ACEC Ace Comm Corp (MM)

ACE*COMM Corporation (NASDAQ:ACEC), a global provider of value-added services and advanced operations support systems (OSS) solutions, today announced that, based on a preliminary review of results for the first quarter ended September 30, 2006, it expects to report revenue of approximately $3.0 to $3.5 million and a net loss of approximately $2.5 million. "This quarter�s results demonstrate the recurring challenges in our traditional business and underscore our decision to position the company as a significant provider of value-added services that - when achieved - will improve revenue visibility and stability,� said George T. Jimenez, Chief Executive Officer of ACE*COMM. �ACE*COMM has historically been dependent on large orders from a few customers to generate the majority of our revenues in a given quarter. In recent years, a growing number of these customers were internationally based and tended to order large complex systems spanning multiple years, on a non-recurring basis. This quarter we experienced delays in closing new projects or extensions of ongoing projects with existing customers that, if closed, we believe would have generated total revenue for the quarter in the $6 to $7 million range.� Added Mr. Jimenez: �We are continuing to work the delayed transactions and anticipate that the second half of the fiscal year will show significant improvement over the first half. In addition, we expect to see the first revenue streams from our Parent Patrol� product suite under managed services contracts already signed, and we hope to receive additional bookings based on our distribution agreements with Lucent and other parties. In addition, based on the current schedule, we still expect to begin the delivery phase of the Air Force contract in the beginning of calendar 2007.� As a result of project delays and the lower than expected financial results for the first quarter, management now expects revenue for the second quarter of fiscal 2007 to be in the range of $4.0 million to $5.0 million. Concluded Mr. Jimenez: �This quarter�s revenue shortfall will intensify continuing management concentration on expenses and cash management. We continue to remain committed to delivering value to our customer base, while at the same time returning to quarter by quarter profitability and positive cash flow.� ACE*COMM will announce its full financial results after the market close on October 26, 2006. At that time management will hold a conference call to discuss these results. Details of the call will be provided in a separate release. About ACE*COMM ACE*COMM is a global provider of network business intelligence and advanced operations support systems (OSS) solutions for telecom service providers and enterprises. ACE*COMM�s solutions are applicable to a range of legacy through next-generation networks that include wired, wireless, voice, data, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks�knowledge customers use for asset recovery and revenue assurance, cost reduction, improved operational efficiency, acceleration of time-to-market for new services, and more effective customer care. For over 20 years, ACE*COMM technology has been effectively deployed for more than 300 customers, spanning over 4000 installations in 70 countries worldwide. ACE*COMM-installed products are currently enabling the success of customers and partners such as Alcatel, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is an ISO 9001 compliant company. For more information, visit www.acecomm.com. ACE*COMM, NetPlus, the ACE*COMM logo, and N*VISION are registered trademarks, and Convergent Mediation and Parent Patrol are trademarks of ACE*COMM Corporation. Except for historical information, the matters discussed in this news release include forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including, but not limited to: the failure of anticipated demand to materialize, delays or cancellations of orders due to various factors, including business and economic conditions in the U.S. and foreign countries; industry-wide slowdowns, any limitations on customers� financial resources, the continued convergence of voice and data networks, the continuing success of the Company�s strategic alliances for product development and marketing, customer purchasing and budgetary patterns or lack thereof; pricing pressures and the impact of competitive products; the timely development and acceptance of new products; the Company�s ability to adequately support its operations, and other risks detailed from time to time in the Company�s Report on Form 10-Q and other reports filed with the Securities Exchange Commission. ACE*COMM Corporation (NASDAQ:ACEC), a global provider of value-added services and advanced operations support systems (OSS) solutions, today announced that, based on a preliminary review of results for the first quarter ended September 30, 2006, it expects to report revenue of approximately $3.0 to $3.5 million and a net loss of approximately $2.5 million. "This quarter's results demonstrate the recurring challenges in our traditional business and underscore our decision to position the company as a significant provider of value-added services that - when achieved - will improve revenue visibility and stability," said George T. Jimenez, Chief Executive Officer of ACE*COMM. "ACE*COMM has historically been dependent on large orders from a few customers to generate the majority of our revenues in a given quarter. In recent years, a growing number of these customers were internationally based and tended to order large complex systems spanning multiple years, on a non-recurring basis. This quarter we experienced delays in closing new projects or extensions of ongoing projects with existing customers that, if closed, we believe would have generated total revenue for the quarter in the $6 to $7 million range." Added Mr. Jimenez: "We are continuing to work the delayed transactions and anticipate that the second half of the fiscal year will show significant improvement over the first half. In addition, we expect to see the first revenue streams from our Parent Patrol(TM) product suite under managed services contracts already signed, and we hope to receive additional bookings based on our distribution agreements with Lucent and other parties. In addition, based on the current schedule, we still expect to begin the delivery phase of the Air Force contract in the beginning of calendar 2007." As a result of project delays and the lower than expected financial results for the first quarter, management now expects revenue for the second quarter of fiscal 2007 to be in the range of $4.0 million to $5.0 million. Concluded Mr. Jimenez: "This quarter's revenue shortfall will intensify continuing management concentration on expenses and cash management. We continue to remain committed to delivering value to our customer base, while at the same time returning to quarter by quarter profitability and positive cash flow." ACE*COMM will announce its full financial results after the market close on October 26, 2006. At that time management will hold a conference call to discuss these results. Details of the call will be provided in a separate release. About ACE*COMM ACE*COMM is a global provider of network business intelligence and advanced operations support systems (OSS) solutions for telecom service providers and enterprises. ACE*COMM's solutions are applicable to a range of legacy through next-generation networks that include wired, wireless, voice, data, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks--knowledge customers use for asset recovery and revenue assurance, cost reduction, improved operational efficiency, acceleration of time-to-market for new services, and more effective customer care. For over 20 years, ACE*COMM technology has been effectively deployed for more than 300 customers, spanning over 4000 installations in 70 countries worldwide. ACE*COMM-installed products are currently enabling the success of customers and partners such as Alcatel, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is an ISO 9001 compliant company. For more information, visit www.acecomm.com. ACE*COMM, NetPlus, the ACE*COMM logo, and N*VISION are registered trademarks, and Convergent Mediation and Parent Patrol are trademarks of ACE*COMM Corporation. Except for historical information, the matters discussed in this news release include forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including, but not limited to: the failure of anticipated demand to materialize, delays or cancellations of orders due to various factors, including business and economic conditions in the U.S. and foreign countries; industry-wide slowdowns, any limitations on customers' financial resources, the continued convergence of voice and data networks, the continuing success of the Company's strategic alliances for product development and marketing, customer purchasing and budgetary patterns or lack thereof; pricing pressures and the impact of competitive products; the timely development and acceptance of new products; the Company's ability to adequately support its operations, and other risks detailed from time to time in the Company's Report on Form 10-Q and other reports filed with the Securities Exchange Commission.