Acies Corporation
Announces Record Fiscal 2006 Third Quarter Financial Results
NEW YORK- (BUSINESS WIRE) - February 15, 2006 - Acies
Corporation (OTCBB: ACIE), a financial services company
specializing in payment processing and online banking services
to small, medium and large size merchants across the United
States, today announced financial results for its fiscal third
quarter ended December 31, 2005.
A complete discussion of the Company's quarterly financial
results can be found in the 10-Q filed yesterday with the
Securities and Exchange Commission and can be obtained online at
the Company's website by visiting www.aciesinc.com, or from the
SEC's website at www.sec.gov.
For the fiscal third quarter, Acies reported net revenues of
$2,716,075, which represents a 134 percent increase over net
revenues of $1,160,607, reported in the year-ago period.
Cost of revenues was $2,285,933 in the fiscal third quarter, an
increase of 147 percent compared to cost of revenues of $924,290
in the year-ago period. Gross margin for the third fiscal
quarter was $430,142, representing an increase of 82 percent
over the $236,317 in the year-ago period.
Net loss for the quarter was $90,135, or $(0.00) per share,
compared to a net loss of $415,341, or $(0.01) per share, for
the three months ended December 31, 2004.
Nine-Month Results
Net revenues for the nine-month period ended December 31, 2005,
were $6,409,761, a 134 percent increase compared to net revenues
of $2,739,579 for the nine months ended December 31, 2004.
Cost of revenues was $5,445,650 for the nine months ended
December 31, 2005, a 143 percent increase over cost of revenues
of $2,237,797 for the nine months ended December 31, 2004. Gross
margin for the nine months ended December 31, 2005 was $964,111,
a 92 percent increase over gross margin of $501,782 for the nine
months ended December 31, 2004.
Net loss for the nine-month period was $587,600, or $(0.01) per
share, compared to a net loss of $2,705,171, or $(0.09) per
share, for the nine months ended December 31, 2004. In the prior
year period the Company incurred significant non-recurring
general and administrative expenses in connection with becoming
a public company.
Oleg Firer, Chairman, President and Chief Executive Officer of
Acies Corp., said, "Revenue growth this quarter was driven by
higher transaction volume resulting from our expanded merchant
account portfolio, which has more than doubled since the
year-ago period. We were also positively impacted by higher
transaction volume associated with the holiday spending season."
Mr. Firer concluded, "We continue to believe there is
significant market opportunity in the payment processing
industry, marked by the growing consumer trend to use credit and
debit cards instead of cash, as well as the recent national
rollout of 'contactless' card technology by major card issuers.
The strategic alliances that we've created help position us to
capitalize on this trend by providing the operating
infrastructure to continue growing our merchant account
portfolio and increasing our recurring revenue stream, without
adding significant overhead expenses."
About Acies Corporation
Acies Corporation (OTCBB: ACIE) 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.
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.
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