ARLINGTON, Va., Aug. 15 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC:AWWC) (BULLETIN BOARD: AWWC) , a Business
Process Outsourcing ("BPO") services company, today reported
financial results for the three and six months ended June 30, 2007.
For the Three Months Ended June 30, 2007 Our revenues for the three
months ended June 30, 2007 increased $2.4 million, or 38.1%, to
$8.7 million, compared to $6.3 million for the three months ended
June 30, 2006. Revenues for the U.S. Segment increased $1.1
million, or 20.8%, to $6.4 million for the three months ended June
30, 2007, compared to $5.3 million for the three months ended June
30, 2006. Revenues for the International Segment increased $1.3
million, or 130.0%, to $2.3 million for the three months ended June
30, 2007, compared to $1.0 million for the three months ended June
30, 2006. The increase was attributed to our primary client in the
Philippines growing by 250% offset by one of our client's decision
to bring its outsourced production hours in house at the beginning
of the second quarter. Our earnings before interest, taxes and
depreciation for the three months ended June 30, 2007 increased
$0.6 million or 150%, to $0.2 million, compared to $(0.4) for the
three months ended June 30, 2006. The increase is primarily
attributed to the increased revenues in both of our business
segments. We reported a net loss from continuing operations of
$(2.8) million, or $(0.13) loss per share of common stock, for the
three months ended June 30, 2007, compared to a net loss from
continuing operations of $(1.2) million, or $(0.07) loss per share
of common stock, for the three months ended June 30, 2006. The net
loss from continuing operations for the three months ended June 30,
2007 includes a non-cash interest expense charge of $2.5 million
from the conversion of all of our Convertible Debts to common
stock. Total weighted average common shares outstanding for the
three months ended June 30, 2007 and June 30, 2006 were 22,129,092
and 17,350,507 respectively. For the Six Months Ended June 30, 2007
Our revenues for the six months ended June 30, 2007 increased $5.6
million, or 47.5%, to $17.4 million, compared to $11.8 million for
the six months ended June 30, 2006. Revenues for the U.S. Segment
increased $2.9 million, or 29.0%, to $12.9 million for the six
months ended June 30, 2007, compared to $10.0 million for the six
months ended June 30, 2006. Revenues for the International Segment
increased $2.7 million, or 150.0%, to $4.5 million for the six
months ended June 30, 2007, compared to $1.8 million for the six
months ended June 30, 2006. Our earnings before interest, taxes and
depreciation for the six months ended June 30, 2007 increased $1.5
million or 214%, to $0.8 million, compared to $(0.7) for the six
months ended June 30, 2006. The increase is primarily attributed to
the increased revenues in both of our business segments. We
reported net loss and loss per share of common stock from
continuing operations of $(2.9) million and $(0.14), respectively,
for the six months ended June 30, 2007, compared to net loss and
loss per share of common stock of $(2.2) million and $(0.13),
respectively, for the six months ended June 30, 2006. The net loss
from continuing operations for the six months ended June 30, 2007
includes a non-cash interest expense charge of $2.5 million from
the conversion of all of our Convertible Debts to common stock.
Total weighted average common shares outstanding for the six months
ended June 30, 2007 and June 30, 2006 were 19,904,079 and
17,119,773, respectively. About Access Access Worldwide
Communications, Inc. (OTC:AWWCOTC:-OTC:News) (BULLETIN BOARD: AWWC
- News) , is a leading business process outsourcing ("BPO")
services company that offers customer management and other BPO
services from its offices in the United States and the Philippines.
Headquartered in Arlington, Virginia and with approximately 1,000
employees worldwide, Access supports clients in a variety of
industries, including financial services, technology,
telecommunications, consumer products, healthcare and Media. More
information is available at http://www.accessww.com/ . Important
Notice This press release contains forward-looking statements. Such
statements involve known or unknown risks, uncertainties and other
factors that may cause the actual results to differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements,
include, but are not limited to, the following: our ability to
continue as a going concern if we are unable to generate cash flow
and income from operations; competition from other third-party
providers and those clients and prospects who may decide to do work
in-house that we currently do for them; our ability to successfully
operate our facilities in the Philippines; potential consumer
saturation reducing the need for services; our ability and clients'
ability to comply with state, federal and industry regulations; our
reliance on a limited number of major clients and the reduction in
services performed for or the loss of one or more major clients;
our ability to develop or fund the operations of new products or
service offerings; our reliance on technology; our reliance on key
personnel and labor force and our ability to recruit additional
personnel. For a more detailed discussion of these risks and others
that could affect results, see our filings with the Securities and
Exchange Commission, including the risk factors section of Access
Worldwide's Annual Report on Form 10-K for the year ended December
31, 2006 filed with the Securities and Exchange Commission. The
Company assumes no duty to update any forward-looking statements.
Access Worldwide Communications, Inc. Condensed Consolidated
Balance Sheets June 30, 2007 December 31, ASSETS (Unaudited) 2006
Current Assets: Cash and cash equivalents $1,184,545 $2,836,980
Restricted cash 123,000 123,000 Accounts receivable, net of
allowance for doubtful accounts of $15,147 and $99,130,
respectively 7,543,090 6,956,218 Unbilled receivables - 7,750 Other
current assets, net 932,232 831,958 Total current assets 9,782,867
10,755,906 Property and equipment, net 4,410,559 3,374,575
Restricted cash 220,000 343,000 Other assets, net 259,323 386,127
Total assets $14,672,749 $14,859,608 LIABILITIES AND COMMON
STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities: Current portion
of indebtedness $577,140 $438,866 Current portion of indebtedness -
related parties 1,500,000 1,750,000 Accounts payable 1,901,275
1,315,785 Accrued expense 437,234 654,140 Accrued salaries, wages
and related benefits 816,818 586,107 Customer deposits 969,296
1,210,146 Deferred revenue 139,033 669,290 Total current
liabilities 6,340,796 6,624,334 Long-term portion of indebtedness
330,224 259,256 Other long-term liabilities 463,022 530,992
Convertible Notes, net - 4,625,490 Mandatorily redeemable preferred
stock, $0.01 par value: - - 1,000,000 shares auth., 40,000 shares
issued and out. 4,000,000 4,000,000 Total liabilities 11,134,042
16,040,072 Commitments and contingencies Common stockholders'
equity (deficit): Common stock, $0.01 par value: voting 100,000,000
shares and 40,000,000 shares auth. Respectively; 31,029,146 and
17,340,065 shares issued and outstanding, respectively 310,291
173,401 Additional paid-in capital 78,830,159 71,362,793
Accumulated equity (deficit) (75,601,743) (72,716,658) Total common
stockholders' equity (deficit) 3,538,707 (1,180,464) Total
liabilities and common stockholders' equity (deficit) $14,672,749
$14,859,608 Access Worldwide Communications, Inc. Condensed
Consolidated Statements of Operations UNAUDITED For the Three For
the Six Months Ending Months Ending June 30, June 30, 2007 2006
2007 2006 Revenues $8,685,033 $6,336,331 $17,432,721 $11,839,559
Cost and expenses: Cost of services 6,816,736 5,146,866 13,340,474
9,455,807 Selling, general and administrative expenses 1,674,149
1,617,336 3,333,443 3,093,903 Depreciation Expense 380,115 267,841
667,599 541,314 Total costs and expenses 8,871,000 7,032,043
17,341,516 13,091,024 (Loss) income from operations (185,967)
(695,712) 91,205 (1,251,465) Interest expense, net (2,593,155)
(513,356) (2,857,044) (974,196) Loss from continuing operations
(2,779,122) (1,209,068) (2,765,839) (2,225,661) Discontinued
operations: loss from discontinued operations (69,738) (463,945)
(119,246) (618,599) Net loss (2,848,860) (1,673,013) (2,885,085)
(2,844,260) Basic and diluted loss per share of common stock:
Continuing operations $(0.13) $(0.07) $(0.14) $(0.13) Discontinued
operations $(0.00) $(0.03) $(0.01) $(0.04) Net loss $(0.13) $(0.10)
$(0.15) $(0.17) Weighted average common shares outstanding
22,129,092 17,350,507 19,904,079 17,119,773 ACCESS WORLDWIDE
COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the
Six Months Ended June 30, 2007 2006 Cash flows from operating
activities: Net loss $(2,885,085) $(2,844,260) Adjustments to
reconcile net loss to net cash used in operating activities:
Depreciation and amortization 667,599 541,727 Amortization of
deferred financing costs 117,186 56,849 Amortization of deferred
compensation 5,250 5,250 Accretion of discount on Convertible Notes
1,009,510 374,668 Interest expense converted to common shares
1,647,556 - Common stock issued for Board fees 82,250 - Allowance
for doubtful accounts (83,674) 78,518 Shares based compensation
49,210 60,304 Changes in assets and liabilities from discontinued
operations (92,705) 36,831 Changes in operating assets and
liabilities: Accounts receivable (657,236) (2,564,396) Other assets
52,638 (321,608) Accounts payable and accrued expenses 401,366
(319,722) Accrued salaries, wages and related benefits 235,195
38,389 Accrued interest and related party expenses - 1,152 Deferred
revenue and customer deposits (578,649) 38,538 Net cash used in
operating activities (29,589) (4,817,760) Cash flows from investing
activities: Additions to property and equipment, net (1,461,396)
6,609 Additions to property and equipment from discontinued
operations, net 4,995 (187,549) Decrease (increase) in restricted
cash 123,000 (368,000) Net cash used in investing activities
(1,333,401) (548,940) Cash flows from financing activities:
Payments on capital leases (44,413) (166,761) Proceeds from
issuance of common stock - 100,446 Proceeds from exercise of common
stock options and warrants 18,490 114,867 Net borrowings under
Credit Facility and Debt Agreement - 631,691 Loan origination fees
- (140,000) Proceeds from issuance of Convertible Notes - 1,500,000
Proceeds from equipment financing, net (13,522) 53,284 Proceeds
from note payable from related party's (250,000) 2,000,000 Payments
on capital leases from discontinued operations - (8,264) Net cash
(used in) provided by financing activities (289,445) 4,085,263 Net
decrease in cash and cash equivalents (1,652,435) (1,281,437) Cash
and cash equivalents, beginning of period 2,836,980 1,755,926 Cash
and cash equivalents, end of period $1,184,545 $474,489 Non-Cash
Investments and financing activities: Equipment acquisition through
capital leases $267,177 - Issuance of warrants on note payable to
related party 171,750 - Conversion of Convertible Notes to common
stock $5,635,000 - DATASOURCE: Access Worldwide Communications,
Inc. CONTACT: Mark Wright, Investor Relations of Access Worldwide
Communications, Inc., +1-703-292-5210, Web site:
http://www.accessww.com/
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