Rapid reports financial results for the twelve months ended April 30, 2008



    CALGARY, Aug. 26 /CNW/ - Rapid Solutions Corporation (TSX-V: RPD), an
enterprise process solutions company that provides data and information
management through its professional services and software offerings, today
announced its financial results for the twelve months ended April 30, 2008.
    During the year, Rapid undertook a repositioning of its US business unit
to create an emphasis on software licensing, similar to that of its Canadian
business unit. A summary of the business events for the year include:

    
    -   Replacement of management in the US business unit;
    -   Services revenues at 76% of the level in the previous year,
        reflecting lower pure services revenue from certain engagements;
    -   The execution of new service and software contracts valued at
        $2.5 million, representing a new industry vertical in the United
        States;
    -   Engagement by a tier one integrated energy exploration for
        implementation of the Company's latest software offering; and
    -   Software licensing fee revenue increase of 10%

    The financial results for the year reflect the Company's actions with
respect to the repositioning:

    -   Overall decline in revenue of 19% to $4.4 million;
    -   Provision for impairment of goodwill of $2.9 million reflecting lower
        levels of recent and future revenue from pure services engagements;
    -   A reduction in year over year total expenses before goodwill
        impairment provision of 5%; and
    -   Net loss of $4.2 million including the goodwill impairment charge
        compared to $0.7 million the previous year.
    

    "This past year represented a period of challenges, new opportunities and
progress for the Company," commented Michael W. Jones, Chief Executive
Officer. "Following our management changes in the US business unit we reduced
our reliance on and concentration in pure professional services engagements
and began the successful transition of that business unit to the provision of
technology based solutions. The US market presents significant opportunity for
Rapid's services and technology applied to process intensive, high risk
industries. Clients operating refineries, manufacturing and processing
facilities have expressed keen interest in our solution to aggregate
procedures and safe operating conditions data into a robust technology
platform that includes field mobility. The success of our evolution is being
demonstrated by new business and our growing pipeline of opportunities."
    Revenue for the twelve months ended April 30, 2008 was $4,422,796
compared to $5,456,939 a year earlier. Software license revenue increased 10%
and revenue from professional services declined 24%. During the year, the
Company's revenue from professional services engagements experienced seasonal
cyclicality, followed by a permanent shift away from one of the Company's
largest pure services accounts.
    Total expenses before the impairment of goodwill provision were 5% lower
than the prior year representing: a 43% increase in selling, general and
administrative expense due in part to employee termination costs; a relatively
even level of consulting expense year over year as resources were maintained
on payroll during transition to new accounts; and a 44% reduction in product
development costs as the Company shifted emphasis on its product development
plans.
    Net loss for the twelve months ended April 30, 2008 was $4,159,688, which
includes $2,932,047 related to a provision for impairment of goodwill. The
impairment of goodwill provision is a reflection of the financial results from
the professional services segment of the US business unit for the most recent
fiscal year and near term anticipated levels of professional services revenue.
Recognition of the value of future software licensing revenue from existing
and future software licenses was not included in the fair value test.

    About Rapid Solutions

    Rapid Solutions Corporation is focused on providing integrated data
management solutions to upstream energy producers and other high risk and
process intensive industries. Through considerable experience gained in data
integration, Rapid offers technology based solutions that manage and integrate
vast quantities of data and information for clients seeking data integration
solutions. Process and Safety Management clients are seeking integrated
solutions to address operational procedures, safe operating limits and
maintenance systems. Through its Canadian operating unit, Rapid offers the
upstream energy sector a similar opportunity to achieve master well list
integrity.
    Rapid believes the future of true business integration is not only
linking physical data, but also mapping data to business processes to provide
accuracy of information.

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

    Forward Looking Information

    This press release may contain forward-looking statements which may
include estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact; including
without limiting the generality of the foregoing, statements made by the Chief
Executive Officer. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it cannot give
any assurance that such expectations will prove to be correct. Results of
Rapid may be affected by a variety of variables and risks associated with the
software and technology services industry such as loss of market, competition
from other software and technology and service providers, ability to access
sufficient debt and equity capital from internal and external sources, ability
to expand in the marketplace and to maintain present clientele, ability to
generate sufficient cash flow from operations to meet current and future
obligations and risks associated with potential future lawsuits and regulatory
actions made against the Company. Rapid's business is focused principally on
the oil and gas and chemical industries and is therefore subject to all of the
risks associated with such industries, including the highly cyclical nature of
its economic returns. Forward-looking statements are subject to certain risks
and uncertainties and may be based on assumptions that could cause actual
results to differ materially from those anticipated or implied in such
statements. The Company's forward-looking statements are expressly qualified
in their entirety by this cautionary statement. Unless otherwise required by
applicable securities laws, the Company does not intend nor does it undertake
any obligation to update or review any forward-looking statements to reflect
subsequent information, events, results or circumstances or otherwise.

    For information on Rapid go to www.rapid.com.

    %SEDAR: 00022777E




For further information:

For further information: Michael Jones, President and CEO, Rapid
Solutions Corporation, Telephone: (713) 996-7979 or (403) 451-3105

Organization Profile

RAPID SOLUTIONS CORPORATION

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