The IBSG International is a publicly traded company that is a holding company for various private software technology companies with technical and market synergy. IBSG International acquired IBS Group, Inc in February 2004. IBS Group, Inc. took over the management of assets of Commerce, Inc. which commenced business in 1997 selling enterprise solutions that greatly enhance the operating efficiency and create revenue for State Small Business Development Centers, Small-Medium Enterprises (SMEs), business associations (e.g., Chambers of Commerce) and Fortune 1000 corporations through the licensing of its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform. Sales of the core product and services will be sold both in the US and the UK.
The assets of a company called RedHand International were acquired in June of 2004 (LOI entered into in April of 2004). As a newly formed subsidiary of IBSG International, Secure Blue was established to utilize its security technology in addressing the digital monitoring of records in satisfaction of Sarbanes-Oxley. The focus of Secure Blue’s market will be the SMEs small cap publicly traded companies and expanding into Fortune 1000 companies. Additional opportunities in the federal and local government security markets will be explored.
Secure Blues’ technology will address Sarbanes-Oxley requirements. The security technologies developed in SecureBlue Sox Pro are intended to be incorporated into IBS Group’s digital commerce technology to enhance the tracking of usage, storage and security.
The cost effective operation of the various companies is based on centralizing various back end functions which permits the subsidiaries to operate in a highly cost effective environment. For more information on the overall marketing strategy, review the market section of the site.
Board Members
Dr. Michael Rivers - CEO & Chairman of Board
Michael is the founder of IBSG and has over twenty-one years experience in the field of business development, support and human services. His areas of expertise include supporting the development of small to mid size businesses, establishing digital business services with a diverse group of business community entities and remote vocational relationships within One-Stop Career Center processes through technology. Michael has served as an expert and guest speaker for several organizations. Of note, the U.S. Dept. of Commerce, the Social Security Administration, the Dept. of Labor, the Association for Community Colleges and a number of state and national organizations. Michael holds a doctorate through the Washington D.C. consortium of universities, and an undergraduate degree in the diversified studies of Chemistry, Biology and Psychology.
Jeff Willmott – Board of Director
Mr. Willmott is a senior level executive with over 35 years experience in diverse industries, both domestic and international in scope. He started his career in 1977 at Avon Products, spending 5 years in the South American marketing group, and then 3 years as Division Manager for a $25million dollar New England sales group. Recruited to Westinghouse in 1983 into their nascent cable television unit, Group W, Mr. Willmott spent 8 years in all phases of sales and marketing, rising to run the effort in the southeast region of the U.S. After the sale of that business, Mr. Willmott joined the venerable investment banking firm of Dillon Read & Company (now UBS) in 1991, spending the next 8 years in financial services business development and marketing. In 2002, he joined the board of RCG Companies, a public travel/technology holding company. He was immediately made Chairman of the Board, and through various travel related mergers/acquisitions, the business grew to over $300 million in bookings. Mr. Willmott retired the Chair in 2005, and remained a director until the company was acquired by private equity. Mr. Willmott joined the board of IBSG International in June 2005. He is currently also advising several private early stage companies with their development. Also, he serves on the Adjunct faculty of both New York University Graduate Management Program and Fordham University Graduate School of Business. He holds a Bachelors and an MBA in marketing.
Geoffrey Birch – Board of Director and Acting CFO
Mr. Birch was in plastics and pharmaceuticals for over 30 years which included manufacturing and distribution. Mr. Birch developed a specialist European facility for medicated over-the-counter hair treatments and eventually it was purchased by SSL International, a UK publicly quoted company in the late 1990s. Mr. Birch was a board member of several UK Venture capital firms investing in young UK companies with identifiable growth potential in the areas of technology. He is currently chairman of Sylvrey Ltd, an investment company. Mr. Birch brings in-depth knowledge into the development of businesses in bear and bull markets.
SHARE STRUCTURE[/B]
SHARES OUTSTANDING: 7,275,000
FLOAT: 6,000,000
[b]FINANCIAL UPDATE FROM COMPANY PR[/B]
IBSG International Announces Financial Results for Fourth Quarter and Year-End 2006
Wednesday April 4, 8:00 am ET
Tenth Consecutive Profitable Quarter; Gross Profit up 48% for Year
Revenue Projections for 2007 Ranges from $18 Million to $24 Million
Conference Call to be Held Monday, April 9, at 11:00 A.M. Eastern Daylight Time
CELEBRATION, Fla.--(BUSINESS WIRE)--IBSG International, Inc., (the "Company"), (OTC BB: IBIN - News) announced today its financial results for the fourth quarter and year ended December 31, 2006.
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For the full year 2006, revenues were slightly above $10.3 million compared to the result for 2005 of $7.2 million. Gross profit for the year ended December 31, 2006 was $10.1 million compared to $6.8 million in the previous year, an increase of roughly 48%. Cash collections rose approximately 150% year over year.
The Company showed a $4.3 million net income from Operations in 2006. Operating expenses rose to $6.0 million for 2006 from $4.6 million in 2005. General and administrative expenses show an increase in 2006 primarily due to the addition of the ISBD India, the South Africa office and the A-1 Division office as well as an increase in travel expenses.
Other expenses rose to $2.5 million in 2006 from $464,008 in 2005. The increase of other expenses for 2006 was due to the settlement of certain debt and warrants outstanding and $1,949,540 of income tax expense recorded in 2006. Taxes in 2006 amounted to almost 78% of other expenses as compared to 23% of other expenses in 2005. The single largest impact coming from the tax provision for 2006 and the fully discharged net operating loss that was carried into 2005 from 2004 was no longer available to offset profitability.
Net income reported for the year ending December 31, 2006 was $1.8 million, or a gain of $0.25 per fully diluted share. Deferred revenue increased by $1.5 million to total $3.2 million at the end of 2006 compared to $1.7 million at the end of 2005. The $3.2 million in deferred revenue represents a backlog of future revenue.
Dr. Michael Rivers, CEO of IBSG stated said, "We have come a long way in 2006, and in 2007, we will build on these successes. The Company's performance between 2005 and 2006 primarily differed in two major ways. First, performance quarter to quarter in 2006 was relatively even with substantial growth coming from within existing business. Second, with the net operating loss carried forward from 2004 to 2005 extinguished, we must make a substantially higher tax provision for our success. However, with the continued opportunities coming to the company, both internationally and domestically, we fully expect to continue to show strong profitability. Based on forecasts for existing projects and expected expansion within existing projects, we project, but cannot guarantee, revenues for 2007 should range from $18 million to $24 million. For the coming year, we have targeted Europe as a major theater of business development."
Kevin Gollop, COO of A-Division IT and responsible for the international markets said, "We have several countries engaged in negotiations. The European Union has strongly urged the implementation of e-commerce platforms such as BizWorld Pro. The EU has set aside EUR 26 billion (roughly US$37 billion) for SME development for the 28 EU states. The funds are there, and we have made an impression on a key EU official and her staff responsible for SME development. Anne Troye-Walker, Deputy Head of the EU Unit responsible for Lisbon Strategy and i2010 (the EU SME Development strategy), stated that, 'with the exception of a concept, they have never seen a fully developed and integrated platform such as BizWorld Pro.' In other words, we have the real thing, and the EU has seen nothing like it. We anticipate announcements this year of contracts within the EU, possibly in the private as well as the public sector."
Alan Shafer, COO of IBSG, and responsible for domestic market development, stated, "Looking back over 2006, we have progressed in the US and US territories. In the US, we have deployed our system in 11 US states and most recently with the Dallas Government Contracting SBDC, one of four SBDCs in Texas. We expect to announce further contracts with other American SBDCs in the coming months, and it is our ambition to provide our system and support it in each and every state in the Union."
James Queen, COO of IBSD said, "We are particularly excited by our work on the Health Business World (HBW) Gateway as part of our growing relationship with the World Bank, which we established in 2006. As we have said previously, BizWorldPro will function as the transactional platform for the support SMEs in the HBW and create an investment management platform for investors worldwide. We continue populating the platform with health care providers from several African nations, and the HBW gateway can now locate health care providers in Africa for investment opportunities. This represents a major step forward in attracting capital to these providers, and we expect it to expand to other nations in Africa in the coming year."
Fourth Quarter 2006
Revenues for the three months ended December 31, 2006 were $2.8 million compared to revenues for the three months ended December 31, 2005 of $3.4 million. Gross profit in the final quarter of 2006 was $2.7 million, as compared to $3.3 million for the last quarter of 2005. Fourth quarter 2006 operating expenses totaled $1.9 million compared to $1.6 million in fourth quarter 2005. Other expenses for the last three months of 2006 were $515,000 against $118,000 in 2005. The increase largely stems from $653,000 in income tax expense.
Management of IBSG International will host a conference call on Monday, April 9, 2007 at 11:00 A.M. EDT to discuss the company's financial results and achievements. Those who wish to participate in the conference call may telephone 888-335-6674, from the US or, 973-935-2100 for international callers, PIN #8645001 approximately 15 minutes before the call. A digital replay will be available by telephone for two weeks and may be accessed by dialing 877-519-4471 from the US or 973-341-3080 for international callers and entering PIN #8645001.
About IBSG International, Inc.
IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and A-Division IT, a consultant company focused on development of IT projects for multinational corporations.
IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorld Pro©.
Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.
As software providers, system integrators and Application Service Providers, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis.
IBS Development, Inc. will provide ongoing support of International's other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.
A-Division IT establishes IT projects for various countries around the world and for multinational corporations around the world. A-Division has already introduced and continues to provide demonstrations of the system on a national scale. For multinational corporations, the projects are recognized off-set program qualified and provide a required contractual obligation of these corporations. A-Division IT through its associations is an offset provider to BAE Systems and maintains relationships with various other multinational corporations. A-Division maintains offices in the United Kingdom.
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IBIN (2.50) Announces Financial Results for First Quarter 2007
Business Wire "US Press Releases "
CELEBRATION, Fla.--(BUSINESS WIRE)--
IBSG International, Inc., (the "Company"), (OTC BB: IBIN) announced today its financial results for the first quarter ended March 31, 2007.
In the first quarter of 2007, recognized revenues were slightly above $3.0 million compared to $1.7 million in the same period prior year. The Company had deferred revenues for the three months ended March 31, 2007 of $2.97 million. Gross profit for the quarter ended March 31, 2007 rose more than 80% to $2.9 million compared to $1.6 million in the previous year. Reduction in current receivables inclusive of cash collections before new receivables for the quarter reduced by Income from Operations in first quarter 2007 was just over $1.8 million compared to $780,000 in first quarter 2006. Net Income reported for the three months ending March 31, 2007 was $1.1 million, or $0.15 per fully diluted share, compared to a net income in first quarter 2006 of $217,000, or $0.03 per fully diluted share.
Operating expenses rose to $1.1 million for the first quarter of 2007 from $851,000 for the same period in 2006. The primary reason for the increase was professional expenses of $94,500. Another reason for the increase was due to an accrual allowance for bad debt of $176,000. Management has determined that an allowance should be set aside due to the growth of its private clients compared to government clients. This allowance is not for any specific customer just an allowance established for the change in its customer base. Other expenses rose to $772,000 million in the first quarter 2007 from $563,000 in the first quarter of 2006. The increase in other expenses for 2007 was the accrual of taxes of $804,753 compared to an accrual of $12,188 in 2006.
Dr. Michael Rivers, CEO of IBSGI, said, "The first quarter 2007 builds on the successes IBSGI and its subsidiaries had in 2006. The majority of our continued growth is driven by existing business both domestically and internationally. This is a continuing example of how our business model continues to exponentially grow once a project is in place. Our collections increased but again, so did the revenue for new business which has an overall effect of increasing in revenues from the previous quarter rather than decrease them. Our projections for 2007 are primarily based on existing projects not new contracts. However, business opportunities for new projects in different nations as well as states in the US continue to come to us.
He also said, "Since the end of the quarter, IBSGI was selected as The Bowser Report's 'Stock of the Month' for its April 2007 stock report newsletter, an honor of which we are quite proud. R. Max Bowser has been in the business of analyzing stocks for 30 years, and his newsletter uses fundamental analysis to select and recommend stocks to its subscriber base. Recognition from third-parties like Mr. Bowser is very gratifying, and it is a tribute to the hard work our staff and our subsidiaries put in each and every day."
Management of IBSG International will host a conference call at 2 p.m. EDT tomorrow to discuss the company's financial results and achievements. Those who wish to participate in the conference call may telephone 888-335-6674, from the U.S. or, 973-935-2100 for international callers, PIN # 8795135 approximately 15 minutes before the call. A digital replay will be available by telephone for two weeks and may be accessed by dialing 877-519-4471 from the U.S. or, 973-341-3080 for international callers, and entering PIN # 8795135.
About IBSG International, Inc.
IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and A-Division IT, a consultant company focused on development of IT projects for multinational corporations.
IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorld Pro(C).
Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.
As software providers, system integrators and Application Service Providers, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis.
IBS Development, Inc. will provide ongoing support of International's other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.
A-Division IT establishes IT projects for various countries around the world and for multinational corporations around the world. A-Division has already introduced and continues to provide demonstrations of the system on a national scale. For multinational corporations, the projects are recognized off-set program qualified and provide a required contractual obligation of these corporations. A-Division IT through its associations is an offset provider to BAE Systems and maintains relationships with various other multinational corporations. A-Division maintains offices in the United Kingdom.
Safe Harbor Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
IBSG INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheet
(Unaudited)
ASSETS
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March 31,
CURRENT ASSETS 2007
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Cash $ 705,881
Accounts receivable, net 17,908,762
Prepaid expenses 418,165
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Total Current Assets 19,032,808
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FURNITURE, FIXTURES AND SOFTWARE, NET 983,016
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OTHER ASSETS
Account receivable - long term 1,736,433
Deposits and other assets 200,273
Deferred consulting services 3,243,371
Goodwill 38,000
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Total Other Assets 5,218,077
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TOTAL ASSETS $25,233,901
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LIABILITIES AND STOCKHOLDERS' EQUITY
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March 31,
CURRENT LIABILITIES 2007
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Accounts payable and accrued expenses $ 789,669
Accrued tax provision 2,950,402
Deferred revenue 2,966,740
Capital leases payable 2,687
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Total Current Liabilities 6,709,498
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock authorized 100,000,000 shares at $0.001 par
value; 7,052,181 shares issued and outstanding 7,052
Additional paid-in capital 16,230,838
Retained Earnings 2,286,513
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Total Stockholders' Equity 18,524,403
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $25,233,901
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IBSG INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
Three months ended
March 31,
2007 2006
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Sales $3,030,716 $1,698,811
Cost of Sales 89,093 68,043
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Gross Profit 2,941,623 1,630,768
Operating Expenses
Amortization and depreciation 7,904 10,394
Stock based compensation 297,665 346,589
Salary 240,167 213,955
General and administrative 383,814 254,704
Bad debt expense 176,000
Total Operating Expenses 1,105,550 850,642
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Income from Operations 1,836,073 780,126
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Other Income (Expense)
Interest income 32,946 -
Loss on debt settlement and warrants - (470,897)
Change in fair value of embedded options - (18,683)
Change in fair value of warrants - (61,181)
Tax provision (804,753) (12,188)
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Total Other Income (Expense), net (771,807) (562,849)
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Net Income $1,064,266 $ 217,177
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Net Income Per Share - Basic And Fully
Diluted $ 0.15 $ 0.03
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Weighted average number of shares
outstanding during the period - Basic And
Fully Diluted 7,072,895 6,225,577
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Source: IBSG International, Inc.
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