ARLINGTON, Va., Nov. 19 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC:AWWC) (BULLETIN BOARD: AWWC) , an
established marketing and Business Process Outsourcing ("BPO")
services company, today reported financial results for the three
and nine months ended September 30, 2007. For the Three Months
Ended September 30, 2007 Our revenues for the quarter ended
September 30, 2007 increased $0.8 million, or 10.8%, to $8.2
million, compared to $7.4 million for the quarter ended September
30, 2006. Revenues for the U.S. Segment decreased $0.5 million, or
8.5%, to $5.4 million for the quarter ended September 30, 2007,
compared to $5.9 million for the quarter ended September 30, 2006.
This was mainly due to the loss of one of our most profitable
programs due to our client's budgetary cuts. Management is taking
every step to adjust our cost structure to keep it in line with our
existing and anticipated revenues. Revenues for the International
Segment increased $1.2 million, or 80.0%, to $2.7 million for the
quarter ended September 30, 2007, compared to $1.5 million for the
quarter ended September 30, 2006. The increase was attributed to
the consistent growth of our primary client in the Philippines. Our
earnings before interest, taxes and depreciation for the three
months ended September 30, 2007 decreased $1.0 million or 34.0% to
$(0.2) million, compared to $0.3 million. The decrease was
primarily attributed to the loss of the program mentioned above and
increased recruiting and training cost to ramp-up for two other
programs and increased attrition. We reported a net loss from
continued operations of $(0.7) million, or $(0.02) loss per share
of common stock, for the quarter ended September 30, 2007, compared
to $(1.8) million, or $(0.10) loss per share of common stock, for
the quarter ended September 30, 2006. Total weighted average common
shares outstanding for the quarters ended September 30, 2007 and
September 30, 2006 were 31,029,146 and 17,340,065 respectively. For
the Nine Months Ended September 30, 2007 Our revenues for the nine
months ended September 30, 2007 increased $6.4 million, or 33.3%,
to $25.6 million, compared to $19.2 million for the nine months
ended September 30, 2006. Revenues for the U.S. Segment increased
$2.4 million, or 15.0%, to $18.4 million for the nine months ended
September 30, 2007, compared to $16.0 million for the nine months
ended September 30, 2006. Revenues for the International Segment
increased $3.9 million, or 118.2%, to $7.2 million for the nine
months ended September 30, 2007, compared to $3.3 million for the
nine months ended September 30, 2006. Our earnings before interest,
taxes and depreciation for the nine months ended September 30, 2007
increased $1.0 million, or 200%, to $0.5 million, compared to
$(0.5) million for the nine months ended September 30, 2007. The
increase was primarily due to increased revenues during the first
half of 2007. We reported net loss from continuing operations of $
(3.4) million, or $(0.11) loss per share of common stock for the
nine ended September 30, 2007, compared to $(4.0) million, or
$(0.23) loss per share of common stock for the nine months ended
September 30, 2006. Total weighted average common shares
outstanding for the nine months ended September 30, 2007 and
September 30, 2006 were 31,029,146 and 17,193,204, respectively. On
February 6, 2007, we established a revenue guidance of $38 million
for 2007. We are adjusting our forecast down to $33 million based
on lower than expected third quarter and projected fourth quarter
revenues. Access Worldwide is an established marketing and BPO
services company that provides a variety of sales and communication
services. Our spectrum of services include the full range of
inbound and outbound voice services such as customer service,
customer acquisition, helpdesk, and a growing list of IT and back
office services among others. Headquartered in Arlington, Virginia,
Access Worldwide has about 1,000 employees in offices throughout
the United States and the Philippines. More information is
available at http://www.accessww.com/. 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; potential consumer saturation reducing the need for
services; our ability and our clients ability to comply with state,
federal and industry regulations; our reliance on a limited number
of major clients; 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
September 30, 2007 December 31, ASSETS (Unaudited) 2006 Current
Assets: Cash and cash equivalents $942,690 $2,836,980 Restricted
cash 123,000 123,000 Accounts receivable, net of allowance for
doubtful accounts of $24,715 and $99,130, respectively 6,658,389
6,956,218 Unbilled receivables - 7,750 Other current assets, net
613,828 831,958 Total current assets 8,337,907 10,755,906 Property
and equipment, net 4,101,041 3,374,575 Restricted cash 220,000
343,000 Other assets, net 521,441 386,127 Total assets $13,180,389
$14,859,608 LIABILITIES AND COMMON STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities: Revolving line of credit ("Revolver")
$2,203,428 $ - Note payable - related party - 1,750,000 Capital
lease obligation -- short term 480,903 438,866 Accounts payable
421,417 1,315,785 Accrued expense 433,015 654,140 Accrued salaries,
wages and related benefits 899,598 586,107 Accrued Interest 16,433
- Customer deposits 969,296 1,210,146 Deferred revenue 139,033
669,290 Total current liabilities 5,563,123 6,624,334 Capital lease
obligation -- long term 288,506 259,256 Other long-term liabilities
427,494 530,992 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 10,279,123 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 78,857,250 71,362,793 Accumulated deficit (76,266,275)
(72,716,658) Total common stockholders' equity (deficit) 2,901,266
(1,180,464) Total liabilities and common stockholders' equity
(deficit) $13,180,389 $14,859,608 Access Worldwide Communications,
Inc. Condensed Consolidated Statements of Operations Unaudited
Unaudited For the Three Months For the Nine Months Ending Ending
September 30, September 30, 2007 2006 2007 2006 Revenues $8,175,282
$7,405,356 $25,608,003 $19,244,916 Cost and expenses: Cost of
services 6,736,630 5,521,763 20,077,104 14,977,570 Selling, general
and administrative expenses 1,622,312 1,628,561 4,955,755 4,722,464
Depreciation Expense 395,881 249,744 1,063,480 791,058 Total costs
and expenses 8,754,823 7,400,068 26,096,339 20,491,092 (Loss)
income from operations (579,541) 5,288 (488,336) (1,246,176)
Interest expense, net (93,575) (1,806,229) (2,950,619) (2,780,425)
(Loss) from continuing operations (673,116) (1,800,941) (3,438,955)
(4,026,601) Discontinued operations: Income (loss) from
discontinued operations 8,584 13,510 (110,662) (605,090) Gain on
disposal of segment, net of income tax expense of $0 - 8,199,620 -
8,199,620 8,584 8,213,130 (110,662) 7,594,530 Net (loss) income
(664,532) 6,412,189 (3,549,617) 3,567,929 Basic and diluted
(loss)income per share of common stock: Continuing operations
$(0.02) $(0.10) $(0.11) $(0.23) Discontinued operations 0.00 0.47
(0.00) 0.44 Net (loss) income $(0.02) $0.37 $(0.11) $0.21 Weighted
average common shares outstanding 31,029,146 17,340,065 31,029,146
17,193,204 Access Worldwide Communications, Inc. Consolidated
Statements of Cash Flows For the Nine Months Ended September 30,
2007 2006 Cash flows from operating activities: Net (loss) income
$(3,549,617) $3,567,929 Adjustments to reconcile net (loss) income
to net cash used in operating activities: Depreciation and
amortization 1,063,480 791,941 Amortization of deferred financing
costs 198,374 510,273 Amortization of deferred compensation 7,875
7,875 Accretion of discount on Convertible Notes 1,009,510 565,536
Interest expense converted to common shares 1,647,556 - Allowance
for doubtful accounts (74,106) 90,454 Share based compensation
expense 76,301 84,190 Gain on sale of discontinued operations -
(8,199,620) Common stock issued for Board of Directors fees' and
bonuses 82,250 122,073 Changes in assets and liabilities from
discontinued operations (112,703) (83,233) Changes in operating
assets and liabilities: Accounts receivable 217,897 (2,717,646)
Other assets 169,264 (134,037) Accounts payable and accrued
expenses (1,095,986) (478,697) Accrued salaries, wages and related
benefits 317,975 468,790 Accrued interest and related party
expenses 16,433 (46,911) Deferred revenue and customer deposits
(578,649) (310,510) Net cash used in operating activities (604,146)
(5,761,593) Cash flows from investing activities: Additions to
property and equipment, net (1,548,832) (196,362) Additions to
property and equipment from discontinued operations, net 4,994
(187,549) Net proceeds from sale of discontinued operations -
9,751,470 Increase in restricted cash 123,000 314,000 Net cash
(used in) provided by investing activities (1,420,838) 9,681,559
Cash flows from financing activities: Payments on capital leases
(182,368) (262,749) Proceeds from exercise of common stock options
and warrants 18,490 5,535 Net borrowings (payments) under Revolver
and Debt Agreement 2,203,428 (4,454,388) Loan origination fees
(145,334) (140,000) Proceeds from issuance of Convertible Notes -
1,500,000 (Payments) proceeds on equipment and insurance financing,
net (13,522) 15,175 (Payments) proceeds from note payable from
related party (1,750,000) 2,000,000 Payment of subordinated note
from discontinued operations - (352,334) Payments on capital leases
from discontinued operations - (12,474) Net cash provided by (used
in) financing activities 130,694 (1,701,235) Net increase
(decrease) in cash and cash equivalents (1,894,290) 2,218,731 Cash
and cash equivalents, beginning of period 2,836,980 1,755,926 Cash
and cash equivalents, end of period $942,690 $3,974,657 Non-Cash
Investment and Financing Activities: Equipment acquisition through
capital lease 267,177 20,455 Issuance of warrants on Note 171,750
84,000 Conversion of Convertible Notes with interest 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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