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August 23, 2005,
Gaithersburg, Maryland � 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 fourth quarter and fiscal year 2005, both ending June 30, 2005.
Revenues for the fourth quarter 2005 totaled $6.8 million compared to
$4.0 million for the same quarter in fiscal year 2004. Net income for
the quarter was $0.3 million, or $0.02 per fully diluted share, compared
to a net loss of $2.0 million, or $0.15 per fully diluted share for the
same quarter a year ago. For the year ended June 30, 2005, the Company
recorded revenues of $20.0 million, compared to $13.7 million for fiscal
year 2004. The Company had a net loss and loss per fully diluted share
of $6.5 million and $0.44, respectively, compared to a net loss and loss
per fully diluted share of $5.9 million and $0.49 for fiscal year 2004.
Approximately $5.1 million of the fiscal 2005 loss consisted of a
one-time expense for in-process research and development related to the
acquisition of 2helix. In fiscal 2004, we expensed $1.2 million for in
process research and development expenses related to the purchase of
assets of Intasys. When these expenses are excluded, the net loss
decreased from $4.7 million in fiscal 2004 to $1.3 million in fiscal
2005.
�The fourth quarter results signal financial improvement in our target
markets that should support further revenue growth for the Company,�
said George T. Jimenez, CEO of ACE*COMM. �Overall results improved
solidly in most categories. We increased annual revenues by 46 percent
and backlog by over 90 percent over the previous year."
Continued Mr. Jimenez: �During the past fiscal year, we continued to
build on our large base of industry-leading customers in both the
carrier and enterprise sectors. We gained a number of new customers
globally including the Bangladesh Telegraph & Telephone Board (BTTB),
Vivodi � a next-generation service provider in Greece, Telecom Malaysia,
Saudi Aramco, a Tennessee-based public power utility, a US Army base,
and a major US airport, and we signed our first US government customer
as an approved SBC vendor. We conducted asset recovery and revenue
assurance pilot projects with Telewest Communications and CYTA in Europe
to establish the potential for projects with both carriers, and we
expanded our business engagement with Level 3 Communications, Telecom
Egypt, and VSNL in India. As previously announced, we were selected to
provide our NetPlus� telecommunications management system (TMS) under a
US Air Force contract for a global TMS deployment program that is
expected to generate revenue in excess of $20 million for the Company
over its multi-year lifespan.�
�Our strong revenue growth, quarterly net income, and revenue mix all
demonstrate effective execution of our business strategy outlined last
year at this time,� said Steve Delmar, CFO of ACE*COMM. �We added a
total of $6.3 million in new revenues for the year. These were comprised
almost equally of organic growth and growth by acquisition. Our move to
international markets to offset sluggish domestic markets clearly paid
off. International market revenues made up 65 percent of our total
revenues, as opposed to 44 percent for the previous fiscal year.
Additionally, firm order backlog increased from $12.1 million at the
beginning of the fiscal year to over $23.1 million by year end. We are
further encouraged by the number of new business opportunities that have
developed from customer interaction during the fourth quarter.�
Concluded Mr. Jimenez: �During the year we added new product
capabilities to our core offerings to enhance our product portfolio and
services capabilities with new vertical market solutions. We intend to
continue to build out our technology offerings, broaden our market
penetration, and add major new customers. We will work to improve our
financial liquidity, and more tightly integrate our business lines and
operations. Our goal is to be the highest-value provider of network
business intelligence and profit enhancing solutions to operators and
large private networks worldwide.�
ACE*COMM will host an earnings teleconference call this evening, August
23, 2005 at 5:30 pm, Eastern Standard Time, to discuss the fourth
quarter fiscal year 2005 results. To participate, please call
866-814-8476. When prompted, enter the ACE*COMM reservation number
758524. 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 August 23, 2005.
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
knowledge from operating networks�knowledge 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, NetPlus, the ACE*COMM logo, and N*VISION are registered
trademarks, and Convergent Mediation and Parent Patrol are trademarks of
ACE*COMM Corporation.
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