IGII *** UPDATE ALERT****
First I appreciate some of the DD that is being done here on this one...however, I trust that company is legit. I don't think they would put out PR's about several states if it were untrue.......seeems like that would be the kiss of death for them very very fast--but I could be wrong!!!
READ on and decide...USE DD!!
CELEBRATION, Fla.--(BUSINESS WIRE)--Jan. 7, 2004--IBSG International Inc. (OTCBB:IGII - News) recently completed its budget and business planning strategy for 2004. The management of IGII is pleased to announce that it is in final negotiations on the following contracts with the following stated values, and is pleased to announce the extension and expansion of certain existing contracts:
California - The State of California has informed IGII that it will be expanding the existing contract with the Company beyond the Los Angeles district, with a rollout of the Company's enterprise solutions program to both the Fresno and San Francisco districts. The initial rollout in either Fresno or San Francisco should begin in the first part of February, 2004, and will increase the monthly revenues to the Company by a projected $35,000 per month (an estimated $420,000 annually). The third rollout will begin in approximately 5 weeks after the second rollout is implemented, and should increase monthly revenues by an additional $30,000 per month (an estimated $360,000 annually). The Company expects to recognize gross margins of 40% on the expansion of its existing contract with the state. The Company values this contract over its five year term at over $8,000,000.
Texas - The Company's proposal to the State of Texas SBDC was expanded at the state's request to cover all four regions of the state, as opposed to just the Houston district. The formal contract has now been submitted for approval and signature, with the sole remaining issue regarding the training expense of the state's personnel. The formal contract should be signed no later than the 15th of February, 2004, with the rollout beginning in March, 2004. The implementation of Company's product should generate monthly revenues from this contract of $65,000 per month (an estimated $780,000 annually), with gross profit margins of 43%. The Company has valued this contract at $4,000,000 over its five year life.
New York - The Company's proposal to the New York SBDC, which is a state wide project, has been accepted, with the remaining issue being negotiated of whether the state or the Company will do the actual hosting of the system. The Company expects to resolve this issue with the state so that a final contract can be executed by February 25, 2004, with the rollout beginning in late March, 2004. The implementation of Company's product should generate monthly revenues from this contract of $78,000 (an estimated $960,000 annually), with gross profit margins of 43%. The Company has valued this contract at $6,000,000 over its five year life.
Connecticut - The Company has been informed by the state that it intends to expand its subscriber base on the Company's existing system with the state to include certain importers and exporters located in Africa, who do business with Connecticut companies. The Company expects that this expansion of the existing contract with the state will increase monthly revenues from approximately $100,000 per month to over $250,000 per month, with profit margins of 54%. The Company has revalued the contract over its remaining four year term at $6,000,000.
Based upon existing contracts and the contracts anticipated to be signed in the first 60 days of 2004, the Company anticipates minimum earnings before interest, taxes, depreciation and interest of $.58 per share for 2004. Such estimated EBITDA could be revised substantially upward during the half of 2004, since it does not include projections for other contracts the Company anticipates signing. Dr. Michael Rivers, CEO of IGII stated that: "2004 should be our most profitable year yet, as we expand our business beyond the quasi-governmental market, into other areas such as shrink wrap channel marketing and the European markets. The Company is also reviewing several strategic acquisitions of software companies that will expand the combined market reach of our products. We would anticipate announcing our progress of these acquisitions within the next 60 days."
Time will tell! |
