ARLINGTON, Va., April 2, 2008 /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 twelve months ended December 31, 2007. For the Three Months
Ended December 31, 2007 Our revenues decreased by $1.3 million, or
15.3%, to $7.2 million for the quarter ended December 31, 2007,
compared to $8.5 million for the quarter ended December 31, 2006.
Revenues for our U.S. Segment decreased $2.3 million, or 35.4% to
$4.2 million for the quarter ended December 31, 2007, compared to
$6.5 million for the quarter ended December 31, 2006. The decrease
in revenues was primarily attributed to the loss of a profitable
program, and our termination of another program due to its low
performance and profitability. Revenues for our International
Segment increased $1.0 million, or 50.0% to $3.0 million for the
quarter ended December 31, 2006, compared to $2.0 million for the
quarter ended December 31, 2006. The increase was primarily
attributed to a 138.9% increase in production hours billed. We
reported a net loss from continuing operations of $1.5 million and
basic and diluted loss per share of common stock from continuing
operations of $0.05 for the quarter ended December 31, 2007,
compared to a net loss from continuing operations of $0.3 million
and basic and diluted loss per share of common stock from
continuing operations of $0.02 for the quarter ended December 31,
2006. Total weighted average diluted shares outstanding for the
quarters ended December 31, 2007 and December 31, 2006 were
31,092,481 and 17,340,065, respectively. For the Twelve Months
ended December 31, 2007 Our revenues increased $5.1 million, or
18.4%, to $32.8 million for the year ended December 31, 2007,
compared to $27.7 million for the year ended December 31, 2006.
Revenues for the U.S. Segment increased $0.1 million, or 0.4%, to
$22.6 million for 2007, compared to $22.5 million for 2006.
Revenues for the International Segment increased $5.0 million, or
96.2%, to $10.2 million for 2007, compared to $5.2 million for
2006. We reported net loss from continuing operations of $4.9
million and diluted loss per share of common stock of $0.19 for the
year ended December 31, 2007, compared to net loss from continuing
operations of $4.3 million and diluted loss per share of common
stock from continuing operations of $0.25 for the year ended
December 31, 2006. Total weighted average common shares outstanding
for year ended December 31, 2007 and December 31, 2006 were
25,482,446 and 17,340,065, respectively. 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, 2007 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 December
31, ASSETS 2007 2006 Current Assets: Cash and cash equivalents
$777,354 $1,186,980 Certificate of Deposit $883,553 - Restricted
cash 123,000 123,000 Accounts receivable, net of allowance for
doubtful accounts of $10,983 and $99,130; respectively 4,739,401
6,956,218 Unbilled receivables - 7,750 Other current assets, net
465,364 831,958 Total current assets 6,988,672 9,105,906 Property
and equipment, net 3,815,750 3,374,575 Investments - 1,650,000
Restricted cash 220,000 343,000 Other assets, net 516,176 386,127
Total assets $11,540,598 $14,859,608 LIABILITIES AND COMMON
STOCKHOLDERS EQUITY (DEFICIT) Current Liabilities: Current portion
of indebtedness $2,623,062 $438,866 Current portion of indebtedness
- related parties - 1,750,000 Accounts payable 826,965 1,315,785
Accrued expense 364,396 654,140 Accrued salaries, wages and related
benefits 466,042 586,107 Customer deposits 969,296 1,210,146
Deferred revenue 240,515 669,290 Accrued interest 21,664 - Total
current liabilities 5,511,940 6,624,334 Long-term portion of
indebtedness 249,845 259,256 Other long-term liabilities 423,511
530,992 Convertible Notes, net - 4,625,490 Mandatorily redeemable
preferred stock, $0.01 par value: - - 1,000,000 shares authorized,
40,000 shares issued and outstanding 4,000,000 4,000,000 Total
liabilities 10,185,296 16,040,072 Commitments and contingencies
Common stockholders' equity (deficit): Common stock, $0.01 par
value: voting 100,000,000 and 40,000,000 shares authorized;
31,219,146 and 17,340,065 shares issued and outstanding,
respectively 312,191 173,401 Additional paid-in capital 78,884,981
71,362,793 Accumulated deficit (77,721,021) (72,716,658) Less:
treasury stock at cost, 209,808 shares (120,849) - Total common
stockholders' equity (deficit) 1,355,302 (1,180,464) Total
liabilities and common stockholders' equity (deficit) $11,540,598
$14,859,608 Access Worldwide Communications, Inc. Condensed
Consolidated Statements of Operations Unaudited For the Three
Months Ending For the Twelve Months Ending December 31, December
31, 2007 2006 2007 2006 Revenues $7,223,190 $8,466,711 $32,831,193
$27,711,626 Cost and expenses: Cost of services 6,199,110 6,337,666
26,276,214 21,315,235 Selling, general and administrative expenses
1,987,202 1,958,671 6,942,956 6,557,701 Depreciation and
amortization expense 400,013 248,694 1,463,493 1,037,856 Total
costs and expenses 8,586,325 8,545,031 34,682,663 28,910,792 Loss
from operations (1,363,135) (78,320) (1,851,470) (1,199,166)
Interest expense, net (92,221) (271,482) (3,042,840) (3,051,906)
Loss from continuing operations (1,455,356) (349,802) (4,894,310)
(4,251,072) Discontinued operations: (Loss) from discontinued
operations 610 138,790 (110,053) (591,631) Gain on disposal of
segment, net of income tax expense of $0 - (470,845) - 7,728,775
610 (332,055) (110,053) 7,137,144 Net (loss) income (1,454,746)
(681,857) (5,004,363) 2,886,072 Basic and diluted (loss) income per
share of common stock: Continuing operations $(0.05) $(0.02)
$(0.19) $(0.25) Discontinued operations $0.00 $(0.02) $- $0.41 Net
(loss) income $(0.05) $(0.04) $(0.20) $0.17 Weighted average common
shares outstanding 31,092,481 17,340,065 25,482,446 17,340,065
Access Worldwide Communications, Inc. Consolidated Statements of
Cash Flows For the Years Ended December 31, 2007 2006 Cash flows
from operating activities: Net (loss) income $(5,004,363)
$2,886,072 Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities: Depreciation and
amortization 1,463,493 1,037,856 Allowance for doubtful accounts
(87,838) 98,821 Amortization of deferred compensation 10,500 10,500
Amortization of deferred financing costs 210,743 600,239 Accretion
of discount on Convertible Notes 1,009,510 691,727 Gain on sale of
discontinued operations - (7,728,775) Interest expense paid in
common shares 1,729,806 - Share based compensation expense 104,032
227,119 Changes in assets and liabilities from discontinued
operations (45,135) 734,419 Changes in operating assets and
liabilities: Accounts receivable 2,150,617 (4,253,286) Other assets
240,373 (449,720) Accounts payable, accrued expenses and other
liabilities (761,952) 287,465 Accrued salaries, wages and related
benefits (115,538) 301,441 Customer deposits (48,392) (2) Deferred
revenue (428,775) 325,603 Accrued interest and related party
expenses 21,664 (778,167) Net cash provided by (used in) operating
activities 448,745 (6,008,688) Cash flows from investing
activities: Additions to property and equipment, net (1,455,174)
(564,988) Write offs of property and equipment from discontinued
operations, net 15,351 (187,549) Net proceeds from sale of
discontinued operations - 9,751,470 Investments in CD and variable
rate preferred 766,647 (1,650,000) Decrease in restricted cash
123,000 314,000 Net cash (used in) provided by investing activities
(550,176) 7,662,933 Cash flows from financing activities: Payments
on capital leases (519,775) (383,146) Proceeds from issuance of
common stock - 5,535 Proceeds from exercise of common stock options
and warrants 20,390 - Net borrowings under Credit Facility and Debt
Agreement 2,238,487 (4,454,388) (Payments) Borrowings under not
payable to related party (1,750,000) 2,000,000 Repayment of
Convertible Notes - (115,000) Loan origination fees (145,334)
(140,000) Proceeds from issuance of Convertible Notes - 1,500,000
Payments under note payable to related party - (602,334) Payments
on equipment and insurance financing, net (13,522) (17,122)
Payments on capital leases from discontinued operations (17,592)
(16,736) Purchase of common stock from investor (120,849) - Net
cash (used in) financing activities (308,195) (2,223,191) Net
(decrease) in cash and cash equivalents (409,626) (568,946) Cash
and cash equivalents, beginning of year 1,186,980 1,755,926 Cash
and cash equivalents, end of year $777,354 $1,186,980 Supplemental
disclosure of cash flow information: Cash paid during the period
for: Interest (note: $1,000,000 was paid for early termination of
credit facility) $252,874 $1,896,767 Non-Cash Investing and
Financing Activities: Equipment acquisitions through capital leases
$474,651 $24,290 Issuance of warrants on Note $171,750 $158,000
Conversion of Convertible Notes with interest $5,635,000 $-
Issuance of common stock to pay bonuses $- $49,147 DATASOURCE:
Access Worldwide Communications, Inc. CONTACT: Mark Wright, General
Counsel, Secretary of Access Worldwide Communications, Inc.,
+1-703-292-5210, Web site: http://www.accessww.com/
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