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CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- CriticalControl Solutions Corp. (TSX: CCZ) today reported its financial results for the year ended December 31, 2012.

"We have executed on our strategic objectives, increased our recurring revenue and reduced our debt by $1.6 million, despite the challenging environment," said Alykhan Mamdani, President & CEO of CriticalControl. "Our continued investment in new products, sales and marketing will provide improved and sustainable long term viability."

Annual 2012 highlights

Revenue

--  Total revenue of $46.8 million in 2012 represents a 5% decrease from    $49.4 million in 2011. Increased revenue (primarily recurring) of $1.9    million from the DGL, Vertex and GMI acquisitions, an increase of $1.5    million in recurring revenue from Canadian and US Energy Services, and    the impact of foreign exchange were more than offset by a $4.0 million    drop in revenue from the Corporation's Service Bureau Operations and a    decline of $2.0 million in non-recurring revenue from US and Canadian    Energy Services.--  Revenue from the Canadian Energy Services business increased by 11%, to    $12.8 million in 2012 from $11.5 million in 2011. The increase in    revenue (primarily recurring) of $1.8 million from the acquisitions of    DGL and Vertex, and an increase of $0.2 million in recurring revenue    from other sources, was partially offset by decreases in non-recurring    revenue of $0.6 million.--  Revenue from the US Energy Services business increased slightly from    $17.6 million in 2011 to $17.7 million in 2012. Increased revenue    (primarily recurring) of $0.1 million from the acquisition of GMI, an    increase of $1.3 million in recurring revenue from other sources, and    the impact of foreign exchange were offset by decreases in non-recurring    revenue of $1.4 million.--  Revenue from the Corporation's Service Bureau Operations decreased by    20%, from $20.4 million in 2011 to $16.4 million in 2012 due in part to    the completion of two large imaging contracts in 2011 that were not    replaced.

--  Gross margin percentage for the Corporation increased from 36.0% in 2011    to 37.2% in 2012. Although total revenue for the Corporation declined by    $2.5 million for the year, management was able to control the impact by    improving gross margin on revenue to the point where earnings before    taxes was only impacted by $0.4 million, or 13.8% of the revenue    decline. The impact on gross margin before depreciation and amortization    was $0.2 million, or 6.9% of the revenue decline.--  Canadian Energy Services gross margin percentage decreased from 63.2% in    2011 to 57.1% in 2012. However, when the impact of the lower margin    activities of Vertex and DGL are excluded, the decrease is much less    significant, from 63.2% in 2011 to 61.6% in 2012.--  US Energy Services gross margin percentage increased by 3.9 points from    24.6% in 2011 to 28.5% in 2012. The increase was driven by a focus on    recurring revenue, pricing initiatives and cost control.--  Service Bureau Operations gross margin percentage increased from 30.6%    in 2011 to 31.1% in 2012.