IBSG International Will Host a Conference Call Today at 11:00Am EST
IBSG International, Inc. (OTCBB:IGII) a holding company for three software subsidiaries, announced today its financial results for fourth quarter and year-end 2005.
Revenue for the three months ended December 31, 2005 reached $3.8 million, more than triple the $1.0 million for the last quarter of 2004. Similarly, gross profit climbed to $3.7 million up more than 370% from $1.0 million in the three months ended December 31, 2004. This was the Company's sixth consecutive profitable quarter.
Operating income for the fourth quarter of 2005 rose more than nine-fold to $2.2 million from $202,329 in the same period prior year. Net income grew by a similar multiple, surpassing $1.9 million, $0.04 per fully diluted share, in the last three months of 2005 compared with $198,424, or $0.01 per basic share, in the same period of 2004.
Dr. Michael Rivers, CEO of IGII stated: "Fourth quarter 2005 represented a break-through for IBSG International and its subsidiaries. The going concern statement has been removed from our financials. The period accounted for roughly half our revenues and gross profit, and about three-quarters of our net income for the year. Also during that time, we set the stage for our achievements of first quarter 2006. We created and announced our partnership with South Africa-based Global Eagle Strategic Empowerment Alliance Systems and Galaxy Five (PTY) LTD. of Johannesburg that led directly to our projected $37 million (license and subscription fees) agreement with South Africa's Department of Industrial Development Corporation (IDC) to secure, implement, and promote the economic development trading platform, BizWorldPro(TM), in the Johannesburg region - which was expanded shortly thereafter at the South African government's request to cover the entire nation."
Rivers continued: "The fourth quarter of 2005 was also the period in which we were preparing for the opening of our technical center in Ahmedabad, India. This will not only save us $30,000 annually but also will allow us to service our client base around the Indian Ocean much more readily than would be the case from North America. It is a valuable selling point as we continue discussions with the Malaysian government and the UAE for a project very similar to our South African initiative."
He also said: "Since the quarter ended, we have continued progressing in the implementation of our business strategy. We have arranged to buy A Division IT, a move that will effectively make us a subcontractor on BAE System's numerous offset credit projects, such as the Malaysian initiative, throughout the developing world and provide a broad network of contracts in Southeast Asia, China and Europe. We are working with the State of Connecticut Small Business Development Center (CSBDC) and have launched the implementation of our digital management solution for use within the state's SBDC network. We also have simplified our receivables situation with regard to our business in Nigeria by selling the CAC contract to South Africa-based Galaxy Five (pty), Ltd."
Rivers concluded, "We have put in place many of the internal structures and made the necessary alliances to pursue our global business plan, and we have every reason to believe that the fourth quarter of 2005 marks the beginning of a significant growth period at IBSG International and its subsidiaries."
For the full year 2005 sales reached $7.65 million compared with $3.3 million for all of 2004. Gross profit was $7.2 million in 2005 against $3.1 million in 2004. Operating income in 2005 was $3.0 million while the Company had a loss of $2.2 million in 2004. Net income for 2005 was $2.5 million, or $0.06 per basic share; in 2004, there was a $2.4 million loss, or $0.07 per basic share loss.
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