« Previous | Next » | All Messages |  BEAC Message Board Home | recommend post |  Ignore Poster

BEAC Stock: Beacon Solutions Announces Financial Results for Quarter Ended June 30, 2008

Revenue for the three months ended June 30, 2008, was $2,364,000 (up 50.4% from $1,572,000 in the previous quarter), Gross Profit was $920,000 (up 25.5% from $733,000 in the previous quarter) and the Company's Net Loss was ($1,029,000), a 19.6% improvement from ($1,280,000) in the previous quarter. Adjusted EBIDTA(1) for the period was ($617,000) a 6% improvement from ($657,000) in the previous quarter.

"Due to minor construction delays and manufacturer backorders we were unable to record some of our anticipated revenue during the period and ended the quarter with a pending business backlog of $1,480,000, up 39% from our backlog of $1,068,000 at the end of the previous quarter," commented Rick Mills, President of Beacon Solutions. "As a result of the increased backlog and new business development efforts, we anticipate significant revenue growth during the current quarter."

"Our ongoing cross selling and integrated product selling strategies contributed to our 50% quarter over quarter revenue growth," commented Bruce Widener, CEO of Beacon Solutions. "We're seeing continued growth within multiple product and service lines, particularly in the areas of unified communications and infrastructure services. By bringing together and integrating specialists in the areas of telecommunications, IT services, data, physical security systems, network design and engineering, all within one organization, we believe Beacon holds a distinct competitive advantage in each of our primary markets," concluded Widener.

Please see footnote 1 below for our definition of Adjusted EBITDA, a description of why we use Adjusted EBITDA and important disclaimers regarding Adjusted EBITDA, which is a non-GAAP measure. A reconciliation of Adjusted EBITDA to the appropriate GAAP measure is also included in footnote 1.

About Beacon Enterprise Solutions Group:

Beacon was formed by the consolidation of four independently successful companies in the IT and Telecom service sectors. Today, Beacon is a unified, single-source provider of technology and telecommunications services, from software development and infrastructure design to interconnect voice/data, security and systems integration. Beacon's client roster includes over 4,000 companies, from small and medium-sized business enterprises (SME market) to Fortune 500 firms, along with state and local government agencies and educational institutions. The Company's business strategy currently centers on a three phase development plan (regional in Phase I, super-regional in Phase II and national in Phase III) driven by a combination of organic and acquisition growth. Headquartered in Louisville, Kentucky, Beacon maintains offices in Cincinnati, Ohio; Columbus, Ohio; Mangalore, India and services clients globally. For more information please visit www.askbeacon.com or contact the Company at 502-379-4788 or investors@askbeacon.com.

This press release may contain "forward-looking statements." Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Factors that could cause or contribute to such differences include, but are not limited to, market acceptance of products and technologies, competitive factors, the Company's ability to continue to secure sources of financing, the Company's ability to identify, acquire and integrate suitable target companies and other factors described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

(1) Explanation of Adjusted EBITDA, a Non-GAAP Financial Measure

The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted for stock based compensation expense and other income. The Company believes that Adjusted EBITDA, which is a financial measure that is not defined by Generally Accepted Accounting Principles in the U.S., or GAAP, is a useful performance metric because it eliminates significant non-cash and/or one-time charges to earnings. It is important to note that non-GAAP measures such as Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, net income, cash flows, or other measures of financial performance prepared in accordance with GAAP. The items excluded from adjusted EBITDA are significant components in understanding and evaluating financial performance and liquidity. A reconciliation of net income to Adjusted EBITDA is as follows for the quarter ended June 30, 2008.