ACE*COMM Reports Strong Year-over-Year Improvements for the Third Quarter of Fiscal 2006; Company Achieves 4th Consecutive Profitable Quarter; Launches Newest Products.GAITHERSBURG, Md. -- Corporate Highlights for the Quarter:
-- Reported revenues of $6.7 million for the quarter and $20.1
million for the nine months - a 78% increase over same quarter
last year and 53% increase over the same nine month period
last year
-- Posted 4th consecutive quarter of profitability
-- Announced new customer, Cameroon Tel, for advanced OSS
contract
-- Signed new Network Business Intelligence(TM) (NBI) contract
with large Latin American mobile operator
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) ), a global provider of advanced 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. , value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. , and network business intelligence solutions, today reported financial results for the quarter ended March 31, 2006, the third quarter of its 2006 fiscal year. The Company reported revenues of $6.7 million for the quarter, which compares to $3.8 million for the comparable quarter of fiscal year 2005. Net profit for the quarter was $365 thousand, or $0.02 per share, compared to a net loss of $6.6 million, or $0.47 per share, for the same quarter in the prior year. For the nine months, revenues were $20.1 million which compares to $13.2 million for the same nine months period last year. Net profit for the nine months ended March 31, 2006 was $812 thousand or $0.05 per share as compared to a net loss of $6.8 million or $0.49 per share in the same nine months last year. "These results represent performance consistent with our strategic growth plan," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). T. Jimenez Ji·mé·nez , Juan Ramón 1881-1958. Spanish poet who introduced modernism to Spanish verse. Platero y Yo (1914) is his most popular work. He won the 1956 Nobel Prize for literature. Noun 1. , 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 have demonstrated improving earnings growth and strong year-over-year revenue increases, while at the same time bringing new products to market."
Product Developments:
-- Launched new content filtering capabilities for Parent
Patrol(TM); announced partnership with RuleSpace, industry's
top content classification solutions provider
-- Introduced hyper-convergent product for valuation of
network-based charges and services
-- Announced technology partnership with Experian, global leader
in consumer-level information, to supply new demographic data
capabilities for Market Maker(TM) market visualization tool
-- Announced Enterprise Patrol(TM) - new solution for businesses
that need to rein in the high cost of corporate mobile phone
use
-- Introduced Network Business Intelligence capabilities for
enterprise telecom systems
-- Unveiled Market Maker(TM) for GSM operators
Continued Mr. Jimenez: "We launched a number of new and upgraded revenue-generating value-added services, and solutions for the emerging network business intelligence (NBI NBI Niels Bohr Institute (Denmark) NBI National Bureau of Investigation NBI Nile Basin Initiative (Uganda) NBI National Bridge Inventory NBI Nation Brands Index (statistics) ) market. Most significantly:
-- The recent release of Parent Patrol(TM) with content filtering
capabilities, strengthens our ability to take full advantage
of a tremendous market opportunity unfolding before us -
enabling carrier's to capitalize on high-growth mobile youth
segments by offering tools for parental controls.
-- We also launched Market Maker(TM) with new demographic data
views designed to arm service providers with robust consumer
profiling and demographic data capabilities so that they can
more effectively offer targeted services to their best
customer prospects. We believe that this offering is an
attractive solution for the proliferating carrier demand for
services that maximize revenue and engender customer loyalty.
Our stated growth strategy highlights the development of vertical solutions, based on our core technologies, to expand our portfolio of offerings with which to penetrate the Tier 1 carrier segment. This quarter's product and technology announcements clearly indicate that we are making progress in line with our plan." Concluded Mr. Jimenez: "In tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with our new product directions, we worked to significantly upgrade our core, field-proven advanced OSS products to ensure we maintain our market position, are able to show a clear upgrade path for existing customers, and can attack Tier 1 market with high margin, value-added services. Together, our product sets offer advanced, robust and compelling solutions for the challenges that service providers now face in an evolving industry." Earnings Call ACE*COMM will host an earnings teleconference call this evening, May 3, 2006 at 5:30 pm, Eastern Standard Time, to discuss the first quarter results. To participate, please call 866-835-8825 (within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ) or 703-639-1407 (outside the United States). When prompted, enter the ACE*COMM reservation number 893493. 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.fulldisclosure.com. A taped replay of the call will be made available from the ACE*COMM Corporate Web Site after 8:30 pm, on Wednesday Wednesday: see week. , May 3, 2006. About ACE*COMM ACE*COMM is a global provider of network business intelligence 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) 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 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 networks The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. . These solutions 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 data from operating networks and correlate it with business data to produce business intelligence -- insight 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 Alcatel Société Alsacienne de Constructions Atomiques, de Télécomunications et d'Electronique , 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 (Marconi Communications, Warrendale, PA, www.marconi.com) A leading manufacturer of networking equipment. Founded in 1990 as FORE Systems by four Carnegie Mellon University faculty members, the company name was derived from its founders' first names: Francois, Onat, Robert and Eric. , Motorola (Motorola, Inc., Schaumburg, IL, www.motorola.com) A leading manufacturer of semiconductor devices, electronics, telecommunications and satellite systems. Founded in Chicago in 1928 by Paul V. , 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 Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC area, ACE*COMM has corporate offices in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , China, and the UK. 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, and the ACE*COMM logo are registered trademarks, and ACE*COMM Network Business Intelligence and Parent Patrol are trademarks of ACE*COMM Corporation, and Parent Patrol is a Patent Pending technology of the company. 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 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.
ACE*COMM CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share amounts)
March 31, June 30,
2006 2005
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 985 $ 2,683
Accounts receivable, net 7,406 4,870
Inventories, net 959 532
Deferred contract costs 18 85
Prepaid expenses and other 653 601
------------ ------------
Total current assets 10,021 8,771
Property and equipment, net 794 636
Goodwill 522 1,681
Acquired intangibles, net 1,049 2,001
Other non-current assets 849 478
------------ ------------
Total assets $ 13,235 $ 13,567
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings $ 2,158 $ 2,332
Accounts payable 939 1,379
Accrued expenses 1,551 1,940
Accrued compensation 899 1,013
Deferred revenue 1,700 1,454
------------ ------------
Total current liabilities 7,247 8,118
Long-term notes payable 33 72
------------ ------------
Total liabilities 7,280 8,190
------------ ------------
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, 17,550,297 and
16,694,330 shares issued and
outstanding 176 167
Additional paid-in capital 34,679 34,808
Other accumulated comprehensive loss (146) (32)
Accumulated deficit (28,754) (29,566)
------------ ------------
Total stockholders' equity 5,955 5,377
------------ ------------
Total liabilities and stockholders'
equity $ 13,235 $ 13,567
============ ============
ACE*COMM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the three months For the nine months
ended ended
March 31, March 31,
----------------------- -----------------------
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Revenue
Licenses and
hardware $ 3,509 $ 1,066 $ 10,161 $ 5,212
Services 3,194 2,694 9,966 7,985
----------- ----------- ----------- -----------
Total revenue 6,703 3,760 20,127 13,197
Cost of licenses and
hardware revenue 323 742 1,805 2,193
Cost of services
revenue 1,972 1,253 5,272 3,919
----------- ----------- ----------- -----------
Total cost of
revenue 2,295 1,995 7,077 6,112
Gross profit 4,408 1,765 13,050 7,085
Selling, general, and
administrative 3,080 2,548 9,237 7,169
Research and
development 872 631 2,826 1,745
Acquired in process
research and
development - 5,118 - 5,118
----------- ----------- ----------- -----------
Income (loss)
from operations 456 (6,532) 987 (6,947)
Interest expense 91 16 174 24
Gain from settlement
of debt obligation - - - 228
----------- ----------- ----------- -----------
Income (loss)
before income
taxes 365 (6,548) 813 (6,743)
Income tax expense - 45 1 60
----------- ----------- ----------- -----------
Net income
(loss) $ 365 $ (6,593) $ 812 $ (6,803)
=========== =========== =========== ===========
Basic net income
(loss) per share $ .02 $ (.47) $ .05 $ (.49)
=========== =========== =========== ===========
Diluted net income
(loss) per share $ .02 $ (.47) $ .05 $ (.49)
=========== =========== =========== ===========
Shares used in
computing net income
(loss) per share:
Basic 16,889 13,981 16,838 13,844
=========== =========== =========== ===========
Diluted 17,679 13,981 17,351 13,844
=========== =========== =========== ===========
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