Positive Momentum Continues COLUMBIA, S.C., Nov. 14
/PRNewswire-FirstCall/ -- Integrated Business Systems and Services,
Inc. (IBSS) (OTC:IBSS) (BULLETIN BOARD: IBSS) today announced its
third quarter financial results for the three- and nine-month
periods ended September 30, 2005. Highlights for the three months
ended September 30, 2005 compared to the three months ended
September 30, 2004: * Revenues were $868,676, representing a 122%
increase over revenues of $391,584. * Services revenues grew 7.2%
to $362,223 from $337,754. * Revenue from Licenses was $17,282
compared to $0. * Maintenance and Support Revenues increased 125.6%
to $64,135 from $28,428. * Authorized re-sales of products
purchased from third parties (Product resales) jumped 1573% to
$425,036 from $25,402. * Operating expenses dropped 36.6% to
$483,288 from $762,019. * Loss from operations decreased 68.4% to
$196,852 from $623,828. * Net loss declined 63.3% to $241,318, or
$0.01 loss per basic and diluted share, from a net loss of
$657,459, or $0.02 loss per basic and diluted share. Highlights for
the nine months ended September 30, 2005 compared to the nine
months ended September 30, 2004: * Revenues increased 22% to
$2,016,955, up from $1,655,103. * Services revenues declined 16% to
$1,216,865 from $1,447,739. * Revenue from Licenses rose 940% to
$166,548 from $16,000. * Maintenance and Support Revenues improved
94.4% to $165,806 from $85,283. * Authorized re-sales of products
purchased from third parties (Product resales) increased 341% to
$467,736 from $106,081. * Operating expenses fell 25.6% to
$1,694,246 from $2,277,299. * Loss from operations decreased 51.1%
to $701,731 from $1,434,900. * Net loss improved 47% to $825,356 or
$0.03 loss per basic and diluted share, from a net loss of
$1,557,656, or $0.05 loss per basic and diluted share. Commenting
on the results, George Mendenhall, Chief Executive Officer of IBSS,
stated, "This is the third consecutive quarter of positive growth
and movement of IBSS towards its goals of both profitability and
significant penetration of our target markets. Industry acceptance
and demand for comprehensive RFID and mobile-computing solutions is
fast approaching a fever pitch. IBSS continues to educate the
market, and demonstrate and deploy our Synapse(TM)-based
technologies to help enable new vertical market opportunities for
clients and channel partners." Dr. Mendenhall continued, "Each new
vertical enablement may require the creation of new application
software, modification of existing software or the private branding
of existing software along with engineering design and support
services. All of our solutions are based upon our powerful
development and on-line operating environment, Synapse(TM). We also
mix in other technologies from our strategic partners, as required,
bringing our focused expertise and technical capabilities to bear
to create winning relationships with everyone associated with IBSS.
Our industry knowledge and independence from any particular
hardware or wireless technology allows us to evaluate all
technology choices that may apply to a unique situation and then
help integrate and support the best solution to achieve our
collective goals." "Our creation of the PDS (Prospect Dispatch
System) Express for channel partner Prospect Airport Services,
Inc.; our creation and release of SynTrack(TM) Mobile Asset
Management, our mobile asset tracking solutions that include
SynTrack(TM) for Healthcare; and our SynTrack(TM) Returnable
Container Management for use with returnable containers and other
mobile assets, are excellent examples of the IBSS strategy of
directly or indirectly enabling niche vertical markets with our
technology and expertise. As we assist Prospect and our other
clients and channel partners to successfully penetrate their
respective target markets, IBSS will continue to evaluate new
vertical enablement opportunities for our expertise and technology.
IBSS is intent on being recognized as the preferred business
partner for engineering, technology, and specialized support to a
new vertical market or differentiated market segment," concluded
Dr. Mendenhall. Integrated Business Systems and Services, Inc.
Condensed Balance Sheets (Unaudited) September 30, December 31,
2005 2004 ASSETS: Current assets: Cash and cash equivalents $16,341
$105,084 Accounts receivable, trade 129,547 66,637 Interest
receivable -- 3,065 Notes receivable -- 75,000 Prepaid expenses
56,277 19,646 Total current assets 202,165 269,432 Capitalized
software costs, net 2,737 10,948 Property and equipment, net
185,853 256,911 Interest receivable, non current 42,978 37,331
Other assets 50,000 50,000 Total assets $483,733 $624,622
LIABILITIES AND SHAREHOLDERS' DEFICIENCY: Current liabilities:
Convertible notes payable, net of discount $647,184 $558,439
Shareholder advances 1,151,000 601,000 Current portion of long-term
debt 309,872 309,131 Accounts payable 143,360 52,510 Accrued
liabilities: Accrued compensation and benefits 128,663 160,166
Accrued payroll taxes 4,905 29,649 Accrued professional fees
382,068 326,241 Accrued interest 72,265 55,857 Accrued rent 8,000
15,000 Other 9,101 7,090 Deferred revenue 66,597 134,873 Total
current liabilities 2,923,015 2,249,956 Long-term debt, net of
current portion 2,864,421 2,872,251 Total liabilities 5,787,436
5,122,207 Shareholders' deficiency: Preferred stock, undesignated
par value, 10,000,000 shares, none authorized or issued -- --
Common stock, no par value, 200,000,000 shares authorized,
32,544,202 and 32,506,144 shares outstanding at September 30, 2005
and December 31, 2004, respectively 21,702,733 21,683,495 Notes
receivable officers/directors (131,080) (131,080) Accumulated
deficit (26,875,356) (26,050,000) Total shareholders' deficiency
(5,303,703) (4,497,585) Total liabilities and shareholders'
deficiency $483,733 $624,622 Integrated Business Systems and
Services, Inc. Condensed Statements of Operations (Unaudited) Three
Months Nine Months Ended September 30, Ended September 30, 2005
2004 2005 2004 Revenues Services $362,223 $337,754 $1,216,865
$1,447,739 Licenses 17,282 -- 166,548 16,000 Maintenance and
support 64,135 28,428 165,806 85,283 Product resales 425,036 25,402
467,736 106,081 Total revenues 868,676 391,584 2,016,955 1,655,103
Cost of revenues 582,240 253,393 1,024,440 812,704 Gross profit
286,436 138,191 992,515 842,399 Operating expenses General and
administrative 293,173 438,485 974,582 1,213,184 Sales and
marketing 90,484 182,824 390,345 616,645 Product development 99,631
140,710 329,319 447,470 Total operating costs 483,288 762,019
1,694,246 2,277,299 Loss from operations (196,852) (623,828)
(701,731) (1,434,900) Other income (loss and expenses) Other income
(expenses) 1,987 4,767 6,022 (5,731) Interest expense (46,453)
(38,398) (129,647) (117,025) Total other expenses (44,466) (33,631)
(123,625) (122,756) Net Loss $(241,318) $(657,459) $(825,356)
$(1,557,656) Loss per share Basic and diluted $(0.01) $(0.02)
$(0.03) $(0.05) Diluted weighted average shares outstanding
32,544,202 31,555,204 32,526,942 29,318,504 About IBSS IBSS is the
creator of Synapse(TM), a groundbreaking software technology.
Synapse(TM) is a complete framework and methodology used to create,
implement and manage a wide variety of dynamic, distributed,
networked, and real-time enterprise applications including RFID,
quickly and efficiently. Global enterprises utilizing Synapse(TM)
leverage the power of its single, flexible framework to enjoy
tremendous time and cost advantages, in the development, deployment
and on-going management of customized applications. Enabled by
Synapse(TM) to take competitive advantage of cutting-edge
technologies such as wireless networking, mobile computing and
RFID, IBSS and its strategic partners bring solutions to customers
for mission-critical applications in manufacturing, distribution,
healthcare, finance, insurance, retail, education, and government.
IBSS is headquartered in Columbia, South Carolina. For more
information about IBSS and its Synapse(TM) technologies and
services, call 803-736-5595 or 800-553-1038, or visit
http://www.ibss.net/ . Except for historical information, the
matters discussed in this news release include forward-looking
statements that involve a number of risks and uncertainties. Actual
results may vary significantly as a result of a number of factors,
including, but not limited to, risks associated with the Company's
ability to satisfy its obligations incurred in recent private
placements of secured debt, risks in product and technology
development and integration, market acceptance of new products and
continuing product demand, the impact of competitive products and
pricing, changing economic conditions, and other risk factors
detailed in Exhibit 99.1 of our Annual Report on Form 10-KSB for
the year ended December 31, 2004 and in other filings the Company
makes with the Securities and Exchange Commission. Copies of these
filings may be obtained from the Securities and Exchange Commission
at its principal office in Washington, DC at prescribed rates by
calling 1-800-SEC-0330. These filings are also available
electronically through the Internet World Wide Web site maintained
by the Securities and Exchange Commission at the Internet address:
http://www.sec.gov/ . At Elite Financial Communications Group, LLC
Stephanie Noiseux, Executive Vice President 407-585-1080 or
DATASOURCE: Integrated Business Systems and Services, Inc. CONTACT:
Stephanie Noiseux, Executive Vice President, Elite Financial
Communications Group, +1-407-585-1080, or , for IBBS Web site:
http://www.ibss.net/
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