IBSS Integrated Business Systems and Services Inc (CE)

Positive Momentum Continues COLUMBIA, S.C., Nov. 14 /PRNewswire-FirstCall/ -- Integrated Business Systems and Services, Inc. (IBSS) (OTC:IBSS) (BULLETIN BOARD: IBSS) today announced its third quarter financial results for the three- and nine-month periods ended September 30, 2005. Highlights for the three months ended September 30, 2005 compared to the three months ended September 30, 2004: * Revenues were $868,676, representing a 122% increase over revenues of $391,584. * Services revenues grew 7.2% to $362,223 from $337,754. * Revenue from Licenses was $17,282 compared to $0. * Maintenance and Support Revenues increased 125.6% to $64,135 from $28,428. * Authorized re-sales of products purchased from third parties (Product resales) jumped 1573% to $425,036 from $25,402. * Operating expenses dropped 36.6% to $483,288 from $762,019. * Loss from operations decreased 68.4% to $196,852 from $623,828. * Net loss declined 63.3% to $241,318, or $0.01 loss per basic and diluted share, from a net loss of $657,459, or $0.02 loss per basic and diluted share. Highlights for the nine months ended September 30, 2005 compared to the nine months ended September 30, 2004: * Revenues increased 22% to $2,016,955, up from $1,655,103. * Services revenues declined 16% to $1,216,865 from $1,447,739. * Revenue from Licenses rose 940% to $166,548 from $16,000. * Maintenance and Support Revenues improved 94.4% to $165,806 from $85,283. * Authorized re-sales of products purchased from third parties (Product resales) increased 341% to $467,736 from $106,081. * Operating expenses fell 25.6% to $1,694,246 from $2,277,299. * Loss from operations decreased 51.1% to $701,731 from $1,434,900. * Net loss improved 47% to $825,356 or $0.03 loss per basic and diluted share, from a net loss of $1,557,656, or $0.05 loss per basic and diluted share. Commenting on the results, George Mendenhall, Chief Executive Officer of IBSS, stated, "This is the third consecutive quarter of positive growth and movement of IBSS towards its goals of both profitability and significant penetration of our target markets. Industry acceptance and demand for comprehensive RFID and mobile-computing solutions is fast approaching a fever pitch. IBSS continues to educate the market, and demonstrate and deploy our Synapse(TM)-based technologies to help enable new vertical market opportunities for clients and channel partners." Dr. Mendenhall continued, "Each new vertical enablement may require the creation of new application software, modification of existing software or the private branding of existing software along with engineering design and support services. All of our solutions are based upon our powerful development and on-line operating environment, Synapse(TM). We also mix in other technologies from our strategic partners, as required, bringing our focused expertise and technical capabilities to bear to create winning relationships with everyone associated with IBSS. Our industry knowledge and independence from any particular hardware or wireless technology allows us to evaluate all technology choices that may apply to a unique situation and then help integrate and support the best solution to achieve our collective goals." "Our creation of the PDS (Prospect Dispatch System) Express for channel partner Prospect Airport Services, Inc.; our creation and release of SynTrack(TM) Mobile Asset Management, our mobile asset tracking solutions that include SynTrack(TM) for Healthcare; and our SynTrack(TM) Returnable Container Management for use with returnable containers and other mobile assets, are excellent examples of the IBSS strategy of directly or indirectly enabling niche vertical markets with our technology and expertise. As we assist Prospect and our other clients and channel partners to successfully penetrate their respective target markets, IBSS will continue to evaluate new vertical enablement opportunities for our expertise and technology. IBSS is intent on being recognized as the preferred business partner for engineering, technology, and specialized support to a new vertical market or differentiated market segment," concluded Dr. Mendenhall. Integrated Business Systems and Services, Inc. Condensed Balance Sheets (Unaudited) September 30, December 31, 2005 2004 ASSETS: Current assets: Cash and cash equivalents $16,341 $105,084 Accounts receivable, trade 129,547 66,637 Interest receivable -- 3,065 Notes receivable -- 75,000 Prepaid expenses 56,277 19,646 Total current assets 202,165 269,432 Capitalized software costs, net 2,737 10,948 Property and equipment, net 185,853 256,911 Interest receivable, non current 42,978 37,331 Other assets 50,000 50,000 Total assets $483,733 $624,622 LIABILITIES AND SHAREHOLDERS' DEFICIENCY: Current liabilities: Convertible notes payable, net of discount $647,184 $558,439 Shareholder advances 1,151,000 601,000 Current portion of long-term debt 309,872 309,131 Accounts payable 143,360 52,510 Accrued liabilities: Accrued compensation and benefits 128,663 160,166 Accrued payroll taxes 4,905 29,649 Accrued professional fees 382,068 326,241 Accrued interest 72,265 55,857 Accrued rent 8,000 15,000 Other 9,101 7,090 Deferred revenue 66,597 134,873 Total current liabilities 2,923,015 2,249,956 Long-term debt, net of current portion 2,864,421 2,872,251 Total liabilities 5,787,436 5,122,207 Shareholders' deficiency: Preferred stock, undesignated par value, 10,000,000 shares, none authorized or issued -- -- Common stock, no par value, 200,000,000 shares authorized, 32,544,202 and 32,506,144 shares outstanding at September 30, 2005 and December 31, 2004, respectively 21,702,733 21,683,495 Notes receivable officers/directors (131,080) (131,080) Accumulated deficit (26,875,356) (26,050,000) Total shareholders' deficiency (5,303,703) (4,497,585) Total liabilities and shareholders' deficiency $483,733 $624,622 Integrated Business Systems and Services, Inc. Condensed Statements of Operations (Unaudited) Three Months Nine Months Ended September 30, Ended September 30, 2005 2004 2005 2004 Revenues Services $362,223 $337,754 $1,216,865 $1,447,739 Licenses 17,282 -- 166,548 16,000 Maintenance and support 64,135 28,428 165,806 85,283 Product resales 425,036 25,402 467,736 106,081 Total revenues 868,676 391,584 2,016,955 1,655,103 Cost of revenues 582,240 253,393 1,024,440 812,704 Gross profit 286,436 138,191 992,515 842,399 Operating expenses General and administrative 293,173 438,485 974,582 1,213,184 Sales and marketing 90,484 182,824 390,345 616,645 Product development 99,631 140,710 329,319 447,470 Total operating costs 483,288 762,019 1,694,246 2,277,299 Loss from operations (196,852) (623,828) (701,731) (1,434,900) Other income (loss and expenses) Other income (expenses) 1,987 4,767 6,022 (5,731) Interest expense (46,453) (38,398) (129,647) (117,025) Total other expenses (44,466) (33,631) (123,625) (122,756) Net Loss $(241,318) $(657,459) $(825,356) $(1,557,656) Loss per share Basic and diluted $(0.01) $(0.02) $(0.03) $(0.05) Diluted weighted average shares outstanding 32,544,202 31,555,204 32,526,942 29,318,504 About IBSS IBSS is the creator of Synapse(TM), a groundbreaking software technology. Synapse(TM) is a complete framework and methodology used to create, implement and manage a wide variety of dynamic, distributed, networked, and real-time enterprise applications including RFID, quickly and efficiently. Global enterprises utilizing Synapse(TM) leverage the power of its single, flexible framework to enjoy tremendous time and cost advantages, in the development, deployment and on-going management of customized applications. Enabled by Synapse(TM) to take competitive advantage of cutting-edge technologies such as wireless networking, mobile computing and RFID, IBSS and its strategic partners bring solutions to customers for mission-critical applications in manufacturing, distribution, healthcare, finance, insurance, retail, education, and government. IBSS is headquartered in Columbia, South Carolina. For more information about IBSS and its Synapse(TM) technologies and services, call 803-736-5595 or 800-553-1038, or visit http://www.ibss.net/ . Except for historical information, the matters discussed in this news release include forward-looking statements that involve a number of risks and uncertainties. Actual results may vary significantly as a result of a number of factors, including, but not limited to, risks associated with the Company's ability to satisfy its obligations incurred in recent private placements of secured debt, risks in product and technology development and integration, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, and other risk factors detailed in Exhibit 99.1 of our Annual Report on Form 10-KSB for the year ended December 31, 2004 and in other filings the Company makes with the Securities and Exchange Commission. Copies of these filings may be obtained from the Securities and Exchange Commission at its principal office in Washington, DC at prescribed rates by calling 1-800-SEC-0330. These filings are also available electronically through the Internet World Wide Web site maintained by the Securities and Exchange Commission at the Internet address: http://www.sec.gov/ . At Elite Financial Communications Group, LLC Stephanie Noiseux, Executive Vice President 407-585-1080 or DATASOURCE: Integrated Business Systems and Services, Inc. CONTACT: Stephanie Noiseux, Executive Vice President, Elite Financial Communications Group, +1-407-585-1080, or , for IBBS Web site: http://www.ibss.net/

Copyright