CALGARY, Alberta, May 30 — Acceleware Ltd., a leading developer of high performance computing applications, today announced results for the three months ended March 31, 2014 (all figures are in Canadian dollars unless otherwise noted). During the first quarter of 2014, the Company achieved its highest quarterly revenue since the second quarter of 2013 on higher software product sales. In addition, total comprehensive loss was the lowest since the first quarter of 2013.
During the three months ended March 31, 2014 (“Q1 2014”), Acceleware achieved a 9% increase in revenue compared to the most recent quarter ended December 31, 2013 (“Q4 2013”). The increase was due to a significant increase in software products sales, particularly the Company’s AxRTM seismic imaging software. Revenue decreased 29% in Q1 2014 compared to Q1 2013 due to lower consulting revenue. Q1 2014 revenue was $672,984 compared to $953,027 for Q1 2013 and compared to $616,329 for Q4 2013.
During the three months ended March 31, 2014, Acceleware significantly reduced total comprehensive loss to $34,893 compared to $221,053 for the most recently completed quarter (Q4 2013), a decrease of 84%. The decrease is due to an increase in revenue, as well as a decrease in all expense categories, particularly cost of revenue, and general and administrative expenses. Total comprehensive income for Q1 2013 was $71,492. The decrease in total comprehensive income in Q1 2014 compared to Q1 2013 is due to decreased revenue and other income, offset by decreased expenses in all categories.
Product sales decreased slightly from $166,855 in Q1 2013 to $165,806 in Q1 2014. The fact that product sales were comparable year over year is notable, since Q1 2013 benefited from a one-time AxRecon license sale. With the AxRecon sale, the Company exited the medical imaging market resulting in no AxRecon revenue in Q1 2014. Sales of the Company’s continuing software products, AxRTM and AxFDTD, both showed significant increases year over year. Product revenue increased 193% from the $56,663 recorded in Q4 2013. The increase in product revenue in Q1 2014 from Q4 2013 is due to increased AxRTM sales. Maintenance revenue increased 48% from $73,368 in Q1 2013 to $108,553 in Q1 2014 reflective of the overall increase in maintenance contracts renewed for AxFDTD and in seismic software leases. Maintenance revenue increased 1% in Q1 2014 compared to the $107,650 recorded in Q4 2013. Consulting services decreased 44% to $398,625 in Q1 2014 from $712,804 recorded in Q1 2013 due to a decrease in oil and gas consulting services for both RF heating and HPC. Consulting revenue decreased 12% from the $452,126 recorded in Q4 2013.
Expenses decreased 24% during the three months ended March 31, 2014 to $708,357 from $936,518 for the three months ended March 31, 2013. The decrease is a result of lower expenses in all categories, but in particular cost of revenue and general and administrative expense. Expenses decreased 15% from the $837,719 recorded in Q4 2013, due to decreased general and administrative expense as well as cost of revenue expense.
Additional information, including the unaudited interim condensed financial statements for the three months ended March 31, 2013 and the accompanying notes and management’s discussion and analysis relating thereto, and the audited financial statements for the year ended December 31, 2013 and management’s discussion and analysis relating thereto, are available on SEDAR at www.sedar.com.
Acceleware develops and markets high performance computing (HPC) software solutions for the energy and engineering industries. These solutions allow customers to speed-up simulation and data processing algorithms, benefitting from HPC technologies such as multi-core CPUs and massively parallel many-core GPUs. Acceleware software, specialized HPC training and consulting services are deployed by companies worldwide such as Boston Scientific, Samsung, LG, General Mills, Nokia, Medtronic, Hitachi, FDA, Mitsubishi, Sony Ericsson, Fugro, GeoTomo and Rock Solid Images to speed up product design, analyze data and make better business decisions.