TSX Symbol - PSD
CALGARY, Aug. 13 /CNW/ - Mr. Ken MacDonald, President and Chief Executive
Officer of Pulse Data Inc. ("Pulse" or "the Company") reports a 21 percent
increase in seismic data library sales for the six months ended June 30, 2006.
The Company also declared its thirteenth consecutive quarterly dividend.
The dividend of $0.0375 per common share will be paid on September 20, 2006 to
shareholders of record at the close of business on September 6, 2006. The
Company's Dividend Reinvestment Plan for eligible shareholders will be
available for this dividend.
Pulse recorded a writedown of $8.8 million ($5.6 million after income
taxes) on the Terrapoint LiDAR capital assets to their estimated residual
value. The retirement of Terrapoint's older, high altitude systems, and their
replacement with more reliable sensors, will better position Pulse's LiDAR
segment to re-establish itself as a high quality reliable LiDAR provider.
A conference call to review the second quarter results has been scheduled
for 1:00 pm ET (11:00 am MT) on Monday August 14, 2006. The conference call
dial-in number is (416) 644-3417 (Toronto) and 1-866-250-4907. A live webcast
will be accessible at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)1560680
<<
HIGHLIGHTS
- Seismic data library sales increased by 21 percent to $16.7 million
for the six months ended June 30, 2006 from $13.9 million for the
first half of 2005.
- Pulse successfully completed and delivered a 237 net square kilometre
3D seismic participation survey in the second quarter.
- Free cash flow for the six months ended June 30, 2006 was
$4.9 million, compared to $5.6 million in the first half of 2005.
- Pulse had a working capital position of $16.4 million (including cash
of $17.6 million) at June 30, 2006 compared to $17.5 million at
December 31, 2005 and $5.3 million at June 30, 2005.
- Pulse repaid a total of $3.1 million in long-term debt during the
first half of 2006, reducing long-term debt to $17.9 million at
June 30, 2006.
- Pulse completed the sale of Trango Technologies Inc. ("Trango") to
Fugro Canada Inc. for total proceeds of $1.8 million cash plus a
working capital adjustment of approximately $400,000, effective
June 30, 2006. A Letter of Intent to sell Trango was announced by
Pulse on May 15, 2006.
- Pulse recorded a writedown of $8.8 million ($5.6 million after income
taxes) on the Terrapoint LiDAR capital assets for the six-month period
ended June 30, 2006 to their estimated residual value. This writedown
is primarily related to the retirement of four older high-altitude
LiDAR data collection systems and their related proprietary processes
and software acquired as part of the United States operations of
Mosaic Mapping and includes the first quarter 2006 writedown of one of
these systems in the amount of $1.2 million. The systems require high
maintenance and have demonstrated low reliability.
>>
In its first quarter 2006 report, Pulse addressed the possibility of an
additional writedown on the remaining older high-range systems. The high-range
systems acquired as part of the United States operations of Mosaic have been
replaced by a more reliable 3100 high-range system from Optech International,
which allows Terrapoint to carry out projects more efficiently.
The writedown does not diminish Pulse's confidence in the future of
Terrapoint and LiDAR technology. Our confidence is underscored by Pulse's
appointment on July 6, 2006 of Mr. Jake Jenkins as Vice President Sales and
Marketing of Terrapoint Canada Inc. Mr. Jenkins was previously Director of the
Airborne Terrestrial Survey Division at Optech International, a Toronto-based
LiDAR manufacturer. Mr. Jenkins has 22 years of extensive worldwide experience
in the fields of remote sensing, LiDAR technology and related sales and
marketing.
<<
Financial Highlights
Continuing Operations (excludes the results of Trango)
('000's except per share data) Unaudited
3 months ended 6 months ended Year ended
June 30 June 30 Dec. 31
------- ------- -------
2006 2005 2006 2005 2005
---- ---- ---- ---- ----
Revenue from
continuing
operations:
Data library
sales $ 6,634 $ 8,059 $ 16,732 $ 13,852 $ 34,905
Participation
surveys $ 3,058 $ 68 $ 3,058 $ 5,031 $ 10,006
LiDAR $ 1,813 $ 2,556 $ 3,266 $ 4,036 $ 8,452
Corporate &
other $ (34) $ (26) $ (83) $ (127) $ (226)
-----------------------------------------------------------------------
Total revenue
from
continuing
operations $ 11,471 $ 10,657 $ 22,973 $ 22,792 $ 53,137
Amortization
of data
libraries $ 7,328 $ 3,996 $ 12,051 $ 10,130 $ 21,536
Net earnings
(loss) from
continuing
operations $ (5,150) $ 731 $ (5,078) $ 1,534 $ 6,700
Net earnings
(loss) from
continuing
operations
per share:
basic and
diluted $ (0.11)(a) $ 0.01 $ (0.11)(a) $ 0.03 $ 0.14
Funds from
continuing
operations
(b) $ 5,605 $ 5,215 $ 11,954 $ 11,664 $ 35,265
Funds from
continuing
operations
per share(b):
Basic $ 0.12 $ 0.11 $ 0.26 $ 0.25 $ 0.76
Diluted $ 0.12 $ 0.11 $ 0.25 $ 0.25 $ 0.75
Free cash
flow(b) $ (1,557) $ 5,210 $ 4,886 $ 5,562 $ 23,706
Working
capital $ 16,398 $ 5,348 $ 16,398 $ 5,348 $ 17,503
Total assets $ 112,928 $ 121,635 $ 112,928 $ 121,635 $ 129,882
Capital
expenditures:
Seismic data
purchases $ - $ 15,225 $ - $ 15,225 $ 15,225
Participation
surveys $ 7,162 $ 5 $ 7,068 $ 6,102 $ 11,559
Changes to
work in
progress $ (1,113) $ 4 $ (181) $ 2 $ 190
Property &
equipment
additions $ 1,568 $ 682 $ 1,717 $ 1,113 $ 1,504
-----------------------------------------------------------------------
Total capital
expenditures $ 7,617 $ 15,916 $ 8,604 $ 22,442 $ 28,478
Long-term
debt $ 17,872 $ 23,881 $ 17,872 $ 23,881 $ 20,772
Shareholders'
equity $ 75,573 $ 78,679 $ 75,573 $ 78,679 $ 82,432
Weighted
average
shares
outstanding:
Basic 46,792,140 46,078,884 46,336,770 45,927,686 46,161,608
Diluted 48,078,834 46,750,196 47,531,182 46,559,971 46,842,744
Shares
outstanding
at period
end 47,254,519 46,219,768 47,254,519 46,219,768 46,559,778
(a) Basic weighted average shares outstanding are used to calculate loss
per share
(b) These non-GAAP financial measures are defined in the Financial
Summary below
Operational Highlights:
2D in net kilometres 239,822 239,820 239,822 239,820 239,822
3D in net square
kilometres 9,679 9,256 9,679 9,256 9,442
>>
FINANCIAL SUMMARY
The Company's continuous disclosure documents provide discussion and
analysis of "free cash flow", "funds from operations" and "funds from
operations per share". These financial measures do not have standard
definitions prescribed by generally accepted accounting principles (GAAP) in
Canada and therefore they may not be comparable to similar measures disclosed
by other companies. The Company has included these non-GAAP financial measures
because management, investors, analysts and others use them as measures of the
Company's financial performance. The Company's definition of free cash flow is
cash available for debt servicing, discretionary capital expenditures and the
payment of dividends, and is calculated as funds from operations less total
participation survey additions to the data library. The Company's definition
of funds from operations is cash flow from operations as prescribed by
Canadian GAAP, but excluding the impact of changes in non-cash working
capital. Funds from operations per share is defined as funds from operations
divided by the weighted average number of shares outstanding for the period.
Overview
The loss from continuing operations for the six months ended June 30,
2006 was $5.1 million ($0.11 per share basic and diluted), compared to
earnings of $1.5 million ($0.03 per share diluted) for the first half of 2005.
Without the writedown of Terrapoint's assets, net earnings from continuing
operations for the six months ended June 30, 2006 would have been $545,000
compared to $1.5 million for the 2005 period,
Funds from continuing operations for the first six months of 2006 was
$12.0 million ($0.25 per share diluted) compared to $11.7 million ($0.25 per
share diluted) for the first six months of 2005. The earnings per share for
2005 and funds from continuing operations figures for 2006 and 2005 are based
on the weighted average diluted shares outstanding of 47,531,182 for the first
half of 2006, compared to 46,559,971 for the first half of 2005. In 2006, the
six month per-share loss figure is based on the basic weighted average number
of shares outstanding of 46,336,770.
The loss from continuing operations for the three months ended June 30,
2006 was $5.2 million ($0.11 per share basic and diluted), compared to net
earnings of $731,000 ($0.01 per share diluted) for the second quarter of 2005.
Funds from continuing operations for the second quarter of 2006 was
$5.6 million ($0.12 per share diluted) compared to a similar $5.2 million
($0.11 per share diluted) for the second quarter of 2005. The earnings per
share in 2005 and funds from continuing operations figures for 2006 and 2005
are based on the weighted average diluted shares outstanding of 48,078,834 for
the second quarter of 2006, compared to 46,750,196 for the second quarter of
2005. In 2006, the three month per-share loss figure is based on the basic
weighted average number of shares outstanding of 46,792,140.
The depreciation expense in the LiDAR segment for the six months ended
June 30, 2006 was $9.9 million compared to $1.1 million for the same period in
2005. Included in the 2006 figure is an $8.8 million writedown of the
Terrapoint LiDAR capital assets, primarily related to older high-altitude
LiDAR data collection systems and their related proprietary processes and
software that have been written down to their estimated residual value. The
residual value reflects the estimated fair value of the components that
Terrapoint is currently using or will be able to use in its other systems.
<<
Revenue
For the six months ended June 30 (stated in thousands of dollars)
-------------------------------------------------------------------------
2006 2005
---------------------------------------
Revenue % of Revenue % of %
Business Segment Total Total Change
Revenue Revenue
-------------------------------------------------------------------------
Seismic Data:
-------------------------------------------------------------------------
Data library sales $ 16,732 72.8 $ 13,852 60.8 21
-------------------------------------------------------------------------
Participation surveys 3,058 13.3 5,031 22.1 (39)
-------------------------------------------------------------------------
LiDAR 3,266 14.2 4,036 17.7 (19)
-------------------------------------------------------------------------
Corporate and other (83) (0.3) (127) (0.6) 35
-----------------------------------------------------
-------------------------------------------------------------------------
Total $ 22,973 100 $ 22,792 100 1
-------------------------------------------------------------------------
Revenue
For the three months ended June 30 (stated in thousands of dollars)
-------------------------------------------------------------------------
2006 2005
---------------------------------------
Revenue % of Revenue % of %
Business Segment Total Total Change
Revenue Revenue
-------------------------------------------------------------------------
Seismic Data:
-------------------------------------------------------------------------
Data library sales $ 6,634 57.8 $ 8,059 75.6 (18)
-------------------------------------------------------------------------
Participation surveys 3,058 26.7 68 0.6 4,397
-------------------------------------------------------------------------
LiDAR 1,813 15.8 2,556 24.0 (29)
-------------------------------------------------------------------------
Corporate and other (34) (0.3) (26) (0.2) (31)
-----------------------------------------------------
-------------------------------------------------------------------------
Total $ 11,471 100 $ 10,657 100 8
-------------------------------------------------------------------------
>>
Seismic Data Segment
The seismic data segment, which includes data library sales and
participation survey revenues, contributed 86.1 percent of total revenue from
continuing operations for the Company in the first half of 2006, and
84.5 percent of total revenue from continuing operations in the second quarter
of 2006. In 2005, the seismic data segment contributed 82.9 percent of total
revenue for the six-month period ended June 30 and 76.2 percent of total
revenue for the second quarter. For the six months ended June 30, 2006, Pulse
increased total seismic revenue by $900,000 to $19.8 million compared to
$18.9 million for the same period in 2005.
Within the seismic data segment the Company generates two types of
revenue: data library sales and participation survey revenue. While
participation survey revenue increases total revenue and earnings
significantly in periods of high survey activity, participation surveys
represent an investment in the seismic data library that initially draws down
the Company's capital resources. Data library sales generate immediate free
cash flow through licenses of seismic data from the existing library of
seismic data, which can occur many times without incurring further costs.
Seismic data segment revenue for the six months ended June 30, 2006
increased by 4.8 percent from the same period in 2005. The increase was due in
part to higher demand for seismic data for exploration from junior oil and
natural gas companies. In addition, a higher proportion of 3D data sales were
made at higher prices in the first half of 2006 compared to the first half of
2005. For the three months ended June 30, 2006, seismic data segment revenue
increased by 19.8 percent from the comparable period in 2005 as a result of
higher participation survey revenues of $3.0 million, offset by lower data
sales of $1.4 million.
Participation survey revenue for the first half of 2006 decreased to
$3.1 million from $5.0 million for the comparable period in 2005 principally
as a result of lower participation funding on the survey completed during the
second quarter. In the second quarter of 2006, Pulse completed and delivered a
237 square kilometre, 3D participation survey in west-central Alberta.
LiDAR Segment
LiDAR revenue for the first half of 2006 decreased by 19.1 percent from
the same period in 2005. For the second quarter of 2006 revenue decreased by
29.1 percent compared to the second quarter of 2005. The decrease is
attributed to lower sales during the period. Terrapoint has now strengthened
its marketing efforts with the appointment of Mr. Jake Jenkins as Vice
President Sales and Marketing of Terrapoint Canada Inc. Terrapoint has also
added several experienced sales people.
Terrapoint also purchased a new high-altitude data collection system in
the second quarter of 2006 which allows projects to be completed more quickly,
at lower cost to customers and at higher margins.
Trango Segment
The Trango segment of Pulse's business has been reported as discontinued
operations as of June 30, 2006. Trango, a wholly-owned subsidiary of Pulse,
was classified as assets held for sale as of that date, and subsequently sold
on July 31, 2006, for $1.8 million cash plus a working capital adjustment of
approximately $400,000.
Data Library
Pulse acquires seismic data to grow its data library through two primary
methods. The Company conducts participation surveys, and also purchases
proprietary rights to complementary seismic data. During the first half of
2006, Pulse invested $7.1 million in a 237 square kilometre, 3D participation
survey in west-central Alberta. In the first half of 2005 the Company invested
$6.1 million to complete two 3D participation surveys in northern Alberta for
a total addition to the data library of 241 square kilometres of 3D seismic
data. The Company did not purchase any data in the first half of 2006, whereas
in the first half of 2005 the Company purchased the proprietary rights to
approximately 2,500 net square kilometres of 3D seismic data and 500 net
kilometres of 2D seismic data, located in south-central Alberta, for
$15.2 million.
The LiDAR data library acquired with Terrapoint includes approximately
$805,000 of data acquired in 2003, of which $439,000 remains unamortized at
June 30, 2006.
Liquidity, Capital Resources and Capital Requirements
At June 30, 2006 the working capital position of Pulse, including the
current portion of long-term debt of $5.9 million, was $16.4 million, compared
to $17.5 million at December 31, 2005.
With the continued trend of very strong seismic data sales levels, Pulse
management expects that its funds from operations will be sufficient to
finance operations, service debt, and pay dividends and budgeted capital
expenditures throughout the remainder of 2006. The seismic data library is
continually growing through the acquisition of new seismic data - principally
3D. The ongoing growth in the Company's seismic data library continues to
position Pulse as a leading provider of valuable seismic data to industry
participants well into the future. Historical data sales analysis shows that
most seismic data retains its value for many years. Combined with the
technological advancements in reprocessing that have been made in recent
years, the Company's clients are able to enhance the quality of older data in
the library.
Although quarterly results can show significant swings in working capital
because of the impact of participation surveys, Pulse remains liquid. The
capital-intensive nature of the seismic business is such that working capital
deficiency balances can accumulate during the busy participation survey
season, only to be reversed upon delivery of the seismic data to survey
participants. Because Pulse's largest expense in any given period is a
non-cash amortization expense, funds from operations are usually much higher
than net earnings.
<<
PULSE DATA INC.
Interim Consolidated Balance Sheets
(In thousands of dollars) (unaudited)
-------------------------------------------------------------------------
June 30, December 31,
2006 2005
-------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 17,594 $ 11,012
Accounts receivable 11,862 20,249
Prepaid expenses 343 315
Work in progress 779 993
Assets of discontinued operations 1,168 1,750
-------------------------------------------------------------------------
31,746 34,319
Long-term receivable - 800
Data libraries 75,273 80,256
Participation surveys in progress 11 192
Property and equipment 5,286 13,665
Investments 432 432
Deferred charges 180 218
-------------------------------------------------------------------------
$ 112,928 $ 129,882
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 5,052 $ 6,700
Deferred revenue 4,151 3,848
Current portion of long-term debt 5,868 6,068
Liabilities of discontinued operations 277 200
-------------------------------------------------------------------------
15,348 16,816
Long-term debt 17,872 20,772
Future income taxes 4,135 9,862
Shareholders' equity:
Share capital 53,257 51,808
Contributed surplus 1,364 1,079
Retained earnings 20,952 29,545
-------------------------------------------------------------------------
75,573 82,432
$ 112,928 $ 129,882
-------------------------------------------------------------------------
-------------------------------------------------------------------------
PULSE DATA INC.
Interim Consolidated Statements of Earnings (loss) and Retained Earnings
(In thousands of dollars, except per share data) (unaudited)
-------------------------------------------------------------------------
Three months Six months
ended June 30 ended June 30
---------------------- ----------------------
2006 2005 2006 2005
-------------------------------------------------------------------------
Revenue $ 11,471 $ 10,657 $ 22,973 $ 22,792
Operating expenses:
Amortization of data
libraries 7,328 3,996 12,051 10,130
Operating 2,556 2,742 4,779 4,800
Depreciation and
amortization 8,235 621 10,096 1,200
-------------------------------------------------------------------------
18,119 7,359 26,926 16,130
-------------------------------------------------------------------------
Gross margin (6,648) 3,298 (3,953) 6,662
General and administrative
expenses 1,635 1,595 3,538 3,189
Research and development
expenses 231 274 502 513
Interest:
Long-term debt 439 243 859 470
Other (163) (24) (231) (63)
-------------------------------------------------------------------------
276 219 628 407
-------------------------------------------------------------------------
Earnings (loss) from
continuing operations
before income taxes (8,790) 1,210 (8,621) 2,553
Income taxes:
Current 1,419 852 2,184 2,630
Future (reduction) (5,059) (373) (5,727) (1,611)
-------------------------------------------------------------------------
(3,640) 479 (3,543) 1,019
Net earnings (loss) from
continuing operations $ (5,150) $ 731 $ (5,078) $ 1,534
-------------------------------------------------------------------------
Earnings (loss) from
discontinued operations,
net of income taxes 36 (48) 3 (127)
-------------------------------------------------------------------------
Net earnings (loss) $ (5,114) $ 683 $ (5,075) $ 1,407
Retained earnings,
beginning of period 27,834 26,678 29,545 26,527
Dividends paid (1,768) (577) (3,518) (1,150)
-------------------------------------------------------------------------
Retained earnings, end of
period $ 20,952 $ 26,784 $ 20,952 $ 26,784
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) per share
from continuing
operations, basic and
diluted $ (0.11) $ 0.01 $ (0.11) $ 0.03
Earnings (loss) per share,
basic and diluted $ (0.11) $ 0.01 $ (0.11) $ 0.03
-------------------------------------------------------------------------
-------------------------------------------------------------------------
PULSE DATA INC.
Interim Consolidated Statements of Cash Flows
(In thousands of dollars) (unaudited)
-------------------------------------------------------------------------
Three months Six months
ended June 30 ended June 30
---------------------- ----------------------
2006 2005 2006 2005
-------------------------------------------------------------------------
Cash provided by (used in):
Continuing operations:
Net earnings (loss) $ (5,150) $ 731 $ (5,078) $ 1,534
Items not involving cash:
Amortization of data
libraries 7,328 3,996 12,051 10,130
Depreciation and
amortization 8,235 621 10,096 1,200
Unrealized loss (gain)
on foreign exchange (112) 51 (74) 64
Future income taxes
(reduction) (5,059) (373) (5,727) (1,611)
Stock-based compensation 346 199 650 357
Other 17 (10) 36 (10)
-------------------------------------------------------------------------
Funds from continuing
operations 5,605 5,215 11,954 11,664
Net change in non-cash working
capital items related to
operations 3,230 (5,017) 10,363 (472)
Increase (decrease) in
non-current deferred revenue - 250 - 250
-------------------------------------------------------------------------
8,835 448 22,317 11,442
Discontinued operations:
Funds from discontinued
operations 70 (48) 35 (147)
Net change in non-cash
working capital items
related to discontinued
operations (998) 317 (776) 473
-------------------------------------------------------------------------
Increase (decrease) in cash
position (928) 269 (741) 326
Financing:
Long-term debt - 15,439 - 15,439
Repayment of long-term
debt (1,523) (1,389) (3,100) (2,829)
Issue of share capital 895 558 1,084 558
Dividends paid (1,768) (1,150) (3,518) (1,150)
-------------------------------------------------------------------------
(2,396) 13,458 (5,534) 12,018
Investing:
Additions to data
libraries through
participation surveys (7,162) (5) (7,068) (6,102)
Seismic data purchases - (15,225) - (15,225)
(Increase) decrease in
participation surveys in
progress 1,113 (4) 181 (2)
Increase in investments - - - 235
Additions to property and
equipment (1,568) (687) (1,717) (1,113)
Additions to property and
equipment discontinued
operations - (7) - (12)
Net change in non-cash
working capital items
related to investing (365) 728 (856) (1,411)
-------------------------------------------------------------------------
(7,982) (15,200) (9,460) (23,630)
-------------------------------------------------------------------------
Increase (decrease) in cash
position (2,471) (1,025) 6,582 156
Cash and cash equivalents,
beginning of period 20,065 5,008 11,012 3,827
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 17,594 $ 3,983 $ 17,594 $ 3,983
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
OUTLOOK
The outlook for the Pulse Seismic business segment remains strong for the
balance of 2006 and beyond. Seismic data sales, which are driven in large
measure by oil and gas exploration and development activity, continue to grow
with an increasing proportion of sales from higher-priced 3D seismic.
The downturn in natural gas prices has had little impact on our seismic
business to date this year. Even though fewer natural gas development wells
are being drilled as producers await a return to higher prices, the industry
is continuing to explore aggressively for natural gas in western Canada; and
seismic data is an important tool in exploration activity. The long-term
outlook for natural gas prices is very strong. Indeed, in recent weeks natural
gas prices have responded to hot weather across much of the continent and
one-and two-year futures price for natural gas on NYMEX are more than
$9 (U.S.) per MMBTU.
Terrapoint has been totally restructured. We have rebuilt the management
team and R&D department, upgraded our high range capability, and installed new
processing hardware and software, management reporting systems, safety
programs, quality assurance systems and standard operating procedures. The
revamped and expanded sales team, led by Mr. Jake Jenkins as Vice President of
Sales and Marketing, is an important part of the rebuilding strategy.
We expect that this overhaul of the Terrapoint business segment will
result in stronger sales revenues and improved margins. We believe that our
decision to retire the poorly performing older high-altitude systems and to
replace them with stable, higher performing sensors, will better position
Terrapoint to re-establish itself as a high quality, reliable LiDAR provider.
Terrapoint's research and development team is working on a number of key
initiatives focused on new software and hardware solutions that will add value
for our expanding client base. We will provide updates on these developments
as they near market release. At the same time, we are working with industry
partners to expand our capabilities and compete for larger contracts.
Terrapoint is now better positioned for success than at any time since we
acquired the company.
In short, we are excited about the future of both our business segments
and look forward to a strong second half performance in 2006.
CORPORATE PROFILE
Pulse is a Calgary-based company with two operating units: Pulse Seismic
specializing in acquiring, marketing and licensing seismic data to the western
Canadian energy sector, and Terrapoint focusing on acquisitions and processing
of digital elevation and image data to diverse markets. Through these two
operating units, Pulse Seismic and Terrapoint, the Company has evolved into an
industry leader providing Better Information Faster(TM).
Pulse trades on the Toronto Stock Exchange under the symbol PSD.
Certain information contained herein may constitute forward-looking
statements under applicable securities laws. Such statements are subject to
known or unknown risks and uncertainties that may cause actual results to
differ materially from those anticipated or implied in the forward-looking
statements. Investors are encouraged to review the "Risk Factors" section of
the Management's Discussion and Analysis in the Company's Annual Report for
2005 and 2006 Interim Reports for a discussion of risks that could affect the
Company's operations and financial results. Forward-looking statements are
based upon management's assumptions, expectations and estimates at the time
that such statements are made. Pulse does not update forward-looking
statements should circumstances change or management's assumptions,
expectations or estimates change, unless required by law.
