Message #6 From:
Stock News Bot Date: August 12, 2005 06:04:00 AM
ADYE News Aradyme Reports Revenue 241% of Prior Quarter, Improved Third Quarter Results
OREM, Utah--(BUSINESS WIRE)--Aug. 12, 2005--Aradyme Corp. (OTCBB: ADYE) today announced third quarter fiscal 2005 revenue of $552,671, compared to prior quarter revenue of $229,299, and compared to prior year third quarter revenue of $7,920. This increase represents a continuation of a positive, upward trend in the company's revenues over prior quarters, resulting directly from the commercialization and application of the company's technologies and advanced data migration solutions.
The fiscal 2005 third quarter revenues are the result of work completed on interim requirements of several current contracts that will continue throughout this year and into next year. In June 2005, we reached a significant milestone by successfully completing all of the contractual requirements on one of our state voter registration data migration contracts. This is the first state voter registration date migration contract that we have taken from beginning to completion and then billed and collected final amounts due.
"This revenue growth was projected, and is further indication of the commercial success we have had in delivering our solutions," said James R. Spencer, chief executive officer of Aradyme. "We are aggressively pursuing other promising sales opportunities in both the data migration and data integration/middleware spaces, with the goal of becoming the nation's premier data management solution provider."
Highlights
Financial and other highlights from the quarter include:
-- Revenue for the third quarter grew to $552.7 thousand compared to revenue of $7.9 thousand for the third quarter of fiscal 2004.
-- Third quarter revenue of $552.7 thousand increased from revenue of $229.3 thousand for the second quarter of fiscal 2005.
-- Revenue for the nine months ended June 30, 2005 grew over 2800% to $808.8 thousand compared to revenue of $27.9 thousand for the same period last year.
-- Net loss for the quarter ended June 30, 2005 of $374.3 thousand was down from a net loss of $598.8 thousand in the second fiscal quarter ended March 31, 2005, and down from $813.5 thousand in the first fiscal quarter ended Dec. 31, 2004.
-- The "Net Cash Used by Operating Activities" in the quarter ended June 30, 2005, of $410,517 represents the fourth consecutive quarter of reduced "Net Cash Used by Operating Activities" as compared to a prior quarter.
-- Secured a contract with ista North America, to provide data migration solutions to this market leader, which specializes in submetering and billing of water and energy consumption. This is our first significant contract as a prime contractor to provide our data migration solutions to a new market outside the voter registration space.
Additional Financial Results
Total operating expenses for the quarter were $850.9 thousand, compared to $785.9 thousand in the prior quarter, and compared to $555.8 thousand in the comparable quarter of fiscal 2004. The operating expenses include costs of staff additions and consultant services to provide technical resources to the company, costs to support activities required by contracts awarded to the company since November 2004, further development of the company's technologies, and expansion of the company's marketing and sales activities to support the commercialization of the company's technologies and services.
Outlook
"We continue to build relationships with large integrators, and businesses and organizations that have major data migration and integration challenges," said Spencer. "Our major efforts are channeled toward optimizing our technology, and developing and marketing new solutions and services based on our technology. We are also focusing on cultivating organic growth within our existing customer base, and identifying and entering new markets in which we can apply our solutions to large-scale projects."
About Aradyme Corp.
Aradyme Corp. is a data management company that provides world-class solutions in data migration, data integration and application development. These solutions are made possible through a mix of proprietary next-generation database technologies, methodologies and experience that enables customers to simplify their data management efforts and substantially increase the quality of their data. By leveraging the company's dynamic-schema database management system, which has been in development for more than 25 years, customers are able to bypass the limitations of traditional database technology and achieve greater flexibility in data handling. For more information about Aradyme, call 801-705-5000 or visit the company's Web site at http://www.aradyme.com.
This release contains forward-looking statements. Forward-looking statements are not guarantees of future revenues, sales, agreements, events, growth or results. Forward-looking statements are subject to risks and uncertainties outside Aradyme's control. Actual events or results may differ materially from the forward-looking statements. For a discussion of additional contingencies and uncertainties to which information respecting future events is subject, see Aradyme's annual report on Form 10-KSB for the fiscal year ended Sept. 30, 2004, and other SEC reports.
ARADYME CORP. AND SUBSIDIARY
Consolidated Balance Sheets
June 30, Sept. 30,
ASSETS 2005 2004
------ ----------- -----------
(Unaudited)
CURRENT ASSETS
Cash $387,271 $265,259
Accounts receivable 460,860 29,260
Prepaid expenses 17,653 66,917
----------- -----------
Total Current Assets 865,784 361,436
----------- -----------
PROPERTY AND EQUIPMENT, NET 107,812 89,212
----------- -----------
OTHER ASSETS
Prepaid license fees 67,412 33,662
Deposits 25,538 4,960
----------- -----------
Total Other Assets 92,950 38,622
----------- -----------
TOTAL ASSETS $1,066,546 $489,270
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable $107,769 $33,779
Accrued expenses 357,797 172,622
Notes payable - related party 200,000 -
Notes payable 360,870 52,500
----------- -----------
Total Current Liabilities 1,026,436 258,901
----------- -----------
STOCKHOLDERS' EQUITY
Common stock: 50,000,000 shares
authorized of $0.001 par value,
25,229,546 and 23,151,046 shares
issued and outstanding,
respectively 25,230 23,151
Additional paid-in capital 6,209,794 4,465,510
Stock subscription receivable (150,000) -
Accumulated deficit (6,044,914) (4,258,292)
----------- -----------
Total Stockholders' Equity 40,110 230,369
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,066,546 $489,270
=========== ===========
ARADYME CORP. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
For the Three Months For the Nine Months
Ended June 30, Ended June 30,
------------------------ ------------------------
2005 2004 2005 2004
------------ ----------- ------------ ------------
REVENUES $552,671 $7,920 $808,770 $27,853
OPERATING EXPENSES
Depreciation and
amortization 10,521 26,388 26,444 51,366
Rent 11,667 13,668 49,498 32,750
Contract services 94,866 12,866 416,103 256,515
General and
administrative 733,846 502,886 1,854,925 970,444
------------ ----------- ------------ ------------
Total Operating
Expenses 850,900 555,808 2,346,970 1,311,075
------------ ----------- ------------ ------------
LOSS FROM OPERATIONS (298,229) (547,888) (1,538,200) (1,283,222)
OTHER INCOME
(EXPENSE)
Interest expense (76,102) (282) (208,529) (50,132)
Loss on disposal
of assets - - (39,892) -
------------ ----------- ------------ ------------
Total Other
Income
(Expense) (76,102) (282) (248,421) (50,132)
------------ ----------- ------------ ------------
NET LOSS $(374,331) $(548,170) $(1,786,621) $(1,333,354)
------------ ----------- ------------ ------------
BASIC LOSS PER SHARE $(0.02) $(0.02) $(0.07) $(0.07)
============ =========== ============ ============
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING 24,438,337 23,032,365 24,034,453 18,880,773
============ =========== ============ ============
ARADYME CORP. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
For the Nine Months Ended
June 30,
-------------------------
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(1,786,621) $(1,333,354)
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation and amortization 26,444 51,366
Bad debt - -
Loss on disposal of assets 39,892 -
Warrants and options issued below
market value - 17,425
Common stock issued for services 96,000 16,625
Common stock issued for line of
credit 20,000 -
Warrants issued for line of credit
and debt 174,442 -
Changes in assets and liabilities:
(Increase) in accounts receivable (431,600) (10,433)
Decrease (increase) in prepaids 15,514 (743)
(Increase) decrease in deposits (20,578) -
Increase (decrease) in accounts
payable and related party payables 73,990 (227,849)
Increase in accrued expenses 261,975 14,290
------------ ------------
Net Cash Used by Operating Activities (1,530,543) (1,472,673)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (84,935) (24,298)
------------ ------------
Net Cash Used by Investing Activities (84,935) (24,298)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable 366,459 80,000
Payments on notes payable (58,089) (15,000)
Proceeds from related party note
payable 200,000 -
Payments on related party payable - (15,758)
Common stock issued for cash 1,229,120 2,075,948
Proceeds from subscription receivable - 50,000
Stock offering costs - (27,500)
------------ ------------
Net Cash Provided by Financing
Activities 1,737,490 2,147,690
------------ ------------
NET (DECREASE) INCREASE IN CASH 122,012 650,719
CASH AT BEGINNING OF PERIOD 265,259 55,296
------------ ------------
CASH AT END OF PERIOD $387,271 $706,015
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