BOCA RATON, Fla., May 2, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) has released its 10-QSB for the second quarter of the current fiscal year. For the quarter ended March 31, 2006, the Company's net income exceeded $500,000, while overhead plummeted by 54% percent. Additionally, the Company has reached an enviable cash position with approximately $1.9 million on hand. Company Chief Financial Officer Adam Wasserman called "the first profitable quarter in the history of Genesis...an impressive, historic turnaround by any standards."
Mr. Wasserman, who has been the Genesis CFO since October 2001, stated: "The financial condition of the Company shows significant improvement. For the three months ended March 31, 2006, we reported net income of $501,634 or $0.00 per common share, compared to a net loss of $(1,250,874) or $(0.02) per common share for the three months ended March 31, 2005, a positive gain of $1,752,508. Also, for the three months ended March 31, 2006, our total operating expenses decreased by $334,218 compared to the three months ended March 31, 2005. To add to this impressive turnaround, through the sale of marketable securities that the Company had previously received for services rendered, our cash position was over $1,000,000 at March 31, 2006 and approximately $1,900,000 as of today.
"This is an impressive, historic turnaround by any standards, and we believe that this news will be positively received by our shareholders and the Wall Street investment community alike. It marks the first profitable quarter in the history of Genesis and with cash in the bank, the Company can continue to implement its business model that indicates sustainability and growth for its future," CFO Wasserman concluded.
Kenneth Clinton, Company President, who soon will be departing for China to meet with Chinese partners and to attend the Annual Shareholders Meeting in Beijing, commented: "This quarter underscores that we are on track to deliver on our long-term growth targets. Spurred by determination and execution of our model, we stabilized some challenging issues and have effectively balanced results across our global operations.
"Genesis increased its level of marketing investment some quarters ago, and it has delivered growth and profitability that is helping to drive our business. This gives us great confidence that we will achieve our business objectives and, in doing so, create sustained growth and value for the benefit of our shareowners and other stakeholders," Mr. Clinton explained.
Note: The Annual Shareholders Meeting has been scheduled for Friday, May 19, 2006, at 1 o'clock P.M. at the China World Hotel in Beijing, China, located at No. 1 Jianguomenwai Avenue; telephone (8610) 6505-2266, facsimile (8610) 6505-0828, email cwh@shangri-la.com and website www.shangri-la.com. The Company will also make a presentation at the Friedland Investment Events' Micro-Cap 2006 Conference this Wednesday, May 3, 2006 in New York City. For more information, refer to www.friedlandcorporateinvestorservices.com.
About Genesis Technology Group, Inc.
Genesis Technology Group, Inc. is a business development firm that fosters bilateral commerce between Western and Chinese companies. The Company has offices in the United States and China. A majority-owned subsidiary of Genesis, Genesis Equity Partners, LLC assists Chinese and Western companies in formulating strategies to increase equity value, while targeting Western stock exchanges as a source of capital and shareholder support. The core strength of GEP management is creating a first rate plan to create investor awareness and bring in long-term individual and institutional investors. GEP should create liquidity in the stock and gain investor awareness by using tested channels of communications by cogently articulating the companies' stories. GEP has built successful channels with expertise in screening and selecting Chinese companies that possess solid business histories and professional management, and North American public companies and shells that possess a shareholder base and a history of auditing and filing, as required by the U.S. Securities and Exchange Commission. For more information, visit www.genesis-technology.net
Safe Harbor Statement
Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.