ARLINGTON, Va., May 15 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC:AWWC) (BULLETIN BOARD: AWWC) , an
established marketing and Business Process Outsourcing ("BPO")
services company, today reported financial results for quarter
ended March 31, 2007. Our revenues increased by $3.2 million, or
58.2%, to $8.7 million for the quarter ended March 31, 2007,
compared to $5.5 million for the quarter ended March 31, 2006.
Revenues for our U.S. Segment increased $1.9 million, or 40.4% to
$6.6 million for the quarter ended March 31, 2007, compared to $4.7
million for the quarter ended March 31, 2006. The increase was
attributed to a one time performance incentive program ran by one
of our clients and a 7% increase in production hours produced.
Revenues for our International Segment increased $1.4 million, or
175.0% to $2.2 million for the quarter ended March 31, 2007,
compared to $0.8 million for the quarter ended March 31, 2006. The
increase in revenues is primarily attributed to organic growth. We
reported net income from continuing operations of $0.01 million and
basic and diluted gain per share of common stock of $0.00 for the
quarter ended March 31, 2007, compared to a net loss from
continuing operations of ($1.0) million and basic and diluted loss
per share of common stock of $(0.05) for the quarter ended March
31, 2006. "We had increased revenues and lower costs of revenues as
a percentage of revenues for the quarter, and we also had lower
interest expense," commented Richard Lyew, Chief Financial Officer.
"We also had positive working capital of $4.0 million and cash and
cash equivalents of $3.8 million." Total weighted average diluted
shares outstanding for the quarters ended March 31, 2007 and March
31, 2006 were 17,679,065 and 16,889,039, respectively. "We are very
pleased with the performance of both our Domestic and International
operations during the first quarter," said Shawkat Raslan,
Chairman, President and Chief Executive Officer of Access
Worldwide. "Our goal continues to be to maximize the utilization of
our domestic capacity while expanding our international capacity."
Access Worldwide is an established marketing and BPO services
company that provides a variety of sales and communication
services. Our spectrum of services include the full range of
inbound and outbound voice services such as customer service,
customer acquisition, helpdesk, and a growing list of IT and back
office services, among others. Headquartered in Arlington,
Virginia, Access Worldwide has about 1,000 employees in offices
throughout the United States and the Philippines. More information
is available at http://www.accessww.com/. This press release
contains forward-looking statements. Such statements involve known
or unknown risks, uncertainties and other factors that may cause
the actual results to differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements include, but are not
limited to, the following: our ability to continue as a going
concern if we are unable to generate cash flow and income from
operations; competition from other third-party providers and those
clients and prospects who may decide to do work in-house that we
currently do for them; potential consumer saturation reducing the
need for services; our ability and our clients ability to comply
with state, federal and industry regulations; our reliance on a
limited number of major clients; the reduction in services
performed for or the loss of one or more major clients; our ability
to develop or fund the operations of new products or service
offerings; our reliance on technology; our reliance on key
personnel and labor force and our ability to recruit additional
personnel. For a more detailed discussion of these risks and others
that could affect results, see our filings with the Securities and
Exchange Commission, including the risk factors section of Access
Worldwide's Annual Report on Form 10-K for the year ended December
31, 2006 filed with the Securities and Exchange Commission. The
Company assumes no duty to update any forward-looking statements.
Access Worldwide Communications, Inc. Condensed Consolidated
Balance Sheets March 31, 2006 December 31, ASSETS (Unaudited) 2006
Current Assets: Cash and cash equivalents $3,767,082 $2,836,980
Restricted cash 123,000 123,000 Accounts receivable, net of
allowance for doubtful accounts of $97,275 and $99,130,
respectively 6,030,866 6,956,218 Unbilled receivables - 7,750 Other
current assets, net 661,052 831,958 Total current assets 10,582,000
10,755,906 Property and equipment, net 4,122,426 3,374,575
Restricted cash 343,000 343,000 Other assets, net 66,054 386,127
Total assets $15,113,480 $14,859,608 LIABILITIES AND COMMON
STOCKHOLDERS' DEFICIT Current Liabilities: Current portion of
indebtedness $509,145 $438,866 Current portion of indebtedness -
related parties 1,750,000 1,750,000 Accounts payable 1,662,773
1,315,785 Accrued expense 474,146 654,140 Accrued salaries, wages
and related benefits 997,063 586,107 Customer deposits 1,105,753
1,210,146 Deferred revenue 133,770 669,290 Total current
liabilities 6,632,650 6,624,334 Long-term portion of indebtedness
327,422 259,256 Other long-term liabilities 504,244 530,992
Convertible Notes, net 4,749,963 4,625,490 Mandatorily redeemable
preferred stock, $0.01 par value: 1,000,000 shares auth., 40,000
shares issued and outstanding 4,000,000 4,000,000 Total liabilities
16,214,279 16,040,072 Commitments and contingencies Common
stockholders' deficit: Common stock, $0.01 par value: voting
40,000,000 shares auth.; 17,679,065 and 17,340,065 shares issued
and outstanding, respectively 176,791 173,401 Additional paid-in
capital 71,475,293 71,362,793 Accumulated deficit (72,752,883)
(72,716,658) Total common stockholders' deficit (1,100,799)
(1,180,464) Total liabilities and common stockholders' deficit
$15,113,480 $14,859,608 Access Worldwide Communications, Inc.
Condensed Consolidated Statements of Operations Unaudited For the
Three Months Ending March 31, 2007 2006 Revenues $8,747,688
$5,503,228 Cost and expenses: Cost of services 6,523,738 4,308,940
Selling, general and administrative expenses 1,659,293 1,353,133
Depreciation 287,484 271,577 Total costs and expenses 8,470,515
5,933,650 Income (loss) from operations 277,173 (430,422) Interest
expense, net (263,889) (460,839) Income (loss) from continuing
operations 13,284 (891,261) Discontinued operations: Loss from
discontinued operations (49,509) (279,986) Net loss (36,225)
(1,171,247) Basic and diluted income (loss) per share of common
stock: Continuing operations $0.00 $(0.05) Discontinued operations
$(0.00) $(0.02) Net loss $(0.00) $(0.07) Weighted average common
shares outstanding 17,679,065 16,889,039 ACCESS WORLDWIDE
COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the
Three Months Ended March 31, 2007 2006 Cash flows from operating
activities: Net income (loss) $13,284 $(891,262) Adjustments to
reconcile net income (loss) to net cash used in operating
activities: Depreciation and amortization 287,484 271,577
Amortization of deferred compensation 33,469 24,606 Amortization of
deferred financing costs 2,625 2,625 Accretion of discount on
Convertible Notes 124,473 186,166 Allowance for doubtful accounts
97,093 1,786 Share based compensation expense 22,050 20,327 Changes
in assets and liabilities from discontinued operations (99,710)
(336,291) Changes in operating assets and liabilities: Accounts
receivable 765,259 (892,830) Other assets 341,709 (189,106)
Accounts payable, accrued expenses and other liabilities 280,362
5,383 Accrued salaries, wages and related benefits 415,454 212,269
Accrued interest and related party expenses - 6,082 Deferred
revenue and customer deposits (636,112) 36,073 Net cash used in
operating activities 1,647,440 (1,542,595) Cash flows from
investing activities: Additions to property and equipment, net
(771,696) 21,205 Additions to property and equipment from
discontinued operations, net - (187,549) Increase in restricted
cash - (1,208,000) Net cash (used in) investing activities
(771,696) (1,374,344) Cash flows from financing activities:
Payments on capital leases (115,210) (67,570) Proceeds from
issuance of common stock 4,590 4,410 Proceeds from exercise of
common stock options and warrants - 101,250 Net borrowings under
Credit Facility and Debt Agreement - 390,411 Loan origination fees
- (35,000) Proceeds from issuance of Convertible Notes - 1,500,000
Payments under note payable to related party (13,522) 103,012
Payments on capital leases from discontinued operations - (4,106)
Net cash (used in) provided by financing activities (124,142)
1,992,407 Net increase (decrease) in cash and cash equivalents
930,102 (924,532) Cash and cash equivalents, beginning of year
2,836,980 1,755,926 Cash and cash equivalents, end of period
$3,767,082 $831,394 Supplemental disclosure of cash flow
information: Non-Cash Investing and Financing Activities: Equipment
acquisitions through capital leases $267,177 $- Issuance of
Warrants on Note $89,250 $- DATASOURCE: Access Worldwide
Communications, Inc. CONTACT: Mark Wright, General Counsel,
Secretary of Access Worldwide Communications, Inc.,
+1-703-292-5210, or Web site: http://www.accessww.com/
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