TORONTO, July 1, 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 offers a Smart Enterprise Suite of products, is pleased to announce that is has filed its Form 10-Q for its quarter ended March 31, 2005 with the U.S. Securities and Exchange Commission.
First Quarter Results
For the first quarter ended March 31st, 2005, ActiveCore reported revenues of $0.5 million which represents an increase of 169% over revenues of $0.2 million reported in the same period last year. The increase in revenues is a result of both organic growth and strategic acquisitions. In addition, it is important to note that these first quarter financial results do not reflect the acquisition of Cratos Technology Solutions Inc., an acquisition which has been previously announced. This acquisition will be accounted for beginning in the Company's second quarter ending June 30, 2005.
ActiveCore had a net loss of $954,000 for the first quarter. This loss included depreciation and amortization of approximately $200,000.
Increased Efficiencies
With its first phase of acquisitions successfully completed, ActiveCore management will now focus on the consolidation of operations and has identified potential annual savings of approximately $750,000 - $1,000,000. The impact of this savings will begin to be realized during the Company's third quarter ending September 30, 2005. George Theodore, Executive Vice President, stated, "As a result of our recent acquisitions, we are in the process of strategically consolidating our global operations with the objective of realizing cost reductions through both facility costs and personnel."
The re-organized ActiveCore will consist of 2 primary divisions: Systems Integration Modernization ("SIM") and Corporate Disclosure and Messaging ("CDM"). It is anticipated that this new structure will create efficiencies which will result in the significant cost savings referenced above.
Greater Opportunities
As a result of streamlining the operation management anticipates that ActiveCore will become a much more flexible and responsive organization. The vertical integration of recent acquisitions CRATOS and DisclosurePlus will provide cross-selling and up-selling opportunities which the Company expects will impact the bottom line in a very positive manner. As ActiveCore continues to grow both organically and through acquisitions, the Company is positioning itself to offer its customers a cost-effective transition path to a Smart Enterprise.
ActiveCore President and CEO Peter Hamilton stated, "ActiveCore is in a very exciting phase as management has now set the stage for accelerated growth. With two acquisitions behind us, we are now ready to focus on operational efficiencies and increased revenue generation. I am confident that the changes we are making within the Company will propel us forward."
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 health care, 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.