ACE*COMM Corporation Reports Stronger Financial Results for the Third Quarter of Fiscal Year 2004; Performance In Line with Revenue Guidance.Business Editors/High-Tech Writers GAITHERSBURG, Md.--(BUSINESS WIRE)--May 3, 2004 ACE*COMM  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . 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) ) Financial Highlights: -- Quarterly revenues more than doubled compared to same period last year -- Quarterly revenues doubled compared to the preceding quarter -- Net loss (before a one-time acquisition-related charge of $1.2 million) was $239 thousand; an improvement of $1.6 million compared to same quarter last year and a $1.3 million improvement from the most recent quarter ACE*COMM Corporation (NASDAQ:ACEC), a global provider of 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. ) technologies, today reported financial results for the third quarter of fiscal year 2004, which ended March 31, 2004. The Company reported revenues of $4.8 million for the third quarter, which compares to $2.4 million for the same quarter in fiscal year 2003. Net loss for the quarter was $1.4 million, or $0.10 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 $1.8 million, or $0.19 per fully diluted share for the same quarter a year ago. This quarter's net loss includes a one time charge for in process research and development of $1.2 million ($0.09 per fully diluted share) attributable to the purchase of R&D assets underlying the operations support systems of Intasys in February 2004. For the nine months ended March 31, 2004, the Company recorded revenues of $9.7 million, compared to $10.5 million for the same nine months of fiscal 2003. The net loss and loss per fully diluted share were $3.9 million and $0.34, respectively, compared to a net loss and loss per fully diluted share of $1.7 million and $0.18 for the same period in fiscal 2003. "Our results for the third quarter were essentially on target with our expectations, even though the telecom economic recovery remains tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. ," said George T. Jimenez, 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. "We continue to assert and maintain confidence in our leadership in both the market sectors we cover. In the service provider sector, we have aligned our 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, technology to address growing market requirements for revenue assurance and voice-over-IP (VoIP) related solutions. In the enterprise OSS market, we believe the recent introduction of our Web-hosted version of NetPlus(R) positions us for growth as market demand recovers. We are also optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the potential contribution to revenue and profit from the addition of the Intasys OSS customers, technologies and personnel. We expect that with the increased product scope and capabilities we will be able to extend our reach into new vertical and geographical markets." Corporate Highlights: -- ACE*COMM completes acquisition of Intasys OSS solutions; acquisition strengthens ACE*COMM's position in the OSS wireless mobile market sector and marks newest development in execution of company's growth plan. -- State of Nevada Department of Information Technology Purchases NetPlus(R) for communications cost management. -- ACE*COMM's NetPlus(R) EOSS EOSS Expeditionary Operations Support Squadron (US Air Force) EOSS Engineering Operational Sequencing System EOSS Edge of Space Sciences, Inc (Denver, Colorado) EOSS Electro-Optic Sensor System is awarded 2003 "Product of the Year" by Technology Marketing Corporation's Communications Solutions Magazine. -- ACE*COMM launches its NetPlus(R) Cost Management Platform for enterprise telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. at VoiceCon 2004. -- RS Information Systems selects ACE*COMM technology to manage Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control (FAA) internal communications  This article's grammar usage needs improvement. Please edit this article in accordance with Wikipedia's . functions. -- ACE*COMM announces data collection project in Yunnan Province Noun 1. Yunnan province - a province of southern China Yunnan Cathay, China, Communist China, mainland China, People's Republic of China, PRC, Red China - a communist nation that covers a vast territory in eastern Asia; the most populous country in the world , China; Kunming Tel to use ACE*COMM's mediation systems for network data collection "With the acquisition of Intasys technologies and our internal development, I believe we will be entering into one of our strongest product cycles to date," continued Mr. Jimenez. "Our technological strength, combined with the Intasys customer-centric OSS solutions, will enable us to expand our product and services offerings and deliver more value to customers interested in our suite of Convergent Mediation (TM) solutions. By integrating the Intasys technologies, we can offer a more complete OSS solution that targets Tier 2 and 3 service providers in international markets." "The quarter's results are encouraging, particularly considering the one-time R&D charges related to the Intasys acquisition that were taken in this quarter," said Steven Delmar, CFO See Chief Financial Officer. of ACE*COMM. "These charges relate to a new Intasys product offering expected to be available later in this calendar year. Under the rules of acquisition accounting, the Company was obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to take the charge upon completion of the Intasys acquisition, rather than over the life of the product. Additionally, we are making good progress in integrating Intasys into the Company's systems and processes. This has been a significant task during the quarter, encompassing over 40 new employees, two regional offices, two new product lines, and a number of active customers world-wide." ACE*COMM will host an earnings teleconference call this evening, Monday, May 3, 2004 at 5:30 pm, Eastern Standard Time, to discuss the third quarter results. To participate, please call 877-817-7175. When prompted, enter the ACE*COMM reservation number 452956. 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 May 3, 2004. 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. , 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
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, June 30,
2004 2003
----------- --------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $4,514 $1,570
Accounts receivable, net 5,787 4,825
Inventories, net 660 700
Deferred contract costs 828 -
Prepaid expenses and other 452 265
----------- --------
Total current assets 12,241 7,360
Property and equipment, net 605 875
Other assets, principally acquired intangibles 845 9
----------- --------
Total assets $13,691 $8,244
=========== ========
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings $1,425 $433
Accounts payable 1,282 636
Accrued expenses 1,627 341
Accrued compensation 598 706
Deferred revenue 1,828 1,303
----------- --------
Total liabilities 6,760 3,419
----------- --------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 5,000,000
shares authorized, none issued and
outstanding - -
Common stock, $.01 par value, 45,000,000
shares authorized, 13,752,662 and 9,807,440
shares issued and outstanding 138 98
Additional paid-in capital 27,903 21,933
Foreign currency translation (8) -
Accumulated deficit (21,102) (17,206)
----------- --------
Total stockholders' equity 6,931 4,825
----------- --------
Total liabilities and stockholders' equity $13,691 $8,244
=========== ========
The accompanying notes are an integral part of these consolidated
financial statements.
ACE*COMM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the three months For the nine months
ended March 31, ended March 31,
---------------------- ----------------------
2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited)(Unaudited)
----------- ----------- ---------- -----------
Revenue $4,842 $2,369 $9,720 $10,531
Cost of revenue 2,135 2,109 5,421 5,753
----------- ----------- ---------- -----------
Gross profit 2,707 260 4,299 4,778
Selling, general, and
administrative 2,537 1,997 6,390 6,237
Research and
development 400 108 621 201
In process research and
development 1,160 - 1,160 -
----------- ----------- ---------- -----------
Loss from operations (1,390) (1,845) (3,872) (1,660)
Interest expense (9) (8) (25) (21)
----------- ----------- ---------- -----------
Loss before income
taxes (1,399) (1,853) (3,897) (1,681)
Benefit for income
taxes - - - -
----------- ----------- ---------- -----------
Net loss $(1,399) $(1,853) $(3,897) $(1,681)
=========== =========== ========== ===========
Basic net loss per
share $(.10) $(.19) $(.34) $(.18)
=========== ====================== ===========
Diluted net loss per
share $(.10) $(.19) $(.34) $(.18)
=========== ====================== ===========
Shares used in
computing net loss
per share:
Basic 13,736 9,793 11,508 9,473
=========== ====================== ===========
Diluted 13,736 9,793 11,508 9,473
=========== ====================== ===========
The accompanying notes are an integral part of these consolidated
financial statements.
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