Acies Corporation Announces Record Fiscal 2006 Second Quarter Financial Results; Fiscal 2006 Second Quarter Revenues Grow 135% Over Last Year; Sequential Revenues Rise 24% From Fiscal First Quarter of 2006.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Acies Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : ACIE ACIE Association of Charity Independent Examiners ACIE Association of the Cement Industries Employers (Iran) ), a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company that specializes in providing payment processing and online banking services to small, medium, and large-size merchants across 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. , today announced financial results for its fiscal second quarter ended September 30, 2005. For the fiscal second quarter, Acies reported net revenues of $2,045,165, which represents a 135 percent increase over net revenues of $870,745 reported in the year-ago period. Cost of revenues was $1,805,666 in the fiscal second quarter, an increase of 153 percent compared to cost of revenues of $713,123 in the year-ago period. Gross margin for the second fiscal quarter was $239,499, representing an increase of 52 percent over the $157,622 in the year-ago period. Net loss for the quarter was $302,126, or $(0.01) per share, compared to a net loss of $2,072,807, or $(0.06) per share, for the three months ended September 30, 2004. In the prior year period the Company incurred significant non-recurring general and administrative expenses in connection with becoming a public company. Six-Month Results Net revenues for the six-month period ended September 30, 2005, were $3,693,686, a 134 percent increase compared to net revenues of $1,578,972 for the six months ended September 30, 2004. Cost of revenues was $3,159,717 for the six months ended September 30, 2005, a 141 percent increase over cost of revenues of $1,313,507 for the six months ended September 30, 2004. Gross margin for the six-months ended September 30, 2005 was $533,969, a 101 percent increase over gross margin of $265,465 for the six months ended September 30, 2004. Net loss for the six-month period was $497,465, or $(0.01) per share, compared to a net loss of $2,289,831, or $(0.07) per share, for the six months ended September 30, 2004. In the prior year period the Company incurred significant non-recurring general and administrative expenses in connection with becoming a public company. Oleg Firer, Chairman, President and Chief Executive Officer of Acies Corp., said, "We continue to grow our merchant account portfolio at a rapid pace, which drove record revenues and a sequential increase of 24 percent over the previous quarter. We are particularly pleased to have achieved these results in what is traditionally a slow quarter based on lower consumer retail spending during the summer months. Our top-line performance illustrates that our business continues to build traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. and that we are capturing an increasing share of the small- to medium-size business market." Mr. Firer continued, "We continue to benefit from the growing trend among consumers to use credit and debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. instead of cash as well as the recent industry-wide introduction of 'contactless' credit card technology, as major bank card issuers are beginning to distribute millions of 'contactless' cards to their customers. Acies has established itself as a leading distributor of this technology and we believe these trends will continue to help position us for merchant account growth as demand for our technology increases." Mr. Firer added, "We remain well positioned to continue executing on our business plan, and are particularly well positioned going into the holiday spending season, which traditionally drives our strongest quarter of results." About Acies Corporation Acies Corporation (OTCBB: ACIE) is a financial services company that, through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , 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 A monetary amount that is subtracted from an account balance. A debit from one account is a credit to another. See credit. , Electronic Benefit Transfer (EBT EBT See: Earnings Before Taxes ), Check Conversion, and Gift & Loyalty transactions. Acies also offers traditional and next-generation point-of-sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) 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. 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. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. 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 Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effect.
ACIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three and Six Months Ended September 30, 2005 and 2004
Three Months Ended Six Months Ended
September 30 September 30
2005 2004 2005 2004
Net revenues $2,045,165 $ 870,745 $3,693,686 $1,578,972
Cost of revenues 1,805,666 713,123 3,159,717 1,313,507
----------- ------------ ----------- ------------
Gross margin 239,499 157,622 533,969 265,465
General,
administrative and
selling 543,150 2,227,459 1,005,960 2,552,347
----------- ------------ ----------- ------------
Operating loss (303,651) (2,069,837) (471,991) (2,286,882)
Loss on
extinguishment
of debt - - (28,453) -
Interest expense - (3,000) (1,000) (3,000)
Interest income 1,525 30 3,979 51
----------- ------------ ----------- ------------
Net loss $ (302,126) $(2,072,807) $ (497,465) $(2,289,831)
=========== ============ =========== ============
Basic and diluted
net loss per share $ (0.01) $ (0.06) $ (0.01) $ (0.07)
Weighted average
shares outstanding 48,055,207 32,402,493 48,055,207 32,083,651
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