ACE*COMM Announces Preliminary First Quarter Results.GAITHERSBURG, Md. -- ACE*COMM Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACEC ACEC American Council of Engineering Companies (formerly American Consulting Engineers Council) ACEC American Consulting Engineers Council (now American Council of Engineering Companies) ), a global provider of value-added services and advanced operations support systems Operations Support Systems (also called Operational Support Systems or OSS) are computer systems used by telecommunications service providers. The term OSS most frequently describes "network systems" dealing with the telecom network itself, supporting processes such (OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. ) solutions, today announced that, based on a preliminary review of results for the first quarter ended September 30, 2006, it expects to report revenue of approximately $3.0 to $3.5 million and a net loss of approximately $2.5 million. "This quarter's results demonstrate the recurring challenges in our traditional business and underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. our decision to position the company as a significant provider of value-added services that - when achieved - will improve revenue visibility and stability," said George T. Jimenez, Chief Executive Officer of ACE*COMM. "ACE*COMM has historically been dependent on large orders from a few customers to generate the majority of our revenues in a given quarter. In recent years, a growing number of these customers were internationally based and tended to order large complex systems spanning multiple years, on a non-recurring basis. This quarter we experienced delays in closing new projects or extensions of ongoing projects with existing customers that, if closed, we believe would have generated total revenue for the quarter in the $6 to $7 million range." Added Mr. Jimenez: "We are continuing to work the delayed transactions and anticipate that the second half of the fiscal year will show significant improvement over the first half. In addition, we expect to see the first revenue streams from our Parent Patrol[TM] product suite under managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality contracts already signed, and we hope to receive additional bookings based on our distribution agreements with Lucent and other parties. In addition, based on the current schedule, we still expect to begin the delivery phase of the Air Force contract in the beginning of calendar 2007." As a result of project delays and the lower than expected financial results for the first quarter, management now expects revenue for the second quarter of fiscal 2007 to be in the range of $4.0 million to $5.0 million. Concluded Mr. Jimenez: "This quarter's revenue shortfall will intensify continuing management concentration on expenses and cash management. We continue to remain committed to delivering value to our customer base, while at the same time returning to quarter by quarter profitability and positive cash flow." ACE*COMM will announce its full financial results after the market close on October 26, 2006. At that time management will hold a conference call to discuss these results. Details of the call will be provided in a separate release. About ACE*COMM ACE*COMM is a global provider of network business intelligence and advanced operations support systems (OSS) solutions for telecom service providers and enterprises. ACE*COMM's solutions are applicable to a range of legacy through next-generation networks that include wired, wireless, voice, data, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networksCoknowledge customers use for asset recovery and revenue assurance, cost reduction, improved operational efficiency, acceleration of time-to-market for new services, and more effective customer care. For over 20 years, ACE*COMM technology has been effectively deployed for more than 300 customers, spanning over 4000 installations in 70 countries worldwide. ACE*COMM-installed products are currently enabling the success of customers and partners such as Alcatel, AT&T, Cisco, General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. , IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Level 3 Communications
Level 3 Communications NASDAQ: LVLT is a communications and information services company headquartered in Broomfield, Colorado, USA. , Marconi, Motorola, Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. , Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is an ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 compliant company. For more information, visit www.acecomm.com. ACE*COMM, NetPlus, the ACE*COMM logo, and N*VISION are registered trademarks, and Convergent Mediation and Parent Patrol are trademarks of ACE*COMM Corporation. Except for historical information, the matters discussed in this news release include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including, but not limited to: the failure of anticipated demand to materialize, delays or cancellations of orders due to various factors, including business and economic conditions in the U.S. and foreign countries; industry-wide slowdowns, any limitations on customers' financial resources, the continued convergence of voice and data networks, the continuing success of the Company's strategic alliances for product development and marketing, customer purchasing and budgetary patterns or lack thereof; pricing pressures and the impact of competitive products; the timely development and acceptance of new products; the Company's ability to adequately support its operations, and other risks detailed from time to time in the Company's Report on Form 10-Q Form 10-Q See 10-Q. and other reports filed with the Securities Exchange Commission. |
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