NEW YORK, May 24, 2004 (PRIMEZONE) -- Advanced Communications Technologies Inc. (OTCBB:ADVC) today reported financial results for the third quarter of 2004 and updated its performance outlook for the full fiscal year ending June 30, 2004.
Reported GAAP Results:
Q3 Q3 $
2004 2003 Increase
---- ---- --------
Net Income $126,212 $(337,546) $463,758
Fiscal Fiscal
YTD YTD $
2004 2003 Increase
---- ---- ---------
Net Income $306,271 $(1,670,852) $1,977,123
The third quarter profit marks the second successive quarter of net earnings for the company, significantly improving the company's financial condition, showing positive results from its recent investment in Yorkville Advisors Management, LLC ("Yorkville") and a further reduction of its contractual obligations.
Third Quarter Financial Highlights
- Partnership investment in Yorkville generates $160,000 of
cash and $199,420 of net earnings.
- Additional debt forgiveness income produces $40,258,
bringing forgiveness of debt income to a total of
$780,938 YTD.
- Operating and interest expense decrease by $194,080
and $778,271, compared with the three and nine months
ended March 31, 2003, respectively.
- Additional $425,000 of creditor settlements brings total
YTD debt reduction to approximately $2,625,000.
- Total assets equal $2,898,580, an $2,827,832 increase
from fiscal year ended June 30, 2003, with a cash increase
of approximately $112,000 from the prior quarter.
Wayne I. Danson, the company's President and CFO, said, "The company's net income and financial performance increased by over $450,000 for the third quarter. This significant improvement, which stems mainly from the Yorkville investment and additional creditor settlements, demonstrates our commitment to the continuing improvement of the company's financial position and growing capital base."
Danson continued, "We are now well positioned from a financial standpoint to implement our business strategy to capitalize on opportunities for growth in the coming quarters."
During the third quarter, the company generated net income of $126,212 and had $167,659 in cash. Additionally during the quarter, the company reduced its liabilities by approximately $425,000 through a combination of bondholder conversions and creditor settlements. The company anticipates that future distributions from the Yorkville investment will provide it with sufficient working capital to meet its current liabilities, continue operations and execute its core business and investment expansion plans.
Management projects net income of $500,000 for the company's upcoming fiscal year ending June 30, 2004.
The company is presently negotiating the terms of various business acquisitions and/or investments with a number of business enterprises in such diverse industries as bio/herbaceutical medicine, technology, computer equipment and accessories, and entertainment technology and anticipates announcing the outcome of these negotiations shortly.
About Advanced Communications Technologies Inc.
Advanced Communications Technologies Inc. owns a minority interest in Yorkville Advisors Management, LLC, an investment management partnership, through its wholly owned subsidiary Hudson Street Investments Inc. The company also owns the exclusive marketing and distribution rights throughout the North and South American markets to SpectruCell, a software-defined radio (SDR) multiple protocol wireless system.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934. Although the Company believes that the expectations reflected in such statements are reasonable, no assurances can be given that they will prove correct. The Company remains exposed to risk factors outlined in the Company's Registration Statement as filed with the Securities and Exchange Commission on July 16, 2003. Statements made herein are not a guarantee of future corporate or stock performance.
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