With respect to forward-looking information contained in this MD&A, we have made assumptions regarding, among other things:
-- Future software license sales-- The continued financing by and participation of the Company's partners in the DRMS project and it being completed in a timely manner-- Ability to enter into additional software license agreements-- Ability to continue current research and new product development-- Ability to recruit and retain qualified staff
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties, only some of which are described herein. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information including, without limitation, the following factors which are discussed in greater detail in the "Business Risks" section of this MD&A:
-- Economic conditions in the oil and gas industry-- Reliance on key clients-- Foreign exchange-- Economic and political risks in countries where the Company currently does or proposes to do business-- Increased competition-- Reliance on employees with specialized skills or knowledge-- Protection of proprietary rights
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this MD&A. These factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this MD&A. All subsequent forward-looking information attributable to the Company herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained in this MD&A to reflect events or circumstances that occur after the date of this MD&A or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
This Management's Discussion and Analysis was reviewed and approved by the Audit Committee and Board of Directors and is effective as of May 22, 2013.
Our fiscal 2013 has continued to show growth in our annuity/maintenance revenue stream with double-digit increases experienced across all geographic regions. During fiscal 2013 our annuity/maintenance revenue increased by 27% whereas total revenue increased by 12%. Over 80% of our software license revenue is derived from our annuity and maintenance contracts, and with a strong renewal rate, we expect to see continued growth in this revenue base.
For the year ended March 31, 2013, our EBITDA represented 52% of our total revenue which demonstrates our continuous ability to effectively manage our corporate costs.
CMG continues to focus its resources on the development, enhancement and deployment of simulation software tools relevant to the challenges and opportunities facing its diverse customer base. With the growth in unconventional hydrocarbon and enhanced oil recovery (EOR) projects around the globe, we are seeing an increase in the use of reservoir simulation software by reservoir engineers. This growth in simulation use has been reflected in the number and types of projects being simulated and the amount of simulation done on each project, hence, increasing the demand for our software. While oil prices continue to fluctuate, they remain at levels that should allow our customers to move forward on projects involving various types of unconventional reserves and advanced recovery processes.