NEW YORK, Sept. 8, 2004 (PRIMEZONE) -- Advanced Communications Technologies, Inc. (OTCBB:ADVC) (the "Company") today reported financial results for its fiscal year ended June 30, 2004 and updated its performance outlook for the fiscal year ending June 30, 2005.
Reported GAAP Results:
Fiscal Fiscal Annual $
2004 2003 Increase(Decrease)
--------- --------- -------------------
Net Income (Loss) $ 475,820 $ (1,869,031) $ 2,344,851
Total Assets 7,996,339 70,748 7,925,591
Stockholders' Equity 1,424,462 (5,960,174) 7,384,636
The fiscal year end 2004 net profits mark the first time in the Company's history that it reported overall net earnings for the year.
Fiscal Year 2004 Financial Highlights
-- Strong net earnings for the year of $475,820 representing a
$2,344,851 increase over fiscal 2003's net loss of $1,869,031.
-- Sales from Encompass' wholly owned operating subsidiary, Cyber-
Test was $605,468 for the month of June, for projected fiscal 2005
annualized revenue of $7,200,000. Cyber-Test's contribution to
net earnings was $25,000 after deducting operating costs.
-- Balance sheet shows substantive and significant improvement from
the prior fiscal year, with a $7.4 million increase in
stockholders' equity from fiscal 2003.
-- Partnership investment in Yorkville generates $335,000 of cash and
$439,999 of net earnings for the period January 1, 2004-June 30,
2004.
-- Operating and interest expense decreased by $428,515 and $266,702,
respectively, compared with the fiscal year ended June 30, 2003.
-- Total assets equal $7,996,339, a $7,925,591 increase from fiscal
year ended June 30, 2003, with a cash increase of approximately
$1,170,000 from the prior fiscal year.
Wayne I. Danson, the Company's President and CFO said, "We are excited to report that our assets increased in less than one year from approximately $70,000 to approximately $8,000,000." Danson continued, "Our stronger financial position is a direct result of the Company's shift from a single, in-development technology company with a negative balance sheet, to a successful revenue producing company. Fiscal 2004 represents a paradigm shift of our operations and approach to business with more emphasis on building a core technology and service business while also keeping with the entrepreneurial spirit of aggressively pursuing strategic investments in exciting technology and biotech privately owned businesses. In fiscal 2005, the Company will focus on growth and core business fundamentals of net earnings and cash flow." Danson closed with, "I want to express my gratitude to our dedicated shareholders for their continuing support, as we are working hard everyday to increase shareholder value and build the Company into a successful business enterprise."
Management projects gross revenue of $8,000,000 and net income of $800,000 for the Company's fiscal year ending June 30, 2005.
About Encompass Group Affiliates, Inc.
Encompass Group Affiliates, Inc. ("Encompass") is the principal operating company of Advanced Communications Technologies, Inc. Based in New York City, Encompass seeks to acquire companies that complement its charter to become a leader in integrated technology and services. Encompass owns Cyber-Test, Inc., an established electronic equipment repair company based in Longwood, Florida and exclusive licenses to selected technology assets.
About Advanced Communications Technologies Inc.
Advanced Communications Technologies, Inc. (the "Company") is a New York City-based holding company that, through its wholly owned subsidiary and principal operating unit Encompass Group Affiliates, Inc., owns Cyber-Test, Inc., an established electronic equipment repair company based in Longwood, Florida. Additionally, the Company through its wholly owned investment subsidiary Hudson Street Investments, Inc., owns a minority interest in Yorkville Advisors Management, LLC, an investment management partnership, and through SpectruCell, Inc., owns the rights to market and distribute in North and South America, SpectruCell, an in-development wireless-based telecommunications technology.
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 Prospectus and Annual Report on Form 10-KSB as filed with the Securities and Exchange Commission. Statements made herein are not a guarantee of future corporate or stock performance.