CALGARY, Dec. 17 /CNW/ - Rapid Solutions Corporation (TSX-V: RPD), an
Enterprise Data Solutions software company targeting the petroleum industry,
today announced its financial results for the three and six months ended
October 31, 2007.
Rapid narrowed its quarterly net loss to $109,371 or $0.00 per share for
the three months ended October 31, 2007, compared to a loss of $203,323 or
$0.01 per share in the same period last year.
Key results, achievements and events for the quarter included:
- Stronger software license revenue representing a 15% increase period
- Higher operating margins from its Houston based services unit; gross
margin on revenue increased to $148,000 (27% as a percentage of
revenue) from $84,000 (7% as a percentage of revenue) a year earlier
despite lower services revenue quarter over quarter as the Company
shifts between completed and new assignments; and
- An increased product development expenditure of $157,000 or 300% as
the Company accelerates its software development program.
Revenue in the second quarter of fiscal 2008 was $1.1 million, a
reduction of $265,000 compared to the same period a year earlier. Software
related revenue grew 15% quarter over quarter while services related revenue
declined $298,258, or 26%. Contributing to the decrease in services revenue
was a US dollar translation loss of 11% due to currency exchange rates and the
cyclical nature of services revenue wherein the completion of an assignment
and start up of other assignments can result in cyclical revenue.
Total expense in the second quarter declined 20% reflecting lower
services related costs during assignment transition offset, in part, by higher
investment in product development as the Company develops its product roadmap
to meet its customer requirements.
"The Company is performing in accordance with our financial and strategic
plans," noted Michael Jones, Chief Executive Officer. "We are investing all of
our available financial and human resources into product development that our
customers have requested. Our oil and gas clients have identified the need and
desire for Rapid to extend its technology platform and industry expertise to
fill a data vacuum that exists between legacy applications and various
Enterprise Resource Planning, Business Intelligence and Business Process
"The market acceptance of our beta version Rapid Integration Appliance
has been extremely supportive and positive as our clients face their
challenges in the energy industry: more compliance and regulation, the need
for higher productivity and quality information to support their business
activities; all of which validates our direction in the coming months. We hope
to announce further developments in this new and exciting direction as our
milestones are achieved," added Mr. Jones.
For the six-months ended October 31, 2007, revenue increased 9% to
$2.6 million from the previous year period and expense levels declined by 7%
on a similar basis. Net loss for the 2007 half year was $93,000 ($0.00 per
share) compared to a net loss of $523,000 ($0.02 per share) a year earlier.
The complete Financial Statements and Management Discussion and Analysis
may be found under the Company's Profile on www.sedar.com.
About Rapid Solutions
Rapid Solutions Corporation is an enterprise business integration
solutions provider focused on the North American oil and gas industry. Rapid
offers industry expertise targeted at production transactional data
integration from multiple vertical data sources, fusing data elements together
with business processes to create and maintain a Master Asset List. Rapid's
professional services business provides operations assurance and maintenance
management solutions to a range of clients in Canada and the United States.
The company also markets software applications for conducting production
forecasts and reserves determinations for conventional and unconventional gas
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 on the oil and
gas industry and is therefore subject to all of the risks associated with such
industry, 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 further information on Rapid, go to www.rapid.com.
For further information:
For further information: Michael Jones, President and CEO, Rapid
Solutions Corporation, Telephone: (403) 451-3105 or (713) 996-7979