949
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 30, 2016 09:45 PM EDT Reads: 1,506
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Jul. 30, 2016 09:45 PM EDT Reads: 1,326
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 30, 2016 09:30 PM EDT Reads: 1,543
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Jul. 30, 2016 07:30 PM EDT Reads: 1,770
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 30, 2016 07:30 PM EDT Reads: 1,330