SANTA ANA, Calif., July 30, 2002 (PRIMEZONE) -- eSynch Corp. (OTCBB:ESYN), which has entered into an escrow and proxy agreement granting eSynch control of voting and ownership rights of Nacio Systems, Inc. intended to lead to the acquisition of Nacio upon completion of Nacio's plan of reorganization, today released Nacio's second quarter results.
For the quarter ended June 30, 2002, adjusted for non-recurring revenue and non-cash expenses incurred in that period, Nacio revenues reached over $714,000 with a net loss of approximately $62,000.
"Although we were not required to disclose these results the understandable concern of our existing and new customers regarding doing business with Nacio led us to the opinion that it was important to release these numbers and demonstrate that Nacio is in good condition and fully capable of assuring them of unparalleled and uninterrupted service and support," said Tom Hemingway, CEO and Chairman of eSynch.
"In an extremely difficult atmosphere Nacio was able to keep the customers confident in the integrity of the provision of the services while keeping the revenue flow steady. With the company now able to focus exclusively on the execution of the business plan rather than issues unrelated to the building of the business we believe that generation of the revenue necessary to make the company profitable is rapidly achievable," said David Lyons, acting president of Nacio.
About Nacio:
Nacio Systems is one of the early leaders in the managed hosting and managed services market providing full-service, high performance, commercial-grade Internet connectivity and private network solutions for businesses that rely on the Internet for daily operations. This includes managed server hosting, colocation, and a full range of managed services including robotic backup, terabyte-level storage, and server clustering along with true "N+2" fault-tolerance and Telco-quality "5 nines" reliability (99.999% up-time) for managed services. Server platforms include Microsoft Windows 2000, Linux and Solaris. Nacio also provides database servers and support for Microsoft's .Net platform and Macromedia Cold Fusion and JRun application servers.
About eSynch:
eSynch (http://www.esynch.com), founded in 1994, is a software development company that designs and distributes turnkey and customized solutions for the digital delivery of rich media content. The Company's premiere product, MediaOffice(tm), is a suite of browser-based administration tools allowing flexible, secure and intelligent Internet distribution of business media content. MediaPod Player(tm), an audiovisual presentation platform with interactive search and navigation capabilities that enables the user to fully control the viewing experience, and MediaMosaic(tm), which incorporates streaming video, fully searchable transcripts synchronized to the video are other leading indicators of the Company's strength in this space.
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in eSynch's Securities and Exchange Commission filings, including Form 10-KSB for the year ended Dec. 31, 2001, and subsequent Forms 10-QSB and 8-K. Actual results may differ materially from management's expectations.