Free Trial!
Today’s Best Stocks To Trade! Click Here
Visit the only LIVE CHAT ROOM on the internet dedicated to (OTCBB: AXSI) shareholders, by visiting: http://www.stockwire.com
----------------------------------------------------------
DALLAS, Feb 28, 2008 - Axcess International Reports Year End 2007 Results.
Axcess International Inc. (OTCBB: AXSI | news | PowerRating | PR Charts ) a leading provider of wireless business activity monitoring solutions, today reported results for the year ended December 31, 2007.
"We achieved record annual revenue and a number of firsts in 2007," said Allan Griebenow, president and CEO of Axcess. Mr. Griebenow further stated, "Early in the year we delivered a large, comprehensive personnel security, vehicle access control and integrated sensor solution for increased port security. During the year we implemented our asset management application for a number of corporate and government customers, automating the inventory, location and protection of IT assets such as laptops holding valuable personal identity or corporate intellectual property on them. Axcess made further progress in implementing solutions in advanced workforce management and automatic presence determination, delivering measurable productivity improvements, labor cost savings, and increased security and safety for our customers.
"Our new technology platform called Dot was introduced into the market in late fourth quarter following over three years in development. Dot is the world's smallest, lowest cost and most powerful wireless, battery powered computer. It provides a flexible tagging and wireless labeling platform for supporting a wide variety of enterprise applications in the supply chain, asset management, fleet management, advanced workforce management and mobile sensing. We feel the introduction of Dot is a major step forward for Axcess, setting the stage for 2008 and beyond."
Corporate and Industry Developments: Axcess systems wirelessly enable virtually all things in the enterprise. The Company provides complete micro-wireless system solutions for real-time business activity monitoring to improve productivity, security, safety, and revenue growth. The systems derive a "wireless intelligence" from automatic advanced workforce management, workflow management, asset monitoring, individual presence determination, and distributed sensing, thereby improving productivity and security in industry and government. Axcess' solutions are exemplified in what industry analyst firm Forrester Research calls "The Extended Internet" market, forecasted to grow to $11.6 billion by 2012.
The Company's solutions are based on a micro-wireless system implementation that fits seamlessly into, yet operates separately underneath the corporate network to operate efficiently and non-disruptively. These systems are based on low cost "tags" which transmit signals from a few feet to hundreds of feet in order to automatically identify, track, monitor, and protect material, assets, vehicles, and people. Micro-wireless tagging in the enterprise encompasses the complete life cycle of business operations, from raw materials delivery reconciliation, to fleet vehicle management, warehousing inventory counts and sensing, production automation, work-in-process tagging, and finished goods locating.
The wireless intelligence comes from wirelessly enabling things in the enterprise in application areas including: advanced workforce management where emergency evacuation information is automatic; improved workflow management where the bill of materials list is automated; the reliable accounting of materials and supplies; asset monitoring where critical assets are automatically inventoried and protected; and low cost, pervasive sensing to improve efficiency and safety.
Overall, the awareness of micro-wireless systems globally continues to grow with the continued adoption of all types of radio frequency identification (RFID), real time location system (RTLS), and wireless sensing technologies across multiple industry segments. Wal-Mart continues to mandate that more of its suppliers use tags for identifying cases and pallets. Global awareness continues to translate into increased user demand for applications supported by the more robust and more flexible solutions provided by Axcess. Axcess remains focused on the enterprise market, and believes it is developing its business into a distinct, exciting, and large niche within the total worldwide market basket of wireless solutions.
In the first half of 2007, the Company completed the successful implementation of a comprehensive enhanced port security solution for The Barbados Port Inc. It included personnel and vehicle tagging, distributed sensors and an integrated software system which expanded and enhanced the security of the Port while not impacting security labor resources. Axcess took total responsibility for its delivery including design, construction oversight, installation, training, operations and support. This was the first order of its size the Company has taken total implementation responsibility for and the results were exceptional.
Throughout 2007 Axcess perfected and implemented automatic asset management solutions whereby assets are automatically located, counted, tracked and protected without any manual intervention. For IT assets such as laptop computers, the critical information stored on the computer including intellectual property and customer privacy information is protected by monitoring the assets' whereabouts in the facility and controlling their authorized movement. The system automatically determines if an asset is authorized for removal from a facility and if so with whom. This solution is superior to encryption, data mirroring and software-based asset recovery approaches as the asset is in control all of the time and its unauthorized departure is prevented. The average loss in 2006 per company averaged $43,500 due to laptop loss, the result of losing 1-4% of the total inventory per year. Intellectual property losses were far greater. Also costly is the requirement to comply with state notification laws for companies which lose customer personal information.
During the fourth quarter, the Company continued to receive orders from a (yet unannounced) strategic customer for the implementation of a one-of-a-kind automatic presence determination system for providing tailored personal interactive entertainment. The Axcess system's capability to automatically identify a person at a particular point, in or around a facility also generated enterprise orders for advanced workforce management applications.
Advanced workforce management applications have demonstrated hard dollar savings in the oil & gas and defense contracting markets and include: -- automatic time and attendance data capture for more accurate workforce billing equaling savings of 10-15%; -- high throughput, "hands-free" automatic access control improving worker "wrench time" by greater than 10%; -- A reduction in asset loss of 1-4%; -- An increase in worker safety reducing injuries and saving lives.
The Company continues to work on its next generation products based on a philosophy of offering the smallest, lowest cost and most reliable tags and infrastructure with multiple features and flexible operating options. Dot(TM) is a system-on-a-chip (SOC) technology platform. It is the world's smallest, most powerful, lowest cost battery-powered wireless computer. Because of its low cost and multiple features, it provides a dynamic view into the status of every "thing" operating in the enterprise and how each thing contributes to the goals of the enterprise. By enabling automatic sensing, identification and assessment of business activity in real time, the Dot provides wireless intelligence which was previously unavailable for improved productivity, security and revenue growth.
Axcess' invention combines a processor, memory and wireless communications into one chip about the size of a single grain of rice. It is as powerful as the first personal digital assistants (PDAs). It runs for years on a watch battery, stores at least three pages of information in memory and communicates to the world at high speed, all at a cost of only a few dollars each. Dot technology incorporates a battery powered, software definable wireless transceiver which is compatible with multiple global regulations, including the Electronic Product Code (EPC) Class I and Gen II (passive Radio Frequency Identification (RFID)) standard and is expected to make supply chain tagging more reliable while opening new applications in sensing and security.
Dot combines the necessary elements of today's monolithic technologies such as RFID, RTLS and wireless sensing into a single, low cost chip. Dot is a one-of-a-kind hybrid, a single wireless source, common to multiple industry standards and supporting virtually all industries including manufacturing, the enterprise, oil and gas, utilities, education, government and the military. Dot is a better solution for access control badges, passive RFID product tags, active RFID asset tags, Real Time Location Systems (RTLS) and distributed sensor transmitters. Memory and sensor inputs enable the Dot to be tailored to each specific data capture need. Bringing together the new functions of Dot and building on the current Axcess micro-wireless infrastructure for enterprise management creates an open architecture for multiple sources of data to be acquired to deliver previously inaccessible business intelligence.
In support of Dot and its best-of-breed tagging architecture, during the year the Company received two patents which added to the Company's overall intellectual property portfolio. Axcess' patent protection is very strong and increasing in size, with a total of seven issued to date and more patents pending. We believe our investment in this intellectual property is a key to our future success and attainment of substantial market share.
Bringing together the new functions of the Dot and building on the current Axcess micro-wireless infrastructure for enterprise management creates an open architecture for multiple sources of data to be acquired to deliver previously inaccessible wireless intelligence. Axcess sees this as an opportunity to use its time-to-market and technical advantages to serve an ever-expanding market based on its core technology which has been optimized for the exact needs of the enterprise.
These innovation and growth efforts continue to be supported by our shareholders and by key financial advisor Amphion Innovations plc. During the year, we continued to fund the development and growth of Axcess using a PIPE investment vehicle. These investments have helped the company use investment capital wisely and avoid unnecessary share dilution.
Twelve Months of 2007 Financial Results: Revenue for the twelve months of 2007 was $3,412,484, an increase of 127% from the same period in 2006. The increase in revenue is a result of the Barbados Contract, a large single order, awarded in January 2007. Add-on sales that are considered by the Company to represent a form of recurring revenue were 26% of total sales in 2007 and 20% for 2006.
Gross margin was 56% or $1,925,106, for 2007 as compared to 44%, or $656,843 in 2006, reflecting an improved sales mix and benefits of manufacturing leverage. The increase in gross margin was partly due to the increased scope of the system installation with the Barbados Contract awarded in January 2007.
Research & development (R&D) expenses for the twelve months of 2007 totaled $3,167,735, compared to $1,380,875 in 2006. The increase in R&D is due to the timing of the development of the next generation RFID product, and The Enterprise Dot, which was introduced during the fourth quarter of 2007, which will continue to be expensed in to next year.
Selling, marketing, general & administrative (S, M, G & A) expenses for the twelve months of 2007 totaled $3,383,288, as compared to $2,966,501 in the prior year of 2006. The majority of the increase relates increased selling expenses, with a majority of it relating to the Barbados contract, higher salary and related expenses as a result of changing the skill set of our sales team and an increase in advertising expenses. However, we were able to offset part of the increase with a decrease in recruiting expense and lower travel expenses.
Other income (expense) for 2007 totaled ($305,099), as compared to $350,725 for the prior year period in 2006. The majority of balance recorded in 2006 relates to the gain on the sale recorded of $600,000 for the video patents. Excluding this, the increase in expense relates to a reduction of the gain on vendor settlements recorded, offset by the lower interest expense resulting from lower debt balances and the completion of the amortization of our debt service costs.
Net loss for the twelve months of 2007 was $4,946,682 as compared to $3,358,613 in the prior year. The increase in the net loss is mainly related to the gross margin contribution of the Barbados contract offset by an increase in expenses as we develop the Enterprise Dot, our next generation RFID product and increased selling expenses.
Recurring preferred stock dividend requirements for 2007 was $318,357, as compared to $325,163 for 2006. Axcess also recorded a one-time dividend of $2,050,000 for the 2007 preferred equity issued during the third quarter of 2007, $2,000,000 for preferred stock issued in the first quarter 2007, $750,000 for the preferred stock issued in the fourth quarter of 2006, $645,020 for preferred stock issued in the second quarter 2006, and $1,489,245 for preferred stock issued in the first quarter of 2006.
Net loss applicable to common stock for 2007 was $9,315,039, or $0.32 per share, compared to a loss of $6,568,041, or $0.23 per share, for 2006. The difference in loss in the current year period from the prior year is primarily attributable to the preferred stock dividend requirements and an increase in research and development relating to the Enterprise Dot offset by the contribution for the Barbados Contract.
Conference Call: In conjunction with the earnings release, Axcess invites you to listen to its conference call today, February 26, 2008, at 4:15 p.m. (Eastern). To participate in the call, domestic callers can dial (888) 713-4214 and international callers can dial (617) 213-4866 and enter the reservation code "51797888." Participants should dial into the call about 10 minutes prior to the start time.
For those unable to attend the live conference call, a replay will be available by dialing (888) 286-8010 for domestic callers and (617) 801-6888 for international callers and entering the replay code "35738440." The replay will be available for two weeks beginning approximately two hours after the end of the call. There is no charge for participants to access the live event or replay.
The conference call and replay dial in information is also available at Axcess' Website at www.axcessinc.com.
About Axcess International Inc.: Axcess International Inc. (OTCBB: AXSI) provides wireless real-time business activity monitoring system solutions that improve productivity, security, safety and revenue growth. The systems derive "wireless intelligence" from applications including automatic advanced workforce management, workflow management, asset monitoring and distributed sensing. Its revolutionary and patented Dot micro-wireless technology platform combines RFID, RTLS and wireless sensing for better decision-making and control throughout the enterprise. Axcess is a portfolio company of Amphion Innovations plc (AIM: AMP).
----------------------------------------------------------
About Stockwire: Stockwire is one of the largest communities for Micro Cap Investors. We are the only place on the internet to provide LIVE CHAT ROOMS for dedicated stocks.
We have also pioneering a new way to research companies before you invest them. It's called a Stockumentary. A Stockumentary is a documentary on a publicly traded company. Imagine a Dateline NBC segment, but on a publicly traded company. We are the first company to ever bring this type of quality research to investors in this format.
The Stockumentary has video interviews with management, product demos, video tours of office or factory, research reports, sec filings and much more. All of this is delivered to investors in high quality video, either by mail or email.
Stockwire.com is owned by Stockwire Research Group Inc. (SRGI) and is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies.
As detailed below, this publication accepts compensation from some of the companies from which it features. To the degrees listed herein, this Newsletter should not be regarded as an independent publication. All statements and expressions are the sole opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the Newsletter is neither an offer nor solicitation to buy or sell any securities mentioned.
While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.
We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at www.sec.gov and/or the National Association of Securities Dealers ("NASD") at www.nasd.com. The NASD has published information on how to invest carefully at its web site.
Readers can review all public filings by companies at the SEC's EDGAR page. www.sec.gov/edgar.shtml
Stockwire.com is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. Stockwire.com is not a registered investment advisor or broker-dealer. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible.
From time to time SRGI sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.
Moreover, as detailed below, this publication accepts compensation from third party consultants and/or companies which it features on Stockwire.com. To the degrees enumerated herein, this newsletter and website should not be regarded as an independent publication.
The editor, members of the editor's family, and/or entities with which the editor is affiliated aside from Stockwire Research Group Inc. (SRGI) itself, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF STOCKWIRE.COM.
We often accept restricted shares of company stock; by SEC regulations, restricted shares cannot be sold into the market for a period of at least one year from the time that the shares are issued. In such cases, we detail in the Disclaimer the specific term of any restrictions. We also receive compensation in the form of stock options, in which case we receive the right to buy shares of the stock of the company at issue, at a specified time and a specified price. In such circumstances, we specify on our Disclaimer the terms of the options received. On occasion, we also accept free-trading shares in a company that we cover. However, by policy we generally do not buy or sell any shares of a company's stock within three trading days after any such company's profile, commentary, or other company-specific information is disseminated on Stockwire.com Web site. In cases where we do trade within the three day window, our volume will never represent more than 5% of the daily volume, thereby minimizing any effect we could have on the potential price movement.
While our policies as detailed above are designed to minimize any impact upon our members of a conflict of interest between our company and our members, each member should be fully aware that such potential and actual conflicts of interest may well exist due to the compensation structure detailed herein. For this reason, and because the information contained on Stockwire.com is updated on a regular basis as circumstances change, each member is strongly encouraged to periodically review the Profile Compensation section at http://www.stockwire.com/disclaimer_profiles.htm .
CONTACT: The Stockwire Group Tel: +1 512 358 8440 e-mail: info@stockwire.com
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
