Acceleware Corp.
TSX VENTURE : AXE

Acceleware Corp.

August 29, 2007 17:21 ET

Acceleware Corp. Announces Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 29, 2007) - Acceleware Corp. (the "Corporation" or "Acceleware") (TSX VENTURE:AXE) reported today the financial results for the three-months ended June 30, 2007.

Second Quarter 2007 Financial Highlights



3 months ended 3 months ended 6 months ended 11 month ended
June 30, 2007 June 30, 2006 June 30, 2007 June 30, 2006

Revenue $ 596,060 $ 311,424 $ 962,901 $ 656,037
Net loss $ 1,644,729 $ 357,181 $ 2,820,656 $ 1,001,582
Loss per share,
basic and
fully diluted $ 0.05 $ 0.02 $ 0.09 $ 0.07
Cash and cash
equivalents,
end of period $ 7,748,824 $ 540,359 $ 7,748,824 $ 540,359


Acceleware's revenue for the three-month period ended June 30, 2007 increased by $284,636 over the three-month period ended June 30, 2006, an increase of 91%. Revenue for the six months ended June 30, 2007 increased by $306,864 over the eleven months ended June 30, 2006, an increase of 46%.

The net loss for the three-month period ended June 30, 2007 was $1,644,729 compared to $357,181 for the three- month period ended June 30, 2006 and the net loss was $2,820,656 for the six-month period ended June 30, 2007 compared to $1,001,582 for the eleven-month period ended June 30, 2006. The net loss increased, as the Corporation incurred additional costs to ramp up for future growth including additional staff, associated expenses such as stock based compensation, marketing and development and relocating to new facilities. The Corporation's working capital position is $8,801,040 at June 30, 2007.

Acceleware President and CEO Sean Krakiwsky said, "We are pleased to see our third consecutive quarter over quarter growth. The financing, planning and hiring we have done during the first six months of 2007 have position us well for growth in 2008."

The following is a summary of the Company's achievements for the six months ending June 30, 2007

- Solid strategic relationship with NVIDIA, including a $2,925,000 investment in the Corporation and invitations to participate in press releases, analyst events and trade shows;

- Closing of an $8,000,000 bought deal private-placement;

- Adoption by 80 new customers of Acceleware's hardware platform solutions;

- Continued expansion of Acceleware's leading position for hardware acceleration products with the top 5 cell phone manufacturers in the world;

- Completion of the move into new facilities to accommodate up to 100 employees;

- Scale-up of research and development, sales and marketing and administration teams from 19 personnel at June 30, 2006 to 46 personnel at June 30, 2007;

- Release of a success story highlighting the use of the Accelerator™ product by Boston Scientific for use in speeding up the design in pacemakers and biomedical implants that are safer for MRIs and other diagnostic imaging tools;

- Release of ClusterInABox™ Quad, the first commercially available four board NVIDIA GPU solution, furthering the Corporation's technical leadership, and more importantly, becoming a significant component of sales.

The financial statements and the related management's discussion and analysis of financial position and results of operations ("MD&A") for the three-month period ended June 30, 2007 are available for viewing on SEDAR at www.sedar.com.

About Acceleware

Acceleware (TSX VENTURE:AXE) develops and markets performance-optimized acceleration products that significantly reduce the run-times of high-performance computing (HPC) applications such as cell-phone design and seismic data processing. By leveraging the base processing power of GPUs (graphics processing units) with proprietary acceleration software, compute-intensive applications can achieve unparalleled performance and speed. Acceleware delivers processing superpower.

Acceleware is developing and selling products for the electromagnetic, energy, biomedical, pharmaceuticals, industrial and military markets. These markets share a common need; as companies continue to push the boundaries of innovation and demand faster product-development cycles for more complex products, the need for accurate and timely computer modeling and testing is steadily increasing. For more information, visit www.acceleware.com.

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

Contact Information

  • Acceleware Corp.
    Norman Tsui
    Chief Financial Officer
    (403) 444-7778
    Website: www.acceleware.com