IBS Groups Nigerian Government Contract Increases Revenue by $3 Million for First Year

Wednesday 8 December 2004 00:07 CET | News

The Nigerian Government CAC contract with IBSG International subsidiary, IBS Group, Inc. has generated $1,500,000 in subscription revenue from small and mid size businesses being served by the CAC over the first 6 months of its five year contract.

The Company has recognized additional deferred revenue of $1,200,000, which will be reported as current revenues in the next two quarters. Therefore, the Company will recognize subscription revenues of over $2,700,000 for the first 12 months of this contract. The continual build up of the deferred revenue will act as a compounded backlog of pending revenues, which will be recognized by the Company according to General Accepted Accounting Principles (GAAP). These subscription revenues are in addition to the CAC master license fees of $650,000. The CAC international business development initiative is funded in large part by the United States federal government for the development of businesses in central Africa. This project is part of the success the Company announced in its recent 3rd quarter results showing record revenue and profitability. The CAC represents only the tip of a much larger IT market. IT sales in the government sectors of Africa, Europe, and the Middle East represent 11.5% of the total IT sales for these regions. The United States has invested heavily in IT development for the commerce sectors of this market. The Company is not the only US technology firm to respond to the federal governments initiative or to recognize the potential of this market. As an example, Linux server licenses jumped from $116 million to $300 million in one year and the IT business in Africa continues to show significant growth. The Company continues to actively expand its market position in international business, which includes the recent announcement of its expansion in the UK small business development markets (Sept CENTA announcement). The Company continues to demonstrate that it can effectively position itself as a key player in providing its robust digital commerce platform in the international marketplace for developing and sustaining the growth of the small to mid size business community. By developing this sector of the market in these regions, the Company is able to position itself as a significant factor in the development of small to mid size business which it believes will lead to larger strategic alliances with major IT providers that are expanding into this international market segment.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce