Message #8 From:
Stock News Bot Date: November 20, 2006 09:31:00 AM
ACIE News Acies Corporation Announces Second Quarter Results for Fiscal 2007
NEW YORK--(BUSINESS WIRE)--Acies Corporation (OTCBB:ACIE), a business services company specializing
in providing payment processing services primarily to small- to
medium-size merchants across the United States, today announced its
fiscal second quarter results for the three and six months ended
September 30, 2006.
Financial Highlights for the Three Months Ended September 30, 2006
Compared to Three Months Ended September 30, 2005:
Revenues climbed 47.4% to $3,015,261, up from $2,045,165. On a
sequential quarter-over-quarter basis, revenues remained strong and
steady, increasing modestly from $3,013,179.
Gross margin was $288,737, as compared with $286,261, representing a
lower margin as a percentage of revenues principally as a result of
lower pricing and greater account acquisition costs.
G&A expense was $609,691, representing 20.2% of total sales, compared
to $543,150, which was 26.6% of total sales.
Net loss increased 25.7% to $320,954, or $0.01 loss per share, from
$255,364, or $0.01 loss per share. The increase was due principally to
the relatively flat gross margin and increased G&A expense.
Financial Highlights for the Six Months Ended September 30, 2006
Compared to Six Months Ended September 30, 2005:
Revenues totaled $6,028,439, a 63.2% increase over revenues of
$3,693,686.
Gross margin increased 18.5% to $688,510, up from $580,731.
G&A expense was $1,097,460, representing 18.2% of total revenues,
compared to $1,005,960, or 27.2% of total revenues in the prior year
period.
Net loss declined 9.3% to $408,950, or $0.01 loss per share, compared
to a net loss of $450,703, or $0.01 loss per share. The decrease in
net loss was the result of the increased gross margin and not having a
loss on extinguishment of debt in the current period, offset by
increased G&A expense.
Commenting on the results, Jeffrey Tischler, Executive Vice President
and Chief Financial Officer of Acies, stated, “We
are very pleased with our continued year-over-year revenue growth.
Despite increased pricing pressure in several key verticals, we remain
confident that, through creative marketing initiatives and continued
effective expense control, we are building a solid foundation for
continued long-term growth and future profitability.”
Oleg Firer, President and Chief Executive Officer of Acies, commented, “Every
key milestone that Acies has achieved since the founding of our Company
has been rooted in one core belief – through
an unwavering commitment to excellence and customer-focused attention,
Acies will distinguish itself as an industry preferred source for
innovative, comprehensive payment processing solutions to the small- to
medium-size merchant marketplace.” Firer
added, “This commitment has continued to drive
meaningful revenue growth solely through organic sales channels, and we
are very proud of this accomplishment. However, we still have much work
to do to achieve the level of success that we believe Acies can deliver
for our shareholders.”
“In anticipation of a busy holiday shopping
season, Acies recently unveiled a series of creative campaigns designed
to attract and win a broad array of new accounts to the Acies family of
merchants. We are enjoying a favorable response to these programs and
have high hopes that this latest initiative will result in an expanded
customer base as we progress through the fiscal year,”
concluded Firer.
Acies will host a teleconference tomorrow afternoon, Tuesday, November
21, 2006, beginning at 4:15 PM Eastern, and invites all interested
parties to join management in a discussion regarding the Company's
financial results, corporate progress and other meaningful developments.
The conference call can be accessed via telephone by dialing
800-901-5213 and entering the passcode 19457159, or via the Internet at www.aciesinc.com.
For those unable to participate at that time, a replay of the web cast
will be available for 90 days on www.aciesinc.com.
About Acies Corporation (pronounced “ay-see-us”)
Headquartered in New York City, Acies Corporation is a business services
company that, through its wholly owned subsidiary, Acies, Inc.,
specializes in providing payment processing services primarily to small-
to medium-sized merchants across the United States. Acies' payment
processing services enable merchants to process Credit, Debit,
Electronic Benefit Transfer (EBT), Check Conversion, and Gift & Loyalty
transactions. Acies also offers traditional and next-generation
point-of-sale (POS) terminals, which enable merchants to utilize Acies'
payment processing services. For more information, visit http://www.aciesinc.com.
ACIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30
Six Months Ended September 30
2006
2005
2006
2005
Revenues
$
3,015,261
$
2,045,165
$
6,028,439
$ 3,693,686
Cost of revenues
2,726,524
1,758,904
5,339,929
3,112,955
Gross margin
288,737
286,261
688,510
580,731
General, administrative and selling
609,691
543,150
1,097,460
1,005,960
Operating Loss
(320,954)
(256,889)
(408,950)
(425,229)
Loss on extinguishment of debt
-
-
-
(28,453)
Interest expense
-
-
-
(1,000)
Interest income
-
1,525
-
3,979
Net Loss
$
(320,954)
$
(255,364)
$
(408,950)
$ (450,703)
Basic and diluted net loss per share
$
(0.01)
$
(0.01)
$
(0.01)
$ (0.01)
Weighted average shares outstanding
51,101,177
48,055,207
50,961,273
48,055,207
ACIES CORPORATION CONSOLIDATED BALANCE SHEETS
ASSETS
Current Assets
Sept. 30, 2006
(Unaudited)
March 31, 2006
Cash
$
3,875
$
124,804
Accounts receivable, net
988,740
926,647
Total current assets
992,615
1,051,451
Prepaid assets and deposit
43,442
41,042
Fixed assets, net of accumulated depreciation of $ 16,714 and
$11,672, respectively
25,473
30,515
Merchant Terminal Equipment, net of accumulated depreciation of
$68,876 and $30,471, respectively
166,876
158,712
Total Assets
$
1,228,406
$
1,281,720
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable
$
1,165,587
$
904,762
Accrued compensation to officers
140,000
160,000
Merchant Equipment Deposits
18,810
13,959
Total current liabilities
1,324,397
1,078,721
Deferred Rent and Other Obligations
33,839
33,839
Total Liabilities
1,358,236
1,112,560
Commitment and contingencies
Shareholders' Equity (Deficit)
Common stock, $0.01 par value, 200,000,000 shares authorized,
51,052,665 and 50,563,751 shares issued and outstanding respectively
51,053
50,564
Additional paid in capital
4,653,885
4,517,414
Deferred compensation
(109,500)
(82,500)
Accumulated deficit
(4,725,268)
(4,316,318)
Total shareholders' equity (deficit)
(129,830)
169,160
Total Liabilities and Shareholders' Equity (Deficit)
$
1,228,406
$
1,281,720
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains or may contain
forward-looking statements such as statements regarding the Company's
growth and profitability, growth strategy, liquidity and access to
public markets, operating expense reduction, and trends in the industry
in which the Company operates. The forward-looking statements contained
in this press release are also subject to other risks and uncertainties,
including those more fully described in the Company's filings with the
Securities and Exchange Commission, including the risk factors in its
form 10-KSB for the year ended March 31, 2006. The Company assumes no
obligation to update these forward-looking statements to reflect actual
results, changes in risks, uncertainties or assumptions underlying or
affecting such statements, or for prospective events that may have a
retroactive effect.
