Acceleware Corp.
TSX VENTURE : AXE

Acceleware Corp.

November 24, 2010 17:36 ET

Acceleware Reports Third Quarter Results for Fiscal 2010

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2010) - Acceleware® Corp. ("Acceleware" or the "Company") (TSX VENTURE:AXE), a leading developer of high performance computing solutions, today announced results for the three and nine months ended September 30, 2010 (all figures are in Canadian dollars unless otherwise noted).

During the three months ended September 30, 2010 ("Q3, 2010") Acceleware recorded its lowest quarterly net loss in four years. In addition Q3, 2010 represents the second consecutive quarter of improvement in net loss, revenue, and cash flow from operating activities. The improvements resulted from increased revenue in Acceleware's core markets of computer aided engineering and oil and gas exploration and development, while maintaining expenses comparable to Q2, 2010. The Company also recorded its first positive quarterly cash flow from operating activities since Q1, 2009.

"We are extremely pleased to be reporting our second consecutive quarter of improved revenue, net income and cash flow from operations," said Geoff Clark, CEO of Acceleware. "During the third quarter, we have seen significant progress in our training and professional services business, continued progress in bringing our AxRTM™ software to market with Paradigm Geophysical, and increased EM product and maintenance revenue relative to Q2, 2010."

During the three months ended September 30, 2010, Acceleware had a net loss of $105,024 a 78% decrease compared to a net loss of $480,468 for the three months ended September 30, 2009 ("Q3, 2009"). The decrease is a result of reduced expenses across all business functions and higher margin on product sales. During Q3, 2010 the Company recognized revenue of $671,425 representing a 14% decrease over the $782,207 recognized during Q3, 2009, principally due to reduced hardware product sales. In 2010, virtually all of the Company's product sales are software only, resulting in lower revenue but higher margin per sale. Net loss in Q3, 2010 decreased 13% compared to the $121,062 recorded in Q2, 2010, due to increased revenue. Revenue increased 4% in Q3, 2010 compared to the $646,725 recognized in Q2, 2010 due to increased product and maintenance revenue. 

During the nine months ended September 30, 2010, the Company reported total revenues of $1,811,885, a 39% decrease compared to $2,988,113 for the nine months ended September 30, 2009. Net loss for the nine months ended September 30, 2010 was $658,309 a decrease of 24% over the net loss of $869,512 recorded in the nine months ended September 30, 2009. The decrease is a result of reduced expenses despite lower overall revenue.

At September 30, 2010 Acceleware had $360,224 in working capital compared to December 31, 2009 when it was $528,768. Cash and cash equivalents have decreased since December 31, 2009 from $547,172 to $302,459 as at September 30, 2010. The Company continues to have no debt. During Q3, 2010, no capital expenditures were made and cash expenses (defined as expenses, less amortization, stock based compensation and Alberta SR&ED tax credits) were $698,858 compared to $683,897 for Q2, 2010. Due to increased revenue and receipt of $178,974 relating to Alberta Scientific Research and Experimental Development (SR&ED) tax credits attributable to the 2009 tax year, cash flow from operating activities improved to $34,004 in Q3, 2010 from negative $101,042 in Q2, 2010. 

Additional information, including the unaudited financial statements for the three months ended June 30, 2010, management's discussion and analysis relating thereto are available on SEDAR at www.sedar.com.

About Acceleware:

Acceleware develops and markets solutions that enable software vendors to leverage heterogeneous, multi-core processing hardware without rewriting their applications for parallel computing. This acceleration middleware allows customers to speed-up simulation and data processing algorithms, benefitting from high performance computing technologies available in the market such as multiple-core CPUs, GPUs or other acceleration hardware.

Acceleware solutions are deployed by companies worldwide such as Philips, Boston Scientific, Samsung, Kodak, General Mills, Nokia, LG, RIM, Medtronic, Hitachi, Fujifilm, FDA, Mitsubishi, Sony Ericsson, AGC, NTT DOCOMO, P-Wave Seismic and Renault to speed up product design, analyze data and make better business decisions in areas such as consumer electronics, industrial design, seismic data processing, imaging for the medical, industrial testing and security, defense, financial, and academic research.

Acceleware is a public company on Canada's TSX Venture Exchange under the trading symbol AXE.

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.

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