NEW YORK, Nov. 12, 2004 (PRIMEZONE) -- Acies, Inc., a wholly owned subsidiary of Atlantic Synergy, Inc., pending name change to Acies Corporation (OTCBB:ASGY) ("Company") announced today financial results for quarter ended September 30, 2004, which contain financial statements that reflect Company's new focus and acquisition of Acies, Inc.
Quarter ending September 30, 2004 Highlights:
- Revenues of $870,745 for the quarter ending September 30, 2004; 252.13% year-over-year growth; 22.95% growth from the Second Quarter of 2004 - Revenues of $1.58 Million for the Six Months Ended September 30, 2004; 311.42% increase over last year
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2003
Net revenues increased $623,466 (or 252.13%) to $870,745 for the three months ended September 30, 2004, as compared to net revenues of $247,279 for the three months ended September 30, 2003. The increase in net revenues was due to an increase in product revenue, service revenue from existing customers and Acies' accelerating acquisition of new merchant accounts.
Cost of revenues increased $520,134 (or 269.51%) to $713,123 for the three months ended September 30, 2004, as compared to cost of revenues of $192,989 for the three months ended September 30, 2003. The increase in cost of revenues was attributed to an increase in product costs that resulted from an increase in product sales, and an increase in merchant processing costs that resulted from an increase in existing and new merchant processing revenue.
Gross margin increased $103,332 (or 190.33%) to $157,622 for the three months ended September 30, 2004, as compared to gross margin of $54,290 for the three months ended September 30, 2003. The increase in gross margin is directly attributable to the increase in net revenues that was offset by the increase in costs of revenue.
General, administrative and selling ("G&A") expense increased $2,180,693 (or 4,663%) to $2,227,459 for the three months ended September 30, 2004, as compared to G&A expense of $46,766 for the three months ended September 30, 2003. The increase in G&A expense was primarily attributable to issuance of common stock valued at $1,610,437 for services in connection with the Exchange, an increase in office lease expense from $9,000 for the quarter ended September 30, 2003 to $36,042 for quarter ended September 30, 2004, an increase in full-time employees and payroll expense from $0 for the quarter ended September 30, 2003 to $137,225 for the quarter ended September 30, 2004, $182,111 of financial advisory services and $18,615 of legal fees incurred in connection with the Exchange, and $55,759 for renovation and equipment for the New York office.
We had interest expense of $3,000 and interest income of $30 for the three months ended September 30, 2004, as compared to none for the three months ended September 30, 2003.
We had a net loss of $2,072,807 for the three months ended September 30, 2004, as compared to net income of $7,524 for the three months ended September 30, 2003. The increase in net loss is directly attributable to G&A expense.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2004
Net revenues increased $162,518 (or 22.95%) to $870,745 for the three months ended September 30, 2004, as compared to net revenues of $708,227 for the three months ended June 30, 2004. The increase in net revenues was due to an increase in product revenue, service revenue from existing customers and Acies' accelerating acquisition of new merchant accounts.
Cost of revenues increased $112,739 (or 18.78%) to $713,123 for the three months ended September 30, 2004, as compared to cost of revenues of $600,384 for the three months ended June 30, 2004. The increase in cost of revenues was attributed to an increase in product costs that resulted from an increase in product sales, and an increase in merchant processing costs that resulted from an increase in existing and new merchant processing revenue.
Gross margin increased $49,779 (or 46.16%) to $157,622 for the three months ended September 30, 2004, as compared to gross margin of $107,843 for the three months ended June 30, 2004. The increase in gross margin is directly attributable to the increase in net revenues that was offset by the increase in costs of revenue.
General, administrative and selling ("G&A") expense increased $1,925,570 (or 637,84%) to $2,227,459 for the three months ended September 30, 2004, as compared to G&A expense of $301,889 for the three months ended June 30, 2004. The increase in G&A expense was primarily attributable to issuance of common stock valued at $1,610,437 for services in connection with the Exchange, $182,111 of financial advisory services and $18,615 of legal fees incurred in connection with the Exchange, and $55,759 for renovation and equipment for the New York office.
We had interest expense of $3,000 and interest income of $30 for the three months ended September 30, 2004, as compared to $0.00 interest expense and $22 of interest income for the three months ended June 30, 2004.
We had a net loss of $2,072,807 for the three months ended September 30, 2004, as compared to net loss of $217,024 for the three months ended June 30, 2004. The increase in net loss is directly attributable to G&A expense.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004 COMPARED TO THE SIX MONTHS ENDED SEPTEMBER 30, 2003
Net revenues increased $1,195,189 (or 311.42%) to $1,578,972 for the six months ended September 30, 2004, as compared to net revenues of $383,783 for the six months ended September 30, 2003. The increase in net revenues was due to an increase in product revenue, service revenue from existing customers and Acies' accelerating acquisition of new merchant accounts.
Cost of revenues increased $1,030,165 (or 363.58%) to $1,313,507 for the six months ended September 30, 2004, as compared to cost of revenues of $283,342 for the six months ended September 30, 2003. The increase in cost of revenues was attributed to an increase in product costs that resulted from an increase in product sales, and an increase in merchant processing costs that resulted from an increase in existing and new merchant processing revenue.
Gross margin increased $165,024 (or 164.30%) to $265,465 for the six months ended September 30, 2004, as compared to gross margin of $100,441 for the six months ended September 30, 2003. The increase in gross margin is directly attributable to the increase in net revenues that was offset by the increase in costs of revenue.
General, administrative and selling ("G&A") expense increased $2,466,876 (or 2,886.21%) to $2,552,347 for the six months ended September 30, 2004, as compared to G&A expense of $85,471 for the six months ended September 30, 2003. The increase in G&A expense was primarily attributable to issuance of common stock valued at $1,610,437 for services in connection with the Exchange, an increase in office lease expense from $18,000 for the six months ended September 30, 2003 to $72,084 for the six months ended September 30, 2004, an increase in full-time employees and payroll expense from $0 for the six months ended September 30, 2003 to $274,450 for the six months ended September 30, 2004, $382,111 of financial advisory services and $26,115 of legal fees incurred in the connection with the Exchange, and $55,759 for renovation and equipment for the New York office.
We incurred a cost of $23,000 to settle a lawsuit for the six months ended September 30, 2004. We did not incur such an expense during the six months ended September 30, 2003.
We had interest expense of $3,000 and interest income of $51 for the six months ended September 30, 2004, as compared to none for the six months ended September 30, 2003.
We had a net loss of $2,289,831 for the six months ended September 30, 2004, as compared to net income of $14,970 for the six months ended September 30, 2003. The increase in net loss is directly attributable to G&A expense.
Commenting on the results, Oleg Firer, President and Chief Executive Officer of Acies, said, "The third quarter was of great importance to Acies as we successfully validated our growth strategy that we can continue to grow gross revenues for the company quarter over quarter."
The Company's Form 10-QSB can be viewed at http://www.sec.gov/edgar.shtml
About the Company
Acies, Inc. ("Acies") is a financial services company that specializes in payment processing services and 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. In addition to payment processing services, Acies' offers a full-suite of point-of-sale terminals that enable merchants to utilize Acies' payment processing services. Acies' banking services are available through http://www.aciesbank.com. Acies Bank offers customers traditional banking services, and an ability 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.