Q Comm International Announces Delayed Filing

Wednesday 25 May 2005 16:00 CET | News

Q Comm International, will delay the filing of its Form 10-Q for the quarter ended March 31, 2005. As previously announced, shortly before the original filing deadline for its Form 10-Q, the Company received a standard review letter from the Securities and Exchange Commission (SEC) on its recent Form 10-KSB, and, in light of this letter, postponed the original filing of its Form 10-Q by one week.

Now, the Company is further postponing the filing of its Form 10-Q because it is still working with the SEC to potentially amend the presentation of certain financial disclosures. Notably, the Company does not expect these amendments to materially impact the amount of income or cash balances previously reported by the Company. The Company plans to file its Form 10-Q for the first quarter within the next 10 days (by June 3rd). In the interest of providing information to its stockholders with respect to the quarter ended March 31, 2005, however, the Company is announcing the following financial results. The Company cautions stockholders that these results are subject to change following the completion of the SEC review process. Revenues for the first quarter were $15.3 million, an increase of 80%, compared to $8.5 million in the first quarter of 2004. Higher transaction volume due to increased terminal activations drove revenue performance for the quarter. Margins, after accounting for cost of goods sold, commissions, fees paid to brokers and retailers but before depreciation and amortization, decreased to 3.1% in the first quarter of 2005, compared to 3.4% for the comparable period in 2004, reflecting a shift toward lower margin wireless products. As a percentage of sales, the Companys operating expenses decreased to 30.6%, from 39.5% in the first quarter of 2004, reflecting the Companys improving economy of scale as revenues increase. However, operating expenses in absolute dollars increased 39.9% to $4.7 million, from $3.3 million in the comparable period of last year, reflecting higher SG&A costs related to additional sales personnel, higher staffing, and an increase in professional fees. The Companys operating loss in the first quarter of 2005 increased to $1.3 million, compared to $1.0 million in the first quarter of 2004. Based on 5.0 million weighted average shares outstanding as of March 31, 2005, and 4.0 million weighted average shares outstanding as of March 31, 2004, net loss per common share was ($0.26), compared to ($0.34). Balance Sheet As of March 31, 2005, the Company had cash of $0.8 million and working capital of approximately $1.0 million. As previously announced, the Company raised an additional $2 million in equity financing after the end of the quarter. Stockholders equity was $7.4 million at March 31, 2005. Business Highlights As of May 24, 2005, Q Comm: Announced a contract with Certified Oil to install the Verifone 3740 POS terminal in 102 convenience stores and gas stations throughout Ohio, West Virginia, and Kentucky. Announced the appointment of Mark Robinson as Chief Financial Officer, effective May 31st, 2005. Completed a private placement of 400,000 shares, generating gross proceeds to Q Comm of $2.0 million. During the first quarter of 2005, Q Comm: Increased Activated terminals by 121% to 2,721 over the prior years first quarter. Secured over 230 new q xpress locations at small-to-medium size retailers in the U.S. Continued to strengthen sales and administrative infrastructure. Announced a contract with Leap Wireless International, Inc. to install the q xpress 200 in over 1,000 locations. Q Comms contract with Cricket supports its new Jump by Cricket prepaid mobile phone platform and includes customized q xpress 200 POS terminals and thermal cards that are unique to the Cricket brand. Announced a contract with The Big Apple Food Stores to install the q xpress 200 POS terminal in all 90 Big Apple convenience stores and gas stations throughout Maine and New Hampshire. Announced that Tripoint Payment Systems will utilize the Companys prepaid transaction processing platform for prepaid services in the Bahamas.

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Categories: Payments & Commerce | Payments General
Countries: World
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