Acies Corporation
Reports Fiscal 2005 Financial Results
NEW YORK, June 29, 2005 (PRIMEZONE) - Acies Corporation (OTCBB:
ACIE), a financial services company that specializes in
providing payment processing and online banking services to
small, medium, and large-size merchants across the United
States, will be filing today its Annual Report on Form 10-KSB
disclosing its financial results for the fiscal year ended March
31, 2005.
For the fiscal year ended March 31, 2005, Acies reported net
revenues of $3,920,139, a 209% increase over net revenues of
$1,270,067 reported for the fiscal year ended March 31, 2004.
The net loss for the year was $(3,341,095), or $(0.09) per
share, compared with a loss of $(3,750), or $(0.00) per share,
for fiscal 2004. Weighted average shares outstanding for fiscal
2005 and fiscal 2004 were 35,829,922 and 25,321,906,
respectively.
The increase in net revenues was due to an increase in service
revenue from new and existing customers, slightly offset by a
decrease in product revenue as Acies' strategy shifted to place
a greater focus on service revenue.
Gross margin for the year increased to $646,172, or 119%, from
$295,230 for the fiscal year ended March 31, 2004. The increase
in gross margin was directly attributable to increased net
revenues, offset by increased merchant processing costs
associated with the higher volume of business.
The increase in net loss for the year was the result of the
significant increase in general, administrative and selling
expense ("G&A"), which totaled $3,908,449 for fiscal 2005 versus
$298,980 in the prior year. The increase in G&A expense was
primarily attributable to the issuance of common stock valued at
$2,085,436 for services, principally in connection with going
public, as well as increases in other expenses corresponding to
Acies' growth as reflected in the increase in net revenue.
Commenting on Acies Corp.'s performance in fiscal 2005, Oleg
Firer, Chairman, President and Chief Executive Officer, said, "I
am extremely pleased with the progress Acies has made in the
last year, as evidenced by our more than tripling net revenues,
based purely on organic growth. We believe that fiscal 2005 was
a groundbreaking year for Acies, during which we established a
foundation which we anticipate will result in continued future
growth and profitability."
Firer added, "In this past year we have significantly increased
our market penetration, cultivated key strategic alliances,
created a lean and efficient operational infrastructure,
obtained the financing necessary to bring us to this next level,
and added strength and depth to our leadership team. With all
these pieces in place, as well as shareholders' equity of
$638,607 at March 31, 2005, Acies is poised to carry out its
business plan for continued growth, with the goal of reaching
financial stability in the coming year."
Acies Corp. will host a conference call to discuss its fiscal
2005 financial results, open to all shareholders by phone and by
webcast, on Wednesday, July 6, at 11:00 a.m. Details as to the
toll-free number will be available on the company's web site at
http://www.aciesinc.com beginning Thursday, June 30. In
addition, a replay will be available.
About Acies Corporation
Acies, Inc. ("Acies"), a wholly owned subsidiary of Acies
Corporation (OTCBB: ACIE), is a financial services company that
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, 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
