Acies Corporation Reports 83% Increase in Revenues for 2007 Fiscal First Quarter
Acies Corporation Reports 83% Increase in Revenues for 2007 Fiscal First Quarter; Continued Revenue Growth and Strict Expense Discipline Leads to 55% Decline in Net Losses
NEW YORK--(Business Wire)--Aug. 15, 2006--
Conference Call and Web Cast Scheduled for
Thursday, August 17 at 4:15 P.M. Eastern
Acies Corporation (OTCBB: ACIE), a financial services company specializing in providing payment processing and online banking services to small, medium and large-size merchants across the United States, today announced its fiscal first quarter results for the three months ended June 30, 2006.
Financial and Operational Highlights for the Three Months Ended June 30, 2006 Compared to the Three Months Ended June 30, 2005:
-- Revenues increased 83% to $3,013,179, up from $1,648,521 a
year ago. On a sequential quarter-over-quarter basis, revenues
rose 16% when compared to $2.6 million reported for the fiscal
fourth quarter ended March 31, 2006.
-- G&A expenses totaled $474,012, representing 16% of total
revenues, compared to $462,809, or 28% of total revenues in
the prior year period.
-- Net loss declined 55% to $87,997, or $0.00 basic and diluted
loss per share, from a net loss of $195,338, or $0.00 basic
and diluted loss per share, in the first quarter of fiscal
2006.
Oleg Firer, President and CEO of Acies, stated, "The 2007 fiscal year is off to a very strong start. By remaining focused on increasing merchant processing revenues while maintaining vigilant control over expenses, Acies once again delivered another quarter marked by record revenue and a material drop in our net losses. Successful implementation of our sales and marketing programs continues to drive organic growth of our national merchant portfolio through our steadily expanding direct and ISO channels. As we advance through the 2007 fiscal year, we expect that this proven strategy will persist in promoting opportunities for greater growth in coming quarters and help us to achieve our ultimate objectives - positive cash flow and consistent profitability."
Firer continued, "The Acies brand is fast becoming synonymous with top quality, comprehensive payment processing solutions and superior customer service, and is serving to build a very strong foundation of loyal customers and strategic partners. Through a continuation of focused, creative marketing and sales initiatives, we remain confident that fiscal 2007 will prove to be a defining year for Acies."
Acies will host a teleconference Thursday afternoon, August 17, 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 1-866-770-7051 and entering the passcode 13620852, 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 financial services company that, through its wholly owned subsidiary, Acies, Inc., specializes in providing payment processing and online banking services to small, medium, and large-size 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. Acies' banking services offer customers traditional banking services and the ability for customers to apply for an online bank account and pay bills electronically. For more information, visit http://www.aciesinc.com.
"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. -0- *T
ACIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, 2006 and 2005
2006 2005
------------ ------------ Net revenues $ 3,013,179 $ 1,648,521 Cost of revenues 2,613,404 1,354,051
------------ ------------ Gross margin 399,775 294,470
General, administrative and selling 474,012 462,809 Stock-based compensation 13,760 -
------------ ------------
Operating loss (87,997) (168,339)
Loss on extinguishment of debt - (28,453) Interest expense - (1,000) Interest income - 2,454
------------ ------------
Net loss $ (87,997) $ (195,338)
============ ============
Basic and Diluted net loss per share $ (0.00) $ (0.00) Weighted average shares outstanding 50,819,832 48,055,207
ACIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, March 31,
2006 2006 ASSETS Current Assets
Cash $ 28,893 $ 124,804
Accounts receivable, net 1,041,812 926,647
------------ ------------
Total current assets 1,070,705 $ 1,051,451
Prepaid assets and deposit 44,550 41,042
Fixed assets, net of accumulated
depreciation of $14,193 and $11,672 27,994 30,515
Merchant terminal equipment, net of
accumulated depreciation of $ 49,230 and
$30,471 175,881 158,712
------------ ------------
Total Assets $ 1,319,130 $ 1,281,720
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities
Accounts payable $ 1,023,152 $ 904,762
Accrued expenses 140,000 160,000
Merchant equipment deposits 18,216 13,959
------------ ------------
Total current liabilities 1,181,368 1,078,721
Deferred rent and other obligations 33,839 33,839
------------ ------------
Total Liabilities $ 1,215,207 $ 1,112,560
------------ ------------
Commitment and contingencies Shareholders' Equity
Common stock, $.001 par value, 200,000,000
shares authorized, 51,048,978 and
50,563,751 shares issued and outstanding 51,049 50,564
Additional paid in capital 4,574,189 4,517,414
Deferred stock compensation (117,000) (82,500)
Accumulated deficit (4,404,315) (4,316,318)
------------ ------------
Total shareholders' equity 103,923 169,160
------------ ------------
Total Liabilities and Shareholders'
Equity $ 1,319,130 $ 1,281,720
============ ============ *T
Elite Financial Communications Group Dodi Handy, 407-585-1080 acie@efcg.net
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