Computer Software Innovations, Inc. Reports Record Revenues for the Second Quarter 2006.EASLEY Easley (ēz`lē), city (1990 pop. 15,195), Pickens co., NW S.C., in the foothills of the Blue Ridge Mts.; inc. 1874. Dairy cattle, poultry, and hogs are raised, and textiles and industrial machinery are manufactured. , S.C. -- Computer Software Innovations, Inc., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CSWI): --Q2 2006 Revenues Increase By 67% to $12 Million from $7.2 Million in 2005 --Six Months Revenues Increase 49% to $17 Million from $11.4 million for 2005 Computer Software Innovations, Inc., (OTCBB: CSWI), CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International Technology Outfitters(TM), ("CSI") today announced its financial results for the three and six months ended June June: see month. 30, 2006. CSI posted revenue of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $12.0 million for the quarter ended June 30, 2006, a 67% increase over the $7.2 million for the comparable period ended June 30, 2005. Net Income for the quarter ended June 30, 2006 was approximately $508,000 or $0.05 per 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 net income of approximately $589,000 and $0.05 earnings per diluted share for the same period last year. For the three months ended June 30, 2006, software applications revenues increased 27% due to the related improvements in account penetration, product mix and better cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. in this segment. The resulting higher margins in the software segment offset a significant portion of the impact of increased competitive offerings in the technology solutions segment. The increase in software applications segment revenues stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. primarily from an overall increase in the number of new clients purchasing new software, accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. installation and training services and software service contract upgrades from CSI. While the technology solutions segment revenues increased 74%, a significant portion of this increase, approximately 60%, resulted from CSI acting as a reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. rather than agent for personal computer sales, which increased reported revenues with little impact on gross profit. Total personal computer sales both as reseller and agent declined slightly resulting in decreased gross profit from reduced commissions. The impact of lower commissions and increased competitive offerings caused the reduction in Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to $852,000 for the three months ended June 30, 2006 from $1,256,000 for the comparable period of the prior year. For the six month period ended June 30, 2006, revenues were $17 million, up 49% from approximately $11.4 million for the comparable period a year ago. Operating Income was approximately $325,000 for the six month period ended June 30, 2006, up from the $205,000 for the comparable six month period ended June 30, 2005. Net Income was $78,000 as compared to the Net loss of $1.89 million for the six month's ended June 30, 2005. For the six months ended June 30, 2006, increased software sales volumes and product mix contributed to the growth in revenues, coupled with an increase in technology sales. The increase in Operating income for the six month period resulted primarily from increased revenues, stronger product mix in the software segment and a focus on cost containment in the Company's two segments. "We are pleased to report a significant sales increase in our software applications segment, which represents our highest margin business segment. We believe the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of our sales force to sell all products rather than focusing on one segment's offerings has had a positive impact. Increases in software revenues help mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the
risks from margin pressure and changes in product mix in our technology
solutions segment, while ultimately driving greater gross profits. We
will continue to focus on efforts of improving sales of higher margin
products and services with a strengthening sales force approach, and by
expanding our geographic footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. through organic growth and acquisitions that could bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz our market presence," said Nancy Nancy (näNsē`), city (1990 pop. 102,410), capital of Meurthe-et-Moselle dept., NE France, on the Meurthe River and the Marne-Rhine Canal. It is the administrative, economic, and educational center of Lorraine. Hedrick Hedrick is the name of several places in the United States, including:
Conference Call Announcement The conference call will take place at 4:15 p.m. Eastern, on Monday Monday: see week. , August 21, 2006. Anyone interested in participating should call 877-704-5378 if calling 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 913-312-1292 if calling internationally and enter pass code 4156922, approximately 5 to 10 minutes prior to the 4:15 p.m. call. There will be a playback Playback could mean:
The call is also being webcast and may be accessed via CSI's website at www.csioutfitters.com . The webcast replay will be available through November November: see month. 21, 2006. About Computer Software Innovations, Inc. Computer Software Innovations, Inc. (OTCBB:CSWI - News), CSI Technology Outfitters(TM), is a full service company providing software and technology solutions primarily to public sector organizations. The software solutions include financial management, billing and revenue management, school activity accounting, lesson planning and automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. . The technology solutions include IP telephony The two-way transmission of voice over a packet-switched IP network, which is part of the TCP/IP protocol suite. The terms "IP telephony" and "voice over IP" (VoIP) are synonymous. , IP video surveillance, visual communications, interactive classrooms, network security and traffic monitoring, infrastructure design, wireless solutions, network management, engineering services and hardware solutions. CSI's client base includes school districts, higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. , municipalities, county governments, and other non-profit organizations A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. . Currently, more than 400 public sector organizations utilize CSI's software systems and network integration services. Additional information on CSI can be obtained through its website at www.csioutfitters.com. Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and Cautionary Statements Certain information contained in this news release includes 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 substantial risk and uncertainties. Any statement in this news release that is not a statement of an historical fact constitutes a "forward-looking statement." Among other things, these statements relate to our financial condition, results of operations and business. When used in this news release, these forward-looking statements are generally identified by the words or phrases "may," "expect," "anticipate," "plan," "believe," "seek," "estimate," "project" or words of similar import. These forward-looking statements are not guarantees of future performance. These statements are based on management's expectations that involve a number of business risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the forward-looking statements. Many factors are beyond our ability to control or predict. You are accordingly cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date that we make them. For more information on factors that could affect expectations, see the Company's Annual Report on Form 10-KSB for the year ended December December: see month. 31, 2005, and other reports from time to time filed with or furnished fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. to the Securities and Exchange Commission. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein.
COMPUTER SOFTWARE INNOVATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
-------------------------------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
-------------------------------------------------
REVENUES
Software
applications
segment $ 1,446,005 $ 1,142,039 $ 2,550,077 $ 2,128,788
Technology
solutions segment 10,718,231 6,156,389 14,456,562 9,261,944
----------- ----------- ----------- ------------
Net sales and
service revenue 12,164,236 7,298,428 17,006,639 11,390,732
COST OF SALES
Total software
applications
segment cost of
sales 509,132 501,402 971,021 948,228
----------- ----------- ----------- ------------
Total technology
solutions segment
cost of sales 9,279,993 4,259,155 12,156,901 6,746,938
----------- ----------- ----------- ------------
Total cost of
sales 9,789,125 4,760,557 13,127,922 7,695,166
----------- ----------- ----------- ------------
Gross profit 2,375,111 2,537,871 3,878,717 3,695,566
OPERATING EXPENSES
Salaries and wages and
benefits(excluding
stock-based
compensation) 894,324 773,474 1,665,539 1,375,865
Stock based
compensation 81,258 -- 695,212 631,174
Reverse acquisition
costs -- -- -- 759,283
Professional and
legal compliance
and litigation costs 86,034 220,303 430,888 220,303
Marketing costs 59,952 -- 149,856 --
Travel and mobile
costs 149,815 90,168 232,260 152,394
Depreciation 41,513 14,772 76,624 27,451
Other selling,
general and
administrative
expenses 210,051 183,337 303,588 323,568
----------- ----------- ----------- ------------
Total operating
expenses 1,522,947 1,282,054 3,553,967 3,490,038
----------- ----------- ----------- ------------
Operating income 852,164 1,255,817 324,750 205,528
OTHER INCOME (EXPENSE)
Interest income 819 -- 3,000 6,023
Interest expense (96,592) (77,198) (188,977) (90,202)
Amortization of loan
fees -- -- (17,458) (24,442)
Gain (loss) on disposal
of property and
equipment -- -- -- 100
Unrealized loss on
warrants -- (108,267) -- (3,193,188)
----------- ----------- ----------- ------------
Net other income
(expense) (95,773) (185,465) (203,435) (3,301,709)
----------- ----------- ----------- ------------
Income (loss)
before income taxes 756,391 1,070,352 121,315 (3,096,181)
INCOME TAX EXPENSE
(BENEFIT) 248,567 481,762 43,023 (1,235,328)
----------- ----------- ----------- ------------
NET INCOME (LOSS) 507,824 588,590 78,292 (1,860,853)
=========== =========== =========== ============
BASIC EARNINGS (LOSS)
PER SHARE $ 0.15 $ 0.22 $ 0.03 $ (0.71)
=========== =========== =========== ============
DILUTED EARNINGS
(LOSS) PER SHARE $ 0.05 $ 0.05 $ 0.01 $ (0.71)
=========== =========== =========== ============
WEIGHTED AVERAGE
SHARES OUTSTANDING:
- Basic 3,340,004 2,631,786 3,119,657 2,631,786
=========== =========== =========== ============
- Diluted 11,362,728 12,474,658 11,262,792 2,631,786
=========== =========== =========== ============
COMPUTER SOFTWARE INNOVATIONS, INC.
CONSOLIDATED BALANCE SHEETS
June 30,
2006 December 31,
(Unaudited) 2005
------------------------
ASSETS
CURRENT ASSETS
Cash 334,310 $ --
Accounts receivable, net 9,726,406 5,891,950
Inventories 15,197 --
Prepaid expenses 97,700 70,962
Taxes receivable 272,532 192,918
------------ -----------
Total current assets 10,446,145 6,155,830
PROPERTY AND EQUIPMENT, net 718,671 411,835
COMPUTER SOFTWARE COSTS, net 1,254,485 983,654
OTHER ASSETS 55,737 22,475
------------ -----------
$ 12,475,038 $ 7,573,794
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 4,822,768 $ 2,349,785
Deferred revenue 2,530,429 1,498,418
Deferred tax liability 415,082 298,764
Bank line of credit 1,842,000 1,701,000
Current portion of note payable 100,000 --
Subordinated notes payable to
shareholders 2,250,400 2,250,400
------------ -----------
Total current liabilities 11,960,679 8,098,367
------------ -----------
NOTE PAYABLE, less current portion 265,428 --
------------ -----------
12,226,107 8,098,367
------------ -----------
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock - $0.001 par value;
40,000,000 shares authorized; 3,369,030
shares issued and outstanding 3,369 2,632
Preferred stock - $0.001 par value;
15,000,000 shares authorized; 7,012,736
shares issued and outstanding 7,013 7,218
Additional paid-in capital 6,005,049 5,111,736
Retained earnings (deficit) (5,567,867) (5,646,159)
Unearned stock compensation (198,633) --
------------ -----------
Total shareholders' equity (deficit) 248,931 (524,573)
------------ -----------
$ 12,475,038 $ 7,573,794
============ ===========
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