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| PRESS RELEASE |
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WAVEFRONT TECHNOLOGY SOLUTIONS INC. |
For Immediate Release: |
Wavefront Announces 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
Operational revenues more than double compared to same period last year
EDMONTON, Alta., July 28, 2010/ Wavefront Technology Solutions Inc.
(“Wavefront” or the “Corporation”, TSX-V: WEE), 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, 2010.
Operational revenues for the nine months ended May 31, 2010 more than
doubled that of the comparative period in 2009. Third quarter 2010 operating
revenues were $1,695,734, an increase of $884,630 over revenues recognized
in the comparative period of $811,104. The increase in revenues is a result
of the continued increase in the commercialization of Powerwave as well as
increased activity in Wavefront’s service, tubing pump, and bailer product
lines in Alberta. Total revenue for the nine months ended May 31, 2010 was
$1,770,903, compared to $1,078,825 for the same period in 2009.
During the nine months ended May 31, 2010, Wavefront has made significant
advances in sales of Powerwave applications, which is reflected in increased
revenues. Growth in market acceptance has also brought challenges as the
Corporation responds to a wider range of geological conditions where clients
look to benefit from Powerwave. The Corporation continues to identify
operating parameters of a mechanical flow driven tool used in injection
wells where no electrical power is available. These types of injectors
represent the larger portion of the global market and the Corporation
developed new tools based on client feedback and demand. In identifying the
operating parameters of the mechanical flow driven tool the Corporation has
incurred expenses related to tool re-installation as well as expenses
related to tool design modifications to consistently generate the results
expected for Powerwave-driven water and CO2 floods.
The learning curve in defining operating parameters and tool design
modifications has been steep and has, in some cases, resulted in the
Corporation deferring the installation of some Powerwave contracts to allow
technicians time to identify the best possible solution for each client. The
Corporation believes that this is necessary to minimize expenses related to
tool re-installation and more importantly, maintain Powerwave’s history of
success and continued growth. Other delays are due to the Corporation
waiting on its client’s schedules for the installation of Powerwave systems.
One of Wavefront’s goals for fiscal 2010 was to re-establish the use of
Powerwave for single well stimulations or workovers, and the Corporation is
pleased to report it has performed 36 Powerwave-aided single well
stimulations so far this year.
In the environmental sector, adaptation of Primawave is increasing.
Primawave was recently identified in ExxonMobil’s Greenpoint Community News
to be slated for use in the recovery of hydrocarbon at a former bulk storage
facility in Greenpoint, New York. Continued success at a high profile site
will help propel Primawave adaptation rates at similar sites throughout the
United States and abroad.
The basic and diluted net loss for the nine months ended May 31, 2010 was
$4,917,807 ($0.07 per share), compared to $6,003,131 ($0.08 per share) for
the comparative period of May 31, 2009.
Total assets increased by $16,476,587 to $40,954,187. The increase was
primarily due to an increase of $15,835,810 in cash that was related to the
brokered private placement that closed on April 26, 2010.
As at May 31, 2010, the Corporation had working capital of $30,639,531. 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.
“Though we are very pleased with Wavefront’s increased revenues and early
stage adoption of our core technologies we are not satisfied with the
backlog of Powerwave installations or the additional expenses incurred to
define operational parameters of mechanical flow driven tools,” said
Wavefront President and CEO Brett Davidson. “Powerwave has a well-earned
track record of success and we are determined to make every installation a
complete economic and technological success going forward.”
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, 2010, which was filed on SEDAR on July 28, 2010.
For further information please contact:
D.
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.