Wavefront Technology Solutions Inc.
TSX VENTURE : WEE

Wavefront Technology Solutions Inc.

December 08, 2011 17:31 ET

Continued Powerwave Commercialization Drives 2011 Financial Results

EDMONTON, ALBERTA--(Marketwire - Dec. 8, 2011) - Wavefront Technology Solutions Inc. ("Wavefront" or the "Company") (TSX VENTURE:WEE), the leader in fluid injection processes for ultimate oil recovery and environmental renewal, is pleased to announce that continued advances in technology commercialization increased total revenue in fiscal 2011 to $4,271,555; a 70% increase or $1,753,629 over the comparative period that reported total revenues $2,517,926.

Financial highlights of our Company include:

  • Total revenue of long-term Powerwave revenue related to waterflooding or CO2 flooding increased by $1,307,04 or 146% to $2,203,352 compared to $896,307 in the comparative period;
  • The basic and diluted net loss for the fiscal year decreased by $4,138,851 to $4,499,938 ($0.05 per share), compared to $8,638,789 ($0.11 per share) in 2010 representing a 48% decrease in net losses;
  • Cash used in operation, before net changes in to non-cash working capital items for the fiscal year decreased by $2,634,929 to $2,704,379, compared to $5,339,308 in 2010 representing a 49% decrease in net losses;
  • Direct costs decreased to $1,002,039 (or 26.5% of gross services and royalty revenue) compared to $1,202,068 (or 54.4% of gross service and royalty revenues) for the comparative reporting period; and,
  • A strong balance sheet with cash on hand of $24,510,593, no debt, and a working capital position of $25,027,561.

Wavefront is committed to operational excellence, growing top line revenue, and increasing shareholder value. As we continue to build our Company for future growth we made considerable advancement on several fronts during fiscal 2011 and we attribute this to our talented staff, and respected clients. Selected activities include:

  • To meet forecasted demand and to develop new market opportunities, hired a senior sales manager from Baker Hughes Reservoir Development Services;
  • To streamline tool assembly and testing relocated our corporate and main warehouse facilities in Edmonton, Alberta. The capacity of the assembly and testing stations is now four times larger than the warehouse previously occupied;

    And to established a presence in the heart of the western Canadian energy market by opening a sales and marketing office in Calgary, Alberta; and,
  • Subsequent to the reporting period our Company received two international Powerwave contracts in Oman and Argentina. To meet national operating obligations and have local marketing presence, our Company also entered into agency agreements in Oman, Colombia, and Argentina.

The above financial highlights should be read in conjunction with the audited consolidated financial statements and management discussion and analysis of results for Wavefront for the year ended August 31, 2010, which was filed on SEDAR on December 8, 2011.

ON BEHALF OF THE BOARD OF DIRECTORS

WAVEFRONT TECHNOLOGY SOLUTIONS INC.

D. Brad Paterson, CFO & Director

About Wavefront:

Wavefront is a technology based, world leader in fluid injection technology for improved/enhanced oil recovery and groundwater restoration. Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and the Company's website is www.onthewavefront.com.

Cautionary Disclaimer - Forward Looking Statement

Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "believe", "continue" or the negative of these terms or other comparable terminology. We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at www.sedar.com. Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.

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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