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Acies Corporation
Announces Third Quarter Results for Fiscal 2007
Revenues Increase 8% and
40% for Comparable Three and Nine Month Periods
Conference Call and Web
Cast Scheduled for February 13, 2007 at 11:00 AM ET
NEW YORK- (BUSINESS WIRE) - February 8,
2007 - 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 third quarter results for the
three and nine months ended December 31, 2006.
Financial Highlights for the Three Months Ended December 31,
2006 Compared to Three Months Ended December 31, 2005:
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Revenues increased 8% to $2,932,298, up
from $2,716,075.
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Gross margin was $300,639, as compared
with $498,192,
decreasing as a result of greater pricing pressure in certain
merchant industries, and a greater proportion of business
sourced through the lower-margin indirect sales channel.
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G&A expense was $695,367 (including
non-cash charges for
option expense and restricted stock of $194,691), which
represented 23.7% of revenues, compared to G&A expense of
$520,385, which represented 19.2% of revenues.
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Net loss increased to $405,021, or $0.01
loss per share, from
$22,085, or $0.00 loss per share. The increase was due
principally to the decreased gross margin and increased G&A
expense.
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Secured $2 million line of credit, drawing
down $350,000
through December 31, 2006.
Financial Highlights for the Nine Months
Ended December 31, 2006 Compared to Nine Months Ended December
31, 2005:
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Revenues totaled $8,960,737, a 40%
increase over revenues of
$6,409,761.
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Gross margin was $989,149, as compared
with $1,076,118,
decreasing as a result of greater pricing pressure in certain
merchant industries, and a greater proportion of business
sourced through the lower-margin indirect sales channel.
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G&A expense was $1,792,827 (including
non-cash charges for
option expense and restricted stock of $286,651), which
represented 20.0% of revenues, compared to G&A expense of
$1,526,282, which represented 23.8% of revenues.
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Net loss increased to $813,971, or $0.02
loss per share,
compared to a net loss of $475,593, or $0.01 loss per share.
The increase was due principally to the decreased gross margin
and increased G&A expense.
Oleg Firer, President and Chief Executive
Officer of Acies, commented, "While we are pleased to report
year-over-year growth in revenues, we are not satisfied with the
degree to which our rate of growth has slowed. With the $2
million credit facility which we secured in November 2006, and a
revitalized sales force, starting from the leadership of that
function, we now have the financial and human resources for
Acies to be back on track toward achieving our goals. I am
optimistic that we will resume rapidly growing our recurring
revenue base, as we drive toward sustained profitability and
positive cash flow." Firer added, "We are maintaining our focus
toward Acies evolving into a premier provider of comprehensive
payment processing solutions. We will continue to offer a full
spectrum of state-of-the-art, innovative, value added products
and services, and continue to provide superior service to small-
to medium-size merchants across the country."
Acies will host a teleconference on Tuesday, February 13, 2007,
beginning at 11:00 AM 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 800-591-6944 and entering the passcode
28974586, 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 on-line 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, 2005. 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.
For More Information, Please
Contact:
Acies Corporation
Jeffrey A. Tischler
Executive Vice President and
Chief Financial Officer
212-931-5182
jeff@aciesinc.com |
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