Decision Dynamics Announces Q2 Results



    
    Company continues to maintain consistent revenue levels while focusing on
    cost control and growth opportunities. Sale of Wellcore assets will
    provide Company with capital required to continue enhancement and growth
    of Oncore software and revenue potential.

    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./
    

    CALGARY, Aug. 29 /CNW/ - Decision Dynamics Technology Ltd. (the "Company"
or "Decision Dynamics") (Decision Dynamics; TSX-V: DDY), a leading provider of
operations management software for the energy industry, today reported sales
of $1.5 million and $3.0 million for the three and six month periods ending
June 30, 2008, respectively.
    Revenue for the first half of 2008 was down over the first half of 2007
as a result of two major sales in 2007 which were not repeated in 2008. The
Company has maintained consistent revenue levels over the first two quarters
of 2008. Total expenses, including cost of sales, for the first two quarters
of 2008 were 21% less than the same period in 2007 due to the Company's cost
reduction plan. The Company's emphasis on cost control has resulted in a
reduction of over $3.3 million of expenses on an annualized basis.

    
    Financial Highlights

                              Three Months Ending         Six Months Ending
    $'000 except per          Jun. 30,     Jun. 30,     Jun. 30,     Jun. 30,
     share amounts               2008         2007         2008         2007

    Operating Results
    Revenue                     1,457        2,600        3,074        5,779
    Gross profit(1)               986        1,682        2,030        4,101
    Gross margin(1)                68%          65%          66%          71%
    Income (Loss)                (938)        (461)      (1,786)        (201)
    Income (Loss per share)     (0.02)       (0.01)       (0.03)       (0.00)
    EBITDAS(2)                   (582)        (143)      (1,092)         438

    Financial Position
    Cash                                                    511        2,163
    Total Assets                                          4,440        7,760

    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 earnings 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.
    Gross profit, gross margin and EBITDAS 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 signing. In June 2008, the Company began
work with a large US customer for implementation of the Wellcore product, and
also engaged the Canadian subsidiary of an integrated international oil
company for a pilot implementation of Wellcore.
    License revenues are down 54% for the six month period ending June 30,
2008 compared to June 30, 2007 largely as a result of the two large license
sales of Oncore and Wellcore in 2007. Service revenues are down 36% due to the
smaller number of personnel in the services department. The slight increase in
gross margin for the second quarter of 2008 is due to higher cross-over of
services staff into other departments, such as sales.
    Staff reductions and cost cutting has resulted in a decrease in total
expenses, including cost of sales of approximately 21% for the six months
ended June 30, 2008 as compared to 2007, and 25% for the second quarter of
2008, compared to the second quarter of 2007. This savings is partially offset
by approximately $415,000 in restructuring expenses related to the staff
reductions since the beginning of 2008. The Company is continuing to
reallocate resources from overhead and operations to sales. The decreases in
research and development and in sales and marketing are primarily due to staff
reductions; however, the Company has targeted cut backs in expenditures in all
areas in reduced marketing, facilities, and so on. General and administration
expenses remain relatively flat as these expenses are more of a fixed nature
such as insurance, executive and public company expenses.
    Decision Dynamics minimized its capital expenditures last year and in
this quarter and as the Company uses the declining balance method,
amortization of property and equipment has declined this year compared to last
year. The amount of intangible assets has not changed and the amortization is
the same from quarter-to-quarter and year-to-year.
    As announced earlier today, the Company signed a formal purchase and sale
agreement with a subsidiary of P2 Energy Solutions, Inc. for the sale of the
Company's Wellcore oil and gas well life cycle management software platform
(the "Wellcore Asset Sale Agreement"), which assets include all of the assets
(including all applicable intellectual property) and personnel associated with
the development, marketing, sale and support of the Wellcore software
application (collectively the "Wellcore Assets"). Completion of the proposed
sale transaction is subject to the terms and satisfaction of the conditions
set forth in the Wellcore Asset Sale Agreement including, among other
conditions, that the Company receive TSX Venture Exchange ("TSXV") approval
prior to closing. TSXV approval requires that the Company shareholders holding
more than 50% of the outstanding shares have consented in writing to the
proposed sale transaction. Under the Wellcore Asset Sale Agreement, the buyer
has agreed to cash consideration of CAD$5 Million for the Wellcore Assets,
subject to holdback and release conditions. Decision Dynamics is to receive
approximately 80% of the proposed consideration upon the proposed transaction
closing.
    The sale of the Wellcore Assets enables the Company to focus on growing
its Oncore software product. In addition, proceeds from the Wellcore Asset
sale will allow the Company to aggressively invest in the sales and marketing
resources needed to allow the Company to finish the development of its next
generation of products. The Company believes that this initiative, along with
continued strong cost control, will enable the Company to continue as a going
concern.
    Additional information regarding the Company is available on SEDAR at
www.sedar.com.

    About Decision Dynamics Technology Ltd.

    Decision Dynamics Technology Ltd. is a leading provider of an innovative
knowledge capture, workflow management, reporting and analytics software
solution to the energy sector, including major electrical power companies.
    Its flagship product, Oncore, is a project cost management solution that
provides real-time cost information, contract validation and approvals for
operations management and capital projects. Decision Dynamics is a Microsoft
Gold Certified Partner. The Company's head office is located in Calgary,
Alberta, Canada. It operates wholly-owned foreign subsidiaries in the United
States with offices in Houston, Texas.

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

    Forward Looking Statements

    In this news release Decision Dynamics makes forward-looking statements
or provides forward looking information (collectively "forward-looking
statements"). Forward-looking statements relate to future events or Decision
Dynamics' future performance Or financial performance and, by their nature,
typically involve numerous assumptions, inherent risks and uncertainties, both
general and specific, and the risk that such forward-looking statements will
not be achieved. 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. These
forward-looking statements include but are not limited to comments with
respect to objectives and strategies, financial condition, results of
operations and industry conditions. Readers of this news release are cautioned
not to place undue reliance on forward-looking statements as a number of
important factors could cause actual future results to differ materially from
the plans, objectives, estimates and intentions expressed in such
forward-looking statements. For example, forward-looking statements may be
influenced by the following factors: the level of exploration and development
carried on by the Company's customers; crude oil, natural gas and other
commodity prices; demand for electricity; weather; availability of capital and
financing and government policies. The Financial Risks sections of the interim
and annual Management Discussion and Analyses, as filed with applicable
security regulatory authorities and available www.sedar.com provides
additional information regarding key factors that could cause actual results
to differ materially from those projected in our forward-looking statements.
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.
    All trademarks or registered trademarks herein are the property of their
respective owners.





For further information:

For further information: Kim Tremblay, Acting Chief Financial Officer,
Decision Dynamics Technology Ltd., (403) 451-0726

Organization Profile

DECISION DYNAMICS TECHNOLOGY LTD.

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