Exhibit 99.1
ACCESS WORLDWIDE REPORTS SECOND QUARTER FINANCIAL RESULTS
ARLINGTON, Va., Aug. 14 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC Bulletin Board: AWWC), a leading marketing services
company, today reported financial results for the three and six months ended
June 30, 2006.
For the Three Months Ended June 30, 2006
Our revenues increased $0.3 million, or 3.2%, to $9.8 million for the
quarter ended June 30, 2006, compared to $9.5 million for the quarter ended June
30, 2005. We reported a loss from operations for the second quarter of 2006 of
$(1.2) million, compared to a loss from operations of $(0.3) million for the
second quarter of 2005.
The overall increase in revenue was attributed to a $2.0 million increase
in revenues from our domestic Business Services segment and $1.0 million revenue
from our offshore Philippine operation that had not begun generating revenue as
of the second quarter of 2005. The increases domestically resulted from the
acquisition of two new customers and the expansion of services with two existing
customers. There was a reduction of revenue of $2.7 million in our
Pharmaceutical Services segment during the second quarter of 2006 as a result of
among other things the change from dedicated to shared pool of representatives,
and a decrease in our medical education services.
We reported a net loss of $(1.7) million, or $(0.10) loss per share of
common stock, for the quarter ended June 30, 2006, compared to net loss of
$(0.7) million, or $(0.06) loss per share of common stock, for the quarter ended
June 30, 2005. Total weighted average common shares outstanding for the quarters
ended June 30, 2006 and June 30, 2005 were 17,350,507 and 11,286,219,
respectively.
For the Six Months Ended June 30, 2006
Our revenues decreased $0.1 million, or 0.5%, to $19.8 million for the six
months ended June 30, 2006, compared to $19.9 million for the six months ended
June 30, 2005. Revenues for the Pharmaceutical Segment decreased $4.6 million,
or 35.4%, to $8.4 million for the six months ended June 30, 2006, compared to
$13.0 million for the six months ended June 30, 2005. Revenues for the Business
Segment increased $4.5 million, or 65.2%, to $11.4 million for the six months
ended June 30, 2006, compared to $6.9 million for the six months ended June 30,
2005.
We reported net loss and loss per share of common stock of $(2.8) million
and $(0.17), respectively, for the six months ended June 30, 2006, compared to
net loss and loss per share of common stock of $(1.3) million and $(0.11),
respectively, for the six months ended June 30, 2005. Total weighted average
common shares outstanding for the six months ended June 30, 2006 and June 30,
2005 were 17,119,773 and 11,064,969, respectively.
Access Worldwide is an established marketing company that provides a
variety of sales, communication and medical education services. Our spectrum of
services includes multilingual teleservices, customer service, telecom services,
financial services, medical meetings management, medical publishing, editorial
support, and database management, among others. Headquartered in Arlington,
Virginia, Access Worldwide has about 700 employees in offices throughout the
United States and the Philippines. More information is available at
http://www.accessww.com.
This press release contains forward-looking statements including statements
that involve known or unknown risks, uncertainties and other factors that may
cause the actual results to differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking
statements, include, but are not limited to, the following: Our ability to
continue as a going concern if we are unable to generate cash flow and income
from operations; our ability to secure financing at a competitive rate;
competition from other third-party providers and those clients and prospects who
may decide to do work in-house that we currently do for them; our ability to
successfully operate the facility in the Philippines; consolidation in the
medical, telecommunications and consumer products industries which reduces the
number of clients and prospects that are able to be served; potential consumer
saturation reducing the need for services; our ability and clients' ability to
comply with state, federal and industry regulations; our reliance on a limited
number of major clients and the reduction in services performed for or the loss
of one or more major clients; our ability to develop or fund the operations of
new products or service offerings; our reliance on technology; our reliance on
key personnel and labor force and our ability to recruit additional personnel.
For a more detailed discussion of these risks and others that could affect
results, see our filings with the Securities and Exchange Commission, including
the risk factors section of Access Worldwide's Annual Report on Form 10-K for
the year ended December 31, 2005 filed with the Securities and Exchange
Commission. The Company assumes no duty to update any forward-looking
statements.
- Tables Follow -
Access Worldwide Communications, Inc.
Condensed Consolidated Balance Sheets
June 30, December 31,
2006 2005
-------------- --------------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 474,489 $ 1,755,926
Restricted cash 805,000 314,000
Accounts receivable, net 8,658,191 7,297,583
Unbilled receivables 291,138 228,083
Other assets, net 1,032,452 785,257
Total current assets 11,261,270 10,380,849
Property and equipment, net 4,400,816 5,025,158
Restricted cash 343,000 466,000
Other assets, net 291,116 390,822
Total assets $ 16,296,202 $ 16,262,829
LIABILITIES, MANDATORILY REDEEMABLE
PREFERRED STOCK AND COMMON
STOCKHOLDERS' DEFICIT
Current Liabilities
Current portion of indebtedness $ 5,587,020 $ 4,876,381
Current portion of indebtedness
- related parties 2,352,334 352,334
Accounts payable 1,041,656 1,878,856
Accrued expense 1,621,312 2,204,267
Grants payable - 80,000
Accrued salaries, wages and
related benefits 834,139 736,797
Customer deposits 1,169,463 1,084,378
Convertible notes, net 1,976,385 1,768,584
Deferred Revenues 1,003,102 1,435,619
Accrued interest and other
related party expenses 60,568 59,512
Total current liabilities 15,645,979 14,476,728
Long-term portion of indebtedness 468,754 669,441
Long-term portion of indebtedness -
related parties - -
Other long-term liabilities 763,004 796,418
Convertible notes, net 3,047,430 1,380,564
Mandatorily redeemable preferred
stock, $0.01 par value:
1,000,000 shares authorized,
40,000 shares issued and
outstanding 4,000,000 4,000,000
Total liabilities 23,925,167 21,323,151
Commitments and contingencies
Common stockholders' deficit Common stock, $0.01 par value:
voting 40,000,000 shares
authorized; 17,340,065 and
16,616,219 shares issued and
outstanding, respectively 173,401 166,162
Additional paid-in capital 70,644,624 70,389,446
Accumulated deficit (78,446,990) (75,602,730)
Deferred compensation - (13,200)
Total common stockholders' deficit (7,628,965) (5,060,322)
Total liabilities, mandatorily
redeemable preferred stock
and common stockholders'
deficit $ 16,296,202 $ 16,262,829
Access Worldwide Communications, Inc.
Condensed Consolidated Statements of Operations
For the Three Months Ending For the Six Months Ending
June 30, June 30,
------------------------------ ------------------------------
2006 2005 2006 2005
------------- ------------- ------------- -------------
Unaudited Unaudited
Revenues $ 9,755,920 $ 9,535,225 $ 19,745,315 $ 19,886,019
Cost of revenues 5,823,494 5,593,618 11,593,193 11,103,091
Gross profit 3,932,426 3,941,607 8,152,122 8,782,928
Selling, general &
administrative
expenses 5,085,716 4,192,145 10,009,000 9,214,489
Loss from operations (1,153,290) (250,538) (1,856,878) (431,561)
Interest expense, net (519,723) (439,914) (987,382) (828,772)
Net loss $ (1,673,013) $ (690,452) $ (2,844,260) $ (1,260,333)
Basic loss per share:
- Net loss $ (0.10) $ (0.06) $ (0.17) $ (0.11)
Weighted average common
shares outstanding 17,350,507 11,286,219 17,119,773 11,064,969
Diluted loss per share:
- Net loss $ (0.10) $ (0.06) $ (0.17) $ (0.11)
Weighted average common
shares outstanding 17,350,507 11,286,219 17,119,773 11,064,969
SOURCE Access Worldwide Communications, Inc.
-0- 08/14/2006
/CONTACT: Mark Wright, Investor Relations, +1-703-292-5210,
mwright@accessww.com, or Richard Lyew, EVP & Chief Financial Officer,
+1-703-292-5210, rlyew@accessww.com, both of Access Worldwide Communications,
Inc./
/Web site: http://www.accessww.com/
(AWWC)