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Decision Dynamics Technology Ltd. (DDY:CA) News

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 November 24, 2008 - 6:57 PM EST
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Decision Dynamics Announces Q3 Results
Decision Dynamics Announces Q3 Results
Company cash position enables concentrated effort on targeting new sales
opportunities and development of next phase of Oncore technology

CALGARY, Nov. 24 /CNW/ - Decision Dynamics Technology Ltd. (the "Company") (Decision Dynamics; TSX-V: DDY), a leading provider of operations management software for the energy industry, today reported sales of $455K and $1.66 million for the three and nine month periods ending September 30, 2008, respectively. The financial highlights presented below are for the Oncore continuing operation, pursuant to the disposition of the Wellcore product line during the third quarter of 2008.

Revenue for the first nine months of 2008 was down over the first nine months of 2007 as a result of two major sales in 2007 which were not repeated in 2008. Total expenses, including cost of sales, for the first three quarters of 2008 were 20% less than the same period in 2007, but include one-time or non-recurring expenses for restructuring and recruiting as the Company realigned its work force, costs incurred to close the Edmonton and Houston offices, relocation of the customer data centre facility and higher consulting expenses in research development.

Financial Highlights

                             Three Months Ending     Nine Months Ending
$'000 except per share       Sept 30,    Sept 30,    Sept 30,    Sept 30,
 amounts                      2008        2007        2008        2007

Operating Results
Revenue                          455         665       1,663       3,151
Gross profit(1)                  147         460         819       2,165
Gross margin                     32%         69%         49%         69%
(Loss) before
 discontinued operations      (1,308)       (431)     (2,320)       (697)
Net Income (Loss)              2,701        (795)        914        (996)
(Loss) per share, before
 discontinued operations       (0.02)      (0.01)      (0.04)      (0.01)
Net Income (Loss per
 share), after
 discontinued operations        0.04       (0.01)       0.02       (0.02)
EBITDAS(2)                      (592)       (442)     (1,341)       (286)
Income (loss) from
 discontinued ops              4,009        (365)      3,235        (299)

Financial Position
Cash                                                   5,149       2,052
Total Assets                                           6,647       7,289


Notes
-----
(1) "Gross profit" is revenue less cost of sales and "gross margin" is
    gross profit divided by revenue expressed as a percentage.
(2) "EBITDAS" means earning from continuing operations before interest,
    taxes, deprecation, amortization and stock based compensation.  It
    may be derived by subtracting stock based compensation (other than
    expenses resulting from the Share Accumulation Plan which are cash
    based) from the subtotal titled "Loss before the undernoted" on the
    Statement of Loss and Deficit.
(3) Gross profit, gross margin and EBITDAS do not have a standardized
    meaning under GAAP and may not be comparable to the same terms as
    used by other entities in the industry; however, the Company believes
    they are an important measure of performance and indicator of success
    for software businesses and are relevant to readers within the
    investment community.

Quarterly results will fluctuate due in part to the timing of customer decisions and the date of contract signing. License revenues are down for the nine month period ending September 30, 2008 compared to September 30, 2007 largely as a result of the two large sales of Oncore in 2007. Service revenues are down due to the smaller number of personnel in the services department, which impacts the Company's ability to generate services revenue.

Staff reductions and cost cutting has resulted in a decrease in total expenses, including cost of sales of approximately 20% for the nine months ended September 30, 2008 as compared to 2007, and 10% for the third quarter of 2008, compared to the third quarter of 2007. This savings is partially offset by approximately $214,000 in restructuring expenses related to the staff reductions since the beginning of 2008, and higher recruiting expenses as the Company realigned its work force. In addition, the Company has incurred one-time expenses as a result of the closure of the Edmonton and Houston offices, the relocation of the Company data centre facility from Edmonton to Calgary, and consulting expenses in research and development as the Company begins to execute on its investment in research and development.

"The sale of the Wellcore product line has provided the Company with the cash resources that we require to execute on our strategy of growing our existing customer base, focusing on new customer opportunities and making the investments into our Oncore technology that will cement our position as the de facto supplier of project cost control software in the marketplace," said R. Justin Zinke, CEO. "We're looking forward to an exciting time ahead for the Company, our customers, and our employees."

About Decision Dynamics Technology Ltd.

Decision Dynamics Technology Ltd. is a leading provider of an innovative knowledge capture, workflow management, reporting and analytics software solution to the energy sector, including major electrical power companies. Its flagship product, Oncore, is a project cost management solution that provides real-time cost information, contract validation and approvals for operations management and capital projects. Decision Dynamics is a Microsoft Gold Certified Partner. The Company's head office is located in Calgary, Alberta, Canada. It operates a wholly-owned foreign subsidiaries in the United States, and has offices in Calgary and Edmonton, Alberta.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

In this news release Decision Dynamics makes forward-looking statements or provides forward looking information (collectively "forward-looking statements"). These statements relate to future events or Decision Dynamics' future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking statements and are based on Decision Dynamics' current belief or assumptions as to the outcome and timing of such future events. By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that such forward-looking statements will not be achieved. Some of the material assumptions that Management has made are:

-   the condition of the financial markets will remain at current levels
-   our customers will continue to look for, and make investments in
    project cost control software
-   the customer opportunities in our sales pipeline will result in
    closed contracts
-   we will continue to be able to attract, motivate and retain talented
    employees at a sufficient level to achieve our strategic plans

Readers of this analysis are cautioned not to place undue reliance on
these forward-looking statements as a number of important factors could cause
actual results to differ materially from the plans, objectives and intentions
expressed in such forward-looking statements. Some of the key factors we have
considered are:

-   impact of the current financial markets condition
-   impact of market demand for Oncore on revenue growth
-   degree of competition in target markets
-   our ability to control expenses
-   technological changes to Oncore
-   length of sales cycle required to close customer opportunities
-   our ability to execute our strategic plans
-   our ability to recruit and retain high caliber employees

The Financial Risks section of the Company's interim and annual Management Discussion and Analysis as filed with applicable securities regulatory authorities and accessible through the SEDAR website www.sedar.com. The Company cautions that the foregoing list of factors is not exhaustive and that, when relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors as well as other uncertainties and events. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.


Source: Canada Newswire (November 24, 2008 - 6:57 PM EST)