VCLD Verecloud Inc (CE)

Verecloud (OTCBB:VCLD), which enables communications service providers (CSPs) to capture market share in the emerging cloud services brokerage (CSB) market, today announced financial results for its second quarter of 2011 ended December 31, 2010 highlighted by revenue of $1,593,685, a 6 percent increase from the previous three months and up 17 percent over the same period last year.

Verecloud reported operating income of $52,532 during the latest quarter, a $234,628 improvement from the prior year. The company reported net income of $17,724 for the three months ended December 31, 2010 versus a net loss of $147,851 in the previous quarter.

During the quarter Verecloud continued to develop its Nimbus CSB cloud brokerage platform and is on track to complete the multi-phased rollout in 2011. The company continues to focus on demonstrating the value-added benefits the Nimbus CSB brings to CSPs looking to expand revenue in the growing cloud computing marketplace.

"We continue to make significant progress on all fronts," said John McCawley, chief executive officer of Verecloud. "As we bring Nimbus CSB to market in the coming months, we are looking forward to shifting our focus to growing our customer base and deploying the platform.”

Financial Highlights

• Revenue of $1,593,685, up 6 percent from the quarter ended June 30, 2010 and up 17 percent compared to the year ago quarter.
• Net income of $17,724, up from a net loss of $147,851 in the quarter ended September 30, 2010. Net loss for the three months ended December 31, 2009 was $189,724.
• Ended the quarter with a cash balance of $562,574 compared to $197,151 as of the fiscal year ended June 30, 2010 and down from $1,519,911 at December 31, 2009.
• Closed the quarter with working capital of $616,056, up 67 percent from the fiscal year ended June 30, 2010 and up $666,464 compared to the year ago quarter.

Additional financial information, including historical SEC filings and the current Quarterly Report on Form 10-Q can be found on Verecloud’s website at www.verecloud.com.

About Verecloud

Based in Englewood, Colorado, Verecloud enables communications service providers (CSPs) to capture market share in the expanding and lucrative cloud computing market. Verecloud’s cloud service broker platform, Nimbus CSB, addresses the CSPs’ need to integrate their existing back-office systems and drive new revenue through cloud services. By collaborating with Verecloud, CSPs are positioned to capture a significant percentage of this exciting market by playing a key role in the cloud services brokerage opportunity. Learn more about Verecloud at: http://www.verecloud.com

     

Balance Sheet

  December 31, June 30, 2010     2010   ASSETS   Current assets Cash $562,574 $197,151 Accounts receivable 536,523 632,962 Other current assets 57,825     34,243 Total current assets 1,156,923 864,356   Property and equipment Computer related 88,684 87,655 Equipment and machinery 39,253 36,255 Other property and equipment 36,330     36,330 Subtotal 164,267 160,240 Accumulated depreciation (118,816)     (98,839) Net property and equipment 45,452 61,401   Other assets Capitalized software, net 451,970 -         Total assets $1,654,345     $925,757   LIABILITIES AND STOCKHOLDERS' (DEFICIT)   Current liabilities Accounts payable $228,317 $174,899 Accrued liabilities 312,550     319,899 Total current liabilities 540,867 494,798   Long term debt 1,564,000 864,000         Total liabilities 2,104,867 1,358,798   Stockholders' (deficit) Preferred stock - $0.001 par value, 5,000,000 shares authorized: No shares issued or outstanding Common stock - $0.001 par value, 200,000,000 shares authorized: 70,943 70,098 70,943,000 and 70,098,000 shares issued and outstanding, respectively Additional paid-in capital 909,471 797,670 Accumulated (deficit) (1,430,936)     (1,300,809) Total stockholders' (deficit) (450,522) (433,041)         Total liabilities and stockholders' (deficit) $1,654,345     $925,757  

 

 

     

Statement of Operations

  Three Months Ended Dec. 31     Six Months Ended Dec. 31

2010

 

2009

2010

 

2009

  Revenue $1,593,685 $1,367,131 $3,104,227 $4,866,153   Cost of goods sold 691,094 511,363 1,368,525 2,169,536                 Gross profit 902,591 855,768 1,735,702 2,696,616   Operating expenses Employee related (1) 344,652 631,583 760,637 869,601 Marketing expense 241,908 128,165 492,864 388,295 Legal and accounting 30,519 112,369 157,940 252,310 Consulting expense 106,582 66,263 171,675 91,538 Rent 22,500 34,416 44,935 70,442 Travel and entertainment 28,269 15,303 51,665 44,517 Information technology 9,170 1,127 18,237 29,742 Depreciation 9,362 - 19,977 11,921 Other 57,096   48,638     86,457   63,832 Total operating expenses 850,059 1,037,864 1,804,386 1,822,197                 Operating income (loss) 52,532 (182,096) (68,684) 874,419   Other income (expense) Interest income 93 2,570 226 2,643 Interest (expense) (34,901)   (44,327)     (61,668)   (96,374) Total other income (expense) (34,808)   (41,757)     (61,442)   (93,731)   Pretax income (loss) $17,724 $(223,853) $(130,127) $780,689   Income tax expense (benefit) $- $(34,128) $- $64,310                 Net income (loss) $17,724   $(189,724)     $(130,127)   $716,379     Basic net income (loss) per common share $0.00 $(0.00) $(0.00) $0.02 Fully diluted net income (loss) per common share $0.00 $(0.00) $(0.00) $0.02   Basic weighted average common shares 70,397,647 47,380,000 70,240,323 45,580,219 Fully diluted weighted average common shares 87,855,636 48,812,935 87,454,644 46,316,995   (1) Includes stock-based compensation as follows: Salary and wages $15,276 $175,827 $66,932 $175,827  

 

Statement of Cash Flows

  Six Months Ended December 31, Operating Activities

2010

   

2009

Net income (loss)

$(130,127) $716,379 Adjustments to reconcile net income to net cash from operations Depreciation and amortization 19,977 11,921 Stock for services 4,064 98,000 Stock-based compensation 66,932 175,827 Income tax expense (benefit) - 64,310 Change in assets and liabilities Accounts receivable 96,439 1,095,303 Other current assets (23,582) 6,600 Accounts payable 53,417 (84,856) Other current liabilities (7,349)     (19,236) Net cash from operating activities 79,771 2,064,248   Investing Activities Purchase of computer related (1,030) (12,727) Purchase of equipment and machinery (2,998) (2,520) Purchase of other property and equipment - (2,946) Capitalized software (451,970)     - Net cash (used in) investing activities (455,998) (18,193)   Financing Activities Issuance of common stock 41,650 - Reduction in note payable (100,000) (560,000) Increase in long term debt 800,000 - Members distributions -     (506,623) Net cash (used in) financing activities $741,650     $(1,066,623)   Increase (decrease) in cash for period $365,423 $979,432 Cash at beginning of period 197,151     540,479 Cash at end of period $562,575     $1,519,911   Schedule of Noncash Investing and Financing Activities Recapitalization $- $(579,905) Income taxes payable $- $579,905   Supplemental disclosure: Cash paid for interest during the year $- $96,374 Cash paid for income taxes during the year $- $-