CAPE Systems Announces 2010 Third Quarter and Nine Months Unaudited Results
*Revenues Up Sharply*
**Company Reports Net Profit for Third Quarter**
PISCATAWAY, N.J., Aug. 3 /PRNewswire-FirstCall/ -- (Pink Sheets: CYSG) CAPE Systems Group, Inc., a leading provider of software technology for packaging design, pallet optimization, RFID Asset Tracking, inventory and warehouse management, supply chain execution and order fulfillment, today announced preliminary unaudited financial results for the three months and nine months periods ended June 30, 2010.
CAPE Systems Group, Inc. reported revenues of $1,209,863 and $2,421,056 for the three and nine month periods ended June 30, 2010, respectively, compared to $0.5 million and $1.7 million for the three and nine month periods ended June 30, 2009, respectively; representing increases of 142% and 41% over the prior year.
The Company also reported income from operations of $221,416 and net income of $52,079 in the quarter ended June 30, 2010 which compared very favorably to the net loss of $1.1 million (before $16 million of extraordinary Gains on Settlement) for the same period last year. As of June 30, 2010 the Company had $433,000 in cash to support current operations.
The significant improvement in operating and net profit for the Quarter ended June 30, 2010 resulted from a significant increase in revenues combined with tight cost controls.
Outlook
The pickup in sales experienced in the third quarter appears to be being sustained and indeed appears to be increasing for the balance of the year.
About CAPE Systems
CAPE Systems is an international provider of supply chain management technologies. CAPE Systems offers a comprehensive range of software systems and tools, from packaging and pallet optimization software, RFID asset tracking, to integrated warehouse and inventory management solutions, pick-to-light systems, and transportation management systems for enterprise wide and collaborative supply chain optimization. For more information about CAPE visit: www.capesystems.com.
Safe Harbor
Statements about the company's future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward-looking" statements and are made pursuant to safe harbor provisions of the Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time. The company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the company undertakes no obligation to update forward-looking statements.
Cape Systems Group, Inc |
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CONDENSED COMBINED BALANCE SHEET |
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June 30, 2010 |
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ASSETS |
Balance |
||
CURRENT ASSETS |
|||
Cash |
$432,888 |
||
Accounts receivable |
354,987 |
||
Allowance for Bad Debt |
(1,824) |
||
Inventories, net |
29,035 |
||
Prepaid expenses |
37,207 |
||
Total Current Assets |
852,293 |
||
Equip Gross |
671,256 |
||
Accum Depr/Amort |
(663,347) |
||
Equipment and fixtures, net |
7,909 |
||
Goodwill - Cape |
285,173 |
||
Other Assets |
180,628 |
||
Total Assets |
$1,326,002 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT) |
|||
CURRENT LIABILITIES |
|||
Mandatorily redeemable pref. stock |
$504,713 |
||
Notes payable |
1,240,186 |
||
Accounts payable |
471,316 |
||
Intercompany |
0 |
||
Net liab. - subsidiaries in liquidation |
0 |
||
Payroll and related benefits accrual |
1,008,503 |
||
Accrued litigation |
25,000 |
||
Accrued expenses and liab. |
2,139,225 |
||
Customer Deposits |
115,828 |
||
Deferred revenue |
497,504 |
||
Sub-total |
6,002,275 |
||
Convertible notes payable |
7,764,245 |
||
Total current liabilities |
13,766,520 |
||
STOCKHOLDERS' EQUITY (DEFICIT) |
|||
Common stock |
10,575,575 |
||
Preferred stock |
13,657 |
||
Subscriptions receivable |
(66,000) |
||
Additional paid-in capital |
165,355,783 |
||
Accumulated equity (deficit) |
(184,791,270) |
||
Accum. other comp. inc/( loss) |
(2,585,234) |
||
Treasury stock |
(67,240) |
||
YTD net income/(loss) |
(875,789) |
||
Total Stockholders' deficit |
(12,440,519) |
||
Total liab. & stockholders' equity |
$1,326,001 |
||
Cape Systems Group, Inc |
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CONDENSED COMBINED STATEMENT OF OPERATIONS |
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For the Three Months Ended June 30, 2010 |
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Total |
|||
Combined |
|||
REVENUE |
$1,209,863 |
||
COST OF SALES |
100,396 |
||
GROSS PROFIT |
1,109,467 |
||
OPERATING EXPENSES |
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Selling and administrative |
887,449 |
||
Depreciation and amortiz. |
602 |
||
Total operating expenses |
888,051 |
||
Operating income/(loss) |
221,416 |
||
OTHER INCOME (EXPENSE) |
|||
Interest income |
0 |
||
Interest expense (NIR + RSI) |
(174,061) |
||
Beneficial Conversion Costs |
0 |
||
Other gain/(loss) |
4,724 |
||
Prior year write-offs |
0 |
||
Net other income (expense) |
(169,337) |
||
INCOME/(LOSS) BEFORE |
|||
PROVIS. FOR INC TAXES |
52,079 |
||
Provision for income taxes |
0 |
||
NET INCOME (LOSS) |
52,079 |
||
Cape Systems, Inc |
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CONDENSED COMBINED STATEMENT OF OPERATIONS |
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For The Nine Months Ending June 30, 2010 |
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Total |
|||
Combined |
|||
REVENUE |
$2,421,056 |
||
COST OF SALES |
686,851 |
||
GROSS PROFIT |
1,734,205 |
||
72% |
|||
OPERATING EXPENSES |
|||
Selling and administrative |
2,102,730 |
||
Depreciation and amortization |
2,401 |
||
Total operating expenses |
2,105,131 |
||
Operating income/(loss) |
(370,927) |
||
OTHER INCOME (EXPENSE) |
|||
Interest Expense |
(522,183) |
||
Prior Year Write-offs |
0 |
||
Beneficial Conversion Costs |
0 |
||
Other |
17,321 |
||
Net other income (expense) |
(504,863) |
||
INCOME/(LOSS) BEFORE |
0 |
||
PROVISION FOR INCOME TAXES |
(875,789) |
||
Provision for income taxes |
0 |
||
Credit for sale of state tax benefits |
0 |
||
Net income tax credit |
0 |
||
NET INCOME (LOSS) |
($875,789) |
||
SOURCE CAPE Systems Group, Inc.
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