Decision Dynamics Announces Q2 2009 Results



    
    Company continues with execution of strategic sales and development
    initiatives.....reports record quarter revenue of $1.8M ....
    

    CALGARY, Aug. 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 record revenue of $1.8M for the quarter ending June 30, 2009,
and $2.3M for the first half of 2009. The financial highlights presented below
are for the Oncore(TM) continuing operation only, pursuant to the disposition
of the Wellcore product line during Q3 2008.
    The Company has seen positive results from the sales, marketing and
development initiatives launched earlier in 2009. Q2 2009 included two license
contracts with existing customers, which will provide the Company with
approximately $1.4M in revenue over the contract term of twenty four months.
Relating to these contracts, the Company has recognized $1.0 in the current
quarter, with the remaining $0.4 to be recognized over the remainder of the
contract term. This increase in revenue provided the Company record quarterly
results, and at the mid point of 2009, revenues of $2.25M have already
exceeded the total revenue of $2.21M the Company reported in 2008. Q2 and year
to date June 2009 expenses, including cost of sales, were 24% and 25% higher,
respectively, than in 2008. The 2009 expenses for both periods reflect the
higher costs related to the Company's strategic objectives - recruitment of
experienced and talented personnel for the sales, marketing and development
teams and initiatives to build the customer opportunity pipeline. Total
expenses for 2009 also include costs associated with the relocation of the
customer data centre facility completed in the second quarter, and
restructuring expenses.

    
    Financial Highlights

                                     Three Months Ending   Six Months Ending
                                       June 30,  June 30,  June 30,  June 30,
    $'000 except per share amounts        2009      2008      2009      2008

    Operating Results
    Revenue                              1,842       575     2,253     1,207
    Cost of sales                          417       278       673       536
    Gross profit(4)                      1,425       297     1,580       671
    Gross margin(4)                        77%       52%       70%       56%
    Operating, Amortization and other
     expenses                            1,023       879     2,139     1,729
    Income (loss) before discontinued
     operations                            402      (582)     (559)   (1,058)
    Net income (loss)                      402      (938)     (559)   (1,786)
    Income (loss) per share, before
     discontinued operations              0.01     (0.02)    (0.01)    (0.02)
    Income (loss) per share, after
     discontinued operations              0.01     (0.02)    (0.01)    (0.03)

    EBITDAS(4)                             502      (440)     (466)     (764)
    Loss from discontinued operations        -      (356)        -      (728)

    Financial Position
    Cash                                                     2,876       511
    Working capital(4)                                       3,526      (346)
    Total assets                                             4,869     4,440

    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.
    

    Q2 2009 saw definitive wins from the Company's focused development of the
customer opportunity pipeline. Two license contracts with existing customers,
worth $1.4M over twenty four months, were closed early in the quarter. These
sales provided the Company with a record quarter for revenue. Services
revenues for the second quarter and the first six months of 2009 were
comparable to 2008, with no new license revenue from Q1 2009 to drive new
customer implementation service revenue in the second quarter of 2009. Early
in the third quarter, the Company closed another license contract, which is
expected to result in $325,000 over the next twenty four months. The Company
expects to recognize close to $200,000 in Q3 2009 from this contract with the
remaining $125,000 to be recognized over the remainder of the contract term.
    While the Company is encouraged with the top-line results in Q2, we do
not expect to experience the same results in Q3 2009. Due to seasonal factors
and the timing of customer decisions, the Company expects that Q3 2009 license
sales will be less than Q2 2009. The Company does not anticipate an increase
in expected Q3 2009 services revenue as a direct result of the Q2 2009 license
sales, as these contracts were sold to existing customers.
    Total expenses for Q2 and the first six months of 2009 increased over the
same periods in 2009, as the Company continued on its strategic objective to
invest in first-class sales, marketing and development teams. Investments in
these areas have resulted in better customer lead identification, faster
conversion from lead to opportunity, and a stronger product offering, which
the Company believes will result in a higher revenue stream. In addition,
expenses during the second quarter and first six months of 2009 included a
larger commission expense related to the license sales, expenses incurred to
relocate the Company data centre facility to Calgary from Edmonton, and third
party technical consulting expenses incurred in the delivery of a license and
services customer project. During the quarter, the Company continued its plan
to restructure its workforce, and expensed approximately $59K in restructuring
expenses. The Company anticipates operating expenses for the last half of the
year will be less than the first half as most of the initiatives undertook in
the first two quarters i.e recruiting, restructuring, the data centre
relocation and third party technical consulting, are not expected to be
repeated in the last two quarters.
    "Decision Dynamics is pleased to have delivered a record quarter for the
Company. We are beginning to see a return on the investments we have made in
technology and the development of a customer focused sales and marketing
organization. The entire company is now focused on helping our customers
identify ways to increase their profitability and showing them how Decision
Dynamics solutions and services can help them achieve these improvements. The
Company's sales pipeline is continuing to grow and 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. Approximately $1.0 Million of this revenue
has been recognized in Q2 2009, with the remaining $0.4 Million to be received
over the remaining contract term. 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 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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