TORONTO, May 18, 2005 (PRIMEZONE) -- ActiveCore Technologies, Inc. (OTCBB:ATVEE), a Company that operates a group of subsidiaries and divisions in the U.S., U.K. and Canada that offer a Smart Enterprise Suite of products, is pleased to announce that is has filed its Annual Audited Financial Statements (10KSB) with the SEC, for the year ended December 31st, 2004.
ActiveCore Transitions to Single International Auditing Firm
On April 1st, ActiveCore filed for a financial reporting extension with the SEC for its 10KSB. The ActiveCore management team put all efforts forth in order to complete the 10KSB as per the extended due date, however, due to the significant growth of the Company and with the expansion of the business in Canada and the U.K. it was difficult for the Company to complete the filing on a timely basis with it's current structure. In addition, the acquisition of Cratos and DisclosurePlus in the first quarter of 2005 put time constraints on management, which has led to unforeseeable delays in the year-end and the quarterly financial statements. Management has been working on integrating these new companies and putting the infrastructure in place to ensure timely filings after the first quarter of 2005.
The transition from three audit firms to a single international firm proved to be more difficult than originally anticipated, however, management feels that this short term pain was well worth it and as the company moves into Q2 and beyond timely filings will be the long term result of this effort.
Re-Statement
In the recently released Audited Annual Financial Statements, ActiveCore restated it's first quarterly results as disclosed in the notes relating to the gain on the sale of SilverBirch Studios, a former ActiveCore Division, in February 2004. Due to the fact that collection of the note receivable on the sale of SilverBirch is dependent upon its future success the gain has not been recorded. The gain will be recorded once the cash has been collected, which management expects to book the bulk of in the 2005 fiscal year. As a result of this change in the treatment of the SilverBirch Studios loan, the net loss has increased by approximately $750,000.
ActiveCore President & CEO, Mr. Peter Hamilton stated, "Overall 2004 represented an exceptional year of growth and strategic acquisitions for ActiveCore. However, as with any company experiencing incredible growth, ActiveCore too has experienced some growing pains along the way which has led to late filings, however, on the positive side the latest acquisition, CRATOS Technology Solutions Inc. is already exceeding management's original revenue expectations for fiscal 2005."
CRATOS has signed major contracts with several large firms including Lombard Insurance and a major Canadian Bank.
Cratos CEO, Mr. Andrew P. Wickett stated, "It's great to be part of the ActiveCore group; we are already seeing the benefits and opportunities to cross sell to clients of the other ActiveCore divisions. The centralized services, improved management controls and the added stability of being part of a larger company will make the remainder of the year even more successful."
This press release is available on the company's official online investor relations site for investor commentary, feedback and questions. Investors are asked to visit ActiveCore IR Hub located at http://www.Agoracom.com/IR/ActiveCore . Alternatively, investors can e-mail AGORA Investor Relations directly at ATVE@Agoracom.com.
About ActiveCore Technologies, Inc. (www.ActiveCore.com)
ActiveCore Technologies, Inc., operates a group of subsidiaries and divisions in the U.S., U.K. and Canada that offer a Smart Enterprise Suite of products and services. We integrate, enable, and extend functions performed by current and legacy IT systems. Our products encompass web portals, enterprise middleware, mobile data access, data management and system migration applications. The Systems Integration & Modernization Division of ActiveCore operates under the trade names of Cratos, MDI Solutions and TwinCentric. The Corporate Disclosure and Messaging Division of ActiveCore operates under the trade names C Comm Network Corporation, DisclosurePlus and ActiveCast. ActiveCore services clients in healthcare, financial services, government and manufacturing worldwide.
Statements contained in this news release regarding ActiveCore Technologies, Inc. formerly IVP Technology and planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond ActiveCore's control, including, but not limited to, reliance on key markets, suppliers, and products, currency fluctuations, dependence on key personnel and trade restrictions, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in ActiveCore's Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on January 4, 2005. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above.