IBSG International, Inc. (the "Company") (OTCBB: IBIN), a developer
and marketer of BizWorld Pro�, a comprehensive, Internet-based
Commerce Platform that operates as a digital service centre for
government ministry-departments and business enterprises, announced
today its financial results for the nine and three months ending
September 30, 2008.
Revenue increased approximately $2.8 million, or 27%, from
approximately $10.1 million for the nine months ended September 30,
2007 to approximately $12.9 million for the same period in 2008.
Net income before taxes decreased approximately $567,000, or 10%,
from approximately $5.5 million for the nine months ended September
30, 2007 to approximately $5.0 million for the same period in 2008.
Net income after taxes decreased approximately $246,000, or 7%,
from approximately $3.4 million, or $0.43 per diluted earnings per
share for the nine months ended September 30, 2007 to approximately
$3.1 million or $0.29 per fully diluted earnings per share for the
same period in 2008. The number of weighted average shares
outstanding on a fully diluted basis, used in the calculation of
earnings per share, for the nine months ended September 30, 2008
was 10,694,051 as compared to 7,740,306 for the same period of
2007. The decrease was due to taxes, an increase in professional
services including any commissions and an increase in the average
weighted stock number.
Net cash provided by operating activities for the nine months
ended September 30, 2008 was $6.3 million as compared to net cash
used in operating activities of $493,000 for the same period in
2007. This resulted in a $6.8 million increase in net cash provided
by operating activities period over period. As of September 30,
2008, the Company had cash on hand of approximately $9.0 million, a
319% increase as compared to the approximately $2.1 million cash on
hand as of December 31, 2007. Working capital increased
approximately $7.5 million, or 42% from approximately $17.7 million
as of December 31, 2007 to approximately $25.2 million at September
30, 2008.The increase coming from continued growth of existing
contracts.
Revenue decreased approximately $261,000, or 7%, from
approximately $4.0 million for the three months ended September 30,
2007 to approximately $3.7 million for the same period in 2008. Net
income before taxes decreased approximately $375,000, or 24%, from
approximately $1.5 million for the three months ended September 30,
2007 to approximately $1.2 million for the same period in 2008. Net
income after taxes decreased approximately $108,000, or 13%, from
approximately $820,000, or $0.10 per diluted earnings per share for
the three months ended September 30, 2007 to approximately $712,000
or $0.06 per fully diluted earnings per share for the same period
in 2008. The number of weighted average shares outstanding on a
fully diluted basis, used in the calculation of earnings per share,
for the three months ended September 30, 2008 was 11,314,750 as
compared to 7,845,131 for the same period of 2007.
Commenting on the announcement, Dr. Michael Rivers, CEO of IBSG
International stated, "For a company to continue to perform at
these levels takes tremendous dedication and focus, especially
during a worldwide economic down turn. We are experiencing an
increase in demand for our platform as nations are not just focused
on accelerating trade but protecting their GDP.
We are also seeing more nations negotiating in tandem with the
intent of implementing simultaneously. The Company's performance
has enabled us to strengthen our balance sheet beyond the Company's
operational average cash needs to demonstrate to governments the
added financial strength the Company has to implement multiple
projects simultaneously around the world. We project, but cannot
guarantee, that by the end of this year, we will have over 70,000
subscribers with a possible back log of over 3 million subscribers
from current projects."
About IBSG International, Inc.:
IBSG International, Inc. (http://www.ibsgi.com/), through its
wholly-owned subsidiaries, is the developer and marketer of
BizWorld Pro�, a unique turnkey digital service center software,
that provides a broad range of digital budgetary, administrative
and commercial services (B2B, e-commerce, government to business
and enterprise business services) on a single platform. IBSGI
licenses BizWorld Pro� primarily to international government
agencies and ministries, State governments within the United
States, as well as business ENTERPRISES, who typically both utilize
the platform internally and make the platform available on a
subscription basis to small-to-medium size enterprise businesses
within their jurisdiction. For more information about the Company,
please visit us on the web at www.ibsgi.com or call 321-939-6321.
Investor Relations Contact: SGI; Mr. Stan Altschuler or Mr. Richard
Cooper, 212-838-1444.
Safe Harbor Forward-Looking Statements: Except for historical
information contained herein, the statements in this release are
forward-looking statements that are made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of
1995. The above information does not guarantee any successful
closing of new business. No assurances can be given that any
projections related to gross revenues or profit margins will be
realized. Forward-looking statements involve known and unknown
risks and uncertainties that may cause the companies' actual
results in future periods to differ materially from forecasted
results. Such risks and uncertainties include, but are not limited
to, market conditions, competitive factors, the ability to
successfully complete additional financings and other risks.
- FINANCIAL TABLES TO FOLLOW -
IBSG International, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, December 31,
2008 2007
------------- ------------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $ 8,952,415 $ 2,138,496
Accounts receivable, net 24,471,255 20,673,831
Prepaid expenses 1,367,979 1,402,274
------------- ------------
Total Current Assets 34,791,649 24,214,601
------------- ------------
FURNITURE, FIXTURES AND SOFTWARE, NET 425,182 703,024
------------- ------------
OTHER ASSETS
Accounts receivable, net of current portion 4,995,000 6,195,000
Note receivable 1,868,215 1,802,324
Other assets 141,385 141,665
Deferred consulting services 1,457,398 2,350,375
Deferred tax asset, net 1,717,127 350,000
------------- ------------
Total Other Assets 10,179,125 10,839,364
------------- ------------
TOTAL ASSETS $ 45,395,956 $ 35,756,989
============= ============
LIABILITIES AND STOCKHOLDERS? EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 1,183,588 $ 878,770
Income tax payable 3,810,441 1,026,350
Deferred revenue 3,253,192 3,711,347
Deferred tax liability, net 1,342,176 914,137
------------- ------------
Total Current Liabilities 9,589,397 6,530,604
------------- ------------
Deferred revenue, net of current portion 4,995,000 4,995,000
------------- ------------
TOTAL LIABILITIES 14,584,397 11,525,604
------------- ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS? EQUITY
Common stock authorized 100,000,000 shares
at $0.001 par value; 12,436,621 and
9,685,052 shares issued and outstanding as
of September 30, 2008 and December 31, 2007,
respectively 12,438 9,686
Additional paid-in capital 23,629,185 20,160,045
Retained earnings 7,169,936 4,061,654
------------- ------------
Total Stockholders? Equity 30,811,559 24,231,385
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 45,395,956 $ 35,756,989
============= ============
IBSG International, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Sales $ 3,728,152 $ 3,989,135 $ 12,932,704 $ 10,144,286
Cost of Sales 89,093 89,093 267,279 267,279
------------ ------------ ------------ ------------
Gross Profit 3,639,059 3,900,042 12,665,425 9,877,007
General and
Administrative 2,471,094 2,390,465 7,712,386 4,455,414
------------ ------------ ------------ ------------
Income from
Operations 1,167,965 1,509,577 4,953,039 5,421,593
Interest Income -- 32,947 -- 98,838
------------ ------------ ------------ ------------
Net Income Before
Provision of
Income Taxes 1,167,965 1,542,524 4,953,039 5,520,431
Provision for
Income Taxes (455,941) (722,195) (1,844,757) (2,166,585)
------------ ------------ ------------ ------------
Net Income $ 712,024 $ 820,329 $ 3,108,282 $ 3,353,846
============ ============ ============ ============
Net Income Per
Share -
Basic/Diluted $ 0.06 $ 0.10 $ 0.29 $ 0.43
============ ============ ============ ============
Weighted Average
Number of Shares
Outstanding During
the Period -
Basic/Diluted 11,314,750 7,845,131 10,694,051 7,740,306
============ ============ ============ ============
Contact: IBSG International, Inc. 321-939-6321 or Richard Cooper
212-838-1444 Investor Relations Strategic Growth International
Email Contact
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