ActiveCore Technologies, Inc. (OTCBB:ATVE), a Company that operates a group of subsidiaries and divisions in the US and Canada that offer a Smart Enterprise Suite of products, today announced preliminary financial results for the quarter ended March 31, 2006. The Company expects to file its Quarterly Report on Form 10-QSB during the extension period which it will file for on May 15, 2006.
For the quarter ended March 31, 2006, the Company announced that it expects to report revenues in the range of $1.4 million - $1.7 million. From a profitability perspective, the Company expects to report a net loss in the range of $1.25 million to $1.5 million. The Company cautioned, however, that the above results are preliminary and are not yet finalized with the Company's auditors.
AcitveCore Chairman & CEO, Peter Hamilton stated, "The first quarter is historically the weakest for our various businesses, however even in light of this fact these preliminary results are disappointing. Clearly, these results have forced our management team to take a hard look at our current strategy and I think it is safe to say that some significant changes are coming. Our management team is pursuing what we feel is an exciting strategic alternative for ActiveCore but at the present time it is premature for us to provide any specifics."
The Company announced that in anticipation of its change in strategy, it has already begun to restructure its operations and that this process will continue over the next several weeks. This restructuring will allow the Company to better position itself to capitalize on the opportunity that is developing and will impact all businesses and functions within the organization.
Efrem Ainsley, CFO stated, "Obviously, the first quarter's loss puts added financial pressure on the organization. While we go through a transition phase with respect to the Company's strategy and direction, it is imperative that we continue to reduce our operating expenses as much as possible."
The Company has previously discussed its intention to pursue an acquisition on the messaging side of its business. The Company has now concluded that reaching a satisfactory financing arrangement on this contemplated transaction is not feasible. As a result, the successful completion of such a transaction is not likely, and that new strategic alternatives will take it in different directions.
Peter Hamilton added, "I know that our shareholders are eager for further details about what direction ActiveCore will take, and we are equally eager to get to the point where these plans can be shared. However, at this time any disclosure would not be appropriate. That said, be assured that as soon as we are able we will be back in touch with our shareholders."
This press release is available on the company's official online investor relations site for investor commentary, feedback and questions. Investors are asked to visit ActiveCore IR Hub located at http://www.Agoracom.com/IR/ActiveCore.
About ActiveCore Technologies, Inc. (www.ActiveCore.com)
ActiveCore Technologies, Inc., operates a group of subsidiaries and divisions in the U.S. and Canada that offer a Smart Enterprise Suite of products and services. We integrate, enable, and extend functions performed by current and legacy IT systems. Our products encompass web portals, enterprise middleware, mobile data access, data management and system migration applications. The Systems Integration & Modernization Division of ActiveCore operates under the trade names of CRATOS, MDI Solutions and DisclosurePlus. The Corporate Disclosure and Messaging Division of ActiveCore operates under the trade names C Comm Network Corporation, DisclosurePlus and ActiveCast. ActiveCore services clients in health care, financial services, government and manufacturing worldwide.
Statements contained in this news release regarding ActiveCore Technologies, Inc. formerly IVP Technology and planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond ActiveCore's control, including, but not limited to, reliance on key markets, suppliers, and products, currency fluctuations, dependence on key personnel and trade restrictions, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in ActiveCore's Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on January 4, 2005. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above.
For further information: ActiveCore Technologies, Inc., IR Contact: Efrem Ainsley, 416-616-2734, Email: email@example.com, IR Hub: http://www.Agoracom.com/IR/ActiveCore