BPO Management Services Reports Third Quarter 2007 Revenues Grew 382% Year over Year.ANAHEIM, Calif. -- BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra Management Services Inc., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BPOM BPOM Badan Pengawas Obat dan Makanan (Indonesian national agency of drug and food control) ), a full-service business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in company focused on serving middle-market enterprises, today announced its financial results for the third quarter ended September 30, 2007. THIRD QUARTER 2007 HIGHLIGHTS * Total revenue increased 382% year over year and 97% over the preceding quarter of 2007 * Enterprise Content Management revenue increased 611% year over year * IT Infrastructure and Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. revenue increased 92% year over year * Human Resource Outsourcing revenue increased 2,336% year over year * Completed acquisition of Blue Hill Data Services, a 24/7 Data Center Facility, effective October 10th * Introduced Human Resource Outsourcing (HRO HRO Housing Referral Office HRO Rostock (Germany, auto license plate) HRO Human Resources Outsourcing HRO Hogeschool Rotterdam (The Netherlands) HRO Human Resources Office HRO Ham Radio Outlet ) core product, HR Entre, delivering customizable HR software solutions for domestic and global mid-market organizations deployable as a licensed web-based application See Web application. , a desktop application, or delivered on demand as a hosted service, and announced major new sales wins * Major progress in the integration of DocuCom with other operations in the Enterprise Content Management group eliminating duplicative du·pli·cate adj. 1. Identically copied from an original. 2. Existing or growing in two corresponding parts; double. 3. operations and consolidating operations along with achieving significant wins in this segment NINE MONTH HIGHLIGHTS * Total revenue increased 133% year over year for the nine months ended September 30, 2007 versus the same period last year * Enterprise Content Management revenue increased 156% for the nine months ended September 30, 2007 versus the same period last year * IT Infrastructure and Outsourcing revenue increased 116% for the nine months ended September 30, 2007 versus the same period last year * Human Resource Outsourcing revenue increased 12% for the nine months ended September 30, 2007 compared to the same period last year FINANCIAL DISCUSSION "We achieved a number of key milestones this quarter, including strong growth in both our ECM (1) (Enterprise Change Management) See version control and configuration management. (2) (Error Correcting Mode) A Group 3 fax capability that can test for errors within a row of pixels and request retransmission. and ITO Ito, city (1990 pop. 71,223), Shizuoka prefecture, central Honshu, Japan, on the Izu Peninsula and the Sagami Sea. It is an important fishing port and hot spring resort. See indium. business segments, which contributed to overall strong growth in revenue," commented Patrick Dolan, chief executive officer. "Consistent with our growth plan, we commenced a capital raise that would enable us to complete our acquisition of Blue Hill Data Services Inc. early in the fourth quarter, allowing us to continue to build out our full-service BPO capability and increasing our annual revenue run rate to the $30 million level. These acquisitions strategically expanded both our service offerings as well as our geographic footprint in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and added a number of key customers in these markets. By consolidating the best technologies and business processes in what is currently a very fragmented marketplace, we continue to position ourselves to become the leading provider of end-to-end back office outsourcing solutions for middle market enterprises. "Our long-term strategy is to offer a comprehensive suite of end-to-end back office outsourcing services that are uniquely designed to solve the needs of the middle-market enterprise, a market that is fragmented and too small to be adequately served by Tier 1 providers. We completed a number of acquisitions over the past two years and will continue to selectively pursue strategic acquisitions to maximize cross-selling opportunities and better penetrate the middle market," Dolan continued. "Going forward, we will continue to focus on managing daily operations and executing on our business plan, which we believe will ultimately maximize shareholder value," Dolan continued. FINANCIAL RESULTS Third quarter total revenue for the three months ended September 30, 2007 was $4.6 million, up 382% compared to total revenue of $961,291 for the three months ended September 30, 2006. Enterprise Content Management (ECM) experienced continued growth and new contract wins. Net revenue from ECM products and services during the three months ended September 30, 2007 increased 611% to $3,504,953 compared to $492,908 during the three months ended September 30, 2006. The results of DocuCom's operations, acquired June 21, 2007, contributed approximately $2.4M in revenues during the three months ended September 30, 2007. This acquisition added the DocuCom data and document management solutions capability, with its long-term Canada-based customer relationships, and enhances the Company's ability to offer high quality, cost-effective service utilizing its near shore delivery model to its U.S. customers. The Company also completed the acquisition of Human Resource Micro Systems (HRMS HRMS Human Resource Management System HRMS High Resolution Microwave Survey (SETI, Project Phoenix) HRMS High Resolution Mass Spectroscopy HRMS High Resolution Molecular Spectroscopy HRMS Human Resources Management Specialist ), which took place on June 29, 2007. The Company's Human Resource Outsourcing (HRO) has experienced rapid revenue growth. Net revenue from HRO products and services increased 2,336% to $246,371 compared to $10,114 for the three months ended September 30, 2006. The HRMS acquisition has allowed the Company to broaden its human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. management offerings, experiencing additional contract wins. IT Infrastructure and Outsourcing (ITO) also saw continued growth and new contract wins. Net revenue from ITO during the three months ended September 30, 2007 increased by 92% to $880,978 compared to $458,269 during the three months ended September 30, 2006. Continued revenue growth and profitability is expected in this business segment in the coming quarters. The Company's net loss available to common shareholders for the three months ended September 30, 2007 was $(1,278,777), or a loss of $(0.14) per share, compared to a net loss of $(439,784), or a loss of $(0.04) per share, for the same period 2006. This loss includes approximately $0.4 million in non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to management stock options and balance sheet amortization/depreciation expense items. In addition, the Company experienced higher than normal SG&A expenses associated with business integration activities related to recently acquired business units and professional service expenses associated with new acquisition activity. The company closed the quarter with $6.1 million in cash and cash equivalents. OUTLOOK FOR 2007 "We successfully completed our capital raises in the second and third quarters which allowed us to complete the integration of Novus, as well as finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the acquisition of DocuCom, HRMS and Blue Hill. In light of our recent acquisition activity, we are further evaluating the maximum short-term potential of each of our business segments and are not going to give formal guidance for the fourth quarter at this time. We expect to see growth momentum across all business segments and a continuing reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the fourth quarter," Dolan concluded. About BPO Management Services, Inc. BPO Management Services (BPOMS) is a business process outsourcing (BPO) service provider that offers a diversified diversified (di·verˑ·s range of on-demand services, including human resources, information technology, enterprise content management, and finance and accounting, to support the back-office functions of middle-market enterprises on an outsourced basis. BPOMS supports middle-market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit www.bpoms.com. 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: With the exception of historical or factual information, the matters discussed in this press release, including without limitation the acceptance of new technology by the general marketplace, the Company's future growth plans and the ability of the Company's common stock to trade or be quoted on various markets are 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 involve risks and uncertainties. Actual results may differ. Factors that could cause or contribute to such differences in results include, but are not limited to, the availability of financing and changes in market and business conditions; and other risks and factors detailed from time to time in the Company's public statements and its periodic reports and other filings with the U.S. Securities and Exchange Commission. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion