ACE*COMM Corporation Reports Second Consecutive Profitable Quarter.Business Editors/High-Tech Writers GAITHERSBURG, Md.--(BUSINESS WIRE)--Jan. 23, 2003 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) ), the innovator of Convergent Mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, (TM) and provider of Next Generation Network (NGN (Next Generation Networks) An umbrella term for mixed voice and data networks running over the IP protocol. See IP Multimedia Subsystem. ) 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. ) technologies, today reported financial results for the second quarter of fiscal year 2003, which ended December 31, 2002. The Company reported revenues of $4.1 million for the quarter, which compares to $4.6 million for the same quarter in fiscal year 2002. Net income for the quarter was $81,000, or a net income of $0.01 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of $958 thousand, or a net loss of $0.10 per fully diluted share for the same quarter in fiscal year 2002. The improvement in net income over the corresponding quarter last year was the result of an aggressive cost reduction plan implemented in fiscal 2001 and higher gross margins which were the results of an improving product mix. For the first six months of fiscal 2003, the Company recorded revenues of $8.2 million, compared to $9.0 million for the first six months of fiscal 2002. The net income and earnings per fully diluted share were $172,000 and $0.02, respectively, compared to a net loss and loss per fully diluted share of $2.4 million and $0.26 for the same six months of fiscal 2002. In addition, cash improved by over $1.0 million in the quarter ended December 31, 2002, including an investment by a new strategic partner completed during the quarter. No significant new reductions in staff or other expenses were made during the quarter. The Company believes this quarter further demonstrates that it can continue to be profitable at the $4-5 million quarterly revenue level, despite the current depressed market Depressed market Market in which supply overwhelms demand, leading to weak and lower prices. . "In this period of continuing adversity ad·ver·si·ty n. pl. ad·ver·si·ties 1. A state of hardship or affliction; misfortune. 2. A calamitous event. , the ACE*COMM team performed solidly to deliver consistent revenue, continuing decreases in operating costs operating costs npl → gastos mpl operacionales , and ongoing value to our customers," said George T. Jimenez, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ACE*COMM. Financial highlights include: -- A profit for the second consecutive quarter; -- Positive cash flow in three of the last four quarters; and -- A strategic investment. Continued Mr. Jimenez: "Given that the telecom climate remains challenging, I am generally pleased with our ability to make money in this very tough environment. Our efforts are now focused on restoring growth while maintaining this profitability. Our business highlights for the past two quarters 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. this commitment: -- We announced an expanded relationship with Westlake Global Technology Solutions which included their acquisition of approximately 5 percent of the common shares of ACE*COMM. -- Separately, Westlake purchased US$1 million of ACE*COMM Convergent Mediation(TM) technology for their customers in China, and signed a master reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. agreement covering the Asia-Pacific region. This will expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. the Company's efforts to penetrate the Chinese telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. marketplace. -- We announced additional business with CODETEL CxA (Compania Dominicana de Telefonos), a division of Verizon, which is generally indicative of our increasing business in the Latin American markets. -- We received orders from three customers, totaling over $1.0 million, for continuing support and maintenance over a three-year period. -- We added a new telecom carrier customer in China." "Today's state of the telecom industry has forced our customers to return to business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point ," added Steven R. Delmar, Chief Financial Officer for ACE*COMM. "Industry research indicates that Operational Support Systems (OSS) for all classes of carriers and enterprises will become increasingly critical to the telecom recovery, for their capacity to reduce operating expenditures, capital expenditures, and customer churn churn: see butter. . We plan to be an active participant in the opportunities that become available as the market rebounds. We believe that our ongoing technology developments enable us to offer the revenue-enhancing and cost-reducing solutions that will in turn drive our market growth as the industry - and our target markets - recover." ACE*COMM will host an earnings teleconference call this evening, Thursday, January 23, 2003 at 5:30 p.m., Eastern Standard Time, to discuss the second quarter results. To participate, please call (800) 606-8940. When prompted, enter the ACE*COMM reservation number 6382831. Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f can hear a simultaneous live Webcast of the teleconference at http://acecomm.com or http://www.companyboardroom.com. A taped replay of the call will be made available from the ACE*COMM Corporate Web Site after 8:30 pm, on January 23, 2003. About ACE*COMM ACE*COMM is a global provider of advanced Convergent Mediation(TM) products and Enterprise Telemanagement software applications. ACE*COMM's solutions are employed in wired and wireless networks that deliver voice, data, mixed media and Internet communications. Their proven technology provides the ability to capture, secure, validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data , and enhance data from multiple networks. These operations are performed interactively with a data warehouse, and processed information is distributed in near real-time, to all types of carrier OSS (Operations Support Systems) and BSS See 802.11. BSS - Block Started by Symbol (Business Support Systems). Solutions are matched to each customer's business environment. They provide the analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tools required to extract knowledge from operating networks - knowledge our customers use to generate more revenue, reduce costs, accelerate time-to-market for new services, and deliver more effective customer support. For more than 20 years, ACE*COMM technology has been effectively deployed in over 3500 installations in more than 65 countries world-wide - including over 100 installations in China - enabling the success of customers and partners such as AT&T, Cisco, Marconi, Motorola, Alcatel, 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. , TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc , Unisys and Siemens. ACE*COMM is a registered 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 quality standard company. For more information, visit www.acecomm.com. ACE*COMM, NetPlus, the ACE*COMM logo and N*VISION are registered trademarks, and Convergent Mediation is a trademark 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 future events to differ materially from those projected, including, but not limited to: the failure of anticipated demand to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , 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. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or any change in events, conditions, or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statements are based.
ACE*COMM CORPORATION
BALANCE SHEETS
(in thousands)
December 31, June 30,
2002 2002
------------- -------------
Assets (Unaudited)
Current assets:
Cash and cash equivalents $3,577 $3,530
Accounts receivable, net 5,243 3,866
Inventories, net 902 1,122
Prepaid expenses and other 313 211
------------- -------------
Total current assets 10,035 8,729
Property and equipment, net 1,310 1,659
Other assets 9 14
------------- -------------
Total assets $11,354 $10,402
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings $1,150 $209
Accounts payable 700 663
Accrued expenses 401 582
Accrued compensation 1,085 1,340
Deferred revenue 1,058 1,233
------------- -------------
Total current liabilities 4,394 4,027
Borrowings - 11
Other liabilities - 33
------------- -------------
Total liabilities 4,394 4,071
------------- -------------
Stockholders' equity:
Common stock 98 93
Additional paid-in capital 21,914 21,462
Accumulated deficit (15,052) (15,224)
------------- -------------
Total stockholders' equity 6,960 6,331
------------- -------------
Total liabilities and stockholders'
equity $11,354 $10,402
============= =============
ACE*COMM CORPORATION
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the three months For the six months
ended ended
December 31, December 31,
----------------------- -----------------------
2002 2001 2002 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Revenue $4,071 $4,601 $8,162 $8,997
Cost of revenue 1,871 2,277 3,644 4,653
----------- ----------- ----------- -----------
Gross profit 2,200 2,324 4,518 4,344
Selling, general and
administrative 2,028 2,971 4,180 6,132
Research and
development 55 170 93 442
Provision for doubtful
accounts 30 160 60 209
----------- ----------- ----------- -----------
Income (loss) from
operations 87 (977) 185 (2,439)
Interest (expense)
income (6) 19 (13) 43
Income (loss) before
income taxes 81 (958) 172 (2,396)
Income tax benefit - - - -
----------- ----------- ----------- -----------
Net income (loss) $81 $(958) $172 $(2,396)
=========== =========== =========== ===========
Basic net income (loss)
per share $0.01 $(0.10) $0.02 $(0.26)
=========== =========== =========== ===========
Diluted net income
(loss) per share $0.01 $(0.10) $0.02 $(0.26)
=========== =========== =========== ===========
Shares used in
computing net income
(loss) per share:
Basic 9,311 9,299 9,317 9,291
=========== =========== =========== ===========
Diluted 9,334 9,299 9,329 9,291
=========== =========== =========== ===========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion