ACE*COMM Corporation (NASDAQ:ACEC): Corporate Highlights for the
Quarter: -- Reported revenues of $6.7 million for the quarter - a
41% increase over same quarter last year and 42% increase over the
same six month period last year -- Posted third consecutive quarter
of profitability -- Extended relationship with Saudi Telecom for
second phase of NBI deployment -- Signed new contract with world's
leading IP carrier for new service delivery platform with advanced
rating capabilities -- Secured contract to provide voice and IP
billing mediation to leading Greek next-generation service
provider, Vivodi -- Completed Parent Patrol(TM) lab certification
for North American regional carrier; market rollout expected in 1st
quarter of calendar 2006 -- Received 'Product of the Year' award
from Internet Telephony Magazine for NetPlus(R) VoIP capabilities
ACE*COMM Corporation (NASDAQ:ACEC), a global provider of network
business intelligence and advanced operations support systems (OSS)
solutions, today reported financial results for the quarter ended
December 31, 2005, the second quarter of its 2006 fiscal year. The
Company reported revenues of $6.7 million for the quarter, which
compares to $4.8 million for the comparable quarter of fiscal year
2005. Net profit for the quarter was $347 thousand, or $0.02 per
share, compared to a net profit of $176 thousand, or $0.01 per
share, for the same quarter in the prior year. For the six months,
revenues were $13.4 million which compares to $9.4 million for the
same six months period last year. Net profit for the six months
ended December 31, 2005 was $446 thousand or $0.03 per share as
compared to a net loss of $209 thousand or $0.02 per share in the
same six months last year. "ACE*COMM's second quarter performance
underscores the successes we have achieved to date with our
reinvigorated growth strategy and the resilience of our
organization," said George T. Jimenez, CEO of ACE*COMM. "Our
Network Business Intelligence(TM) suite is making gains in the
carrier market, with the noteworthy expansion to a second phase of
the contract with Saudi Telecom. As carriers become more aware that
their networks are a major source of business information, we
believe they will increasingly look to experienced companies like
ACE*COMM for solutions that enable operational and business
intelligence (BI) processes, and invest in BI with enterprise-wide
initiatives. Our extensive experience with systems that operate at
the edge of the network places us in an optimal position to capture
market share for the evolving telecom BI market." "We are further
delighted to have successfully completed customer site trials and
testing for the deployment of our industry-leading Parent
Patrol(TM) service control application that allows parents to
manage children's mobile phone usage. Our pipeline of opportunities
remains strong, and we anticipate rolling out our first deployment
of this patent-pending technology in North America in the near
future," continued Mr. Jimenez. "Market analysts forecast
tremendous potential for growth in the mobile youth segment once
innovative solutions - like Parent Patrol(TM) - are available to
deal with parental concerns. Looking ahead, we expect market
penetration rates for this technology to accelerate." Continued Mr.
Jimenez: "Our ability to win significant business such as our major
contract with Northrop Grumman for the US Air Force, stems from
both our technical expertise and our success in joining forces with
large industry players. We will expand this approach to all areas
of our business. We continue to strengthen our relationship with
Northrop Grumman, and other NetPlus(R) channel partners, to
leverage our industry recognition and market success into
additional contract opportunities." "Having delivered exceptional
top-line growth in the first half of fiscal 2006 and continued
profitability, ACE*COMM is demonstrating the earnings power of its
business model," said Steve Delmar, CFO of ACE*COMM. "Additionally,
we still have opportunities to improve efficiencies across the
Company, and are currently working to hone these and to more
tightly integrate corporate functions." Earnings Call ACE*COMM will
host an earnings teleconference call this evening, February 8, 2006
at 5:30 pm, Eastern Standard Time, to discuss the second quarter
results. To participate, please call 866-219-5885 (within the
United States) or 703-639-1124 (outside the United States). When
prompted, enter the ACE*COMM reservation number 851617. Internet
users 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, February 8, 2006. About ACE*COMM
ACE*COMM is a global provider of network business intelligence and
advanced operations support systems (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
communications networks. These solutions provide the analytical
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, AT&T, Cisco, General Dynamics, IBM,
Level 3 Communications, Marconi, Motorola, Northrop Grumman,
Siemens, and Unisys. Headquartered in the Washington, DC area,
ACE*COMM has corporate offices in Australia, Canada, China, and the
UK. ACE*COMM is a registered ISO 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. Except for historical information, the matters
discussed in this news release include forward-looking statements
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, 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 and other reports
filed with the Securities Exchange Commission. -0- *T ACE*COMM
CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands except share
and per share amounts) December 31, June 30, 2005 2005 ------------
------------ (Unaudited) Assets Current assets: Cash and cash
equivalents $991 $2,683 Accounts receivable, net 6,769 4,870
Inventories, net 915 532 Deferred contract costs 25 85 Prepaid
expenses and other 755 601 ------------ ------------ Total current
assets 9,455 8,771 Property and equipment, net 671 636 Goodwill 522
1,681 Acquired intangibles, net 1,156 2,001 Other non-current
assets 932 478 ------------ ------------ Total assets $12,736
$13,567 ============ ============ Liabilities and Stockholders'
Equity Current liabilities: Borrowings $2,862 $2,332 Accounts
payable 984 1,379 Accrued expenses 1,764 1,940 Accrued compensation
724 1,013 Deferred revenue 1,029 1,454 ------------ ------------
Total current liabilities 7,363 8,118 Long-term notes payable 34 72
------------ ------------ Total liabilities 7,397 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, 17,439,029 and
16,694,330 shares issued and outstanding 174 167 Deferred
compensation on restricted shares (374) - Additional paid-in
capital 34,797 34,808 Other accumulated comprehensive loss (137)
(32) Accumulated deficit (29,121) (29,566) ------------
------------ Total stockholders' equity 5,339 5,377 ------------
------------ Total liabilities and stockholders' equity $12,736
$13,567 ============ ============ ACE*COMM CORPORATION CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
For the three For the six months ended months ended December 31,
December 31, ----------------------- ----------------------- 2005
2004 2005 2004 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- ----------- Revenue Licenses
and hardware $3,196 $1,879 $6,651 $4,147 Services 3,541 2,899 6,771
5,290 ----------- ----------- ----------- ----------- Total revenue
6,737 4,778 13,422 9,437 Cost of licenses and hardware revenue 413
551 1,483 1,450 Cost of services revenue 1,688 1,421 3,300 2,667
----------- ----------- ----------- ----------- Total cost of
revenue 2,101 1,972 4,783 4,117 Gross profit 4,636 2,806 8,639
5,320 Selling, general, and administrative 3,341 2,279 6,158 4,621
Research and development 914 570 1,951 1,114 -----------
----------- ----------- ----------- Income (loss) from operations
381 (43) 530 (415) Interest expense 33 7 83 7 Gain from settlement
of debt obligation - 228 - 228 ----------- ----------- -----------
----------- Income (loss) before income taxes 348 178 447 (194)
Income tax expense 1 2 1 15 ----------- ----------- -----------
----------- Net income (loss) $347 $176 $446 $(209) ===========
=========== =========== =========== Basic net income (loss) per
share $.02 $.01 $.03 $(.02) =========== =========== ===========
=========== Diluted net income (loss) per share $.02 $.01 $.03
$(.02) =========== =========== =========== =========== Shares used
in computing net income (loss) per share: Basic 16,886 13,787
16,814 13,777 =========== =========== =========== ===========
Diluted 17,440 14,025 17,273 13,777 =========== ===========
=========== =========== *T
Ace Comm Corp (MM) (NASDAQ:ACEC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ace Comm Corp (MM) (NASDAQ:ACEC)
Historical Stock Chart
From Aug 2023 to Aug 2024