McCann E-Investigations Houston Announces Launch of New Website Focused on Houston Computer Forensics

McCann E-Investigations Houston (McCann EI) announces launch of new website focused on Houston computer forensics services. The new website provides a high level overview of McCann E-Investigations Houston computer forensics services with links to McCann EI’s full digital investigations and private investigations page

Houston, TX (PRWEB) May 25, 2012

McCann E-Investigations (McCann EI), a Texas-based computer forensics firm announced that it has launched a new website solely focused on Houston Computer Forensics. The new website will allow Houston customers to have access to information and overviews of Houston computer and digital forensics information with links to even more information at McCann EI’s main site.

McCann EI’s Houston computer forensics division provides digital services to law firms, private businesses as well as to individuals in various case types such as family law, bankruptcy, fraud and embezzlement. In addition to Houston computer forensics service, McCann EI Houston also provides digital forensics services and network breach remediation.

“Houston, Texas is a vast market for computer forensics cases.” said Gary Huestis, Director of Forensics Services at McCann E-Investigations. “We provide multiple services to our Houston computer forensics clients including cases such as contentious divorces, intellectual property theft and non-compete enforcement.” continued Huestis.

Gary Huestis is the Director of Forensic Services for McCann EI’s Houston digital forensics. Mr. Huestis is an EnCase certified examiner and a licensed private investigator.

About McCann EI:

http://www.einvestigations.com

Twitter: @McCannEI or https://twitter.com/#!/McCannEI

Facebook: https://www.facebook.com/pages/McCann-Investigations/203760582969139

Call us toll-free at 800-713-7670

McCann Investigators follow the trail and decipher the information regardless of whether the evidence is digital, such as electronically stored information found on computers, mobile phones or other devices or if the investigation requires traditional private investigative services. McCann’s PI tools and techniques include surveillance, undercover work and detailed record searches. The final product helps our clients gain a deeper understanding of what has happened or what is occurring. The gained clarity and discovery of truth allows our clients to quickly respond and recover.

McCann EI is based out of our state-of-the-art forensic labs in Houston, which provide the latest in computer forensic and IT security technology. Our e-investigators combine digital skills with traditional private investigative techniques to provide you with an one-stop solution for your investigative needs. Our lab houses our computer forensics and electronic discovery service along with our databases, surveillance technology, and undercover investigators. Our investigators are experienced in providing expert witness testimony, including computer forensic testimony, in courts across Texas. Although we are headquartered in Houston, our investigators live in and work in cities all across Texas.

Call us toll-free at 800-713-7670 or speak to a local investigator:

Austin Computer Forensics: 512-377-6142

Houston Computer Forensics: 832-628-4904

Dallas Computer Forensics: 214-329-9059

Lubbock Computer Forensics: 806-589-0320

Lufkin Computer Forensics: 936-585-4070

Brownsville Computer Forensics: 956-465-0849

Dan Weiss
McCann E-Investigations
832-628-4904
Email Information

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$49 energy-saving computer wants to help people connect to the web

Taiwan-based computer chip manufacturer VIA Technologies Inc. has unveiled an inexpensive and compact computer, hoping to help drive innovation in the compact computing market.

The PC, called the APC 8750, measures just 17cm x 8.5cm (almost half the size of Apple’s Mac mini). It is designed with the main focus of getting people connected to the internet and offers an alternative to (more expensive) Windows PCs.

The APC runs a customized version of Google’s Android operating system that is optimized for keyboard and mouse input.

At $49, it’s not the cheapest PC on the market — a $25 Linux-based computer called the Raspberry Pi was announced earlier this year — but it provides people in developing nations, and those who want to experiment with technology without the restrictions of a high entry-level price, with another affordable solution.

“APC brings the familiarity and convenience of Android to the PC at a US$49 price point that will open up exciting new markets and applications,” said Richard Brown, VP of Marketing, VIA Technologies, Inc. “Like a bicycle for your mind, APC will enable more people than ever before to explore the vast online universe.”

The caseless APC is technically just a mini motherboard without a shell but it has everything a basic PC needs to function.

It features support for HD TVs, four USB 2.0 ports, one microSD slot, VGA and HDMI display ports, a 10/100 Ethernet port, Audio-out/ Mic-in port and a 15W power adapter. The APC is powered by an ARM processor and consumes around ten times less power than a typical computer.

The APC is expected to start shipping in July for $49.
http://apc.io/

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Hands and fingers the new computer mouse? Start-up unveils 3D gesture control

Life imitates art ... Tom Cruise in the film Minority Report.

Leap Motion brings Minority Report-like gestures to life.

Leap Motion, a San Francisco start-up, wants to change the way you control your computer with a little device it revealed this week.

The Leap is a small 3D motion sensor that goes in front of your computer and creates a 3D interaction space of 8 cubic feet from which you can use your hands and fingers to direct your computer.

Leap Motion, a San Francisco startup, wants to bring motion sensor controls 100 times better than any other in the world to your computer for less than $US70.

Leap Motion, a San Francisco start-up, wants to bring motion-sensor controls, 100 times better than any other, to your computer for less than $US70. Photo: Leap Motion

The makers of the device, which is reminiscent of Nintendo‘s Wii and Microsoft’s Kinect, say it is 200 times more accurate than anything else on the market, no matter the price, and can track your movements “down to a 1/100th of a millimetre.”

“It’s more accurate than a mouse, as reliable as a keyboard and more sensitive than a touchscreen,” the company says on its site. “For the first time, you can control a computer in three dimensions with your natural hand and finger movements.”

Wired Magazine’s Roberto Baldwin was fortunate enough to get some hands on time with the Leap Motion and said he was “somewhat surprised” to discover it to be everything portrayed in the demo video above but predicted it wouldn’t be replacing the computer mouse or trackpad any time soon.

“It will be a secondary input device for most people, and a primary input device for just a few hardcore users,” he said.

If you check out the video above, it looks pretty impressive, but what might be even more impressive is that the company plans to sell the device for $US69.99 and begin shipping its first wave of units by December or January.

“It sounds too good to be true, we know,” the site says. “But, that’s what we specialise in around here.”

The “iPod sized” device, which was inspired by its founders’ frustrations with current 3D modelling technology, connects over USB and will be able to function with both Mac OS X and Windows 7 and 8.

Leap isn’t the only motion sensor technology out there. Earlier this year Microsoft launched the Windows version of Kinect, which is available for $US249.99, but Leap could become its competitor.

Whether the start-up, which also plans to invite developers to create apps for the Leap, can follow through on all of its promises remains to be seen. A lot can change and happen over the course of seven months, especially at start-ups, but if Leap Motion can deliver, what a delivery that will be.

LA Times and Fairfax Media

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West New York mayor, in undershirt and slacks, and son appear relaxed in court on computer hacking charges

West New York mayor after being arrested on Thursday, May 24, 2012

West New York Mayor Dr. Felix Roque and his 22-year-old son Joseph Roque each face up to 11 years in prison and $600,000 in fines on charges of computer hacking, a federal judge told them this afternoon in a Newark courtroom.

The mayor was wearing a white undershirt and black slacks and Joseph Roque had on gray sweatpants and a blue yankees shirt with star shortstop Derk Jeter’s name on the back when they appeared before U.S.

District Judge Joseph Falk. Both men’s feet were shackled and their hands were cuffed to a chain around their waist.

The two men face 5 years in prison and a $250,000 fine for each of the first two counts — gaining unauthorized access to computers in furtherance of causing damage to protected computers; and conspiracy to gain unauthorized access to computers.

They also face 1 year in prison and a $100,000 fine for the third count, a misdemeanor — causing damage to protected computers.

The bail for both Roques was set at $100,000 unsecured bond. Their travel is also restricted to New York and New Jersey and they must surrender their passports. Also, there is to be no contact with victims or possible witnesses and both face strict limitations on Internet and computer use, with some exceptions.

A preliminary hearing for both men was set for June 4.

The two appeared relaxed, even after the mayor’s ex-wife, Joseph’s mother, passed out in the front row of the courtroom as the hearing got under way. The woman flopped off the bench and fell face-first to the floor.

She appeared to be unconscious for about 10 seconds as people in the courtroom came to her aid.

From the prisoner area, Joseph Roque said “Can someone help my mother?” The woman was seated back on the bench and then escorted from courtroom. She did not return for the hearing, but was seen afterward on a bench outside the courtroom. She declined to comment afterward.

More coverage:

Mayor’s arrest is the talk of the town

Federal authorities’ timeline of events

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B2B Computer Rolls Out Hot Tech Solutions Group

B2B Computer Products just unveiled its Advanced Solutions Group–a technology solutions cluster with the client advantage of seamless efficiency and continuity.

Addison, Ill. (PRWEB) May 24, 2012

B2B Computer Products LLC just unveiled its Advanced Solutions Group–a new technology solutions cluster with the client advantage of seamless efficiency and continuity. The group provides support solutions for the more than 1 million technology products that B2B Computer currently offers its clients.

The new Advanced Solutions Group sets B2B Computer apart from competitors by offering technology products, Cloud services, and project-focused engineering support. Most competitors offer only one or two. “This is a benefit to our clients because we can coordinate those three aspects without overlap and conflict,” said Bill Dykema, vice president of Advanced Solutions. “It allows us to get to know each client’s business and then recommend, design and implement the correct solution. We can then support that solution with continuing services that makes sense from time and cost perspectives.”

The structure of the Advanced Solutions Group is designed to take advantage of the five areas of B2B Computer’s engineering talent: Cloud Services, Consolidated Computing, Collaboration and Data Protection, Network/Security/VOIP, and Server/Desktop.

“We have been providing engineering services to our clients for many years,” explained Mike Theriault, B2B Computer’s president and CEO. “The difference is that now everything is more advanced and more comprehensive.”

Benefits of the Advanced Solutions Group include,

  •     State-of-the-art design, implementation, training, monitoring and management
  •     Eliminating financial spikes
  •     Optimized performance
  •     Tailored services that meet each client’s individual needs
  •     Assurance that solutions reflect industry best practices
  •     World-class expertise without the expense of high-level employees

Dykema added that Advanced Solutions will allow some companies to maintain a smaller IT staff and footprint. “I’m talking about not having to hire additional help as the company grows,” he said. ”It’s very hard to find qualified IT employees right now.”

B2B Computer is a single-source provider of technology products, manufacturer-certified services, and its own portfolio of signature services. B2B Computer was recognized by Inc. magazine as one of the Fastest Growing companies in the U.S. in 2009, 2010 and 2011. In the past four consecutive years Crain’s acknowledged B2B Computer as one of the Fastest Growing and Largest Privately Held companies in the Chicago metro area. In addition to its Addison, Ill. headquarters and a technology hub in Davenport, Iowa, B2B Computer’s offices are in Chicago; New York; Beavercreek, Ohio; and San Francisco with distribution points nationwide. For more information on B2B Computer Products’ new Advanced Solutions Group, call 877-222-8857.

Jean Rensselar
SMART PR Communications
630-363-8081
Email Information

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Computer Modelling Group Announces Year End Results

CALGARY, ALBERTA–(Marketwire – May 24, 2012) – Computer Modelling Group Ltd. (“CMG” or the “Company”) (CMG.TO – News) is very pleased to report our financial results for the fiscal year ended March 31, 2012.

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MDA”) for Computer Modelling Group Ltd. (“CMG,” the “Company,” “we” or “our”), presented as at May 23, 2012, should be read in conjunction with the audited consolidated financial statements and related notes of the Company for the years ended March 31, 2012 and 2011. Additional information relating to CMG, including our Annual Information Form, can be found at www.sedar.com. The financial data contained herein have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and, unless otherwise indicated, all amounts in this report are expressed in Canadian dollars and rounded to the nearest thousand.

Effective on the close of business on June 20, 2011, CMG’s Common Shares were split on a two-for-one basis. Accordingly, all comparative number of shares and per share amounts have been retroactively adjusted to reflect the two-for-one split.

CORPORATE PROFILE

CMG is a computer software technology company serving the oil and gas industry. The Company is a leading supplier of advanced processes reservoir modelling software with a blue chip client base of international oil companies and technology centers in over 50 countries. The Company also provides professional services consisting of highly specialized support, consulting, training, and contract research activities. CMG has sales and technical support services based in Calgary, Houston, London, Caracas and Dubai. CMG’s Common Shares are listed on the Toronto Stock Exchange (“TSX”) and trade under the symbol “CMG”.

ANNUAL PERFORMANCE

                                              March 31, March 31, March 31,  ($ thousands, unless otherwise stated)             2012      2011      2010  ----------------------------------------------------------------------------                                                                              Annuity/maintenance licenses                     42,858    32,709    29,507  Perpetual licenses                               12,724    11,045    10,443  ---------------------------------------------------------------------------- Software licenses                                55,582    43,754    39,950  Professional services                             5,452     8,073     5,353  ---------------------------------------------------------------------------- Total revenue                                    61,034    51,827    45,303  Operating profit                                 31,604    25,677    21,893  Operating profit (%)                                 52%       50%       48% EBITDA(1)                                        32,831    26,714    22,780  Net income for the year                          23,391    17,166    14,463  Cash dividends declared and paid                 20,499    16,971    16,557  Total assets                                     74,892    58,689    49,906  Total shares outstanding                         37,307    36,427    35,660  Trading price per share at March 31               15.90     12.98      8.63  Market capitalization at March 31               593,170   472,820   307,568  ---------------------------------------------------------------------------- Per share amounts - ($/share)                                                Earnings per share - basic                         0.63      0.48      0.41  Earnings per share - diluted                       0.62      0.47      0.40  Cash dividends declared and paid                  0.555      0.47      0.47  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(1) EBITDA is defined as net income before adjusting for depreciation expense, finance income, finance costs, and income and other taxes. See “Non-IFRS Financial Measures”.

QUARTERLY PERFORMANCE

                                                     Fiscal 2011(1)          ($ thousands, unless otherwise stated)            Q1      Q2      Q3      Q4 ----------------------------------------------------------------------------                                                                              Annuity/maintenance licenses                   8,325   7,855   7,999   8,531 Perpetual licenses                             1,824   2,975   2,335   3,911 ---------------------------------------------------------------------------- Software licenses                             10,149  10,830  10,333  12,442 Professional services                          1,905   2,502   1,730   1,936 ---------------------------------------------------------------------------- Total revenue                                 12,054  13,332  12,063  14,378 Operating profit                               5,933   6,695   5,516   7,532 Operating profit %                                49      50      46      52 EBITDA                                         6,162   6,944   5,789   7,818 Profit before income and other taxes           6,178   6,565   5,278   7,413 Income and other taxes                         1,949   1,999   1,715   2,605 Net income for the period                      4,229   4,565   3,563   4,808 Cash dividends declared and paid               6,274   3,430   3,623   3,643 ---------------------------------------------------------------------------- Per share amounts - ($/share)                                                Earnings per share - basic                      0.12    0.13    0.10    0.13 Earnings per share - diluted                    0.12    0.13    0.10    0.13 Cash dividends declared and paid               0.175   0.095    0.10    0.10 ----------------------------------------------------------------------------

                                                     Fiscal 2012(2)          ($ thousands, unless otherwise stated)            Q1      Q2      Q3      Q4 ----------------------------------------------------------------------------                                                                              Annuity/maintenance licenses                   8,997   9,308  12,056  12,497 Perpetual licenses                             5,391   1,596   2,321   3,416 ---------------------------------------------------------------------------- Software licenses                             14,388  10,904  14,377  15,913 Professional services                          1,551   1,078   1,521   1,302 ---------------------------------------------------------------------------- Total revenue                                 15,939  11,982  15,898  17,215 Operating profit                               9,092   5,226   8,093   9,193 Operating profit %                                57      44      51      53 EBITDA                                         9,366   5,508   8,414   9,543 Profit before income and other taxes           9,240   6,096   8,184   9,104 Income and other taxes                         2,577   1,778   2,394   2,484 Net income for the period                      6,663   4,318   5,790   6,620 Cash dividends declared and paid               7,519   4,053   4,079   4,848 ---------------------------------------------------------------------------- Per share amounts - ($/share)                                                Earnings per share - basic                      0.18    0.12    0.16    0.18 Earnings per share - diluted                    0.18    0.11    0.15    0.17 Cash dividends declared and paid               0.205    0.11    0.11    0.13 ----------------------------------------------------------------------------

(1) Q1, Q2, Q3 and Q4 of fiscal 2011 include $1.1 million, $0.2 million, $0.3 million and $0.1 million, respectively, in revenue that pertains to usage of CMG’s products in prior quarters.

(2) Q1, Q2, Q3 and Q4 of fiscal 2012 include $0.3 million, $0.04 million, $2.6 million and $2.7 million, respectively, in revenue that pertains to usage of CMG’s products in prior quarters.

Note: all quarterly data contained in the above table has been prepared in accordance with IFRS.

Highlights

During the year ended March 31, 2012, as compared to the prior fiscal year, CMG:

--  Increased annuity/maintenance revenue by 31%;  --  Increased perpetual sales by 15%;  --  Increased net income by 36%;  --  Increased spending on research and development by 14%;  --  Realized earnings per share of $0.63, representing a 31% increase. 

Revenue

For the three months ended March 31,        2012     2011 $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Software licenses                         15,913   12,442    3,471       28% Professional services                      1,302    1,936     (634)     -33% ---------------------------------------------------------------------------- Total revenue                             17,215   14,378    2,837       20% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Software license revenue - % of total                                         revenue                                      92%      87%                   Professional services - % of total                                            revenue                                       8%      13%                   ----------------------------------------------------------------------------                                                                              For the year ended March 31,                2012     2011 $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Software licenses                         55,582   43,754   11,828       27% Professional services                      5,452    8,073   (2,621)     -32% ---------------------------------------------------------------------------- Total revenue                             61,034   51,827    9,207       18% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Software license revenue - % of total                                         revenue                                      91%      84%                   Professional services - % of total                                            revenue                                       9%      16%                   ----------------------------------------------------------------------------

CMG’s revenue is comprised of software license fees, which provide the majority of the Company’s revenue, and fees for professional services.

Total revenue increased by 20% and 18% for the three months and year ended March 31, 2012, respectively, driven primarily by our strong annuity/maintenance sales experienced during both the quarter and year-to-date. The increases in software license revenue were partially offset by the decreases in fees earned from professional services.

SOFTWARE LICENSE REVENUE

Software license revenue is made up of annuity/maintenance license fees charged for the use of the Company’s software products which is generally for a term of one year or less and perpetual software license fees, whereby the customer purchases the-then-current version of the software and has the right to use that version in perpetuity. Annuity/maintenance license fees have historically had a high renewal rate and, accordingly, provide a reliable revenue stream while perpetual license sales are more variable and unpredictable in nature as the purchase decision and its timing fluctuate with the customers’ needs and budgets. The majority of CMG’s customers who have acquired perpetual software licenses subsequently purchase our maintenance package to ensure ongoing product support and access to current versions of CMG’s software.

For the three months ended March 31,        2012     2011 $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Annuity/maintenance licenses              12,497    8,531    3,966       46% Perpetual licenses                         3,416    3,911     (495)     -13% ---------------------------------------------------------------------------- Total software license revenue            15,913   12,442    3,471       28% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Annuity/maintenance as a % of total                                           software license revenue                     79%      69%                   Perpetual as a % of total software                                            license revenue                              21%      31%                   ----------------------------------------------------------------------------                                                                              For the year ended March 31,                2012     2011 $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Annuity/maintenance licenses              42,858   32,709   10,149       31% Perpetual licenses                        12,724   11,045    1,679       15% ---------------------------------------------------------------------------- Total software license revenue            55,582   43,754   11,828       27% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Annuity/maintenance as a % of total                                           software license revenue                     77%      75%                   Perpetual as a % of total software                                            license revenue                              23%      25%                   ----------------------------------------------------------------------------

Total software license revenue increased by 28% and 27% during the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year. The increase in our quarterly total software license revenue was driven by the increase in annuity/maintenance license sales while our year-to-date increase was supported by growth in both annuity/maintenance and perpetual license sales.

CMG’s annuity/maintenance license revenue increased by 46% and 31% during the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year. Part of the growth during both the quarter and year-to-date was driven by strong sales to new and existing clients as well as the increase in maintenance revenue tied to our strong perpetual sales generated in the previous quarters of the current and past fiscal years. Another reason for the increase in both the quarterly and year-to-date annuity/maintenance revenue is the accounting treatment of the payments received from one of our large customers for whom revenue recognition criteria are fulfilled only at the time of the receipt of funds. Payments have been received during the current quarter and fiscal year for the licenses provided in past periods (see the discussion about revenue earned in the current period that pertains to usage of products in prior quarters above the “Quarterly Software License Revenue” graph). Given our long-standing relationship with this client, and the multi-year nature of the contract, we expect to continue receiving payments under this arrangement, however, the amount and timing is uncertain and will continue to be recorded on a cash basis which may introduce some variability in our reported quarterly revenue results. If we were to remove revenue from this particular customer from the quarterly and year-to-date annuity/maintenance revenue amounts in order to provide normalized comparison, we would note that that the annuity/maintenance license sales have grown by 19% and 20% in the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year. Our annuity/maintenance license revenue, representing a recurring revenue stream, continues experiencing steady growth quarter-over-quarter as evidenced by consecutive quarterly increases over the past several fiscal years. We expect this trend to continue in the future supported by the market’s demand for our highly specialized software, which is further demonstrated by the strong growth in our deferred revenue balance (see discussion under “Deferred Revenue”).

The increase in annuity/maintenance revenue as measured in Canadian dollars has been negatively affected by the strengthening of the Canadian dollar relative to the US dollar in the current fiscal year. The table below illustrates revenue generated in US dollars and the rates at which it was converted into Canadian dollars to show the movement in US dollar denominated revenue without the impact of the foreign exchange. Had the exchange rate between the US and Canadian dollars remained constant between the three months and year ended March 31, 2012 and 2011, our fourth quarter annuity/maintenance revenue would have increased by 48% (instead of 46%) and our year-to-date annuity/maintenance revenue would have increased by 35% (instead of 31%).

Perpetual license sales decreased by 13% for the three months ended March 31, 2012 whereas they increased by 15% for the year ended March 31, 2012, compared to the same periods of the previous fiscal year. Software licensing under perpetual sales is a significant part of CMG’s business, but may fluctuate significantly between periods due to the uncertainty associated with the timing and the location where sales are generated. For this reason, even though we anticipate achieving a certain level of aggregate perpetual sales on an annual basis, we expect to observe fluctuations in the reported quarterly amounts across different markets. Quarterly perpetual license revenue decreased due to selling fewer licenses, particularly in the North American market, in the last part of the fourth quarter of the current fiscal year compared to the same period of the previous fiscal year.The year-to-date increase was driven by strong perpetual sales achieved in our Eastern Hemisphere, supported in particular by a multi-million perpetual contract closed in the first quarter of the current fiscal year.

We can observe from the table below that our year-to-date perpetual sales in US dollars were negatively affected by the foreign exchange movement between the US and Canadian dollars as a result of the strengthening Canadian dollar in the current fiscal year. Had the exchange rate between the US and Canadian dollars remained constant between the year ended March 31, 2012 and 2011, our year-to-date perpetual license revenue would have increased by 19% (instead of 15%). The foreign exchange rates had a minimum impact on our quarterly perpetual sales.

The following table summarizes the US dollar denominated revenue and the weighted average exchange rates at which it was converted to Canadian dollars:

For the three months ended                                                    March 31,                             2012         2011 $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              US dollar annuity/maintenance                                                 license sales                   US$  8,986   US$  5,368    3,618        67% Weighted average conversion                                                   rate                                 0.994        1.012                     ---------------------------------------------------------------------------- Canadian dollar equivalent      CDN$  8,934  CDN$  5,433    3,501        64% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              US dollar perpetual license                                                   sales                           US$  3,281   US$  3,502     (221)       -6% Weighted average conversion                                                   rate                                 1.001        0.980                     ---------------------------------------------------------------------------- Canadian dollar equivalent      CDN$  3,285  CDN$  3,432     (147)       -4% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- For the year ended March 31,           2012          2011 $ change % change  ($ thousands)                                                                ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              US dollar annuity/maintenance                                                 license sales                  US$  29,146   US$  21,275    7,871       37% Weighted average conversion                                                   rate                                 0.993         1.040                    ---------------------------------------------------------------------------- Canadian dollar equivalent     CDN$  28,954  CDN$  22,116    6,838       31% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              US dollar perpetual license                                                   sales                          US$  12,425   US$   8,120    4,305       53% Weighted average conversion                                                   rate                                 0.977         1.012                    ---------------------------------------------------------------------------- Canadian dollar equivalent     CDN$  12,142  CDN$   8,216    3,926       48% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

REVENUE BY GEOGRAPHIC SEGMENT

For the three months ended March 31,         2012    2011 $ change % change  ($ thousands)                                                                ---------------------------------------------------------------------------- Annuity/maintenance revenue                                                   Canada                                     4,213   3,608      605       17%  United States                              2,337   1,857      480       26%  South America                              3,307     674    2,633      391%  Eastern Hemisphere(1)                      2,640   2,392      248       10% ----------------------------------------------------------------------------                                            12,497   8,531    3,966       46% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Perpetual revenue                                                             Canada                                       204     480     (276)     -58%  United States                                753     879     (126)     -14%  South America                                177     830     (653)     -79%  Eastern Hemisphere                         2,282   1,722      560       33% ----------------------------------------------------------------------------                                             3,416   3,911     (495)     -13% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total software license revenue                                                Canada                                     4,417   4,088      329        8%  United States                              3,090   2,736      354       13%  South America                              3,484   1,504    1,980      132%  Eastern Hemisphere                         4,922   4,114      808       20% ----------------------------------------------------------------------------                                            15,913  12,442    3,471       28% ----------------------------------------------------------------------------                                                                              For the year ended March 31,                2012    2011 $ change  % change  ($ thousands)                                                                ---------------------------------------------------------------------------- Annuity/maintenance revenue                                                   Canada                                   15,946  11,620    4,326        37%  United States                             8,528   7,041    1,487        21%  South America                             8,536   5,147    3,389        66%  Eastern Hemisphere                        9,848   8,901      947        11% ----------------------------------------------------------------------------                                           42,858  32,709   10,149        31% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Perpetual revenue                                                             Canada                                      655   2,829   (2,174)      -77%  United States                             1,746   2,141     (395)      -18%  South America                             1,468   1,919     (451)      -24%  Eastern Hemisphere                        8,855   4,156    4,699       113% ----------------------------------------------------------------------------                                           12,724  11,045    1,679        15% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total software license revenue                                                Canada                                   16,601  14,449    2,152        15%  United States                            10,274   9,182    1,092        12%  South America                            10,004   7,066    2,938        42%  Eastern Hemisphere                       18,703  13,057    5,646        43% ----------------------------------------------------------------------------                                           55,582  43,754   11,828        27% ----------------------------------------------------------------------------

(1) Includes Europe, Africa, Asia and Australia.

On a geographic basis, total software license sales increased across all regions during both the three months and the year ended March 31, 2012. The most significant growth came from our annuity/maintenance license sales, with increases experienced across all regions. While the South American market experienced the highest increase, Canada continues to be the leader in annuity/maintenance revenue generation. While perpetual license sales decreased during the fourth quarter, they increased by 15% on a year-to-date basis. This increase was driven solely by the sales made in the Eastern Hemisphere.

The Canadian market (representing 30% of fiscal 2012 total software revenue) continues to experience consistent growth in the recurring annuity/maintenance revenue stream as evidenced by the increases of 17% and 37% for the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year. The increases in the annuity revenue stream were supported by the increase in sales to both existing and new clients. In addition, strong perpetual license sales generated in the past have enabled the Canadian market to maintain increased revenue levels from the maintenance contracts tied to those perpetual licenses. On the other hand, perpetual sales during the current fiscal year did not reach the same level of the perpetual sales made during the previous fiscal year.

The US market (representing 18% of fiscal 2012 total software revenue) also experienced growth in annuity/maintenance revenue with the increases of 26% and 21% recorded for the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year, due to increased sales to both existing and new clients. Perpetual sales experienced decreased activity in the current fiscal year compared to the previous fiscal year with the overall year-to-date decrease of 18%.

South America (representing 18% of fiscal 2012 total software revenue) experienced strong growth in annuity/maintenance revenue due to the inclusion of a significant amount on a long-term contract for which revenue is recognized on a cash basis. Similar to the North American market, South America experienced lower perpetual sales, with the overall year-to-date decrease of 24%.

Eastern Hemisphere (representing 34% of fiscal 2012 total software revenue) experienced growth in both annuity/maintenance and perpetual revenue streams. Annuity/maintenance license sales increased by 10% and 11% for the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year, driven by increased sales to both new and existing clients. Perpetual license sales increased by 33% and 113% for the three months and year ended March 31, 2012 compared to the same periods of the previous fiscal year. The year-to-date increase was driven by the large perpetual sale made during the first quarter of the current fiscal year. In addition to closing one significant contract, we have seen a general increase in the number of perpetual license sales made to the Eastern Hemisphere market. A significant increase in year-to-date perpetual license sales in the Eastern Hemisphere offset the effects of decreased perpetual sales experienced in all other regions. The movements in perpetual sales across the regions are indicative of the unpredictable nature of the timing and location of perpetual license sales.

Overall, our recurring annuity/maintenance revenue base continues to be strong and growing across all regions with the Canadian market being the leader in this revenue stream. We will continue to extend our reach globally and focus our efforts on increasing our license sales to both existing and new clients. We are confident that the excellent reputation behind our company and its product suite offering along with our customer-oriented approach will enable us to grow and sustain a healthy market share across all regions.

The increases in US-dollar generated revenue from the US and other markets have been negatively affected by the strengthening Canadian dollar compared to the US dollar during the year ended March 31, 2012.

As footnoted in the Quarterly Performance table, in the normal course of business CMG may complete the negotiation of certain annuity/maintenance contracts and/or fulfill revenue recognition requirements within a current quarter that includes usage of CMG’s products in prior quarters. This situation particularly affects contracts negotiated with countries that face increased economic and political risks leading to revenue recognition criteria being satisfied only at the time of the receipt of cash. The dollar magnitude of such contracts may be significant to the quarterly comparatives of our annuity/maintenance revenue stream and, to provide a normalized comparison, we specifically identify the revenue component where revenue recognition is satisfied in the current period for products provided in previous quarters.

DEFERRED REVENUE

                                 2012     2011     2010  $ change  % change  ($ thousands)                                                                ---------------------------------------------------------------------------- Deferred revenue at:                                                         June 30                                 15,326   12,496     2,830        23% September 30                            14,600   12,658     1,942        15% December 31                             14,746   11,892     2,854        24% March 31                       21,693   16,755        -     4,938        29% ----------------------------------------------------------------------------

CMG’s deferred revenue consists primarily of amounts for pre-sold licenses. Our annuity/maintenance revenue is deferred and recognized on a straight-line basis over the life of the related license period, which is generally one year or less. Amounts are deferred for licenses that have been provided and revenue recognition reflects the passage of time.

The increase in deferred revenue year over year as at June 30, September 30, December 31 and March 31 is reflective of the growth in annuity/maintenance license sales. The variation within a year is due to the timing of renewals of annuity and maintenance contracts that are skewed to the beginning of the calendar year which explains the increase in deferred revenue balance at fiscal year-end. Our fourth quarter corresponds to the beginning of the fiscal year for most oil and gas companies, representing a time when they enter a new budget year and sign/renew their contracts. Deferred revenue at March 31, 2012 increased compared to the same period of prior fiscal year due to both renewal of the existing and signing of the new software licenses and maintenance contracts in the quarter. Our deferred revenue balance continues to grow at a steady pace as demonstrated in the table above by the consecutive quarterly double-digit growth experienced during the current fiscal year. Significant deferred revenue balance will contribute to our future revenue growth.

PROFESSIONAL SERVICES REVENUE

CMG recorded professional services revenue of $1.3 million and $5.5 million for the three months and year ended March 31, 2012, respectively, representing decreases of $0.6 million and $2.6 million from the amounts recorded for the same periods of previous fiscal year. CMG had been engaged in a few large projects in the previous fiscal year, which are either complete or continue on a smaller scale in the current fiscal year, causing the majority of the decrease in the quarterly and year-to-date professional services revenue. Additionally, the funding commitment for the DRMS project received from the CMG Reservoir Simulation Foundation (“Foundation CMG”) was fulfilled in the first quarter of the current fiscal year further contributing to the decrease in the professional services revenue for the year. For the year ended March 31, 2012, the Company has reflected $0.3 million (2011 – $1.3 million) in professional services revenue related to this grant. Refer to the discussion under “Commitments, Off Balance Sheet Items and Transactions with Related Parties.”

Professional services revenue consists of specialized consulting, training, and contract research activities. CMG performs consulting and contract research activities on an ongoing basis but such activities are not considered to be a core part of our business and are primarily undertaken to increase our knowledge base and hence expand the technological abilities of our simulators in a funded manner, combined with servicing our customers’ needs. In addition, these activities are undertaken to market the capabilities of our suite of software products with the ultimate objective to increase software license sales. Our experience is that consulting activities are variable in nature as both the timing and dollar magnitude of work are dependent on activities and budgets within client companies.

At March 31, 2012, approximately $0.04 million (2011 – $0.1 million) is included in deferred revenue relating to professional services.

Expenses

For the three months ended March 31,          2012   2011 $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Sales, marketing and professional services   3,333  3,000      333       11% Research and development                     2,994  2,397      597       25% General and administrative                   1,695  1,449      246       17% ---------------------------------------------------------------------------- Total operating expenses                     8,022  6,846    1,176       17% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Direct employee costs(i)                     6,349  5,484      865       16% Other corporate costs                        1,673  1,362      311       23% ----------------------------------------------------------------------------                                              8,022  6,846    1,176       17% ----------------------------------------------------------------------------

For the year ended March 31,               2012    2011  $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Sales, marketing and professional                                             services                                13,036  11,704     1,332        11% Research and development                 10,629   9,338     1,291        14% General and administrative                5,765   5,108       657        13% ---------------------------------------------------------------------------- Total operating expenses                 29,430  26,150     3,280        13% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Direct employee costs(i)                 23,376  20,329     3,047        15% Other corporate costs                     6,054   5,821       233         4% ----------------------------------------------------------------------------                                          29,430  26,150     3,280        13% ----------------------------------------------------------------------------

(i)Includes salaries, bonuses, stock-based compensation, benefits, commissions, and professional development.

CMG’s total operating expenses increased by 17% and 13% for the three months and year ended March 31, 2012, respectively, compared to the same periods in the previous fiscal year due to increases in both direct employee and other corporate costs.

DIRECT EMPLOYEE COSTS

As a technology company, CMG’s largest area of expenditure is for its people. Approximately 79% of the total operating expenses in the year ended March 31, 2012 related to staff costs compared to 78% recorded in the comparative period of last year. Staffing levels for the current fiscal year grew in comparison to the previous fiscal year to support our continued growth. At March 31, 2012, CMG’s staff complement was 149 employees, up from 136 employees as at March 31, 2011. Direct employee costs increased during the three months and year ended March 31, 2012 compared to the same period of the previous fiscal year, due to staff additions, increased levels of compensation, commissions and related benefits.

OTHER CORPORATE COSTS

Other corporate costs increased by 23% for the three months ended March 31, 2012 compared to the same period of previous fiscal year, mainly due to inclusion of the costs associated with the expansion of our office space at the end of calendar 2011. These costs comprise additional office rent, relocation costs, increased computing resources and increased depreciation associated with capital spending on the new space.

Other corporate costs increased by 4% for the year ended March 31, 2012, compared to the same period of the previous fiscal year due to the increase in costs associated with the expanded office space. The previous fiscal year included expenses associated with CMG’s biennial technical symposium, hence, offsetting the impact of the increased office space costs in the current fiscal year.

RESEARCH AND DEVELOPMENT

For the three months ended March 31,       2012    2011  $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Research and development (gross)          3,444   2,707       737        27% SRED credits                              (450)   (310)     (140)       45% ---------------------------------------------------------------------------- Research and development                  2,994   2,397       597        25% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Research and development as a % of total                                      revenue                                     17%     17%                     ----------------------------------------------------------------------------                                                                              For the year ended March 31,              2012     2011  $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Research and development (gross)        12,100   10,416     1,684        16% SRED credits                           (1,471)  (1,078)     (393)       36% ---------------------------------------------------------------------------- Research and development                10,629    9,338     1,291        14% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Research and development as a % of                                            total revenue                              17%      18%                     ----------------------------------------------------------------------------

CMG maintains its belief that its strategy of growing long-term value for shareholders can only be achieved through continued investment in research and development. CMG works closely with its customers to provide solutions to complex problems related to proven and new advanced recovery processes.

The above research and development includes CMG’s proportionate share of joint research and development costs on the DRMS system development of $0.7 million and $2.7 million for the three months and year ended March 31, 2012, respectively (2011 – $0.7 million and $2.7 million). See discussion under “Commitments, Off Balance Sheet Items and Transactions with Related Parties.”

The increases of 27% and 16% in our gross spending on research and development for the three months and year ended March 31, 2012, respectively, demonstrate our continued commitment to advancement of our technology which is the focal part of our business strategy. Research and development costs, net of scientific research and experimental development (“SRED”) credits, increased by 25% and 14% during the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year mainly due to increased employee compensation costs, investment in computing resources and facilities costs associated with a newly leased office space.

At the same time, we had an increase in SRED credits driven by the increases in our direct employee costs as well as the increase in the eligibility of our expenses for SRED credits. Part of the increased eligibility is a direct result of the completion of the grant received from Foundation CMG which had been netted against our research and development expenses for the purposes of calculating SRED credits. The funding commitment associated with this grant was fulfilled in the first quarter of the current fiscal year.

DEPRECIATION

For the three months ended March 31,          2012  2011 $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Depreciation of property and equipment,                                       allocated to:                                                                 Sales, marketing and professional services   105    91       14        15%   Research and development                     200   132       68        52%   General and administrative                    45    63      (18)      -29% ---------------------------------------------------------------------------- Total depreciation                             350   286       64        22% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              For the year ended March 31,                 2012   2011 $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Depreciation of property and equipment,                                       allocated to:                                                                 Sales, marketing and professional                                             services                                   410    311       99        32%   Research and development                    583    476      107        22%   General and administrative                  234    250      (16)       -6% ---------------------------------------------------------------------------- Total depreciation                          1,227  1,037      190        18% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The quarterly and year-to-date increases in depreciation reflect the increase in our asset base, mainly as a result of increased spending on computing resources and expansion of the office space at the end of Q3 2012.

FINANCE INCOME AND FINANCE COSTS

For the three months ended March 31,         2012   2011  $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Interest income                               131    101        30       30% Net foreign exchange gain                       -      -         -        -  ---------------------------------------------------------------------------- Finance income                                131    101        30       30% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Finance costs (represented by net foreign                                     exchange loss)                              (220)  (220)        -        0% ----------------------------------------------------------------------------                                                                              For the year ended March 31,                  2012  2011  $ change % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Interest income                                472   280       192       69% Net foreign exchange gain                      548     -       548        -  ---------------------------------------------------------------------------- Finance income                               1,020   280       740      264% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Finance costs (represented by net foreign                                     exchange loss)                                  -  (523)      523        -  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Interest income increased in the three months and year ended March 31, 2012, compared to the same periods of the prior fiscal year, due to an improvement in interest rates and investing larger cash balances.

CMG is impacted by the movement of the US dollar against the Canadian dollar as approximately 73% (2011 – 68%) of CMG’s revenue for the year ended March 31, 2012 is denominated in US dollars, whereas only approximately 24% (2011 – 25%) of CMG’s total costs are denominated in US dollars.

CDN$ to US$                             At March 31           Yearly average ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 2010                                         0.9846                   0.8966 2011                                         1.0290                   0.9220 2012                                         1.0009                   1.0106 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The impact of foreign exchange movement was unchanged between the three months ended March 31, 2012 and the same period of the previous year with a $0.2 million net foreign exchange loss recorded during both periods.

CMG recorded a net foreign exchange gain of $0.5 million during the year ended March 31, 2012 compared to a net foreign exchange loss of $0.5 million recorded for the same period of the previous fiscal year.

The weakening of the Canadian dollar during the third quarter of the current fiscal year, along with the fluctuation in the exchange rates between the Canadian and the US dollars during the current fiscal year, have contributed positively to the valuation of our US-denominated working capital, hence, contributing to the year-to-date foreign exchange gain.

INCOME AND OTHER TAXES

CMG’s effective tax rate for the year ended March 31, 2012 is reflected as 28.30% (2011 – 32.5%), whereas the prevailing Canadian statutory tax rate is now 26.13%. This is primarily due to a combination of the non-tax deductibility of stock-based compensation expense and the benefit of foreign withholding taxes being realized only as a tax deduction as opposed to a tax credit. In addition, during the fiscal year ended March 31, 2012, we recognized an amount related to previously unclaimed SRED investment tax credits.

The benefit recorded in CMG’s books on the SRED investment tax credit program impacts deferred income taxes. The investment tax credit earned in the current fiscal year is utilized by CMG to reduce income taxes otherwise payable for the current fiscal year and the federal portion of this benefit bears an inherent tax liability as the amount of the credit is included in the subsequent year’s taxable income for both federal and provincial purposes. The inherent tax liability on these investment tax credits is reflected in the year the credit is earned as a non-current deferred tax liability and then, in the following fiscal year, is transferred to income taxes payable.

Operating Profit and Net Income

For the three months ended March 31,      2012     2011  $ change  % change  ($ thousands, except per share                                                amounts)                                                                    ----------------------------------------------------------------------------                                                                              Total revenue                           17,215   14,378     2,837        20% Operating expenses                      (8,022)  (6,846)   (1,176)       17% ----------------------------------------------------------------------------                                                                              Operating profit                         9,193    7,532     1,661        22%                                                                              Operating profit as a % of total                                              revenue                                    53%      52%                     ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Net income for the period                6,620    4,808     1,812        38%                                                                              Net income for the period as a % of                                           total revenue                              38%      33%                     ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Earnings per share ($/share)              0.18     0.13      0.05        38% ----------------------------------------------------------------------------                                                                              For the year ended March 31,             2012      2011  $ change  % change  ($ thousands, except per share                                                amounts)                                                                    ----------------------------------------------------------------------------                                                                              Total revenue                          61,034    51,827     9,207        18% Operating expenses                    (29,430)  (26,150)   (3,280)       13% ----------------------------------------------------------------------------                                                                              Operating profit                       31,604    25,677     5,927        23%                                                                              Operating profit as a % of total                                              revenue                                   52%       50%                     ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Net income for the period              23,391    17,166     6,225        36%                                                                              Net income for the period as a % of                                           total revenue                             38%       33%                     ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Earnings per share ($/share)             0.63      0.48      0.15        31% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Operating profit as a percentage of total revenue increased to 53% and 52% for the three months and year ended March 31, 2012, respectively, compared to 52% and 50% recorded in the same periods of the previous fiscal year. The increases are a result of the increase in our total revenue driven by the growth in our software license sales, and effective management of our corporate costs.

Net income for the period as a percentage of revenue increased to 38% for the three months and year ended March 31, 2012, compared to 33% recorded in the same periods of previous fiscal year mainly as a result of the positive effect of the changes in foreign exchange rates recorded in the current fiscal year compared to the previous fiscal year and incurring less tax expenses as a result of lower withholding taxes, recovery of previously unclaimed SRED investment tax credits and a lower statutory tax rate.

The above results demonstrate that we have continued to maintain our profitability by focusing our efforts on increasing license sales while, at the same time, effectively controlling our operating costs. These variables will continue to be imperative to our future success.

EBITDA

For the three months ended March 31,       2012    2011  $ change  % change  ($ thousands, except per share amounts)                                      ----------------------------------------------------------------------------                                                                              Net income for the period                 6,620   4,808     1,812        38% Add (deduct):                                                                  Depreciation                              350     286        64        22%   Finance income                           (131)   (101)      (30)       30%   Finance costs                             220     220         -         0%   Income and other taxes                  2,484   2,605      (121)       -5% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- EBITDA                                    9,543   7,818     1,725        22% ----------------------------------------------------------------------------                                                                              For the year ended March 31,              2012     2011  $ change  % change  ($ thousands, except per share                                                amounts)                                                                    ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Net income for the period               23,391   17,166     6,225        36% Add (deduct):                                                                  Depreciation                           1,227    1,037       190        18%   Finance income                        (1,020)    (280)     (740)      264%   Finance costs                              -      523      (523)     -100%   Income and other taxes                 9,233    8,268       965        12% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- EBITDA                                  32,831   26,714     6,117        23% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

EBITDA increased by 22% and 23% for the three months and year ended March 31, 2012, respectively, compared to the same periods of the previous fiscal year. Both quarterly and annual increases in EBITDA are driven by strong sales and solid control over corporate expenses, and are consistent with the increases in operating profit.

Liquidity and Capital Resources

For the three months ended March 31,      2012     2011  $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Cash, beginning of period               47,615   38,012     9,603        25% Cash flow from (used in)                                                       Operating activities                  11,512    7,051     4,461        63%   Financing activities                  (3,318)  (3,055)     (263)        9%   Investing activities                    (435)    (255)     (180)       71% ---------------------------------------------------------------------------- Cash, end of period                     55,374   41,753    13,621        33% ----------------------------------------------------------------------------                                                                              For the year ended March 31,             2012      2011  $ change  % change  ($ thousands)                                                                ----------------------------------------------------------------------------                                                                              Cash, beginning of period              41,753    28,826    12,927        45% Cash flow from (used in)                                                       Operating activities                 30,185    27,516     2,669        10%   Financing activities                (15,063)  (13,399)   (1,664)       12%   Investing activities                 (1,501)   (1,190)     (311)       26% ---------------------------------------------------------------------------- Cash, end of period                    55,374    41,753    13,621        33% ----------------------------------------------------------------------------

OPERATING ACTIVITIES

Cash flow generated from operating activities increased by $4.5 million and $2.7 million in the three months and year ended March 31, 2012, respectively, compared to the same periods of last year, due to the increase in net income, the increase in deferred revenue balance, offset by decreases due to the timing differences when the sales are made and when the resulting receivables are collected, and net impact of changes in income taxes payable.

FINANCING ACTIVITIES

Cash used in financing activities increased by $0.3 million and $1.7 million in the three months and year ended March 31, 2012, respectively, compared to the same periods of last year, mainly as a result of paying larger dividends and buying back common shares, offset by the impact of recording more cash proceeds from options being exercised.

During the year ended March 31, 2012, CMG employees and directors exercised options to purchase 913,000 Common Shares, which resulted in cash proceeds of $5.9 million.

In the year ended March 31, 2012, CMG paid $20.5 million in dividends, representing the following quarterly dividends:

($ per share)                                        Q1     Q2     Q3     Q4 ----------------------------------------------------------------------------                                                                              Dividends declared and paid                       0.105  0.110  0.110  0.130 Special dividend declared and paid                0.100      -      -      - ---------------------------------------------------------------------------- Total dividends declared and paid                 0.205  0.110  0.110  0.130 ----------------------------------------------------------------------------

On May 23, 2012, CMG announced the payment of a quarterly dividend of $0.16 per share and a special dividend of $0.10 per share on CMG’s Common Shares. The dividend will be paid on June 15, 2012 to shareholders of record at the close of business on June 8, 2012.

Over the past 9 years, we have consistently raised our total annual dividend and paid out a special dividend at the end of each fiscal year as determined by our corporate performance. In recognition of the importance of a more regular income stream to our shareholders, we have decided to increase the relative proportion of dividends paid quarterly and lower the amount paid as a special annual dividend beginning in fiscal 2013. The special dividend, if any, will continue to be determined annually based on the Company’s performance.

Based on our expectation of solid profitability and cash-generating ability driven by the predictability of our software revenue base and effective management of costs, we are cautiously optimistic that the company is well positioned for future growth which will enable us to sustain increased levels of quarterly dividends.

Continued increases in our dividend further demonstrate the exceptional performance and stability of our business model as well as our commitment to return value to our shareholders as we continue to invest in research and development initiatives.

On April 6, 2011, the Company announced a Normal Course Issuer Bid (“NCIB”) commencing on April 7, 2011 to purchase for cancellation up to 1,636,000 of its Common Shares. During the year ended March 31, 2012, 33,000 Common Shares were purchased at market price for a total cost of $438,000.

On April 16, 2012, the Company announced a NCIB commencing on April 18, 2012 to purchase for cancellation up to 3,416,000 of its Common Shares.

INVESTING ACTIVITIES

CMG’s current needs for capital asset investment relate to computer equipment and office infrastructure costs, all of which will be funded internally. During the year ended March 31, 2012, CMG expended $1.5 million on property and equipment additions, primarily composed of computing equipment and leasehold improvements, and currently has a capital budget of $2.1 million for fiscal 2013.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2012, CMG has $55.4 million in cash, no debt and has access to just over $0.8 million under a line of credit with its principal banker.

During the year ended March 31, 2012, 8,899,000 shares of CMG’s public float were traded on the TSX. As at March 31, 2012, CMG’s market capitalization based upon its March 31, 2012 closing price of $15.90 was $593.2 million.

Commitments, Off Balance Sheet Items and Transactions with Related Parties

The Company is the operator of the DRMS project, a collaborative effort with its partners Shell and Petrobras, to jointly develop the newest generation of reservoir and production system simulation software. The project has been underway since 2006 and, with the ongoing support of the participants, it is expected to continue until ultimate delivery of the software. The Company’s share of costs associated with the project is estimated to be $4.0 million ($1.9 million net of overhead recoveries) for the upcoming fiscal year. CMG plans to continue funding its share of the project costs associated with the development of the newest generation reservoir simulation software system from internally generated cash flows.

CMG has very little in the way of other ongoing material contractual obligations other than for pre-sold licenses which are reflected as deferred revenue on its statement of financial position, and contractual obligations for office leases which are estimated as follows: 2013 to 2015 – $1.9 million per year; 2016 – $2.0 million; and 2017 – $0.9 million.

Critical Accounting Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. By their nature, these estimates are subject to estimation uncertainty. The effect on the financial statements of changes in such estimates in future periods could be material and would be accounted for in the period in which the estimates are revised and in any future periods affected.

Revenue recognition

Revenue consists primarily of software license fees with some fees for professional services. We recognize revenue in accordance with the current rules of IFRS. We follow specific and detailed guidelines in measuring revenue; however, certain judgments affect the application of our revenue recognition policies.

Software license revenue is comprised of annuity/maintenance license fees charged for the use of our software products which is generally for a term of one year or less, and perpetual software licensing, whereby the customer purchases the-then-current version of the software and has the right to use that version in perpetuity. We recognize software license revenue when persuasive evidence of an arrangement exists, the product has been delivered, the fee is fixed or determinable, and collection of the resulting receivable is probable. In cases where collectability is not deemed probable, revenue is recognized upon receipt of cash, assuming all other criteria have been met.

Annuity/maintenance revenue is deferred and recognized on a straight-line basis over the life of the related license period, which is generally one year or less. License fees for perpetual licenses are recognized fully in revenue when all recognition conditions are satisfied.

Certain software license agreements contain multiple-element arrangements as they may also include maintenance fees. Judgment is used in determining a fair value of each element of a contract.

Professional services revenue earned from certain consulting contracts is recognized by the stage of completion of the transaction determined using the percentage-of-completion method. Judgment is used in determining progress of each contract at period end. In assessing revenue recognition, judgment is also used in determining the ability to collect the corresponding account receivable.

Functional currency

The determination of the functional currency is a matter of determining the primary economic environment in which an entity operates. IAS 21, The Effects of Changes in Foreign Exchange Rates, sets out a number of factors to apply in making the determination of the functional currency. However, applying the factors in IAS 21 does not always result in a clear indication of functional currency. Where IAS 21 factors indicate differing functional currencies within a subsidiary, the Company uses judgment in the ultimate determination of that subsidiary’s functional currency, including an assessment of the nature of the relationship between the Company and the subsidiary. Judgment was applied in the determination of the functional currency of certain of the Company’s operating entities.

Research and development

Assumptions are made in respect to the eligibility of certain research and development projects in the calculation of SRED investment tax credits which are netted against the research and development costs in the statement of operations. SRED claims are subject to audits by relevant taxation authorities and the actual amount may change depending on the outcome of such audits.

Stock-based compensation

Assumptions and estimates are used in determining the inputs used in the Black-Scholes option pricing model, including assumptions regarding volatility, dividend yield, risk-free interest rates, forfeiture estimates and expected option lives.

Property and equipment

Estimates are used in determining useful economic lives of property and equipment for the purposes of calculating depreciation.

Deferred income taxes

Assumptions and estimates are made regarding the amount and timing of realization and/or settlement of the temporary differences between the accounting carrying value of the Company’s assets versus the tax basis of those assets, and the tax rates at which the differences will be recovered or settled in the future.

Changes in Accounting Policies

INTERNATIONAL FINANCIAL REPORTING STANDARDS

The CICA Accounting Standards Board requires all Canadian publicly listed entities to adopt IFRS for interim and annual financial reporting purposes for fiscal years beginning on or after January 1, 2011. Accordingly, this is the first annual period in which we have provided audited consolidated financial statements which are in compliance with IFRS. In accordance with IFRS 1, First-time Adoption of IFRS, we have applied IFRS retrospectively as of April 1, 2010, our transition date, as if IFRS had always been in effect, subject to certain mandatory exceptions and optional exemptions.

An explanation of how the transition to IFRS has affected the reported financial position, financial performance and cash flows of the Company is provided in note 22 to the Consolidated Financial Statements for the year ended March 31, 2012.

The transition to IFRS did not have a material impact on retained earnings, net income or cash flows. The only adjustments were reclassifications on the Statement of Financial Position, Statement of Operations and Comprehensive Income, and the Statement of Cash Flows as follows:

Statement of Financial Position

- Deferred taxes are classified as non-current under IFRS. Under previous Canadian GAAP, deferred taxes were classified as current and non-current based on the classification of the underlying assets or liabilities to which they relate or based on the expected reversal of the temporary differences.

Transition rules resulted in the reclassification of the deferred tax liability associated with SRED credits from current to non-current. In addition, the deferred tax asset associated with property and equipment was offset against the deferred tax liability as both relate to income taxes levied by the same taxation authority for the same taxable entity.

Statement of Operations and Comprehensive Income

- Expense classification – the Company has elected to present its expenses in the consolidated statements of operations and comprehensive income prepared under IFRS according to their function. As a result, depreciation, which was reported as a separate line item under previous Canadian GAAP, was allocated to its respective functions.

- Finance income and costs – under Canadian GAAP, interest income and foreign exchange gains and losses were classified as separate line items in the consolidated statement of earnings. Under IFRS, interest income and net foreign exchange gains are presented as finance income, and net foreign exchange losses are presented as finance costs. Finance income and costs are presented on a gross basis as required by IFRS.

Statement of Cash Flows

- Interest received and income taxes paid have been moved into the body of the statement of cash flows under operating activities, whereas they were previously disclosed as supplemental information.

Accounting Standards and Interpretations Issued But Not Yet Effective

The following standards and interpretations have not been adopted by the Company as they apply to future periods:

Standard/              Nature of impending change in   Impact on CMG's       Interpretation         accounting policy               financial statements  ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS 9 Financial       IFRS 9 (2009) replaces the      IFRS 9 (2010)         Instruments            guidance in IAS 39 Financial    supersedes IFRS 9     In November 2009 the   Instruments: Recognition and    (2009) and is         IASB issued IFRS 9     Measurement, on the             effective for annual  Financial Instruments  classification and measurement  periods beginning on  (IFRS 9 (2009)), and   of financial assets. The        or after January 1,   in October 2010 the    Standard eliminates the         2015, with early      IASB published         existing IAS 39 categories of   adoption permitted.   amendments to IFRS 9   held to maturity, available-    For annual periods    (IFRS 9 (2010)). In    for-sale and loans and          beginning before      December 2011, the     receivable.                     January 1, 2015,      IASB issued an                                         either IFRS 9 (2009)  amendment to IFRS 9    Financial assets will be        or IFRS 9 (2010) may  to defer the           classified into one of two      be applied.           mandatory effective    categories on initial                                 date to annual         recognition:                    The Company intends   periods beginning on                                   to adopt IFRS 9       or after January 1,    - financial assets measured at  (2010) in its         2015.                  amortized cost; or              financial statements                         - financial assets measured at  for the annual period                        fair value.                     beginning on April 1,                                                        2015. The Company                            Gains and losses on             does not expect IFRS                         remeasurement of financial      9 (2010) to have a                           assets measured at fair value   material impact on                           will be recognized in profit    the financial                                or loss, except that for an     statements. The                              investment in an equity         classification and                           instrument which is not held-   measurement of the                           for-trading, IFRS 9 provides,   Company's financial                          on initial recognition, an      assets and                                   irrevocable election to         liabilities is not                           present all fair value changes  expected to change                           from the investment in other    under IFRS 9 (2010)                          comprehensive income (OCI).     because of the nature                        The election is available on    of the Company's                             an individual share-by-share    operations and the                           basis. Amounts presented in     types of financial                           OCI will not be reclassified    assets that it holds.                        to profit or loss at a later                                                 date.                                                                                                                                                     IFRS 9 (2010) added guidance                                                 to IFRS 9 (2009) on the                                                      classification and measurement                                               of financial liabilities, and                                                this guidance is consistent                                                  with the guidance in IAS 39                                                  expect as described below.                                                                                                                                Under IFRS 9 (2010), for                                                     financial liabilities measured                                               at fair value under the fair                                                 value option, changes in fair                                                value attributable to changes                                                in credit risk will be                                                       recognized in OCI, with the                                                  remainder of the change                                                      recognized in profit or loss.                                                However, if this requirement                                                 creates or enlarges an                                                       accounting mismatch in profit                                                or loss, the entire change in                                                fair value will be recognized                                                in profit or loss. Amounts                                                   presented in OCI will not be                                                 reclassified to profit or loss                                               at a later date.                                                                                                                                          IFRS 9 (2010) also requires                                                  derivative liabilities that                                                  are linked to and must be                                                    settled by delivery of an                                                    unquoted equity instrument to                                                be measured at fair value,                                                   whereas such derivative                                                      liabilities are measured at                                                  cost under IAS 39.                                                                                                                                        IFRS 9 (2010) also added the                                                 requirements of IAS 39 for the                                               derecognition of financial                                                   assets and liabilities to IFRS                                               9 without change.                                                                                                                                         The IASB has deferred the                                                    mandatory effective date of                                                  the existing chapters of IFRS                                                9 Financial Instruments (2009)                                               and IFRS 9 (2010) to annual                                                  periods beginning on or after                                                January 1, 2015. The early                                                   adoption of either standard                                                  continues to be permitted.                                                                                                         ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS 10 Consolidated   IFRS 10 replaces the guidance   The Company intends   Financial Statements   in IAS 27 Consolidated and      to adopt IFRS 10 in                          Separate Financial Statements   its financial         In May 2011, the IASB  and SIC-12 Consolidation -      statements for the    issued IFRS 10         Special Purpose Entities. IAS   annual period         Consolidated           27 (2008) survives as IAS 27    beginning on April 1, Financial Statements,  (2011) Separate Financial       2013. The Company     which is effective     Statements, only to carry       does not expect IFRS  for annual periods     forward the existing            10 to have a material beginning on or after  accounting requirements for     impact on the         January 1, 2013, with  separate financial statements.  financial statements. early adoption                                                               permitted. If an       IFRS 10 provides a single                             entity applies this    model to be applied in the                            Standard earlier, it   control analysis for all                              shall also apply IFRS  investees, including entities                         11, IFRS 12, IAS 27    that currently are SPEs in the                        (2011) and IAS 28      scope of SIC-12. In addition,                         (2011) at the same     the consolidation procedures                          time.                  are carried forward                                                          substantially unmodified from                                                IAS 27 (2008).                                        ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS 11 Joint          IFRS 11 replaces the guidance   The Company intends   Arrangements           in IAS 31 Interests in Joint    to adopt IFRS 11 in                          Ventures.                       its financial         In May 2011, the IASB                                  statements for the    issued IFRS 11 Joint   Under IFRS 11, joint            annual period         Arrangements, which    arrangements are classified as  beginning on April 1, is effective for       either joint operations or      2013. The Company     annual periods         joint ventures. IFRS 11         does not expect IFRS  beginning on or after  essentially carves out of       11 to have a material January 1, 2013, with  previous jointly controlled     impact on the         early adoption         entities, those arrangements    financial statements. permitted. If an       which although structured                             entity applies this    through a separate vehicle,                           Standard earlier, it   such separation is ineffective                        shall also apply IFRS  and the parties to the                                10, IFRS 12, IAS 27    arrangement have rights to the                        (2011) and IAS 28      assets and obligations for the                        (2011) at the same     liabilities and are accounted                         time.                  for as joint operations in a                                                 fashion consistent with                                                      jointly controlled                                                           assets/operations under IAS                                                  31. In addition, under IFRS 11                                               joint ventures are stripped of                                               the free choice of equity                                                    accounting or proportionate                                                  consolidation; these entities                                                must now use the equity                                                      method.                                                                                                                                                   Upon application of IFRS 11,                                                 entities which had previously                                                accounted for joint ventures                                                 using proportionate                                                          consolidation shall collapse                                                 the proportionately                                                          consolidated net asset value                                                 (including any allocation of                                                 goodwill) into a single                                                      investment balance at the                                                    beginning of the earliest                                                    period presented. The                                                        investment's opening balance                                                 is tested for impairment in                                                  accordance with IAS 28 (2011)                                                and IAS 36 Impairment of                                                     Assets. Any impairment losses                                                are recognized as an                                                         adjustment to opening retained                                               earnings at the beginning of                                                 the earliest period presented.                        ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS 12 Disclosure of  IFRS 12 contains the            The Company intends   Interests in Other     disclosure requirements for     to adopt IFRS 12 in   Entities               entities that have interests    its financial                                in subsidiaries, joint          statements for the    In May 2011, the IASB  arrangements (i.e. joint        annual period         issued IFRS 12         operations or joint ventures),  beginning on April 1, Disclosure of          associates and/or               2013. The Company     Interests in Other     unconsolidated structured       does not expect the   Entities, which is     entities. Interests are widely  amendments to have a  effective for annual   defined as contractual and      material impact on    periods beginning on   non-contractual involvement     the financial         or after January 1,    that exposes an entity to       statements, because   2013, with early       variability of returns from     of the nature of the  adoption permitted.    the performance of the other    Company's interests   If an entity applies   entity. The required            in other entities.    this Standard          disclosures aim to provide                            earlier, it needs not  information in order to enable                        to apply IFRS 10,      users to evaluate the nature                          IFRS 11, IAS 27        of, and the risks associated                          (2011) and IAS 28      with, an entity's interest in                         (2011) at the same     other entities, and the                               time.                  effects of those interests on                                                the entity's financial                                                       position, financial                                                          performance and cash flows.                           ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS 13 Fair Value     IFRS 13 replaces the fair       The Company intends   Measurement            value measurement guidance      to adopt IFRS 13                             contained in individual IFRSs   prospectively in its  In May 2011, the IASB  with a single source of fair    financial statements  published IFRS 13      value measurement guidance. It  for the annual period Fair Value             defines fair value as the       beginning on April 1, Measurement, which is  price that would be received    2013. The extent of   effective              to sell an asset or paid to     the impact of         prospectively for      transfer a liability in an      adoption of IFRS 13   annual periods         orderly transaction between     has not yet been      beginning on or after  market participants at the      determined.           January 1, 2013. The   measurement date, i.e. an exit                        disclosure             price. The standard also                              requirements of IFRS   establishes a framework for                           13 need not be         measuring fair value and sets                         applied in             out disclosure requirements                           comparative            for fair value measurements to                        information for        provide information that                              periods before         enables financial statement                           initial application.   users to assess the methods                                                  and inputs used to develop                                                   fair value measurements and,                                                 for recurring fair value                                                     measurements that use                                                        significant unobservable                                                     inputs (Level 3), the effect                                                 of the measurements on profit                                                or loss or other comprehensive                                               income.                                                                                                                                                   IFRS 13 explains 'how' to                                                    measure fair value when it is                                                required or permitted by other                                               IFRSs. IFRS 13 does not                                                      introduce new requirements to                                                measure assets or liabilities                                                at fair value, nor does it                                                   eliminate the practicability                                                 exceptions to fair value                                                     measurements that currently                                                  exist in certain standards.                           ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Amendments to IAS 1    The amendments require that an  The Company intends   Presentation of        entity present separately the   to adopt the          Financial Statements   items of OCI that may be        amendments in its                            reclassified to profit or loss  financial statements  In June 2011, the      in the future from those that   for the annual period IASB published         would never be reclassified to  beginning on April 1, amendments to IAS 1    profit or loss. Consequently    2013. As the          Presentation of        an entity that presents items   amendments only       Financial Statements:  of OCI before related tax       require changes in    Presentation of Items  effects will also have to       the presentation of   of Other               allocate the aggregated tax     items in other        Comprehensive Income,  amount between these            comprehensive income, which are effective    categories.                     the Company does not  for annual periods                                     expect the amendments beginning on or after  The existing option to present  to IAS 1 to have a    July 1, 2012 and are   the profit or loss and other    material impact on    to be applied          comprehensive income in two     the financial         retrospectively.       statements has remained         statements.           Early adoption is      unchanged.                                            permitted.                                                                   ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Amendments to IAS 32   The amendments to IAS 32        The Company intends   and IFRS 7,            clarify that an entity          to adopt the          Offsetting Financial   currently has a legally         amendments to IFRS 7  Assets and             enforceable right to set-off    in its financial      Liabilities            if that right is:               statements for the                                                           annual period         In December 2011, the  - not contingent on a future    beginning on April 1, IASB published         event; and                      2013, and the         Offsetting Financial   - enforceable both in the       amendments to IAS 32  Assets and Financial   normal course of business and   in its financial      Liabilities and        in the event of default,        statements for the    issued new disclosure  insolvency or bankruptcy of     annual period         requirements in IFRS   the entity and all              beginning April 1,    7 Financial            counterparties.                 2014. The Company     Instruments:                                           does not expect the   Disclosures.           The amendments to IAS 32 also   amendments to have a                         clarify when a settlement       material impact on    The effective date     mechanism provides for net      the financial         for the amendments to  settlement or gross settlement  statements.           IAS 32 is annual       that is equivalent to net                             periods beginning on   settlement.                                           or after January 1,                                                          2014. The effective    The amendments to IFRS 7                              date for the           contain new disclosure                                amendments to IFRS 7   requirements for financial                            is annual periods      assets and liabilities that                           beginning on or after  are:                                                  January 1, 2013.                                                             These amendments are   - offset in the statement of                          to be applied          financial position; or                                retrospectively.       - subject to master netting                                                  arrangements or similar                                                      arrangements.                                         ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Outstanding Share Data

The following table represents the number of Common Shares and options outstanding:

---------------------------------------------------------------------------- As at May 23, 2012                                                           (thousands)                                                                  ---------------------------------------------------------------------------- Common Shares                                                         37,320 Options                                                                2,889 ----------------------------------------------------------------------------

On July 13, 2005, CMG adopted a rolling stock option plan which allows the Company to grant options to its employees and directors to acquire Common Shares of up to 10% of the outstanding Common Shares at the date of grant. Based upon this calculation, at May 23, 2012, CMG could grant up to 3,732,000 stock options.

Business Risks

The Company has the following business risks:

COMMODITY PRICE RISK

CMG’s customers are oil and gas companies and it might, therefore, be assumed that its financial results are significantly impacted by commodity prices. CMG’s actual experience of growth in software license revenues during depressed oil price markets makes us believe that software license sales are influenced more by the utility of the software as opposed to the prevailing commodity price but different circumstances could prevail in the future. Low commodity prices and resulting lower cash flow in the industry could impact how customers license CMG software; one could expect sales of perpetual licenses to decrease in favour of leasing software on a term basis.

Volatility in commodity prices could have an impact on CMG’s consulting business; however, this business segment generates less than 10% of total revenues and CMG has no current plans to significantly expand this area of business.

CREDIT AND LIQUIDITY RISKS

Our product demand is dependent on the customers’ overall spending plans, which are driven by commodity prices and the availability of capital. This risk is mitigated by having a diversified customer base with the majority of revenue being derived from larger entities which are not as affected by the market volatility or cyclical downturns in commodity prices. In addition, our diversified geographic profile helps to mitigate the effects of economic recessions and instability experienced in any particular geographic region.

The Company mitigates the collection risk by closely monitoring its accounts receivable and assessing creditworthiness of its customers. The Company has not had any significant losses to date.

In terms of liquidity, the Company held $55.4 million of cash at March 31, 2012, which more than covers its obligations and it has over $0.8 million of the credit facility available for its use. The Company’s cash is held with a reputable banking institution. For the described reasons, we believe that our liquidity risk is low.

SALES VARIABILITY RISK

CMG’s software license revenue consists of annuity/maintenance software licensing, which is generally for a term of one year or less, and perpetual software licensing, whereby the customer purchases the-then-current version of the software(s) and has the right to use that version in perpetuity. Software licensing under perpetual sales is a significant part of CMG’s business but is more variable in nature as the purchase decision, and its timing, fluctuate with clients’ needs and budgets. CMG has found that a number of clients prefer to acquire perpetual software licenses rather than leasing the software on an annual basis. The experience over the last few years is that a number of these clients are purchasing additional licenses to allow more users to access CMG technology in their operations. CMG has found that a large percentage of its customers who have acquired perpetual software licenses are subsequently purchasing maintenance licenses to ensure they have access to current CMG technology.

The variability in sales of perpetual licenses may cause significant fluctuations in the Company’s quarterly and annual financial results, and these results may not meet the expectations of analysts or investors. Accordingly, the Company’s past results may not be a good indication of its future performance.

CMG’s customers are both domestic and international oil and gas companies and for the years ended March 31, 2012 and March 31, 2011, no customer represented revenue in excess of 10% of total revenue.

FOREIGN EXCHANGE RISK

CMG’s reported results are affected by the exchange rate between the Canadian dollar and the US dollar as approximately 73% (2011 – 68%) of product revenues in fiscal 2012 were denominated in US dollars. Approximately 24% of CMG’s total costs in fiscal 2012 (2011 – 25%) were denominated in US dollars and provided a partial economic hedge against the fluctuation in currency exchange between the US and the Canadian dollar on revenues. CMG’s residual revenues and costs are primarily denominated in Canadian dollars and its policy is to convert excess US dollar cash into Canadian dollars when received.

ECONOMIC AND POLITICAL RISKS

CMG sells its products and services in over 50 countries worldwide. Some of these countries have greater economic and political risk than experienced in North America and as a result there may be greater risk associated with sales in those jurisdictions. CMG manages this risk by invoicing for the full license term in advance for the majority of software license sales and by invoicing as frequently as the contract allows for consulting and contract research services on a percentage-of-completion basis. In addition, CMG assesses if specific insurance should be acquired depending upon the size of the sale and its view of the country risk at the time of sale.

COMPETITION RISK

Competition is a risk for CMG as it is for almost every company in every sector. The reservoir simulation software industry currently consists of four major suppliers (including CMG) and a number of small suppliers. Some of the other suppliers, including three major suppliers, offer products or oil field services outside the scope of reservoir simulation. Some potential customers may prefer to deal with such multi-service suppliers, while others prefer an independent supplier, such as CMG.

Although competition is very active, CMG believes that its proven technology and the comprehensive scope of its products, combined with its international presence and recognition as a major independent supplier, provide distinct competitive advantages.

Sustaining competitive advantage is another issue, which CMG addresses by making a significant ongoing commitment to research and development spending. CMG expended $10.6 million (2011 – $9.3 million) in product research and development in its most recently completed fiscal year.

The introduction by competitors of products embodying new technology and the emergence of new industry standards and practices could render CMG’s products obsolete and unmarketable and could exert price pressures on existing products, which could have negative effects on the Company’s business, operating results and financial condition.

There is a significant barrier for new entrants into the reservoir simulation software industry. The cost of entry is substantial as a significant investment in research and development is required. In addition, to become a major supplier, a significant time investment is required to build up quality relationships with potential clients.

LABOUR RISK

The Company’s continued success is substantially dependent on the performance of its key employees and officers. The loss of the services of these personnel as well as failure to attract additional key personnel could have a negative impact upon the Company’s business, operating results and financial condition. Due to high levels of competition for qualified personnel, there can be no assurance that the Company will be successful in retaining and attracting such personnel. The Company attempts to overcome this by offering an attractive compensation package and providing an environment that provides the intellectual and professional stimulation sought by our employee group.

INTELLECTUAL PROPERTY RISK

CMG regards its software as proprietary and attempts to protect it with copyrights, trademarks and trade secret measures, including restrictions on disclosure and technical measures. Despite these precautions, it may be possible for third parties to copy CMG’s programs or aspects of its trade secrets. CMG has no patents, and existing legal and technical precautions afford only limited practical protection. CMG could incur substantial costs in protecting and enforcing its intellectual property rights. Moreover, from time to time third parties may assert patent, trademark, copyright and other intellectual property rights to technologies that are important to CMG. In such an event, CMG may be required to incur significant costs in litigating a resolution to the asserted claim. There can be no assurance that such a resolution would not require that CMG pay damages or obtain a license of a third party’s proprietary rights in order to continue licensing its products as currently offered, or, if such a license is required, that it will be available on terms acceptable to CMG.

CMG does not know of any infringement of any third party’s patent rights, copyrights, trade secrecy rights or other intellectual property disputes in the development or support of its products.

Disclosure Controls and Procedures and Internal Control over Financial Reporting

Management is responsible for establishing and maintaining disclosure controls and procedures (“DCP”) and internal control over financial reporting (“ICFR”) as defined under National Instrument 52-109.

At March 31, 2012, the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”) concluded that the design and operation of the Company’s DCP were effective and that material information relating to the Company, including its subsidiaries, was made known to them and was recorded, processed, summarized and reported within the time periods specified under applicable securities legislation. Further, the CEO and the CFO concluded that the design and operation of the Company’s ICFR were effective at March 31, 2012 in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. It should be noted that while the Company’s CEO and CFO believe that the Company’s disclosure controls and procedures and internal controls over financial reporting provide a reasonable level of assurance that they are effective, they do not expect that such controls and procedures will prevent all errors and fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

During the year ended March 31, 2012, there have been no significant changes to the Company’s ICFR that have materially affected, or are reasonably likely to materially affect, the company’s ICFR.

NON-IFRS FINANCIAL MEASURES

This MDA includes certain measures which have not been prepared in accordance with IFRS such as “EBITDA”, “direct employee costs” and “other corporate costs.” Since these measures do not have a standard meaning prescribed by IFRS, they are unlikely to be comparable to similar measures presented by other issuers. Management believes that these indicators nevertheless provide useful measures in evaluating the Company’s performance.

“Direct employee costs” include salaries, bonuses, stock-based compensation, benefits, commission expenses, and professional development. “Other corporate costs” include facility-related expenses, corporate reporting, professional services, marketing and promotion, computer expenses, travel, and other office-related expenses. Direct employee costs and other corporate costs should not be considered an alternative to total operating expenses as determined in accordance with IFRS. People-related costs represent the Company’s largest area of expenditure; hence, management considers highlighting separately corporate and people-related costs to be important in evaluating the quantitative impact of cost management of these two major expenditure pools. See “Expenses” heading for a reconciliation of direct employee costs and other corporate costs to total operating expenses.

“EBITDA” refers to net income before adjusting for depreciation expense, finance income, finance costs, and income and other taxes. EBITDA should not be construed as an alternative to net income as determined by IFRS. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to consideration of how those activities are amortized, financed or taxed. See “EBITDA” heading for a reconciliation of EBITDA to net income.

FORWARD-LOOKING INFORMATION

Certain information included in this MDA is forward-looking. Forward-looking information includes statements that are not statements of historical fact and which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as investment objectives and strategy, the development plans and status of the Company’s software development projects, the Company’s intentions, results of operations, levels of activity, future capital and other expenditures (including the amount, nature and sources of funding thereof), business prospects and opportunities, research and development timetable, and future growth and performance. When used in this MDA, statements to the effect that the Company or its management “believes”, “expects”, “expected”, “plans”, “may”, “will”, “projects”, “anticipates”, “estimates”, “would”, “could”, “should”, “endeavours”, “seeks”, “predicts” or “intends” or similar statements, including “potential”, “opportunity”, “target” or other variations thereof that are not statements of historical fact should be construed as forward-looking information. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management of the Company. The Company believes that the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

With respect to forward-looking information contained in this MDA, 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 MDA:

--  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 MDA. 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 MDA. 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 MDA to reflect events or circumstances that occur after the date of this MDA 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 23, 2012.

Outlook

As in the past several years, CMG remains committed to focusing all its resources on the development, enhancement and deployment of simulation software tools relevant to the challenges and opportunities facing its diverse customer base. 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. The greater challenges have been with natural gas prices, which have not fared as well, and petroleum producers are faced with uncertainty related to the fears of another worldwide economic recession, political unrest in several petroleum producing countries and environmental issues that have threatened to increase the costs of development and production.

With diversification of our geographic profile, we plan to strengthen our position in the global marketplace which should also help to mitigate the effects of economic recession and instability experienced in any particular geographic region.

Over 70% of our annual software license revenue is derived from our annuity and maintenance contracts which generally represent a recurring source of revenue. We have continued to see successive increases in this revenue base over the past several years and with a strong renewal rate, we expect this trend to continue.

CMG’s joint project to develop the newest generation of dynamic reservoir modelling systems (“DRMS Project”) continues to make progress in fiscal 2012. Our goal for 2012 was to move beyond the initial “demonstration” version of the product towards a beta release to our partners. During the stabilization period, prior to the beta release, we encountered instances of instability in the code that have led us to delay the beta release until later this year. Additionally, Allan Hiebert, the Vice President, DRMS Development, has tendered his resignation effective July 17, 2012. With these developments, we anticipate a commercial release of the software by the end of calendar 2013. While this news is disappointing, we are very excited about the progress we have made and have a greater appreciation of the size of the task we undertook six years ago. CMG and its partners remain committed to funding the ongoing development and to the future success of the project.

The Company remains confident that the value that CMG technology provides to its customers is greater than ever and accordingly we continue to be optimistic that our software license revenue will remain solid. With our strong working capital position, we are well positioned to continue to invest in all aspects of our business to continue to grow and diversify our revenue base and to ultimately return value to our shareholders in the form of regular quarterly dividend payments and growth in share value.

Kenneth M. Dedeluk, President and Chief Executive Officer

May 23, 2012

COMPUTER MODELLING GROUP LTD.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

---------------------------------------------------------------------------- (thousands of Canadian $)   March 31, 2012   March 31, 2011    April 1, 2010 ----------------------------------------------------------------------------                                                                              Assets                                                                       Current assets:                                                               Cash                               55,374           41,753           28,826  Trade and other                                                               receivables (note                                                            14(a))                            15,494           13,318           16,072  Prepaid expenses                    1,195            1,064            1,141  Prepaid income taxes                    -                -            1,433 ----------------------------------------------------------------------------                                     72,063           56,135           47,472 Property and equipment                                                        (note 5)                            2,829            2,554            2,401 ---------------------------------------------------------------------------- Total assets                        74,892           58,689           49,873 ----------------------------------------------------------------------------                                                                              Liabilities and                                                               Shareholders' Equity                                                        Current liabilities:                                                          Trade payables and                                                            accrued liabilities                                                          (note 6)                           5,358            4,543            5,398  Income taxes payable                1,404            1,237                -  Deferred revenue                   21,693           16,755           13,843 ----------------------------------------------------------------------------                                     28,455           22,535           19,241 Deferred tax liability                                                        (note 11)                             358              384              189 ---------------------------------------------------------------------------- Total liabilities                   28,813           22,919           19,430 ----------------------------------------------------------------------------                                                                              Shareholders' equity:                                                         Share capital                      31,751           24,801           20,390  Contributed surplus                 3,535            2,655            1,816  Retained earnings                  10,793            8,314            8,237 ---------------------------------------------------------------------------- Total shareholders'                                                           equity                             46,079           35,770           30,443 ---------------------------------------------------------------------------- Total liabilities and                                                         shareholders' equity               74,892           58,689           49,873 ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

Approved by the Board

Frank L. Meyer, Director

Robert F. M. Smith, Director

COMPUTER MODELLING GROUP LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

---------------------------------------------------------------------------- Years Ended March 31,                                  2012            2011  (thousands of Canadian $ except per share                                     amounts)                                                                    ----------------------------------------------------------------------------                                                                              Revenue (note 7)                                     61,034          51,827  ----------------------------------------------------------------------------                                                                              Operating expenses                                                             Sales, marketing and professional                                             services                                          13,036          11,704    Research and development (note 8)                  10,629           9,338    General and administrative                          5,765           5,108  ----------------------------------------------------------------------------                                                      29,430          26,150  ---------------------------------------------------------------------------- Operating profit                                     31,604          25,677                                                                               Finance income (note 10)                              1,020             280  Finance costs (note 10)                                   -            (523) ---------------------------------------------------------------------------- Profit before income and other taxes                 32,624          25,434  Income and other taxes (note 11)                      9,233           8,268  ----------------------------------------------------------------------------                                                                              Net and total comprehensive income                   23,391          17,166  ----------------------------------------------------------------------------                                                                              Earnings Per Share                                                           Basic (note 12(e))                                     0.63            0.48  Diluted (note 12(e))                                   0.62            0.47  ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

COMPUTER MODELLING GROUP LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

----------------------------------------------------------------------------                            Share Capital                                                         --------------------                                                                                                                  (thousands of                       Non-  Contributed   Retained      Total   Canadian $)           Common     voting      Surplus   Earnings     Equity  ----------------------------------------------------------------------------                                                                              Balance, April 1,                                                             2010                  20,244        146        1,816      8,237     30,443  Total comprehensive                                                           income for the                                                               year                       -          -            -     17,166     17,166  Dividends paid              -          -            -    (16,971)   (16,971) Shares issued for                                                             cash on exercise                                                             of stock options                                                             (note 12(b))           3,697          -            -          -      3,697  Common shares buy-                                                            back (notes 12(b)                                                             (c))                    (7)         -            -       (118)      (125) Converted into                                                                common shares                                                                (note 12(b))             146       (146)           -          -          -  Stock-based                                                                   compensation:                                                                Current period                                                                expense                   -          -        1,560          -      1,560   Stock options                                                                 exercised               721          -         (721)         -          -  ---------------------------------------------------------------------------- Balance, March 31,                                                            2011                  24,801          -        2,655      8,314     35,770  ----------------------------------------------------------------------------                                                                              Balance, April 1,                                                             2011                  24,801          -        2,655      8,314     35,770  Total comprehensive                                                           income for the                                                               year                       -          -            -     23,391     23,391  Dividends paid              -          -            -    (20,499)   (20,499) Shares issued for                                                             cash on exercise                                                             of stock options                                                             (note 12(b))           5,874          -            -          -      5,874  Common shares buy-                                                            back (notes 12(b)                                                             (c))                   (25)         -            -       (413)      (438) Stock-based                                                                   compensation:                                                                Current period                                                                expense                   -          -        1,981          -      1,981   Stock options                                                                 exercised             1,101          -       (1,101)         -          -  ---------------------------------------------------------------------------- Balance, March 31,                                                            2012                  31,751          -        3,535     10,793     46,079  ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

COMPUTER MODELLING GROUP LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

---------------------------------------------------------------------------- Years ended March 31,                                 2012             2011  (thousands of Canadian $)                                                    ----------------------------------------------------------------------------                                                                              Cash flows from operating activities                                           Net income                                        23,391           17,166  Adjustments for:                                                               Depreciation (note 5)                              1,227            1,037    Income and other taxes (note 11)                   9,233            8,268    Stock-based compensation (note 12(d))              1,981            1,560    Interest income (note 10)                           (472)            (280) ----------------------------------------------------------------------------                                                     35,360           27,751  Changes in non-cash working capital:                                           Trade and other receivables                       (2,164)           2,775    Trade payables and accrued liabilities               815             (854)   Prepaid expenses                                    (131)              77    Deferred revenue                                   4,938            2,912  ---------------------------------------------------------------------------- Cash generated from operating activities            38,818           32,661    Interest received                                    458              259    Income taxes paid                                 (9,091)          (5,404) ---------------------------------------------------------------------------- Net cash from operating activities                  30,185           27,516  ----------------------------------------------------------------------------                                                                              Cash flows from financing activities                                         Proceeds from issue of common shares                 5,874            3,697  Dividends paid                                     (20,499)         (16,971) Common shares buy-back                                (438)            (125) ---------------------------------------------------------------------------- Net cash used in financing activities              (15,063)         (13,399) ----------------------------------------------------------------------------                                                                              Cash flows used in investing activities                                      Property and equipment additions (note 5)           (1,501)          (1,190) ---------------------------------------------------------------------------- Increase (decrease) in cash                         13,621           12,927  Cash, beginning of year                             41,753           28,826  ---------------------------------------------------------------------------- Cash, end of year                                   55,374           41,753  ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years ended March 31, 2012 and 2011.

1. Reporting Entity:

Computer Modelling Group Ltd. (“CMG”) is a company domiciled in Alberta, Canada and is incorporated pursuant to the Alberta Business Corporations Act, with its Common Shares listed on the Toronto Stock Exchange under the symbol “CMG”. The address of CMG’s registered office is Suite 200, 1824 Crowchild Trail N.W., Calgary, Alberta, Canada, T2M 3Y7. The consolidated financial statements as at and for the year ended March 31, 2012 comprise CMG and its subsidiaries (together referred to as the “Company”). The Company is a computer software technology company engaged in the development and licensing of reservoir simulation software. The Company also provides professional services consisting of highly specialized support, consulting, training, and contract research activities.

2. Basis of Preparation:

(a) STATEMENT OF COMPLIANCE:

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These are the Company’s first annual consolidated financial statements prepared in accordance with IFRS and IFRS 1 – First-Time Adoption of International Financial Reporting Standards has been applied.

The preparation of these consolidated financial statements resulted in changes to accounting policies as compared with the most recent annual consolidated financial statements prepared in accordance with Canadian Generally Accepted Accounting Principles (“GAAP”). The Company’s accounting policies have been applied consistently to all periods presented in these consolidated financial statements with the exception of certain IFRS 1 exemptions the Company applied in its transition from previous GAAP to IFRS at April 1, 2010, the Company’s transition date. An explanation of how the transition to IFRS has affected the reported financial position, financial performance and cash flows of the Company is provided in note 22. This note includes reconciliations of financial position and equity and of net and comprehensive income of the comparative year and of financial position and equity at the date of transition reported under Canadian GAAP to IFRS.

These consolidated financial statements as at and for the year ended March 31, 2012 were authorized for issuance by the Board of Directors on May 23, 2012.

(b) BASIS OF MEASUREMENT:

The consolidated financial statements have been prepared on the historical cost basis, which is based on the fair value of the consideration at the time of the transaction.

(c) FUNCTIONAL AND PRESENTATION CURRENCY:

The consolidated financial statements are presented in Canadian dollars, which is the functional currency of CMG and its subsidiaries. All financial information presented in Canadian dollars has been rounded to the nearest thousand.

(d) USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS:

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, costs and expenses for the period. Estimates and underlying assumptions are based on historical experience and other assumptions that are considered reasonable in the circumstances and are reviewed on an on-going basis. Actual results may differ from such estimates and it is possible that the differences could be material. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

(i) Key judgments in applying accounting policies

The key judgments made in applying accounting policies, apart from those involving estimations (note 2(d)(ii) below), that have the most significant effect on the amounts recognized in these consolidated financial statements are as follows:

Functional currency – the determination of the functional currency is a matter of determining the primary economic environment in which an entity operates. IAS 21 – The Effects of Changes in Foreign Exchange Rates, sets out a number of factors to apply in making the determination of the functional currency. However, applying the factors in IAS 21 does not always result in a clear indication of functional currency. Where IAS 21 factors indicate differing functional currencies within a subsidiary, the Company uses judgment in the ultimate determination of that subsidiary’s functional currency, including an assessment of the nature of the relationship between the Company and the subsidiary. Judgment was applied in the determination of the functional currency of certain of the Company’s operating entities.

Research and development- assumptions are made in respect to the eligibility of certain research and development projects in the calculation of scientific research and experimental development (“SRED”) investment tax credits which are netted against the research and development costs in the statement of comprehensive income. SRED claims are subject to audits by relevant taxation authorities and the actual amount may change depending on the outcome of such audits (note 8).

Revenue recognition – certain software license agreements contain multiple-element arrangements as they may also include maintenance fees. Judgment is used in determining a fair value of each element of a contract. Professional services revenue earned from certain consulting contracts is recognized by the stage of completion of the transaction determined using the percentage-of-completion method. Judgment is used in determining progress of each contract at period end. In assessing revenue recognition, judgment is also used in determining the ability to collect the corresponding account receivable (note 7).

(ii) Estimation uncertainty

The following are the key sources of estimation uncertainty and key assumptions concerning the future, that have a significant risk of causing material adjustments to the carrying amount of assets and liabilities within the next financial year:

Property and equipment – estimates are used in determining useful economic lives of property and equipment for the purposes of calculating depreciation (note 5).

Stock-based compensation – assumptions and estimates are used in determining the inputs used in the Black-Scholes option pricing model, including assumptions regarding volatility, dividend yield, risk-free interest rates, forfeiture estimates and expected option lives (note 12(d)).

Deferred income taxes – assumptions and estimates are made regarding the amount and timing of realization and/or settlement of the temporary differences between the accounting carrying value of the Company’s assets versus the tax basis of those assets, and the tax rates at which the differences will be recovered or settled in the future (note 11).

3. Significant Accounting Policies:

(a) BASIS OF CONSOLIDATION:

The consolidated financial statements include the accounts of CMG and its subsidiaries, all 100% owned. All inter-company transactions and balances have been eliminated on consolidation. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

(b) REVENUE RECOGNITION:

Revenue consists of software license fees and professional service fees.

Software License Revenue

Software license revenue is comprised of annuity/maintenance license fees charged for the use of the Company’s software products which is generally for a term of one year or less, and perpetual software licensing fees, whereby the customer purchases the-then-current version of the software and has the right to use that version in perpetuity.

Software license revenue is recognized when persuasive evidence of an arrangement exists, the product has been delivered, the fee is fixed or determinable, and collection of the resulting receivable is probable. In cases where collectability is not deemed probable, revenue is recognized upon receipt of cash, assuming all other criteria have been met.

Annuity/maintenance revenue is recognized on a straight-line basis over the life of the related license period, which is generally one year or less. Revenue for licenses billed in advance is deferred and recognized in revenue over the relevant license period.

License fees for perpetual licenses are recognized fully in revenue when all recognition conditions are satisfied.

Software license agreements with multiple-element arrangements, such as those including license fees and maintenance fees, are recognized as separate units of accounting and are recognized as each element is earned based on the relative fair value of each element. A delivered element is considered a separate unit of accounting if it has value to the customer on a standalone basis, and delivery or performance of the undelivered elements is considered probable and substantially under the Company’s control. If these criteria are not met, revenue for the arrangement as a whole is accounted for as a single unit of accounting.

Professional Services Revenue

Revenue from professional services, consisting of consulting, training and contract research activities, is recorded on a percentage-of-completion basis or as such services are performed as appropriate in the circumstances. Percentage-of-completion is used when the outcome of the contract can be estimated reliably and is assessed based on work completed as determined by the hours incurred. When the outcome of the contract cannot be estimated reliably, the amount of revenue recognized is limited to the cost incurred in the period.

(c) CASH:

Cash is comprised of interest-earning bank accounts.

(d) PROPERTY AND EQUIPMENT:

Property and equipment are recorded at cost less accumulated depreciation. Cost includes expenditures that are directly attributable to the acquisition of the asset.

Depreciation is based on the cost of an asset and is recognized from the date the item is ready for use in the statement of comprehensive income using the following annual rates and methods that are expected to amortize the cost of the property and equipment over their estimated useful lives:

Computer equipment        33 1/3% straight-line                              Furniture and equipment   20% straight-line                                  Leasehold improvements    Straight-line over the lease term                 

Any gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognized in the statement of comprehensive income.

The estimated useful lives and depreciation methods are reviewed at each fiscal year-end and adjusted if appropriate.

(e) RESEARCH AND DEVELOPMENT COSTS:

All costs of product research and development are expensed to operations as incurred as the impact of both technological changes and competition require the Company to continually enhance its products on an annual basis. Research and development costs are recorded net of related SRED investment tax credits.

(f) JOINT RESEARCH AND DEVELOPMENT COSTS:

The Company participates in a joint project engaged in product research and development and accordingly records its proportionate share of costs incurred as research and development costs within the statement of comprehensive income.

(g) FINANCE INCOME AND FINANCE COSTS:

Finance income comprises interest income earned on the bank balances and is recognized as it accrues through the statement of comprehensive income, using the effective interest method.

Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position. Foreign currency gains and losses are recognized in the period in which they occur.

(h) FOREIGN CURRENCY TRANSLATION:

Transactions in foreign currencies are translated to Canadian dollars, the functional currency of the Company, at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the rate of exchange prevailing at the reporting date while non-monetary assets and liabilities that are measured in terms of historical cost are translated using the exchange rates at the dates of the transactions.

Revenues and expenses are translated at the rate of exchange in effect on the transaction dates. Realized and unrealized foreign exchange gains and losses are included in the statement of comprehensive income in the period in which they occur.

(i) INCOME TAXES:

Income taxes comprise current and deferred tax.

Current tax is the expected tax payable or receivable based on taxable profit for the period calculated using tax rates that have been enacted or substantively enacted at the reporting date, and includes any adjustments to tax payable in respect of previous years. Taxable profit differs from profit as reported in the Consolidated Statement of Operations and Comprehensive Income because of items that are taxable or deductible in other years and items that are never taxable and deductible.

Deferred taxes are recognized for temporary differences between the tax and accounting bases of assets and liabilities and for the benefit of losses available to be carried forward for tax purposes to the extent that it is probable that future taxable profits will be available against which the losses can be utilized. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or settled. Any change to the net deferred tax assets and liabilities is included in operations in the period it occurs. Deferred tax assets and liabilities are offset only when a legally enforceable right of offset exists and the deferred tax assets and liabilities arise in the same tax jurisdiction and relate to the same taxable entity.

In determining the amount of current and deferred tax, the Company takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.

(j) INVESTMENT TAX CREDITS:

The Company receives federal and provincial investment tax credits in Canada on qualified scientific research and experimental development expenditures incurred in each taxation year. Investment tax credits are recorded as a deduction against related expenses or capital items provided that reasonable assurance over collection of the tax credits exists.

(k) EARNINGS PER SHARE:

Basic earnings per share is computed by dividing the net income by the weighted average number of Common and Non-Voting Shares outstanding for the period. Diluted per share amounts reflect the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted to Common Shares. In calculating the dilutive effect of stock options, it is assumed that proceeds received from the exercise of in-the-money stock options are used to repurchase Common Shares at the average market price during the period.

(l) STOCK-BASED COMPENSATION PLAN:

The Company has a stock-based compensation plan that is described in note 12(d). The fair value of stock options is determined using the Black-Scholes valuation model as of the grant date and is expensed over the vesting period, with a corresponding increase in equity, based on the Company’s estimate of the number of options that will actually vest. Measurement inputs include the share price on the measurement date, the exercise price of the instrument, expected volatility (based on an evaluation of the Company’s historic volatility, particularly over the historic period commensurate with the expected term), expected term of the instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds).

Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value. At the end of each reporting period, the Company revises its estimates of the number of options that are expected to vest and recognizes the impact of any revision in the statement of comprehensive income. When stock options are exercised, the Company records consideration received, together with amounts previously recognized in contributed surplus, as an increase in share capital.

(m) SHORT-TERM EMPLOYEE BENEFITS:

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

(n) FINANCIAL INSTRUMENTS:

(i) Non-derivative financial assets

The Company initially recognizes loans and receivables on the date that they are originated. All other financial assets are recognized initially on the trade date at which the Company becomes a party to the contractual provisions of the instruments. The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. The Company classifies non-derivative financial assets into the following categories:

Financial assets at fair value through profit or loss (“FVTPL”):

A financial asset is classified in this category if it is either held for trading or designated as such upon initial recognition.

It is held for trading if:

--  It has been acquired principally for the purpose of selling it in the     near term;  --  It is part of the Company's portfolio of financial instruments that are     managed together and have a pattern of short-term profit taking;  --  It is a derivative not designated and effective as a hedging instrument.

It is classified as FVTPL if:

--  It forms part of a contract containing one or more embedded derivatives; --  It forms part of a group of financial instruments which is managed and     its performance is evaluated on a fair value basis. 

FVTPL are measured initially and subsequently at fair value, and changes therein are recognized in the statement of comprehensive income. Transaction costs are recognized in the statement of comprehensive income as incurred. The Company’s only financial asset belonging to this category is cash.

Loans and receivables:

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The Company’s trade and other receivables are classified as loans and receivables. Trade receivables are recognized initially at fair value plus any directly attributable transaction costs, and subsequently measured at amortized cost using the effective interest rate method less any provision for impairment. The Company’s trade and other receivables are classified as current assets. The fair value of trade and other receivables is estimated at the present value of future cash flows, discounted at the market rate of interest at the reporting date.

(ii) Non-derivative financial liabilities

Financial liabilities at amortized cost include trade payables and accrued liabilities. Such liabilities are initially recognized at fair value on the trade date at which the Company becomes a party to the contractual provisions of the instrument, represented by the amount required to be paid plus any directly attributable transaction costs, and subsequently measured at amortized cost using the effective interest method. Financial liabilities are classified as current liabilities if payment is due within a year; otherwise, they are classified as non-current liabilities. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. The fair value of non-derivative financial liabilities, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

(iii) Share Capital

Common Shares are classified as equity. Incremental costs directly attributable to the issue of Common Shares are recognized as a deduction from equity, net of any tax effects.

(o) IMPAIRMENT:

(i) Receivables

Trade and other receivables are assessed for impairment at each reporting date at both a specific and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired, together with receivables that are not individually significant, are collectively assessed for impairment by grouping together receivables with similar risk characteristics. In assessing collective impairment, the Company uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in the statement of comprehensive income and reflected in an allowance account against trade and other receivables. When a subsequent event (such as the repayment by a debtor) causes the amount of impairment loss to decrease, the decrease is reversed through the statement of comprehensive income.

(ii) Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated, and any impairment loss required is recognized in the statement of comprehensive income. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognized.

(p) LEASES:

The Company’s only lease commitments relate to its office premises which are classified as operating leases since they do not transfer the risks and rewards of ownership to the Company. Payments made under operating leases are recognized in the statement of comprehensive income on a straight-line basis over the term of the lease.

4. Accounting Standards and Interpretations Not Yet Adopted:

The following is a summary of new standards, amendments to standards and interpretations not yet effective for the year ended March 31, 2012, and have not been applied in preparing these consolidated financial statements:

-   IFRS 9 Financial Instruments                                                 Replaces the guidance in IAS 39 Financial Instruments: Recognition and       Measurement, on the classification and measurement of financial assets       and liabilities. The Company intends to adopt IFRS 9 (2010) in its           financial statements for the annual period beginning on April 1, 2015.       The Company does not expect IFRS 9 (2010) to have a material impact on       the financial statements because of the nature of the Company's              operations and the types of financial assets that it holds.              -   IFRS 10 Consolidated Financial Statements                                    Replaces the guidance in IAS 27 Consolidated and Separate Financial          Statements and SIC-12 Consolidation - Special Purpose Entities, and          provides a single model to be applied in the control analysis for all        investees, including entities that currently are special purpose             entities in the scope of SIC-12. The Company intends to adopt IFRS 10 in     its financial statements for the annual period beginning on April 1,         2013, and does not expect IFRS 10 to have a material impact on the           financial statements.                                                    -   IFRS 11 Joint Arrangements                                                   Replaces the guidance in IAS 31 Interest in Joint Ventures, and              essentially carves out of previous jointly controlled entities, those        arrangements which although structured through a separate vehicle, such      separation is ineffective and the parties to the arrangement have rights     to the assets and obligations for the liabilities and are accounted for      as joint operations in a fashion consistent with jointly controlled          assets/operations under IAS 31. In addition, under IFRS 11 joint             ventures must now use the equity method of accounting. The Company           intends to adopt IFRS 11 in its financial statements for the annual          period beginning on April 1, 2013. The Company does not expect IFRS 11       to have a material impact on the financial statements.                   -   IFRS 12 Disclosure of Interests in Other Entities                            Contains the disclosure requirements for entities that have interest in      subsidiaries, joint arrangements, associates and/or unconsolidated           structured entities. The Company intends to adopt IFRS 12 in its             financial statements for the annual period beginning April 1, 2013. The      Company does not expect the amendments to have a material impact on the      financial statements, because of the nature of the Company's interests       in other entities.                                                       -   IFRS 13 Fair Value Measurement                                               Replaces the fair value measurement guidance contained in individual         IFRSs with a single source of fair value measurement guidance. The           Company intends to adopt IFRS 13 prospectively in its financial              statements for the annual period beginning on April 1, 2013. The extent      of the impact of adoption of IFRS 13 has not yet been determined.        -   Amendments to IAS 1 Presentation of Financial Statements                     Require an entity present separately the items of other comprehensive        income that may be reclassified to profit or loss in the future from         those that would never be reclassified to profit or loss. The Company        intends to adopt the amendments in its financial statements for the          annual period beginning on April 1, 2013. As the amendments only require     changes in the presentation of items in other comprehensive income, the      Company does not expect the amendments to IAS 1 to have a material           impact on the financial statements.                                      -   Amendments to IAS 32 and IFRS 7 Offsetting Financial Assets and              Liabilities                                                                  Amendments to IAS 32 clarifies when an entity has a legally enforceable      right to set-off and net versus gross settlement mechanisms, while           amendments to IFRS 7 contain new disclosure requirements for offset          financial assets and liabilities and netting arrangements. The Company       intends to adopt the amendments to IFRS 7 in its financial statements        for the annual period beginning on April 1, 2013, and the amendments to      IAS 32 in its financial statements for the annual period beginning April     1, 2014. The Company does not expect the amendments to have a material       impact on the financial statements.                                                                                                                   5.  Property and Equipment:                                                                                                                                                                         Furniture                          Cost                           Computer         and      Leasehold           (thousands of $)              Equipment   Equipment   Improvements    Total  ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Balance at April 1, 2010          3,387       1,256          1,699    6,342  Additions                           866         210            114    1,190  Disposals                          (152)        (36)             -     (188) ---------------------------------------------------------------------------- Balance at March 31, 2011         4,101       1,430          1,813    7,344  ---------------------------------------------------------------------------- ---------------------------------------------------------------------------                                                                               Balance at April 1, 2011          4,101       1,430         1,813     7,344  Additions                           476         357           668     1,501  Disposals                          (328)       (226)         (235)     (789) ---------------------------------------------------------------------------- Balance at March 31, 2012         4,249       1,561         2,246     8,056  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Accumulated Depreciation                                                     (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Balance at April 1, 2010         (2,274)       (620)       (1,047)   (3,941) Depreciation charge for the                                                   year                              (694)       (186)         (157)   (1,037) Disposals                           152          36             -       188  ---------------------------------------------------------------------------- Balance at March 31, 2011        (2,816)       (770)       (1,204)   (4,790) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Balance at April 1, 2011         (2,816)       (770)       (1,204)   (4,790) Depreciation charge for the                                                   year                              (764)       (227)         (236)   (1,227) Disposals                           328         227           235       790  ---------------------------------------------------------------------------- Balance at March 31, 2012        (3,252)       (770)       (1,205)   (5,227) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Carrying Amounts                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- At April 1, 2010                   1,113         636           652     2,401 ---------------------------------------------------------------------------- At March 31, 2011                  1,285         660           609     2,554 ---------------------------------------------------------------------------- At March 31, 2012                    997         791         1,041     2,829 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              6.  Trade Payables and Accrued Liabilities:                                                                                                               (thousands of $)                              March 31, 2012  March 31, 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Trade payables                                           340             192 Employee salaries, commissions and benefits                                   payable                                               3,218           2,554 Accrued liabilities and other payables                 1,800           1,797 ----------------------------------------------------------------------------                                                        5,358           4,543 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              7.  Revenue:                                                                                                                                              Years ended March 31,                                   2012            2011 (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Software licenses                                     55,582          43,754 Professional services                                  5,452           8,073 ----------------------------------------------------------------------------                                                       61,034          51,827 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              8.  Research and Development Costs:                                                                                                                       Years ended March 31,                                  2012            2011  (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Research and development                             12,100          10,416  SRED investment tax credits                         (1,471)         (1,078) ----------------------------------------------------------------------------                                                      10,629           9,338  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              9.  Personnel Expenses:                                                                                                                                   Years ended March 31,                                   2012            2011 (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Salaries, commissions and short-term                                          employee benefits                                    21,222          18,630 Stock-based compensation (note 12(d))                  1,981           1,560 ----------------------------------------------------------------------------                                                       23,203          20,190 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              10. Finance Income and Finance Costs:                                                                                                                     Years ended March 31,                                   2012           2011  (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Interest income                                          472            280  Net foreign exchange gain                                548              -  ---------------------------------------------------------------------------- Finance income                                         1,020            280  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Net foreign exchange loss                                  -           (523) ---------------------------------------------------------------------------- Finance costs                                              -           (523) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              11. Income and Other Taxes:                                                                                                                               The major components of income tax expense are as follows:                                                                                                Years ended March 31,                                  2012             2011 (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Current year income taxes                             9,001            7,021 Adjustments for prior year                             (561)               - ---------------------------------------------------------------------------- Current income taxes                                  8,440            7,021                                                                              Deferred tax expense                                    (26)             195 Foreign withholding and other taxes                     819            1,052 ----------------------------------------------------------------------------                                                       9,233            8,268 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The provision for income and other taxes reported differs from the amount computed by applying the combined Canadian Federal and Provincial statutory rate to the profit before income and other taxes. The reasons for this difference and the related tax effects are as follows:

Years ended March 31,                                  2012            2011  (thousands of $, unless otherwise stated)                                    ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Combined statutory tax rate                           26.13%          27.63% ---------------------------------------------------------------------------- Expected income tax                                   8,525           7,028  Non-deductible costs                                    545             458  Change in unrecognized temporary differences              -             (87) Withholding taxes                                       586             754  Recognition of previously unrecognized SRED                                  investment tax credits                                (463)              -  Adjustments for prior year                              (98)              -  Other                                                   138             115  ----------------------------------------------------------------------------                                                       9,233           8,268  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              The components of the Company's deferred tax liability are as follows:                                                                                    (thousands of $)                             March 31, 2012  March 31, 2011  ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Tax liability on investment tax credits                (267)           (181) Tax liability on property and equipment                 (91)           (203) ---------------------------------------------------------------------------- Deferred tax liability                                 (358)           (384) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              All movement in deferred tax assets and liabilities is recognized through    comprehensive income of the respective period.                              

12. Share Capital:

(a) AUTHORIZED:

An unlimited number of Common Shares, an unlimited number of Non-Voting Shares, and an unlimited number of Preferred Shares, issuable in series.

Effective June 20, 2011, the Common Shares were split on a two-for-one basis. Accordingly, the comparative number of shares and per share amounts have been retroactively adjusted to reflect the two-for-one adjustment.

(b) ISSUED:

                                                                 Non-Voting  (thousands of shares)                         Common Shares          Shares  ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Balance, April 1, 2010                               31,117           4,543  Issued for cash on exercise of stock options            777               -  Common shares buy-back                                  (10)              -  Converted into common shares                          4,543          (4,543) ---------------------------------------------------------------------------- Balance, March 31, 2011                              36,427               -  ----------------------------------------------------------------------------                                                                              Balance, April 1, 2011                               36,427               -  Issued for cash on exercise of stock options            913               -  Common shares buy-back                                  (33)              -  ---------------------------------------------------------------------------- Balance, March 31, 2012                              37,307               -  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The Non-Voting Shares were convertible into an equivalent number of Common Shares at any time at the option of the holder.

Subsequent to March 31, 2012, 13,000 stock options were exercised for cash proceeds of $83,000.

On May 18, 2006, the Board of Directors adopted a shareholder rights plan (the “Original Rights Plan”), whereby the Company issued one right in respect of each share outstanding at the close of business on May 18, 2006 and for each additional share issued by the Company thereafter. The issuance of the rights was not dilutive and will not affect reported earnings per share until the rights separate from the underlying shares and become exercisable or until the exercise of the rights. The Original Rights Plan was approved by the Company’s shareholders on July 13, 2006.

On May 21, 2009, the Board of Directors reviewed the Original Rights Plan and determined that it was in the best interest of the Company to continue to have a shareholder rights plan in place. The Company, therefore, adopted a new shareholder rights plan (the “Rights Plan”) which is identical in all respects to the Original Rights Plan, with the exception of certain minor amendments which have been made to provide for renewal or approval of the Rights Plan every three years (rather than only one three-year period as was set out in the Original Rights Plan) and to update references to statutory provisions now out of date. The Rights Plan was approved by the Company’s shareholders on July 9, 2009.

(c) COMMON SHARES BUY-BACK:

On March 22, 2010, the Company announced a Normal Course Issuer Bid (“NCIB”) commencing on March 23, 2010 to purchase for cancellation up to 1,315,000 of its Common Shares. This NCIB ended on March 22, 2011 and a total of 10,000 shares were purchased at market price for a total cost of $125,000.

On April 6, 2011, the Company announced a NCIB commencing on April 7, 2011 to purchase for cancellation up to 1,636,000 of its Common Shares. During the year ended March 31, 2012, 33,000 Common Shares were purchased at market price for a total cost of $438,000.

On April 16, 2012, the Company announced a NCIB commencing on April 18, 2012 to purchase for cancellation up to 3,416,000 of its Common Shares.

(d) STOCK-BASED COMPENSATION PLAN:

The Company adopted a rolling stock option plan as of July 13, 2005, which was reaffirmed by the Company’s shareholders on July 7, 2011, which allows it to grant options to acquire Common Shares of up to 10% of the combined outstanding Common and Non-Voting Shares at the date of grant. Based upon this calculation, at March 31, 2012, the Company could grant up to 3,731,000 stock options. Pursuant to the stock option plan, the maximum term of an option granted cannot exceed five years from the date of grant. The outstanding stock options vest as to 50% after the first year anniversary, from date of grant, and then vest as to 25% of the total options granted after each of the second and third year anniversary dates.

The following table outlines changes in options:                                                                                                          Years ended March 31,                            2012                  2011  (thousands except per share                                                   amounts)                                                                    ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                              Weighted              Weighted                                                Average               Average                                               Exercise              Exercise                                    Options       Price   Options       Price                                    Granted    ($/share)  Granted    ($/share) ---------------------------------------------------------------------------- Outstanding at beginning of year    2,825        7.41     2,572        5.90  Granted                             1,071       13.43     1,094        9.07  Exercised                            (913)       6.43      (777)       4.76  Forfeited/cancelled                   (80)      10.57       (64)       7.08  ---------------------------------------------------------------------------- Outstanding at end of year          2,903        9.85     2,825        7.41  ---------------------------------------------------------------------------- Options exercisable at end of                                                 year                               1,120        7.31       969        5.91  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              The range of exercise prices of options outstanding and exercisable at March 31, 2012 is as follows:                                                                                                                                                                            Outstanding             Exercisable ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                 Weighted    Weighted                Weighted                                  Average     Average                 Average                  Number of     Remaining    Exercise   Number of    Exercise Exercise Price     Options   Contractual       Price     Options       Price  ($/option)    (thousands)  Life (years)  ($/option) (thousands)  ($/option) ---------------------------------------------------------------------------- 3.70 - 5.63            405           1.3        5.29         405        5.29 5.64 - 7.80            580           2.4        7.80         351        7.80 7.81 - 9.07            879           3.4        9.07         364        9.07 9.08 - 13.43         1,014           4.4       13.40           -           - 13.44 - 16.35           25           4.6       14.37           -           - ----------------------------------------------------------------------------                      2,903           3.2        9.85       1,120        7.31 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The fair value of stock options granted was estimated using the Black-Scholes option pricing model under the following assumptions:

Years ended March 31,                                     2012          2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Fair value at grant date ($/option)               1.23 to 3.42  1.56 to 1.78 Share price at grant date ($/share)             13.00 to 16.35          9.07 Risk-free interest rate (%)                       0.99 to 2.06  1.37 to 2.17 Estimated hold period prior to exercise (years)         2 to 4        2 to 5 Volatility in the price of common shares (%)          24 to 37      35 to 39 Dividend yield per common share (%)               3.20 to 4.94          5.12 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The Company recognized total stock-based compensation expense for the year ended March 31, 2012 of $1,981,000 (2011 – $1,560,000).

(e) EARNINGS PER SHARE:

The following table summarizes the earnings and weighted average number of Common and Non-Voting Shares used in calculating basic and diluted earnings per share:

Years ended March                                                             31,                                                                         (thousands except                                                             per share amounts)                   2012                             2011  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                         Weighted                         Weighted                                     Average  Earnings                Average  Earnings             Earnings       Shares Per Share  Earnings       Shares Per Share                   ($) Outstanding  ($/share)       ($) Outstanding  ($/share) ---------------------------------------------------------------------------- Basic        23,391       36,866      0.63    17,166       36,066      0.48  Dilutive                                                                      effect of                                                                    stock                                                                        options                   1,034                              802            ---------------------------------------------------------------------------- Diluted      23,391       37,900      0.62    17,166       36,868      0.47  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

During the year ended March 31, 2012, 113,000 options (2011 – 57,000) were excluded from the computation of the weighted-average number of diluted shares outstanding because their effect was not dilutive.

13. Capital Management:

The Company’s objectives in managing capital are to ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions and to maximize the return to its shareholders. The capital structure of the Company consists of cash, credit facilities and shareholders’ equity. The Company does not have any externally imposed capital requirements and does not presently utilize any quantitative measures to monitor its capital.

The Company’s policy is to pay quarterly dividends based on the Company’s overall financial performance and cash flow generation. In addition, since May 2005, the Company has declared a special dividend after review of the full fiscal year results. Decisions on dividend payments are made on a quarterly basis by the Board of Directors. There can be no assurance as to the amount or payment of such dividends in the future.

Since November 2002, the Company embarked on a series of normal course issuer bids to buy back its shares. Reference is made to note 12(c).

The Company makes adjustments to its capital structure in light of general economic conditions and the Company’s working capital requirements. In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may pay dividends, buy back shares or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors reviews and approves any material transactions not in the ordinary course of business.

14. Financial Instruments and Risk Management:

(i) Classification of financial instruments

                                            Classification       Measurement ---------------------------------------------------------------------------- Cash                                      Held for trading        Fair value Trade and other receivables          Loans and receivables    Amortized cost Trade payables and accrued                                                    liabilities                   Other financial liabilities    Amortized cost ----------------------------------------------------------------------------

(ii) Fair values of financial instruments

The carrying values of cash, trade and other receivables, trade payables and accrued liabilities approximate their fair values due to the short-term nature of these instruments.

OVERVIEW:

The Company is exposed to risks of varying degrees of significance and likelihood which could affect its ability to achieve its strategic objectives for growth. The main objectives of the Company’s risk management process are to ensure that risks are properly identified and that the capital base is adequate in relation to those risks. The principal financial risks to which the Company is exposed are described below:

(a) CREDIT RISK:

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligation and arises principally from the Company’s cash and trade and other receivables. The amounts reported in the statements of financial position for trade receivables are net of allowances for bad debts, estimated by the Company’s management based on prior experience and their assessment of the current economic environment.

The Company’s trade receivables consist primarily of balances from customers operating in the oil and gas industry, both domestically and internationally, as the Company sells its products and services in over 50 countries worldwide. Some of these countries have greater economic and political risk than experienced in North America and as a result there may be greater risk associated with sales in those jurisdictions. The Company manages this risk by invoicing for the full license term in advance for the majority of software license sales and by invoicing as frequently as the contract allows for consulting and contract research services on a percentage-of-completion basis. In cases where collectability is not deemed probable, revenue is recognized upon receipt of cash, assuming all other criteria have been met. Historically, the Company has not experienced any significant losses related to individual customers or groups of customers in any particular geographic area; therefore, no allowance for doubtful accounts has been established at March 31, 2012 and 2011.

As at March 31, 2012, the Company has a concentration of credit risk with 11 domestic and international customers who represent 66% of trade receivables (2011 – 11 customers; 68%).

The carrying amount of trade and other receivables represents the maximum credit exposure. The maximum exposure to credit risk at March 31, 2012 was $15.5 million (2011 – $13.3 million). The aging of trade and other receivables at the reporting date was:

                                                                             (thousands of $)                              March 31, 2012  March 31, 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Current                                                7,648           6,547 31-60 days                                             5,519           2,786 61-90 days                                               159           2,672 Over 90 days                                           2,168           1,313 ---------------------------------------------------------------------------- Balance, end of year                                  15,494          13,318 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The Company assesses the creditworthiness of its customers on an ongoing basis and it regularly monitors the amount and age of balances outstanding. Payment terms with customers are 30 days from invoice date; however, industry practice can extend these terms. Accordingly, the Company views the credit risks on these amounts as normal for the industry.

The Company minimizes the credit risk of cash by depositing only with a reputable financial institution in highly liquid interest-bearing cash accounts.

(b) MARKET RISK:

Market risk is the risk that changes in market prices of the foreign exchange rates and interest rates will affect the Company’s income or the value of its financial instruments.

(i) Foreign Exchange Risk

The Company operates internationally and primarily prices its products in either the Canadian or US dollar. This gives rise to exposure to market risks from changes in the foreign exchange rates between the Canadian and US dollar. Approximately 73% of the Company’s revenues for the year ended March 31, 2012 (2011 – 68%) were denominated in US dollars and at March 31, 2012, the Company had approximately $13.4 million (2011 – $9.1 million) of its working capital denominated in US dollars. The Company currently does not use derivative instruments to hedge its exposure to those risks but as approximately 24% (2011 – 25%) of the Company’s total costs are also denominated in US dollars they provide a partial economic hedge against the fluctuation in this currency exchange. In addition, the Company manages levels of foreign currency held by converting excess US dollars into Canadian dollars at spot rates.

The Company’s operations are exposed to currency risk on US denominated financial assets and liabilities with fluctuations in the rate recognized as foreign exchange gains or losses in the Consolidated Statements of Operations and Comprehensive Income. It is estimated that a one cent change in the US dollar would result in a net change of approximately $99,000 to equity and net income for the year ended March 31, 2012. A weaker US dollar with respect to the Canadian dollar will result in a negative impact while the reverse would result from a stronger US dollar.

(ii) Interest Rate Risk

The Company has significant cash balances and no interest-bearing debt. The Company’s current policy is to invest excess cash in interest-bearing deposits and/or guaranteed investment certificates issued by its principal banker. The Company is exposed to interest cash flow risk from changes in interest rates on its cash balances. Based on the March 31, 2012 cash balance, each 1% change in the interest rate on the Company’s cash balance would change equity and net income for the year ended March 31, 2012 by approximately $409,000.

(c) LIQUIDITY RISK:

Liquidity risk is the risk that the Company is not able to meet its financial obligations as they fall due or can do so only at excessive cost. The Company manages liquidity risk through the management of its capital structure as outlined in note 13. The Company’s growth is financed through a combination of the cash flows from operations and its cash balances on hand. Given the Company’s available liquid resources as compared to the timing of the payments of its liabilities, management assesses the Company’s liquidity risk to be low. The Company monitors its expenditures by preparing annual budgets which are updated periodically. At March 31, 2012, the Company has significant cash balances in excess of its obligations and over $800,000 of the line of credit (note 16) available for its use.

15. Commitments:

(a) RESEARCH COMMITMENTS:

The Company is the operator of the DRMS research and development project (the “DRMS project”), a collaborative effort with its partners Shell International Exploration and Production BV (“Shell”) and Petroleo Brasileiro S.A. (“Petrobras”), to jointly develop the newest generation of reservoir and production system simulation software. The project has been underway since 2006 and, with the ongoing support of the participants, it is expected to continue until ultimate delivery of the software. The Company’s share of costs associated with the project is estimated to be $4.0 million ($1.9 million net of overhead recoveries) for the upcoming fiscal year.

(b) LEASE COMMITMENTS:

The Company has operating lease commitments relating to its office premises with the minimum annual lease payments as follows:

Years ended March 31,                                   2012            2011 (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Less than one year                                     1,940           1,501 Between one and five years                             6,784           3,934 ----------------------------------------------------------------------------                                                        8,724           5,435 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The Company leases a number of properties under operating leases. During the year ended March 31, 2012, $1.9 million (2011 – $1.6 million) was recognized as an expense in the statement of comprehensive income in respect of operating leases related to office premises.

16. Line Of Credit:

The Company has arranged for a $1.0 million line of credit with its principal banker, which can be drawn down by way of a demand operating credit facility or may be used to support letters of credit. As at March 31, 2012, US $165,000 (2011 – US $165,000) had been reserved on this line of credit for the letter of credit supporting a performance bond.

17. Segmented Information:

The Company is organized into one operating segment represented by the development and licensing of reservoir simulation software. The Company provides professional services, consisting of support, training, consulting and contract research activities, to promote the use and development of its software; however, these activities are not evaluated as a separate business segment.

Revenues and property and equipment of the Company arise in the following geographic regions:

                                                                Property and (thousands of $)                           Revenue                 equipment ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                              Years ended March 31,           As at March 31,                             2012              2011    2012              2011 ----------------------------------------------------------------------------                                                                              Canada                    18,940            18,066   2,670             2,295 United States             10,656             9,518      71               103 South America             11,920             9,873      68               113 Eastern Hemisphere(1)     19,518            14,370      20                43 ----------------------------------------------------------------------------                           61,034            51,827   2,829             2,554 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Includes Europe, Africa, Asia and Australia                             

No customer represents revenue in excess of 10% of total revenue in the years ended March 31, 2012 and 2011.

18. Subsidiaries:

CMG is the beneficial owner of the entire issued share capital and controls all the votes of its subsidiaries. The principal activities of all the subsidiaries are the sale and support for the use of CMG’s software licenses. Transactions between subsidiaries are eliminated on consolidation. The following is the list of CMG’s subsidiaries:

Subsidiary                                          Country of Incorporation ---------------------------------------------------------------------------- Computer Modelling Group Inc.                                  United States CMG Venezuela                                                      Venezuela CMG Middle East FZ LLC                                            Dubai, UAE ----------------------------------------------------------------------------

19. Joint Venture:

The Company is the operator of a joint software development project, the DRMS project, which gives the Company exclusive rights to commercialize the jointly developed software while the other partners will have unlimited software access for their internal use. Accordingly, the Company records its proportionate share of costs incurred on the project (37.04%) as research and development costs within the statement of comprehensive income.

For the year ended March 31, 2012, CMG included $3.2 million (2011 – $3.1 million) of costs in its consolidated financial statements related to this joint project.

Additionally, the Company is entitled to charge the project for various services provided as operator, which were recorded in revenue as professional services and amounted to $1.7 million during the year ended March 31, 2012 (2011 – $1.6 million).

20. Related Parties:

(a) INTERCOMPANY TRANSACTIONS

The Company has three wholly owned subsidiaries (note 18) which have intercompany transactions under the normal course of operations and are eliminated upon consolidation.

(b) KEY MANAGEMENT PERSONNEL COMPENSATION

The key management personnel of the Company are the members of the Company’s executive management team and Board of Directors, and control approximately 8.4% of the outstanding shares of CMG at March 31, 2012.

In addition to their salaries and director fees, as applicable, directors and executive officers, along with certain employees, of the Company, also participate in the Company’s stock option plan (note 12(d)).

Key management personnel compensation comprised the following:

Years ended March 31,                                    2012           2011 (thousands of $)                                                             ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Salaries, bonus and employee benefits                   4,310          3,673 Stock-based compensation                                  616            516 ----------------------------------------------------------------------------                                                         4,926          4,189 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

21. Subsequent Events:

On May 23, 2012, the Board of Directors declared a quarterly cash dividend of $0.16 per share and a special cash dividend of $0.10 per share on its Common Shares, payable on June 15, 2012, to all shareholders of record at the close of business on June 8, 2012.

22. Transition to IFRS:

As stated in note 2(a), these consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The accounting policies described in note 3 have been applied in preparing the consolidated financial statements for the year ended March 31, 2012, the comparative information for the year ended March 31, 2011, and in preparation of an opening IFRS statement of financial position at April 1, 2010, the Company’s date of transition to IFRS.

This transition note explains the effect of the transition from previous Canadian GAAP to IFRS on the Company’s financial position, financial performance and cash flows.

22.1 ELECTED EXEMPTIONS FROM FULL RETROSPECTIVE APPLICATION:

In preparing these consolidated financial statements in accordance with IFRS 1, the Company applied the following optional exemptions from full retrospective application of IFRS:

-   IFRS 3 - Business Combinations                                               IFRS 1 allows the Company to apply IFRS 3, Business Combinations,            retrospectively or prospectively from the date of transition. The            retrospective application would require restatement of all business          combinations that occurred prior to the transition date, April 1, 2010.      The Company elected not to retrospectively apply IFRS 3 to business          combinations that occurred prior to its transition date and such             business combinations have not been restated.                            -   IFRS 2 - Share-based Payments                                                IFRS 1 provides the exemption from retrospective application of IFRS 2,      Share-based Payments, to options granted on or before November 7, 2002       and options granted after November 7, 2002 that vested before April 1,       2010. The Company adopted the exemption in IFRS 1 and applied IFRS 2 to      employee options granted after November 7, 2002 that had not vested by       April 1, 2010. While minor differences occurred on the transition from       Canadian GAAP to IFRS, these differences were not material, and hence,       no adjustments have been made to the consolidated financial statements. 

22.2 MANDATORY EXCEPTIONS TO RETROSPECTIVE APPLICATION:

In preparing these consolidated financial statements in accordance with IFRS 1, the Company applied the following mandatory exception:

-   Estimates                                                                    IFRS 1 disallows hindsight to be used in creating or revising estimates.     Estimates made in accordance with IFRS at the date of transition are         consistent with estimates made under Canadian GAAP except where the          revision was necessary to reflect any difference in accounting policies.     In making estimates under IFRS not required under Canadian GAAP, the         estimates reflect conditions that existed at the relevant reporting date     and/or transition date.                                                                                                                               22.3 RECONCILIATION OF FINANCIAL POSITION AND SHAREHOLDERS' EQUITY:                                                                                       (thousands of $)                    March 31, 2011             April 1, 2010 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                           Canadian  IFRS            Canadian  IFRS                                         GAAP   Adj.     IFRS      GAAP   Adj.     IFRS ----------------------------------------------------------------------------                                                                              Assets                                                                       Current assets:                                                                Cash                      41,753          41,753    28,826          28,826   Trade and other                                                               receivables              13,318          13,318    16,072          16,072   Prepaid expenses           1,064           1,064     1,141           1,141   Prepaid income taxes           -               -     1,433           1,433 ----------------------------------------------------------------------------                             56,135          56,135    47,472          47,472 Property and equipment       2,554           2,554     2,401           2,401 Deferred tax asset (note                                                      22.5(a))                        -               -        33    (33)       - ---------------------------------------------------------------------------- Total assets                58,689          58,689    49,906    (33)  49,873 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Liabilities and                                                               Shareholders' Equity                                                        Current liabilities:                                                           Trade payables and                                                            accrued liabilities       4,543           4,543     5,398           5,398   Income taxes payable       1,237           1,237         -               -   Deferred revenue          16,755          16,755    13,843          13,843   Deferred tax liability                                                        (note 22.5(a))              181   (181)       -       222   (222)       - ----------------------------------------------------------------------------                             22,716   (181)  22,535    19,463   (222)  19,241 Deferred tax liability                                                        (note 22.5(a))                203    181      384         -    189      189 ---------------------------------------------------------------------------- Total liabilities           22,919      -   22,919    19,463    (33)  19,430 ----------------------------------------------------------------------------                                                                              Shareholders' equity:                                                          Share capital             24,801          24,801    20,390          20,390   Contributed surplus        2,655           2,655     1,816           1,816   Retained earnings          8,314           8,314     8,237           8,237 ---------------------------------------------------------------------------- Total shareholders'                                                           equity                     35,770          35,770    30,443          30,443 ---------------------------------------------------------------------------- Total liabilities and                                                         shareholders' equity       58,689          58,689    49,906    (33)  49,873 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              22.4 RECONCILIATION OF NET AND COMPREHENSIVE INCOME:                                                                                                      Year ended March 31, 2011                    Canadian        IFRS            (thousands of $)                                 GAAP Adjustments      IFRS  ---------------------------------------------------------------------------- ----------------------------------------------------------------------------                                                                              Revenue                                        51,827           -    51,827  ----------------------------------------------------------------------------                                                                              Operating expenses                                                             Sales, marketing and professional                                             services (note 22.5(b))                     11,393         311    11,704    Research and development                      9,338           -     9,338    General and administrative (note                                              22.5(b))                                     4,868         240     5,108    Depreciation (note 22.5(b))                     561        (561)        -    Foreign exchange loss (note 22.5(c))            523        (523)        -    Interest and other income (note 22.5(c))       (290)        290         -  ----------------------------------------------------------------------------                                                26,393        (243)   26,150  ---------------------------------------------------------------------------- Operating profit                               25,434         243    25,677                                                                               Finance income (note 22.5(c))                       -         280       280  Finance costs (note 22.5(c))                        -        (523)     (523) ---------------------------------------------------------------------------- Profit before income and other taxes           25,434           -    25,434  Income and other taxes                          8,268           -     8,268  ----------------------------------------------------------------------------                                                                              Net and total comprehensive income             17,166           -    17,166  ---------------------------------------------------------------------------- --------------------------------------------------------------------------- 

22.5 EXPLANATION OF PRESENTATION RECLASSIFICATIONS:

(a) Deferred taxes – deferred taxes are classified as non-current under IFRS. Under previous Canadian GAAP, deferred taxes were classified as current and non-current based on the classification of the underlying assets or liabilities to which they relate or based on the expected reversal of the temporary differences.

Transition rules resulted in the reclassification of the deferred tax liability associated with SRED credits from current to non-current. In addition, the deferred tax asset associated with property and equipment was offset against the deferred tax liability as both relate to income taxes levied by the same taxation authority for the same taxable entity.

(b) Expense classification – the Company has elected to present its expenses in the consolidated statements of operations and comprehensive income prepared under IFRS according to their function. As a result, depreciation, which was reported as a separate line item under previous Canadian GAAP, was allocated to its respective functions.

(c) Finance income and costs – under Canadian GAAP, interest income and foreign exchange gains and losses were classified as separate line items in the consolidated statement of earnings. Under IFRS, interest income and net foreign exchange gains are presented as finance income, and net foreign exchange losses are presented as finance costs. Finance income and costs are presented on a gross basis as required by IFRS.

22.6 ADJUSTMENTS TO THE STATEMENTS OF CASH FLOWS:

Interest received and income taxes paid have been moved into the body of the statement of cash flows under operating activities, whereas they were previously disclosed as supplemental information. There are no other material differences between the statement of cash flows presented under IFRS and the statement of cash flows previously presented under Canadian GAAP.

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DSS Computer Crash Jams Up Benefits Applications

The state Department of Social Services acknowledged Wednesday that serious computer problems — going on for two full days, so far — are jamming up new applications for public assistance.

A department spokesman said that DSS continues to take new applications, but that they can’t be processed until the system is restored to normal operation. The spokesman, Dave Dearborn, said he had no estimates for how many people have been affected or how long it will take to restore the system to normal operation.

“Computer problems … are hampering the agency’s ability to process new applications and eligibility renewals for medical coverage, food aid and other programs,” Dearborn confirmed after The Courant made inquiries Wednesday afternoon. “Technicians are working to restore the department’s massive and antiquated eligibility management system — known since the 1980s as EMS — after it went out of service this week.”

The problem is statewide, Dearborn said.

He said the public can still go to any DSS office and request an application and file an application, but processing might take time.

“We have a process by which we date-stamp incoming applications so the ‘date of application’ is protected in terms of a start date for eligibility once the processing is concluded.”

But, he said, the department “will not be able to process for eligibility determination until the computer system is restored. Current clients who are due for annual benefit redetermination on the first of next month may also be affected, depending on when the system is restored.”

Overall, Dearborn said the “great majority of DSS clients” are not now affected by the system problems.

Hundreds of thousands of “individuals and families already eligible for programs as of May 18 remain active in the systems used by medical providers, pharmacies, vendors, and other service providers to check client eligibility,” Dearborn said.

“Everyone ‘in the computer’ as of May 18 is essentially locked in — with benefits,” he said, and can still draw down their benefits through their EBT — electronic benefit transfer — cards.

But what about DSS clients who weren’t locked in as of May 18?

“The department is taking steps to communicate with providers, vendors, and pharmacies on how to continue to serve clients whose eligibility cannot be verified,” Dearborn said.

Here’s what could happen to such clients, and what the DSS is trying to do to help, Dearborn said: “You go to the pharmacy with your medical card to pick up your prescription and the pharmacist says, ‘our check with the eligibility system says your coverage is not active.’” Or, he said, the client might go to the doctor and the same thing happens.

To help such clients, “we’re communicating with the providers and pharmacies to say, essentially, serve the client/patient and we will arrange for payment,” Dearborn said.

The system crashed after the close of business Monday, and remained down all of Tuesday and Wednesday. “The situation is day-to-day, as IT staff work to resolve the problems,” Dearborn said.

“It is widely recognized that the department’s EMS system is antiquated and outmoded,” Dearborn said, adding that “DSS’s client databases have continued to grow with public demand for services, and we are approaching maximum capacity.”

Although the eligibility management system has been “off-line on brief occasions in the past,” the current problem “resulted from complications in trying to create more data space,” he said.

“Creating more space is absolutely necessary to enable this outdated system to last until we can replace it. … Our IT staff was working over the weekend on expanding data capacity. We think the problem resulted from complications from that.”

To solve the problem in the long term, Dearborn said that “an initiative is underway to replace the 1980s-vintage system though federal and state funding. DSS is participating with other state agencies in planning for a unified client eligibility system, with the prospect for major federal funding.”

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Kansas: license system computer bugs fixed


TOPEKA, Kan. –

Revenue Secretary Nick Jordan says problems with a new computer system that delayed Kansas vehicle and title registrations have been resolved.

Kansas is implementing a new system that will merge vehicle registrations and titles and eventually link to driver’s license records. Jordan says the issues that caused the system to bog down Monday and Tuesday were related to routine maintenance performed Sunday night.

The Division of Vehicles worked with 3M to fix the problems and restore service. 3M is the vendor supplying the new $40 million system.

Problems with the system caused delays and led to long lines and the closing of vehicle registration stations.

Officials are urging residents to register their vehicles online to avoid delays. They’ve also extended expiration dates for registrations with April and May deadlines.

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LXE introduces the HX2 rugged Wearable Computer, a new addition to its line of Hands-Free Picking Computers

The HX2 boosts performance in warehouse picking small parcel move applications
 
LXE Inc., a leading manufacturer of rugged wireless computers that improve the performance of supply-chain execution applications, today introduced a new addition to its line of wearable, hands-free computers the HX2 rugged wearable computer. The HX2 rugged wearable computer is a small, light-weight data collection computer designed to be worn on an operators arm or waist so that both hands are free to more effectively and efficiently perform warehouse inventory moves, including piece picking to carts, containers or conveyers; case picking; parcel moves; and broken case activities.

For a wearable computer to be embraced by the market it has to be both comfortable and easy to use. The units innovative arm bands that secure both the unit and its battery keeps the wearable computer in the ready position at all times by preventing the unit from rotating around the operators arm a common complaint among existing wearable users. The adaptable arm bands can be worn close to the elbow or near the wrist whatever is the operators preference.
 
The compact HX2 rugged wearable computer has an extraordinarily bright and crisp colour display for easy viewing in any lighting conditions and from any angle no longer is there a need for your wearable computer to be front and centre to be read. And the large, backlit keys have been carefully designed for use in high-speed picking environments. The keys are fully mappable, so customers can customise them for specific applications.
 
Beyond all that, this computer is tough. It has to be to survive the tough work environments in which it will be used. The HX2 wearable computers magnesium alloy front and impact-resistant screen are designed to keep the unit in service and out of the repair shop. The
HX2 rugged wearable computers ring scanners (laser and imager) are built as tough as the main computer.
 
Both the HX2 rugged wearable computer and its ring scanner accessories were designed with safety in mind. The entire HX2 rugged wearable computer system features breakaway connections at multiple points and a low-profile, smooth design to resist snagging on common warehouse fixtures and equipment.
 
With the HX2 rugged wearable computer along with the HX1 dedicated voice computer and the MX7 multimodal scanning/voice handheld computer, LXE now has one of the industrys most complete suite of data collection solutions for picking, says Jim Childress, LXEs president and general manager. With LXE, customers can now choose the perfect picking technology for their specific applications.
 
The HX2 rugged wearable computer is driven by the latest Windows CE 5.0 operating system and an Intel XScale processor. It features an 802.11b/g radio with Bluetooth, so youre prepared for the real-time business opportunities of today and tomorrow.
 
Weve integrated the feedback from dozens of current wearable customers into the design of the HX2 rugged wearable computer, says Steve Binder, Managing Director, UK Operations, LXE UK Ltd. Weve developed a unit that not only significantly improves upon these existing wearable terminals, but does so in a manner that wont disrupt operators who are comfortable with the operation of their existing terminals.
 
The HX2 rugged wearable computer also includes LXEs ToughTalkTM technology. ToughTalk technology is LXEs specialised combination of LXEs trademark ruggedised system design, advanced audio circuitry and noise canceling techniques, which enable the HX2 rugged wearable computer to support todays industrial-grade voice recognition applications. With the HX2 rugged wearable computer, customers can run both their voice logistics applications and their traditional barcode scanning applications on the same unit.

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Google funds computer teaching

Eric SchmidtMr Schmidt made headlines when he criticised UK computing classes

Dozens of teachers specialising in computer science are to work in English schools thanks to a partnership between Google and the charity Teach First.

Google’s chairman Eric Schmidt said money would also be provided to buy “teaching aids, such as Raspberry Pi’s or Arduino starter kits”.

He said that without investment in the subject, the UK risked “losing a generation” of scientists.

Mr Schmidt had previously criticised the country’s ICT curriculum.

He had said the UK was “throwing away [its] great computing heritage” by focusing on using software rather than how it was made.

The comments, delivered last August at the Edinburgh International Television Festival, prompted education secretary Michael Gove to revamp the curriculum to incorporate programming and other tech skills.

Teach First

Speaking on Wednesday at London’s Science Museum, Mr Schmidt outlined further plans: “Put simply, technology breakthroughs can’t happen without the scientists and engineers to make them. The challenge that society faces is to equip enough people, with the right skills and mindset, and to get them to work on the most important problems.”

Despite acknowledging progress, he described computer science education in the UK as still being in a “sorry state”.

He announced that Google would provide the funds to support Teach First – a charity which puts “exceptional” graduates on a six-week training programme before deploying them to schools where they teach classes over a two-year period.

Many stay on beyond that term while others pursue places at leading businesses associated with the programme.

At present the scheme is limited to seven regions of England: East Midlands; Kent and Medway; London; North East; North West; West Midlands; and Yorkshire and Humber.

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Scrapping the existing curriculum was a good first step – the equivalent of pulling the plug out of the wall”

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Eric Schmidt
Chairman, Google

Mr Schmidt said the donation would be used to train “more than 100 first rate science teachers over the next three years, with the majority focused on computer science”.

Rebooting computing

He said that he hoped up to 20,000 students would benefit in “disadvantaged communities”.

“It’s vital to expose kids to this early if they’re to have the chance of a career in computing,” Mr Schmidt added.

“Only 2% of Google engineers say they weren’t exposed to computer science at high school.

“While not every child is going to become a programmer, those with aptitude shouldn’t be denied the chance.”

Each of the 100 teachers will have a small bursary to buy equipment relating to their teaching. The Raspberry Pi, a low-cost computer designed in the UK, will be used in the scheme.

“The success of the BBC Micro in the 1980s shows what’s possible. There’s no reason why Raspberry Pi shouldn’t have the same impact, with the right support,” Mr Schmidt said.

Raspberry Pi with SD memory card attachedThe Raspberry Pi runs off Linux-based operating systems

Turing anniversary

Google has also sponsored a new exhibition at London’s Science Museum showcasing the life and career of Alan Turing.

It is due to open next month to coincide with the 100th anniversary of the computer pioneer’s birth.

In 2014, the museum will open a new gallery, also funded by Google, showcasing modern communications.

Mr Schmidt said he hopes such exhibits can equate to an image change for engineering.

“Rebooting computer science education is not straightforward.

“Scrapping the existing curriculum was a good first step – the equivalent of pulling the plug out of the wall. The question is now how to power up.”

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