March 23, 2006 17:11 ET

CCR Technologies Ltd. Provides Update on Anticipated Financial Results

CALGARY, ALBERTA--(CCNMatthews - March 23, 2006) - CCR Technologies Ltd. (the "Corporation") (TSX:CRL) (, a leading chemical purification technology solutions and service provider, today announced that it anticipates lower than expected financial results for the period ended December 31, 2005.

The Corporation's fourth quarter of 2005 saw a low level of business activity, resulting in correspondingly reduced revenue. This continued into the first quarter of 2006. The slowdown was initially brought about by the cyclical nature of the Corporation's business, where at certain points in time, existing projects are nearing completion and new projects are not yet on-stream and earning revenue. The Corporation believes this was compounded by repercussions of the September, 2005 hurricanes in the Gulf of Mexico.

The Corporation has also determined that it anticipates that the ultimate profit on one long term contract may be approximately $1 million less than anticipated at September 30, 2005. The Corporation is conferring with its auditors and others to determine which reporting periods may be affected by this anticipated profit reduction, as well as the appropriate accounting adjustments or restatements, if any, which may result.

Kent Jespersen, Chairman of CCR, observed that the percentage of completion accounting adjustments on one of the Corporation's contracts need to be put into context. The $1.0 million of reduced profits on this contract, with a value well into the double digit millions of dollars, was largely due to prior estimates as to the timing of completion of this large multi-year contract, as well as to the implications of change orders requested by the client. That contract was a pivotal point in CCR's history given its size, the magnitude of profits it realized, and the strategic positioning of CCR vis a vis new large scale LNG initiatives such as the recent Gorgon Project win.

The Corporation is reviewing the income tax and other implications of the above noted items.

CCR's ongoing operations include delivery of engineering services and intellectual property licensing activities. They have been, and continue to be unaffected by this matter, which is related solely to estimates made in the accounting process.

Oleh Hnatiuk, President and CEO noted that "despite poor fourth quarter performance, the Corporation's managerial realignment of its business units in the fourth quarter, has already resulted in increased revenue opportunities in early 2006, both from the commencement of work on the major Gorgon Project announced in December 2005, and from increasing activity on the Reclaiming side of the business, domestically and internationally".

Wanda Dorosz, CEO of the Quorum Group of companies which manage funds that invested $5.0 million in CCR by way of convertible secured debenture in May 2005, noted that while the fourth quarter results put its debentures in technical default, Quorum continues to believe in the long term strategic prospects of CCR's patented reclaiming and flow assurance technology for the global oil and gas industry. CCR and Quorum are negotiating terms to address the technical default.

CCR Technologies Ltd. is a technology solutions company focused on the purification of process chemicals and sweetening of sour gas through the use of proprietary patented technologies. The Corporation provides economic and environmental benefits to the upstream, downstream oil and natural gas industries, and is also pursuing new business opportunities in the petrochemical and international chemical purification markets.

Shares of CCR Technologies Ltd. trade on the Toronto Stock Exchange under the symbol "CRL".

The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Corporation's control, including: the impact of general economic conditions in Canada and in countries in which the Corporation and its subsidiaries currently do business, industry conditions, increased competition, the lack of available qualified personnel or management, equipment failures, fluctuations in product prices and in foreign exchange or interest rates and stock market volatility. the Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive there from.

Contact Information

  • CCR Technologies Ltd.
    Oleh Hnatiuk
    President and Chief Executive Officer
    (403) 543-6699
    CCR Technologies Ltd.
    Peter Kinash
    Vice President and Chief Financial Officer
    (403) 543-6699