IBIN IBSG International Inc (CE)

IBSG International, Inc., (the �Company�), (OTC BB: IBIN) announced today its financial results for the quarter ended March 31, 2008. First quarter 2008 sales revenue approached $4.8 million, a 58% increase over the $3.0 million in sales revenue reported for first quarter 2007. The Company had total deferred revenues for the three months ended March 31, 2008, of $8.96 million. The increases were primarily due to expansion of existing contracts. The Company had general and administrative expenses of $2.9 million for the three months ended March 31, 2008 compared to $1.1 million for the three months ended March 31, 2007, an increase of $1.78 million. This increase primarily reflects additional international consulting services of $1.2 million as well as stock based compensation of $744,000. The Company had a net income for the three months ended March 31 2008 of $1.13 million, or $0.12 per fully diluted share, as compared to $1.06 million, or $0.15 per fully diluted share, for the three months ending March 31, 2007. As of March 31, 2008, the Company had approximately $4.0 million in cash. Accounts receivable, net grew approximately $1.9 million from approximately $20.7 million at the end of fiscal year 2007 to approximately $22.6 million at the end of first quarter 2008. Dr. Rivers remarked, �In the words of Max Bowser, �IBSGI is an �Earning Juggernaut�. Our growth continues to be sustained by the hard work of our staff worldwide. Our revenue model continues to expand exponentially through existing contracts. We are very pleased with our first quarter 2008 results, which build upon a very successful fiscal year 2007. While we continue to expand our South African and Kenya contracts, we are having substantial success in negotiations with several countries of the EU in Europe, which was one of the goals we set for ourselves in 2008. Additionally, we expect some exciting new projects domestically based on the efforts of IBS group and its COO, Kimberly Neubauer.� Rivers concluded, �We saw cash collection continue to rise for the Quarter. Although we cannot guarantee this level of cash per quarter, collections continue have continued to rise and management anticipates a substantial increase in monthly subscription revenues from the nearly 4 million Small-Medium Enterprises (SMEs) as more of the various government databases are added to the platform worldwide. The first quarter 2008 reflects the efficient execution of our growth strategy and our geographically diverse client base. We will continue to implement our plan and both widen and deepen our market reach through new customer signings and enhancement of our existing customer base.� Management of IBSG International will host a conference call today at 10 a.m. EDT to discuss the company�s financial results and achievements. Those who wish to participate in the conference call may telephone 866-682-6100, from the U.S. or, 201-499-0416 for international callers, no PIN number is necessary for the live call but, you must provide the operator with your name, company and phone number. If you cannot participate in the call, but wish to listen to it, you may logon at www.ibsgi.com and click on investor call archive. The audio will be available 1 day after the completion of the live call. About IBSG International, Inc. (www.ibsgi.com) IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and IBSGI - UK, a consultant company focused on development of IT projects for Governmental bodies and multinational corporations. IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorldPro�. Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies. As software providers, system integrators and Application Service Providers, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis. IBS Development, Inc. will provide ongoing support of International�s other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located. IBSGI - UK establishes IT projects for various countries and multi-national corporations around the world. IBSGI - UK has already introduced the BizWorldPro platform to a number of countries and continues to provide demonstrations of the system on an international scale. For multinational corporations, the projects are normally recognized offset program qualified and provide a required contractual obligation of these corporations. IBSGI � UK maintains relationships with various multinational corporations and operates from centrally located offices in London. Safe Harbor Forward-Looking Statements Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies� actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks. - FINANCIAL TABLES TO FOLLOW - IBSG International, Inc. and Subsidiaries Consolidated Balance Sheet � � � March 31, 2007 � December 31, 2007 ASSETS � unaudited audited Current Assets Cash $ 4,001,375 $ 2,138,496 Accounts receivable, net 22,591,055 20,673,831 Prepaids 863,910 1,402,274 Total Current Assets 27,456,340 24,214,601 � Equipment, net 609,213 703,024 � Other Assets Accounts receivable, net of current portion 6,195,000 6,195,000 Note receivable 1,868,215 2,350,375 Other assets 141,385 350,000 Deferred consulting services 2,052,728 1,802,324 Deferred tax asset, net 1,717,127 141,665 Total Other Assets 11,974,455 10,839,364 � � Total Assets $ 40,040,008 $ 35,756,989 � � � � LIABILITIES AND STOCKHOLDERS' EQUITY � Current Liabilities Accounts payable and accrued expenses $ 645,042 $ 878,770 Income tax payable 2,644,410 1,026,350 Deferred revenue 3,969,102 3,711,347 Deferred tax liability, net 1,342,176 914,137 Total Current Liabilities 8,600,730 6,530,604 � Deferred revenue, net of current portion 4,995,000 4,995,000 � TOTAL LIABILITIES 13,595,730 11,525,604 � Stockholders' Equity Common stock, $0.001 par value, 100,000,000 shares authorized 7,070,019 shares issued and outstanding 10,280 9,686 Additional paid in capital 21,241,135 20,160,045 Retained Earnings 5,192,863 4,061,654 Total Stockholders' Equity 26,444,278 24,231,385 � Total Liabilities and Stockholders' Equity $ 40,040,008 $ 35,756,989 IBSG INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) � � Three months ended March 31, 2008 2007 � � Sales $ 4,779,754 $ 3,030,716 � Cost of Sales � 89,093 � 89,093 � Gross Profit 4,690,661 2,941,623 � General and Administrative � 2,880,727 � 1,105,550 � Income from Operations � 1,809,934 � 1,836,073 � Other Income Interest Income � - � 32,946 Total Other Income � - � 32,946 � Net Income Before Provision for Income Taxes 1,809,934 1,869,019 � Provision for Income Taxes � (678,725 ) � (804,753 ) � Net Income $ 1,131,209 $ 1,064,266 � Net Income Per Share Basic/Diluted $ 0.12 $ 0.15 � Weighted Average Number of Shares Outstanding During the Period � Basic/Diluted � 9,818,087 � 7,072,895