Decision Dynamics Announces Q1 2009 Results



    
    Company executes on strategic plan - launch of sales and marketing
    initiatives, accelerate development of next generation of Oncore(TM)
    technology
    

    CALGARY, May 13 /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 $411K for the three month period ending March 31, 2009. 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 first three months of 2009 was down over the same period
in 2008, as anticipated due to the hiring of a new sales team that was focused
on building customer prospects during the first quarter. Q1 09 expenses,
including cost of sales, was higher than in Q1 08, as the Company recruited
experienced and talented personnel for the sales, marketing and development
teams. The increase in expenses also includes one-time costs associated with
the relocation of the customer data centre facility, recruitment expenses for
the sales and development teams, and restructuring expenses. The relocation of
the customer data centre facility was completed early in Q2 2009.

    
    Financial Highlights
                                                         Three Months Ending
                                                          March 31, March 31,
    $'000 except per share amounts                            2009      2008

    Operating Results
    Revenue                                                    411       633
    Cost of sales                                              256       258
    Gross profit(4)                                            155       375
    Gross margin(4)                                             38%       59%

    Operating expenses                                       1,080       782
    (Loss) before discontinued operations                        -      (476)

    Net Loss                                                  (961)     (848)
    Loss per share, before discontinued operations           (0.02)    (0.01)
    Loss per share, after discontinued operations            (0.02)    (0.01)
    EBITDAS(4)                                                (869)     (343)
    Loss from discontinued operations                            -      (372)

    Financial Position
    Cash                                                     3,111     1,187
    Working capital(4)                                       3,094       642
    Total assets                                             4,481     2,263


    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, deprecation, 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. As well, with a new sales and
marketing team recruited, the focus in Q1 09 was on development of a customer
opportunity pipeline. Although no new license revenues were generated in Q1
09, recurring revenues increased over Q1 08, through higher maintenance and
support contract revenue. A large portion of services revenue is driven by new
license sales, as new customer implementations usually involve business
analysis and consulting. Services revenue has decreased from the same period
in 2008, when a significant amount of services revenue was earned on 2007 new
license sales.
    Q1 09 total expenses increased over the same period in 2008, as the
Company executed on its strategic objective to develop first-class sales,
marketing and development teams. The Company anticipates that investments in
these areas will result in identification of customer opportunities, a faster
sales cycle, and a stronger product offering, all resulting in a higher
revenue stream. In addition, expenses in Q1 09 included several one-time
expenses. During the quarter, the Company continued its plan to restructure
its workforce, and expensed approximately $148,000 in restructuring expenses
and incurred additional recruiting expenses as part of this initiative.
    "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. The Company's sales pipeline grew significantly during the first
quarter of 2009. Early in the second quarter we closed a number of
opportunities that will provide us revenue over the next two years of at least
$1.4 Million. With the resulting license and services business that the
company closed, we expect to be profitable during the second quarter of 2009.
In the current economic environment we see this as significant progress for
the company," 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 "anticipates", "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: Justin Zinke, Chief Executive Officer, Decision
Dynamics Technology Ltd., (403) 451-0731; Kim Tremblay, Chief Financial
Officer, Decision Dynamics Technology Ltd., (403) 451-0726

Organization Profile

DECISION DYNAMICS TECHNOLOGY LTD.

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