BKSD BluePrint Technologies Inc (CE)

Brookside Technology Holdings Corp. (OTCBB: BKSD), a provider of converged VoIP, data, video and wireless business communications systems, today announced financial results for the three months ended September 30, 2008, and provided a business update on the company. Michael Nole, Chairman and CEO of Brookside, commented, �We are pleased to report $5.7 million of revenue for the third quarter of 2008 as compared to $0.9 million in the same period last year. This 510% increase is attributable to sales initiatives put in place by management in 2008, as well as our acquisitions of US Voice & Data, LLC (�USVD�) in September 2007 and Standard Tel Networks, LLC (�STN�) in September 2008. Since our inception, we have consistently achieved sequential revenue growth with revenues in the third quarter of 2008 representing an increase of 26.7% over the second quarter of 2008. Our gross margin was 43.9% for the third quarter compared to 40.1% for same quarter last year, due primarily to an improved product mix and our focus on higher margin sales. The improvement in our results further illustrates our ability to successfully identify and integrate accretive businesses. As a result of these acquisitions and other initiatives, we are now in a stronger financial position than at any other time in the Company�s history, as evidenced by the fact that we achieved positive cash flow from operations during the nine months ended September 30, 2008.� �We are excited about our recent acquisition of Standard Tel Networks, LLC (�STN�), given the company�s solid reputation as a premier provider of IP telephony solutions. STN�s broad suite of voice and data services, coupled with their profitable business model, will significantly advance our overall growth strategy by enhancing our capabilities and generating strong cash flow to support future acquisition opportunities. Headquartered in Huntington Beach, California with additional offices in San Diego, Sacramento, and the San Francisco Bay Area, STN will also provide the strong regional presence necessary to broaden our geographic footprint on the west coast. Furthermore, the company brings a capable team of industry veterans whose support will be integral to our success as we begin to expand into new markets.� Mr. Nole concluded, �Our latest recapitalization and financing by Vicis Capital Master Fund (�Vicis�) and Chatham Capital provide a strong foundation to accelerate our acquisition strategy while illustrating the value of our business model. As we move towards our ultimate goal of becoming a leading national provider of turnkey converged voice and data services, we will continue to pursue accretive acquisitions at attractive valuations which allow us to expand our product line and cross-sell these services across our respective companies. Overall, we are encouraged by our near- and long-term opportunities. Despite the current economic uncertainty, we offer our customers a compelling value proposition in that we can save small to medium sized businesses significant money through the deployment of our integrated suite of VoIP, data, video, and wireless network solutions.� Revenue for the three months ended September 30, 2008 was $5.7 million versus $927,036 for the comparable period in 2007. Net loss in the third quarter of 2008 was $0.8 million, versus net loss of $1.4 million in the third quarter of 2007. After consideration of the accretion of a preferred stock dividend related to the issuance and conversion of debt to Series A Preferred Stock by Vicis of $1,983,607, net loss attributable to common stockholders in the third quarter of 2008 was $2.8 million, or $(0.03) per share, versus net loss to common stockholders of $1.5 million, or $(0.02) per share, in the third quarter of 2007. Net loss for the third quarter of 2008 included amortization expense of $1.0 million, compared to $933,615 for the same period last year, related to the accounting treatment of the warrants issued and amortization of intangible assets associated with the USVD acquisition. Additional information about the Company�s financial results is available on its Form 10-Q filed with the Securities & Exchange Commission: http://www.sec.gov. About Brookside Technology Holdings Corp Brookside Technology Holdings Corp., through its subsidiary companies, is a leading provider and global managed services company specializing in analyzing, designing, selling, and implementing converged Voice over IP (VoIP), data, video, and wireless (Wi-Fi) business communications systems. Brookside offers a unique portfolio of products and services that solve today�s telecommunications challenges by combining technology, business, and financial solutions. Brookside's customers include both commercial and state/government organizations of all types and sizes throughout the United States. The Company seeks to acquire complementary businesses looking to capitalize on the highly specialized growth market of providing turnkey converged voice and data solutions. With a proven track record of acquiring profitable businesses at attractive valuations, Brookside plans to leverage its expanding capabilities and combined customer bases of its portfolio companies. Additional information on the company can be found at www.brooksideus.com. Forward-Looking Statement: Except for historical factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the Company's ability to acquire additional businesses, the Company's ability to obtain additional financing, the effect of changing economic conditions, customer acceptance of products and other risks and uncertainties, including those contained in the Company's SEC filings. Such forward-looking statements are not guarantees of performance, and the Company's results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release. BROOKSIDE TECHNOLOGY PARTNERS, INC BALANCE SHEETS As of September 30, 2008 and December 31, 2007 � � September 30, � December 31, 2008 2007 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 1,998,911 $ 187,846 Restricted cash 1,250,000 � Accounts receivable, net 4,070,738 2,113,675 Inventory, net 1,831,816 849,176 Deferred contract costs 48,283 89,922 Deferred finance charges, net of amortization 588,984 245,155 Prepaid expenses 129,666 40,954 Total current assets 9,918,398 3,526,728 Property and equipment Office equipment 431,826 330,022 Furniture, fixtures and leasehold improvements 153,571 137,745 Vehicles 171,130 � � 756,527 467,767 Less: accumulated depreciation (292,052 ) (194,089 ) Property and equipment, net 464,475 273,678 Goodwill 16,804,632 13,236,369 Intangible assets, net 965,044 510,868 Deposits and other assets 27,464 41,699 TOTAL ASSETS $ 28,180,013 $ 17,589,342 � � LIABILITIES AND STOCKHOLDERS� EQUITY Liabilities Current liabilities Accounts payable and accrued expenses $ 2,342,234 $ 981,766 Billings in excess of revenues 4,081,735 1,776,271 Payroll liabilities 370,250 371,470 Current portion of long term debt 3,907,355 8,207,900 Other current liabilities 96,738 838,589 Total current liabilities 10,798,312 12,175,996 Long term debt, less current portion 3,501,866 1,850,183 Total liabilities 14,300,178 14,026,179 � Stockholders� equity Series A Convertible Preferred Stock, 12,226,716 and 2,175,322 issued andoutstanding at September 30, 2008 and December 31, 2007, respectively, at8% dividend yield. Liquidation preference of $12,485,954 at September 30,2008. 9,974,486 1,699,000 � Common stock, $.01 par value, 1,000,000,000 shares authorized, 139,887,066shares issued and outstanding at September 30, 2008 and 87,900,000 sharesissued and outstanding at December 31, 2007, respectively 139,888 87,900 Additional paid in capital 19,873,900 11,313,358 Retained deficit (16,108,439 ) (9,537,095 ) � � Total stockholders� equity 13,879,835 3,563,163 � � TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY $ 28,180,013 $ 17,589,342 BROOKSIDE TECHNOLOGY PARTNERS, INC STATEMENTS OF OPERATIONS For the Three and Nine Months Ended September 30, 2008 and 2007 � � � � Quarter Ended September 30, Nine Months Ended September 30, 2008 2007 2008 2007 (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES Installation and other services $ 1,577,260 $ 314,469 $ 3,924,799 $ 624,495 Equipment sales 4,079,863 612,567 10,473,837 1,303,980 Total revenues 5,657,123 927,036 14,398,636 1,928,475 � COST OF SALES 3,175,528 555,217 7,656,333 1,146,865 � � GROSS PROFIT 2,481,595 371,819 6,742,303 781,610 � � OPERATING EXPENSES General and administrative 1,878,775 841,130 5,624,261 1,634,398 Stock Compensation Expense 53,333 � 168,833 915,000 Depreciation expense 31,140 15,741 97,949 37,317 Total operating expenses 1,963,248 856,871 5,891,043 2,586,715 � � OTHER INCOME (EXPENSE) Interest expense (459,624 ) (34,838 ) (1,799,207 ) (61,395 ) Amortization expense (1,003,282 ) (933,615 ) (3,673,806 ) (933,615 ) Gain on debt extinguishment 151,619 � 151,619 � Other income (expenses), net 7,957 8,814 11,828 10,341 Total other income (expense) (1,303,330 ) (959,639 ) (5,309,566 ) (984,669 ) � � LOSS BEFORE INCOME TAXES (784,983 ) (1,444,691 ) (4,458,306 ) (2,789,774 ) � Income tax benefit � � � � � � NET LOSS $ (784,983 ) $ (1,444,691 ) $ (4,458,306 ) $ (2,789,774 ) � � Preferred stock dividends and accretion of discount (2,019,353 ) (43,506 ) (2,102,989 ) (96,350 ) � � Net loss attributable to common shareholders $ (2,804,336 ) $ (1,488,197 ) $ (6,561,295 ) $ (2,886,124 ) � � Loss per share- basic and fully diluted $ (0.028 ) $ (0.018 ) $ (0.071 ) $ (0.037 ) � � Weighted average shares outstanding 99,576,825 81,327,632 92,755,324 77,691,575