WellPoint Systems receives confirmation of US$3.3 million payment putting the company in a strong financial position



    CALGARY, Aug. 24 /CNW/ - WellPoint Systems Inc., ("WellPoint" or the
"Company") (TSX-V:WPS), a leading provider of software and related solutions
to the energy industry, today announced that it has received confirmation that
a minimum US$3.3 million payment will be made to the Company from Export
Development Canada ("EDC") pursuant to the terms of an accounts receivable
insurance policy taken by WellPoint to minimize commercial risks associated
with a contract for an existing customer in South America. The payment puts
the Company in a strong financial position to implement its business plan for
the balance of 2009 and in coming years.
    "WellPoint software has tremendous application in various international
markets," said Mr. Richard Slack, President and CEO of WellPoint Systems, "and
we will accelerate our efforts to enter into agreements with national oil
companies and international oil and gas companies in the coming months both
directly and through channel partners. We are fortunate that we have combined
these efforts with a risk management strategy insuring our accounts receivable
under certain contracts during a challenging economic time. We greatly
appreciate the cooperation of EDC. Recovery of our accounts receivable at this
time will enable us to continue our efforts in South America and elsewhere as
the economic situation improves."
    WellPoint will now recognize the entire US$3.3 million EDC payment as
revenue under the South American contract in the third quarter of 2009. Since
this contract for IDEAS software did not previously meet the requirements for
revenue recognition under Canadian generally accepted accounting principles
("GAAP"), no revenue was recorded in prior periods. The proceeds received will
be used to strengthen the Company's working capital position and will have a
positive impact on gross profit, EBITDA and net income in the third quarter of
2009.

    About WellPoint Systems Inc.

    WellPoint provides premier software and related services for managing
critical operations within the energy industry. As a Microsoft Gold Certified
Partner since 2005, WellPoint is the only Independent Software Vendor (ISV)
and Microsoft Dynamics partner dedicated to the energy sector. It is breaking
new ground with the creation of a more comprehensive, integrated energy
software suite based on existing Microsoft ERP technology that utilizes
state-of-the-art Dynamics AX(R) and .NET architectures. WellPoint also
provides software and services under the BOLO, IDEAS International and iSoft
brands.
    Founded in 1997, Calgary-based WellPoint Systems also has major
operations in Denver, CO, Houston, TX, Livingston, NJ, Tampa, FL, Tunis,
Tunisia and Pretoria, South Africa. WellPoint is publicly traded on the TSX
Venture Exchange under the symbol WPS.

    This document contains forward-looking statements. Some forward looking
statements may be identified by words like "expects", "anticipates", "plans",
"intends", "indicates" or similar expressions. The statements are not a
guarantee of future performance and are inherently subject to risks and
uncertainties. The Company's actual results could differ materially from those
currently anticipated due to a number of factors, including, but not limited
to, successful integration of structural changes, including restructuring
plans, acquisitions, technical or manufacturing or distribution issues, the
competitive environment for the Company's products, the degree of market
penetration of the Company's products, and other factors set forth in reports
and other documents filed by the Company with Canadian securities regulatory
authorities from time to time.

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    





For further information:

For further information: Richard Slack, President and Chief Executive
Officer, (303) 987-2238, rick.slack@wellpointsystems.com; Bharat Mahajan, CA,
Chief Financial Officer, (403) 444-3916, bharat.mahajan@wellpointsystems.com

Organization Profile

WELLPOINT SYSTEMS INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890