Decision Dynamics Announces 2008 Results



    
    Company reduces expenses, uses cash from divestment to expand sales
    organization and accelerate development of next generation of Oncore(TM)
    technology
    

    CALGARY, April 7 /CNW/ - Decision Dynamics Technology Ltd. (the
"Company") (Decision Dynamics; TSX-V: DDY), a leading provider of project
controls and real time operations reporting solutions for the energy industry,
today reported sales of $549K and $2.12 million for the three and twelve month
periods ending December 31, 2008, respectively. The financial highlights
presented below are for the Oncore(TM) continuing operation only, pursuant to
the disposition of the Wellcore product line during the third quarter of 2008.
    Revenue for the twelve months ending December 31, 2008 was down over the
same period in 2007 as a result of two major sales in 2007 that were not
repeated in 2008. Total expenses, including cost of sales, for the 2008 fiscal
year were 18% less than in 2007, and include one-time or non-recurring
expenses for restructuring and recruiting as the Company realigned its work
force, employee retention expenses, costs incurred to close two remote
locations, relocation of the customer data centre facility and higher
consulting expenses in research and development. Cash increased from $1,107 to
$3,815 as a result of the sale of the Wellcore business.

    
    Financial Highlights

                                    Three Months Ending  Twelve Months Ending
                                     Dec 31,    Dec 31,    Dec 31,    Dec 31,
    $'000 except per share amounts     2008       2007       2008       2007

    Operating Results

    Revenue                             549        851      2,212      4,002
    Cost of sales                       174        273      1,018      1,372
    Gross profit(4)                     375        578      1,194      2,630
    Gross margin(4)                     68%        68%        54%        66%
    Operating Expenses                  974        989      3,283      3,845
    (Loss) before discontinued
     operations                        (682)      (618)    (3,003)    (1,316)
    Net Income (Loss)                  (660)      (588)       254     (1,584)
    (Loss) per share, before
     discontinued operations          (0.01)     (0.01)     (0.05)     (0.02)
    Net Income (Loss per share),
     after discontinued operations    (0.01)     (0.04)     0.004      (0.03)
    EBITDAS(4)                         (589)      (337)    (1,930)      (951)
    Income (loss) from discontinued
     operations                                              (277)      (268)

    Financial Position

    Cash                                                    3,815      1,107
    Working capital(4)                                      4,064      1,290
    Total assets                                            5,391      6,148


    Notes
    -----
    (1) "Gross profit" is revenue less cost of sales and "gross margin" is
        gross profit divided by revenue expressed as a percentage.
    (2) "EBITDAS" means earning from continuing operations before interest,
        taxes, depreciation, amortization and stock based compensation. It
        may be derived by subtracting stock based compensation (other than
        expenses resulting from the Share Accumulation Plan which are cash
        based) from the subtotal titled "Loss before the undernoted" on the
        Statement of Loss and Deficit.
    (3) "Working capital" is current asset less current liabilities.
    (4) Gross profit, gross margin, EBITDAS and working capital do not have a
        standardized meaning under GAAP and may not be comparable to the same
        terms as used by other entities in the industry; however, the Company
        believes they are an important measure of performance and indicator
        of success for software businesses and are relevant to readers within
        the investment community.
    

    Quarterly results will fluctuate due in part to the timing of customer
decisions and the date of contract execution. License revenues are down for
the quarter and the year ending December 31, 2008 compared to 2007 largely as
a result of two large Oncore(TM) sales in 2007, and a decreased sales staff in
2008. Service revenues are down due to the smaller number of personnel in the
services department, which impacts the Company's ability to generate services
revenue. Recurring revenues for 2008 increased from 2007 as a result of
maintenance revenue generated from higher perpetual license sales in 2008, as
well as a consistent revenue stream from subscription revenues and support
contracts.
    The Company's personnel restructuring and expense reductions resulted in
a decrease in total expenses, including cost of sales, of approximately 18%
for the 2008 fiscal year and approximately 9% for the fourth quarter, compared
to the same periods in 2007. Expenses in 2008 included several one-time
expenses. During the year, the Company restructured its workforce and
re-evaluated its facility management. As a result, the Company expensed almost
$223,000 in restructuring expenses, and incurred higher recruiting expenses as
part of its restructuring initiative. In addition, the Company closed two
remote locations, relocated the customer data centre facility from Edmonton to
Calgary, and incurred consulting expenses in research and development as it
began to execute on its investment in research and development.
    On September 16, 2008, the Company completed the sale of the Wellcore
product line to a subsidiary of P2 Energy Solutions, Inc., which provided the
Company with approximately $4.8 million in cash. At the end of the year, the
Company had a cash balance of $3.8 million. This change in cash position
reflects the Company's execution of its previously stated intended use of a
portion of the cash from the sale - to pay off existing debt, fund current
operations of the business, make investments in the Oncore(TM) technology and
develop a sales team focused on growth of the Oncore(TM) product.
    "Decision Dynamics now has the funding to pursue many of the
opportunities we see for our Oncore(TM) business. Divestment of the Wellcore
business has allowed us to shift our organizational focus to building an
effective sales organization in a well defined market space with superior
products," says Decision Dynamics CEO, Justin Zinke.

    About Decision Dynamics Technology Ltd.

    Decision Dynamics Technology Ltd. is a leading provider of an innovative
project controls and real time operations reporting solutions to the energy
sector, including major electrical power companies.
    Its flagship product, Oncore(TM), is a project cost management solution
that provides high volume, real-time capture of field labor, equipment, and
material cost information, contract validation and approvals for operations
management and capital projects. Oncore(TM) unifies the project data,
information, and knowledge needed for complete project visibility thereby
enabling better faster project management decisions. Decision Dynamics is a
Microsoft Gold Certified Partner. The Company's head office is located in
Calgary, Alberta, Canada. It operates a wholly-owned foreign subsidiary in the
United States.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    

    In this news release Decision Dynamics makes forward-looking statements
or provides forward looking information (collectively "forward-looking
statements"). These statements relate to future events or Decision Dynamics'
future performance. The use of any of the words "could", "expect", "believe",
"will", "projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to identify
forward-looking statements and are based on Decision Dynamics' current belief
or assumptions as to the outcome and timing of such future events. By their
nature, these forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, and the risk that
such forward-looking statements will not be achieved. Some of the material
assumptions that Management has made are:

    
    - the condition of the financial markets will remain at current levels
    - our customers will continue to look for, and make investments in
      project cost control software
    - the customer opportunities in our sales pipeline will result in closed
      contracts
    - we will continue to be able to attract, motivate and retain talented
      employees at a sufficient level to achieve our strategic plans

    Readers of this analysis are cautioned not to place undue reliance on
these forward-looking statements as a number of important factors could cause
actual results to differ materially from the plans, objectives and intentions
expressed in such forward-looking statements. Some of the key factors we have
considered are:

    - impact of the current financial markets condition
    - impact of market demand for Oncore(TM) on revenue growth
    - degree of competition in target markets
    - our ability to control expenses
    - technological changes to Oncore(TM)
    - length of sales cycle required to close customer opportunities
    - our ability to execute our strategic plans
    - our ability to recruit and retain high caliber employees
    

    The Financial Risks section of the Company's interim and annual
Management Discussion and Analysis is filed with applicable securities
regulatory authorities and accessible through the SEDAR website www.sedar.com.
The Company cautions that the foregoing list of factors is not exhaustive and
that, when relying on forward-looking statements to make decisions, investors
and others should carefully consider the foregoing factors as well as other
uncertainties and events. The Company disclaims any intention or obligation to
publicly update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as may be expressly
required by applicable securities laws.





For further information:

For further information: Kim Tremblay, Chief Financial Officer, (403)
451-0726, Kim.Tremblay@ddytech.com; Justin Zinke, Chief Executive Officer,
Decision Dynamics Technology Ltd., (403) 451-0731

Organization Profile

DECISION DYNAMICS TECHNOLOGY LTD.

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