Acies Corporation
Reports on its Third Fiscal Quarter Financial Results
NEW YORK, Feb. 15, 2005 (PRIMEZONE) - Acies Corporation (OTCBB:
ACIE), an emerging leader in payment processing and electronic
banking services to small and medium size merchants across the
United States, today filed its Form 10-QSB quarterly report
disclosing its third quarter financial results for the quarter
ended December 31, 2004.
Quarter ending December 31, 2004 highlights include, but are not
limited to:
-
Revenues of $1,160,607 for the quarter
ending December 31, 2004; 307.01% year-over-year growth; 133.29%
growth from the Second Fiscal Quarter of 2004
-
Revenues of $2,739,579 for the Nine Months
Ended December 31, 2004; 359.61% increase over last year
For the three months ended December 31,
2004, net revenues totaled $1,160,607, up 307% compared with
$378,035 in the same period last year. Net loss for the quarter
was $415,341, compared with a profit of $37,320, in the same
quarter of 2003. Weighted average shares outstanding for the
2004 and 2003 periods were 37,433,686 and 25,321,906,
respectively.
The increase in net revenues in the quarter was due to an
increase in product revenue, service revenue from existing
customers and Acies' accelerating acquisition of new merchant
accounts. Cost of revenues increased $651,912, or 339%, to
$924,290 for the three months ended December 31, 2004, compared
with cost of revenues of $272,378 for the three months ended
December 31, 2003. The increase in cost of revenues reflected an
increase in product costs that resulted from an increase in
product sales, and an increase in merchant processing costs that
resulted from an increase in existing and new merchant
processing revenue.
Gross margin in the quarter increased $130,660, or 224%, to
$236,317, for the three months ended December 31, 2004, as
compared with gross margin of $105,657 for the same period in
2003. The increase in gross margin was directly attributable to
an increase in net revenues, offset by the increase in costs of
revenue.
General, administrative and selling expense increased $507,793,
or 842%, to $576,220 for the three months ended December 31,
2004. This compared with G&A expense of $68,427 for the three
months ended December 31, 2003. The increase in G&A expense was
primarily attributable to issuance of common stock valued at
$225,000 for services in connection with going public, along
with an increases in office lease expense, an increase in
full-time employees and payroll expense, as well as increases in
legal fees, insurance and public company compliance and
administrative fees incurred in being publicly traded.
For the nine months ended December 31, 2004, net revenues were
$2,739,579, or 360%, compared with $761,818 for the prior 2003
nine months. Net loss for the period totaled $2,705,171, or
$0.09 per share, compared with $52,202, or $0.00 per share in
the same period of 2003. Weighted average shares outstanding for
the nine month periods for 2004 and 2003 were 31,890,301 and
25,321,906, respectively.
The increase in net revenues was due to an increase in product
revenue, service revenue from existing customers and Acies'
accelerating acquisition of new merchant accounts. Cost of
revenues increased $1,682,078, or 403%, to $2,237,797 for the
nine months ended December 31, 2004, compared with cost of
revenues of $555,719 in the same nine month period of 2003. As
in the third quarter, the nine month increase was attributed to
an increase in product costs that resulted from an increase in
product sales, and an increase in merchant processing costs that
resulted from an increase in existing and new merchant
processing revenue.
Gross margin increased $295,683, or 243%, to $501,782 for the
nine months ended December 31, 2004, compared with gross margin
of $206,099 for the similar nine month period of 2003. The
increase in gross margin was directly attributable to the
increase in net revenues, offset by the increase in costs of
revenue.
General, administrative and selling expense ("G&A'') increased
$2,951,670, or 2,017%, to $3,105,567 for the nine months ended
December 31, 2004, as compared with G&A expense of $153,897 for
the nine months ended December 31, 2003. The increase in G&A
expense primarily was due to issuance of common stock valued at
$1,835,437 for services in connection with the company becoming
a publicly traded entity, as well as increases in office lease
expense, higher employee headcount and payroll expense,
financial advisory services and legal fees, and renovation and
equipment for the company's headquarters office -- all part of
the expenses of becoming publicly traded.
"The investments we have made in the company are all very
necessary to fully participate in what we consider to be an
upside for Acies,'' said President & CEO Oleg Firer.
"We have added a variety of new and aggressive programs to
stimulate sales, and the announcement last week of the first
institutional investment in the company of $1,067,500 reflects
that commitment, as does the fact that we may ultimately be able
to receive an additional $2,135,000 in proceeds, if the common
stock purchase warrants issued pursuant to the financing are
exercised, bringing the total financing commitment up to
$3,202,500.
"We are very excited by this funding,'' the CEO continued,
noting that ``we anticipate that these funds will assist us to
grow both organically and through selected acquisitions that we
anticipate will be accretive to our top and bottom lines.''
About Acies Corporation
Acies, Inc. ("Acies''), a wholly owned subsidiary of Acies
Corporation (OTCBB: ACIE), is a financial services company that
specializes in payment processing services 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, ability for customers to apply for
an on-line bank account and pay bills electronically.
For more information, visit http://www.aciesinc.com.
Forward-looking Statements
"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. 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.
Contact:
Acies Corporation
Oleg Firer, President & CEO
(212) 931-5177
oleg@aciesinc.com
