TORONTO, Jan. 24, 2006 (PRIMEZONE) -- ActiveCore Technologies, Inc. (OTCBB:ATVE), a Company that operates a group of subsidiaries and divisions in the U.S., Canada and the U.K. that offer a Smart Enterprise Suite of products, announced today that it has kicked off what it anticipates will be its most successful year ever in terms of both revenue and profitability growth.
Fuelled by the foundations and hard work laid throughout 2005, the Company's divisions are trending higher over the same period last year. A particularly strong January is an early indicator of establishing the 2006 trend line.
The Company also expects to announce a date for its annual shareholders meeting within the near future. Additionally, the Company today announced in a Form 8-K that its relationship with BDO Dunwoody LLP has terminated and that it has re-engaged its previous auditors, Weinberg and Partners P.A. The Company highlighted in its Form 8-K that BDO Dunwoody's resignation was not the result of any disagreements with the Company over accounting matters. The Company does not expect that this transition will cause any delays in the filing of its Form 10-KSB for the year ended December 31, 2005.
President and CEO Peter Hamilton stated, "We worked very hard throughout 2005 so that we could position ourselves for significant growth in both revenue and profit in 2006. Our quick start to the new year is no accident. We have started to execute the master services agreement with ePocket and we expect to have a very good year helping them bring their offering to the marketplace. In addition to ePocket the SIM division continues to land large contracts and we expect them to have strong first quarter. Our CDM division continues to expand and with the addition of the VideoCast product we will increase our organic growth rate within this division. Any potential acquisition would be accretive to these expectations and completing one this year is still very much in our plans."
Hamilton went on to say that in order to manage this planned growth organizational changes were necessary and those changes have been made. Reflective of the fact that CRATOS has become such a significant component of the Company's overall business, the Company has promoted Andrew Wickett and Debbie Gracie-Smith, the two principal executives at CRATOS, to significant corporate roles. Andrew Wickett has been promoted to President of ActiveCore, and Debbie Gracie-Smith has been promoted to COO of ActiveCore. These changes give better focus on revenue generation and cost management.
An outlook for the Company's divisions are as follows;
CDM division President George Theodore is pleased to report that the division continues on its growth curve. Usage and traffic volume through the CDM portal has and continues to surpass prior usage records set during the prior quarter.
The Company's newest product offering VideoCast has garnered tremendous interest and is shaping up to become a star in the division's product lineup.
The division has also experienced a higher than average spike in sales during the month of January as a result of the Canadian Federal Election, as over 65 electoral candidates ran components of their constituent campaigns through the ActiveCast portal.
"Our white label and wholesale offerings have also seen record orders in the month of January," stated George Theodore.
Andrew Wickett, President of ActiveCore, is please to report that 2005 was the best year in the history of the Company and 2006 is shaping up to be even bigger for the SIM division. He stated, "Our core business, mainframe system/computer consulting, continues to remain steady with the majority of our clients renewing their contracts plus initiating new projects."
The majority of the growth can be attributed to the Application and System Migration business with several new clients. Andrew Wickett also stated, "We are also working with several prospective clients to perform trials and proof-of-concepts. These potential clients include Governments, Insurance, Education, Publishing and Financial Institutions."
CRATOS has also partnered with larger consulting organizations to be their Migration Solutions Provider. We are working with them to offer our products and services to their clients. Many of these clients are trying to reduce costs and migrating their systems to Windows, UNIX or Linux in an ideal solution. Our expertise and their large client base make this a very exciting opportunity."
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.
About ePocket Inc. (www.ePocket.com)
ePocket brings true electronic cash to the world for the first time, making purchases over the Internet as secure and simple as handing cash to a clerk in a store. ePocket enables banks to provide their customers with the ability to withdraw electronic cash in any currency from their regular deposit accounts, and send this electronic cash to merchants or other consumers in order to make payments. Cash created electronically is just like cash, except there are no coins, bills, or plastic cards -- it is entirely electronic. Just like cash, electronic cash does not require the identification of a payer. This provides privacy for consumers, and eliminates fraud and identity theft, making ePocket the most cost effective payment solution for Internet commerce. Consumers do not have to give up any identity or credit information in order to accomplish a payment. This makes ePocket payments completely secure, as well as providing complete privacy for consumers.