International Card Establishment Reports Second Quarter Results
15 August 2007 - 7:40PM
PR Newswire (US)
CAMARILLO, Calif., Aug. 15 /PRNewswire-FirstCall/ -- International
Card Establishment, Inc. (I.C.E.) (OTC:ICRD) (BULLETIN BOARD: ICRD)
today announced its second quarter results. For the quarter ended
June 30, 2007, the company generated net revenues of $2,253,386 as
compared to net revenues of $2,536,638 for the quarter ended June
30, 2006. For the quarter ended June 30, 2007 and June 30, 2006,
the company reported net losses of $(295,221) and $(3,064.229)
$(0.01 per share) and $(0.10 per share), respectively. For the six
month period ended June 30, 2007, the company reported net revenues
of $4,767,382 versus $4,856,074 in the previous year-ago period.
The company reported losses of $(499,674) $(0.01 per share) and
$(3,818,310) $(0.13), respectively for the six month periods of
2007 and 2006. Gross profit for the second quarter 2007 rose 32% to
$817,861 versus $617,473 for the previous year-ago period and
EBITDA (Earnings Before Interest Taxes Depreciation and
Amortization) was $262,597. For the six months ended June 30, 2007,
gross profit rose 34% to $1,668,808, versus $1,248,401 for the six
months ended June 30, 2006. EBITDA increased to $471,983. Net
revenues remained relatively consistent for the three months ended
June 30, 2007 compared to June 30, 2006. The costs associated with
the merchant account services decreased by approximately 25% or
$483,641 primarily due to a $430,665 decrease in commission
expense, resulting from the consolidation of operations from our
Neos subsidiary to I.C.E. Nevada in the third quarter of 2006.
General and administrative costs decreased by approximately
$2,005,718 largely due to decreases of salaries expense of
$155,861, compensation expense for stock options of $800,817,
consulting fees of $121,600, bad debt expense of $448,234, office
expense of $198,841, and legal and professional fees of $97,548.
Such cost reductions are the proximate result of the consolidation
of our operations from the Irvine, CA office to our headquarters in
Camarillo, CA during the third quarter of 2006 and the reduction of
staff in both the first and second quarters of 2007. We do not
expect any further fluctuations in operating, general, and
administrative costs unless revenues significantly increase in
future periods. "We are pleased with our overall progress in
reducing operating costs and positive EBITDA. We remain focused on
identifying opportunities that offer us the potential to grow our
revenue base. For the past few months, we have been working on
forging several strategic alliances with independent sales channels
that offer access to a large merchant base," said William Lopshire,
CEO, I.C.E. "These relationships take time to develop but offer us
the potential to reach a much broader base of merchants than
organic growth measures alone. We anticipate that several of these
strategic alliances will be operational before the end of this
year." About I.C.E. http://www.cardnetone.com/ I.C.E. is a rapidly
growing provider of diversified products and services to the
electronic transaction processing industry. I.C.E. establishes
merchant accounts for businesses that enable them to accept credit
cards, debit cards and other forms of electronic payments; supplies
point-of-sale systems; facilitates processing; and markets a
proprietary "Smart Card"-based system that enables merchants to
offer store-branded gift and loyalty cards. Forward-Looking
Statements This press release may contain forward-looking
statements that are subject to risks and uncertainties. Important
factors which could cause actual results to differ materially from
those in the forward-looking statements, include but are not
limited to: the company's short operating history which makes it
difficult to predict its future results of operations; the
company's initial history of operating losses with possible future
losses which could impede its ability to address the risks and
difficulties encountered by companies in new and rapidly evolving
markets; the company's future operating results could fluctuate
which may cause volatility or a decline in the price of the
company's stock; the possibility that the company may not be able
to price its services above the overall cost causing its financial
results to suffer; and other factors detailed in this press release
and in future company filings with the Securities and Exchange
Commission, at such time as the company is required to report its
results of operations under the Securities Exchange Act of 1934, as
amended. Contact: Kinzie Visser I.C.E. 866-423-2491 ext. 571 email:
or Investor Relations Contact: PAN Consultants, Ltd. Philippe
Niemetz Toll-free: 800/477-7570 212/344-6464 email: DATASOURCE:
International Card Establishment, Inc. CONTACT: Kinzie Visser of
I.C.E., +1-866-423-2491, ext. 571, ; or Investors, Philippe Niemetz
of PAN Consultants, Ltd., Toll-free, +1-800-477-7570, or
+1-212-344-6464, , for I.C.E. Web site: http://www.cardnetone.com/
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