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Acies Corporation
Announces Second Quarter Results for Fiscal 2007
Record Revenues Continue
Up 47% and 63% for Comparable Three and Six Month
Periods
Conference Call and Web Cast Scheduled for
Tuesday, Nov. 21, 2006 at 4:15 PM ET
NEW YORK- (BUSINESS WIRE) - November 20, 2006 -
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 second
quarter results for the three and six months ended September 30,
2006.
Financial Highlights for the Three Months Ended September 30,
2006 Compared to Three Months Ended September 30, 2005:
-
Revenues climbed 47.4% to
$3,015,261, up from $2,045,165. On a
sequential quarter-over-quarter basis, revenues remained
strong and steady, increasing modestly from $3,013,179.
-
Gross margin was $288,737, as compared
with $286,261,
representing a lower margin as a percentage of revenues
principally as a result of lower pricing and greater account
acquisition costs.
-
G&A expense was $609,691, representing
20.2% of total sales,
compared to $543,150, which was 26.6% of total sales.
-
Net loss increased 25.7% to $320,954, or
$0.01 loss per share,
from $255,364, or $0.01 loss per share. The increase was due
principally to the relatively flat gross margin and increased
G&A expense.
Financial Highlights for the Six Months
Ended September 30, 2006 Compared to Six Months Ended September
30, 2005:
-
Revenues totaled $6,028,439, a 63.2%
increase over revenues of
$3,693,686.
-
Gross margin increased 18.5% to
$688,510, up from $580,731.
-
G&A expense was $1,097,460,
representing 18.2% of total
revenues, compared to $1,005,960, or 27.2% of total revenues
in the prior year period.
-
Net loss declined 9.3% to $408,950, or
$0.01 loss per share,
compared to a net loss of $450,703, or $0.01 loss per share.
The decrease in net loss was the result of the increased
gross
margin and not having a loss on extinguishment of debt in
the
current period, offset by increased G&A expense.
Commenting on the results, Jeffrey
Tischler, Executive Vice President and Chief Financial Officer
of Acies, stated, "We are very pleased with our continued
year-over-year revenue growth. Despite increased pricing
pressure in several key verticals, we remain confident that,
through creative marketing initiatives and continued effective
expense control, we are building a solid foundation for
continued long-term growth and future profitability."
Oleg Firer, President and Chief Executive Officer of Acies,
commented, "Every key milestone that Acies has achieved since
the founding of our Company has been rooted in one core belief -
through an unwavering commitment to excellence and
customer-focused attention, Acies will distinguish itself as an
industry preferred source for innovative, comprehensive payment
processing solutions to the small- to medium-size merchant
marketplace." Firer added, "This commitment has continued to
drive meaningful revenue growth solely through organic sales
channels, and we are very proud of this accomplishment. However,
we still have much work to do to achieve the level of success
that we believe Acies can deliver for our shareholders."
"In anticipation of a busy holiday shopping season, Acies
recently unveiled a series of creative campaigns designed to
attract and win a broad array of new accounts to the Acies
family of merchants. We are enjoying a favorable response to
these programs and have high hopes that this latest initiative
will result in an expanded customer base as we progress through
the fiscal year," concluded Firer.
Acies will host a teleconference tomorrow afternoon, Tuesday,
November 21, 2006, beginning at 4:15 PM 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 800-901-5213 and entering the passcode
19457159, 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:
Dodi Handy
President and CEO
Elite Financial Communications Group
(407) 585-1080
acie@efcg.net |
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