Acies Corporation
Announces Record Fiscal 2006 Second Quarter Financial Results
Fiscal 2006 Second Quarter
Revenues Grow 135% Over Last Year; Sequential Revenues Rise 24%
From Fiscal First Quarter of 2006
NEW YORK- (BUSINESS WIRE) - November 17, 2005 - 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, today announced financial results for its fiscal
second quarter ended September 30, 2005.
For the fiscal second quarter, Acies reported net revenues of
$2,045,165, which represents a 135 percent increase over net
revenues of $870,745 reported in the year-ago period.
Cost of revenues was $1,805,666 in the fiscal second quarter, an
increase of 153 percent compared to cost of revenues of $713,123
in the year-ago period. Gross margin for the second fiscal
quarter was $239,499, representing an increase of 52 percent
over the $157,622 in the year-ago period.
Net loss for the quarter was $302,126, or $(0.01) per share,
compared to a net loss of $2,072,807, or $(0.06) per share, for
the three months ended September 30, 2004. In the prior year
period the Company incurred significant non-recurring general
and administrative expenses in connection with becoming a public
company.
Six-Month Results
Net revenues for the six-month period ended September 30, 2005,
were $3,693,686, a 134 percent increase compared to net revenues
of $1,578,972 for the six months ended September 30, 2004.
Cost of revenues was $3,159,717 for the six months ended
September 30, 2005, a 141 percent increase over cost of revenues
of $1,313,507 for the six months ended September 30, 2004. Gross
margin for the six-months ended September 30, 2005 was $533,969,
a 101 percent increase over gross margin of $265,465 for the six
months ended September 30, 2004.
Net loss for the six-month period was $497,465, or $(0.01) per
share, compared to a net loss of $2,289,831, or $(0.07) per
share, for the six months ended September 30, 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, "We continue to grow our merchant account
portfolio at a rapid pace, which drove record revenues and a
sequential increase of 24 percent over the previous quarter. We
are particularly pleased to have achieved these results in what
is traditionally a slow quarter based on lower consumer retail
spending during the summer months. Our top-line performance
illustrates that our business continues to build traction and
that we are capturing an increasing share of the small- to
medium-size business market."
Mr. Firer continued, "We continue to benefit from the growing
trend among consumers to use credit and debit cards instead of
cash as well as the recent industry-wide introduction of 'contactless'
credit card technology, as major bank card issuers are beginning
to distribute millions of 'contactless' cards to their
customers. Acies has established itself as a leading distributor
of this technology and we believe these trends will continue to
help position us for merchant account growth as demand for our
technology increases."
Mr. Firer added, "We remain well positioned to continue
executing on our business plan, and are particularly well
positioned going into the holiday spending season, which
traditionally drives our strongest quarter of results."
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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