Exhibit 99.1
IBSS Announces First Quarter Financial Results;
Company More than Triples Same Quarter Gross Profit and Margin
COLUMBIA, S.C.--(BUSINESS WIRE)--May 15, 2003--Integrated Business
Systems and Services, Inc. ("IBSS") (OTCBB: IBSS), a national provider
of infrastructure, turnkey transaction processing software, today
announced financial results for the first quarter of 2003.
For the quarter ended March 31, 2003, total revenues increased 40%
to $800 thousand, compared to $571 thousand for the same quarter of
last year. The Company's gross profit for the first quarter of 2003
increased 354% to $539 thousand from a gross profit of $119 thousand
for the same quarter of last year. The Company experienced a
corresponding gross margin increase to 67% for the first quarter of
2003 from 21% for the first quarter of 2002. The net loss for the
first quarter of 2003 was $388 thousand, representing a 70%
improvement from the net loss of $1.28 million for the first quarter
of last year.
George Mendenhall, CEO of IBSS commented, "We are happy to see the
continuation in 2003 of the positive operating and financial momentum
we achieved last year. In the first quarter of this year, we more than
tripled our gross profit and gross margin from those of the first
quarter of last year. In addition, our cash flow has remained positive
for the twelfth consecutive month now. Although the technology markets
continue to remain relatively flat, we are seeing positive indicators
that encourage our belief that 2003 will be a pivotal year for IBSS in
its ability to show the business community the real power of the
products we have been building."
About IBSS
IBSS is a national software provider of quick payback solutions to
complex, industry-specific information problems. The Company's
flagship product, Synapse, is targeted to be the preferred
architecture for dynamic, distributed, real-time software
applications. The ease and speed of Synapse installation, its low
maintenance and its enormous versatility give Synapse users a true
competitive advantage. The Synapse suite of products includes: Synapse
Government e-Printing, designed specifically for the unique job shop
environment of state and local government printing, publishing and
distribution operations; Synapse for Manufacturing, designed to
maximize flexibility in implementing site-specific manufacturing
solutions at the lowest possible cost and time-to-benefit; Synapse
EAI+ for enterprise modeling and application integration in highly
dynamic environments; and Synapse ASP for flexible, highly scalable
ASP enablement. For more information about IBSS' technologies and
services, please call 800-553-1038 or visit our web site at
www.ibss.com.
IBSS, the IBSS logo, Synapse, Synapse for Manufacturing, Synapse
Government e-printing, Synapse EAI+, Synapse ASP, Synapse Composer and
ThinWeb client are trademarks and service marks of IBSS. All other
company names and marks mentioned in this document are the property of
their respective owners and are mentioned for identification purposes
only.
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 the Company's most recent quarterly
report on Form 10-QSB under the heading "Risk Factors That May Affect
Our Financial Condition and Operating Results" and in other public
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.
Integrated Business Systems and Services, Inc.
Condensed Consolidated Statements of Operations
(UNAUDITED)
Three Months Ended
March 31,
2003 2002
-------- --------
Revenues:
Services $766,664 $310,743
Licenses 0 151,590
Maintenance and support 8,526 24,402
Hardware - third party 25,025 82,376
Other 0 1,374
======== ========
Total revenues 800,215 570,485
Cost of revenues 261,454 451,881
======== ========
Gross Profit 538,761 118,604
Operating expenses:
Sales and marketing 102,428 183,480
Research and development 57,745 131,182
General and administrative 538,165 626,415
======== ========
Total operating expenses 698,338 941,077
======== ========
Loss from operations 159,577 822,473
Interest and miscellaneous income 10,114 2,409
Interest expense (218,523) (456,020)
Loss on sale of assets (15,465) 0
Miscellaneous expenses (4,837) (3,138)
======== ========
Total other (228,711) (456,749)
======== ========
Net loss $388,288 $1,279,223
======== ========
Basic loss per share $0.02 $0.07
Basic weighted average shares
outstanding 22,243,898 17,792,321
CONTACT: Integrated Business Systems and Services, Inc.
Bill McMaster, 803/736-5595, ext. 107