 |
 |
| PRESS RELEASE |
|
WAVEFRONT TECHNOLOGY SOLUTIONS INC. |
For Immediate Release: |
Third Quarter Results Cautionary
Disclaimer – Forward Looking Statements THE TSX VENTURE EXCHANGE NEITHER
APPROVES NOR DISAPPROVES THE CONTENTS OF THIS RELEASE WHICH WAS PREPARED
SOLELY AT THE DISCRETION OF MANAGEMENT
Primawave License Signed with Leading Environmental Consulting Firm
EDMONTON, Alta., July 30, 2009/ Wavefront Technology Solutions Inc.
(“Wavefront” or the “Corporation”), a leader in technology development and
implementation for improved oil recovery and optimized groundwater
remediation announces its financial and operating results for the third
quarter ended May 31, 2009.
The net loss for the nine months ended May 31, 2009 was $4,313,983, or $0.06
per basic and diluted share excluding the non-cash write-downs of oilfield
related property, plant and equipment and intangible assets of $1,689,148.
No write-down was provided for the last three month months ended May 31,
2009. Net losses for the third quarter were $6,003,131, or $0.08 per basic
and diluted share compared to the net loss of the third quarter of 2008 of
$3,341,583, or $0.06 per basic and diluted share. Wavefront’s consolidated
revenue in the third quarter of 2009 was $1,078,825, compared to $698,758 in
the second quarter of 2009.
Commenting on the results, President and CEO Brett Davidson said, “Third
quarter revenues were negatively impacted by the continued downturn in the
North America energy sector attributed to the on-going recession. Revenues
related to the tubing pump and bailer product lines were particularly
affected by lower drilling activity. Weaker revenues in the tubing pump and
bailer product lines were offset by continued increases in Powerwave and
Primawave revenue in the energy and environmental sectors respectively. As
commodity prices stabilize, the Corporation anticipates the installation of
all Powerwave systems associated with current contracts and the securing new
clients for both Powerwave and Primawave.”
“Despite unfavourable conditions in North America during the period with a
focused strategy of introducing both Powerwave and Primawave into the
international marketplace through a strong distribution network, we believe
that the Corporation will be awarded contracts in these markets in the near
term.”
Total assets of the Corporation decreased by $5,031,223 to $26,915,504 from
the prior year end. The decrease was primarily due to a decrease of
$5,263,701 in cash that was used to fund working capital. Assets were also
affected by the Corporation’s Acquisition of Predator Pumps (which increased
its property, plant and equipment by $213,490), the manufacturing of
Powerwave and Primawave systems to meet the terms of the existing
agreements, and its decision to write-down its oilfield related property,
plant and equipment and Royalty Rights.
As at May 31, 2009, the Corporation had working capital of $16,444,849. The
Corporation believes that its working capital position will decline despite
having a significant increase in the number of Powerwave contracts in-hand,
as Wavefront cannot control or dictate the installation schedules. It is
believed that, as each client experiences positive Powerwave results,
further uptake of the technology will require the Corporation to increase
its Powerwave inventories.
The above financial highlights should be read in conjunction with the
unaudited consolidated financial statements and management discussion and
analysis of results for Wavefront’s most recently completed quarter, ended
May 31, 2009, which was filed on SEDAR on July 30, 2009.
Wavefront would also like to announce that it has entered into a
non-exclusive licensing agreement for Primawave in the territories of
Australia and New Zealand with Coffey Environments (“Coffey”) a subsidiary
of ASX-listed Coffey International Inc. Coffey Environments is one of the
largest environmental consulting firms in the southern hemisphere employing
about 600 people and has built a lasting reputation throughout Australia,
Asia Pacific, and abroad.
Brett Davidson commented, “Wavefront is pleased to have entered into a
licensing agreement with Coffey who has a solid reputation in the
environmental sector. Coffey views Primawave as a game changing
differentiator for remedial strategies providing them a technological
advantage over competitive environmental firms. Wavefront looks forward to a
positive relationship with Coffey and a growing Primawave business in a
jurisdiction where there are approximately 160,000 contaminated sites.”
About Wavefront Technology Solutions Inc.
Wavefront specializes in designing and developing leading-edge techniques for oil well stimulation, improved oil recovery, and environmental groundwater remediation.
For further information please contact:
Brad Paterson, CFO
780-486-2222 ext. 224 Tel
investor.info@onthewavefront.com
On behalf of the Board Of Directors, Wavefront Energy & Environmental
Services Inc.
“D. Brad Paterson” (signed)
D. Brad Paterson, CFO and Director
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’’,
‘‘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.