NEW YORK, June 29, 2005 (PRIMEZONE) -- Acies Corporation (OTCBB:ACIE), a financial services company that specializes in providing payment processing and online banking services to small, medium, and large-size merchants across the United States, will be filing today its Annual Report on Form 10-KSB disclosing its financial results for the fiscal year ended March 31, 2005.
For the fiscal year ended March 31, 2005, Acies reported net revenues of $3,920,139, a 209% increase over net revenues of $1,270,067 reported for the fiscal year ended March 31, 2004. The net loss for the year was $(3,341,095), or $(0.09) per share, compared with a loss of $(3,750), or $(0.00) per share, for fiscal 2004. Weighted average shares outstanding for fiscal 2005 and fiscal 2004 were 35,829,922 and 25,321,906, respectively.
The increase in net revenues was due to an increase in service revenue from new and existing customers, slightly offset by a decrease in product revenue as Acies' strategy shifted to place a greater focus on service revenue.
Gross margin for the year increased to $646,172, or 119%, from $295,230 for the fiscal year ended March 31, 2004. The increase in gross margin was directly attributable to increased net revenues, offset by increased merchant processing costs associated with the higher volume of business.
The increase in net loss for the year was the result of the significant increase in general, administrative and selling expense ("G&A"), which totaled $3,908,449 for fiscal 2005 versus $298,980 in the prior year. The increase in G&A expense was primarily attributable to the issuance of common stock valued at $2,085,436 for services, principally in connection with going public, as well as increases in other expenses corresponding to Acies' growth as reflected in the increase in net revenue.
Commenting on Acies Corp.'s performance in fiscal 2005, Oleg Firer, Chairman, President and Chief Executive Officer, said, "I am extremely pleased with the progress Acies has made in the last year, as evidenced by our more than tripling net revenues, based purely on organic growth. We believe that fiscal 2005 was a groundbreaking year for Acies, during which we established a foundation which we anticipate will result in continued future growth and profitability."
Firer added, "In this past year we have significantly increased our market penetration, cultivated key strategic alliances, created a lean and efficient operational infrastructure, obtained the financing necessary to bring us to this next level, and added strength and depth to our leadership team. With all these pieces in place, as well as shareholders' equity of $638,607 at March 31, 2005, Acies is poised to carry out its business plan for continued growth, with the goal of reaching financial stability in the coming year."
Acies Corp. will host a conference call to discuss its fiscal 2005 financial results, open to all shareholders by phone and by webcast, on Wednesday, July 6, at 11:00 a.m. Details as to the toll-free number will be available on the company's web site at www.aciesinc.com beginning Thursday, June 30. In addition, a replay will be available.
About Acies Corporation
Acies, Inc. ("Acies"), a wholly owned subsidiary of Acies Corporation (OTCBB:ACIE), is a financial services company that specializes in providing payment processing and online banking services to small, medium, and large-size merchants across the United States. Acies' payment processing services enable merchants to process Credit, Debit, Electronic Benefit Transfer (EBT), Check Conversion, and Gift & Loyalty transactions. Acies also offers traditional and next-generation point-of-sale (POS) terminals, which enable merchants to utilize Acies' payment processing services. Acies' banking services offer customers traditional banking services, ability for customers to apply for an on-line bank account and pay bills electronically.
For more information, visit http://www.aciesinc.com.
Forward-looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.