HMSC..Great NEWS out...should move past shake soon..
Posted by: Yankees1963
In reply to: None Date:8/15/2006 9:44:05 AM
Post #of 21457
Might want to check out HMSC
Homeland Security Capital Corp. Announces Second Quarter Financial Results
Company Q2 '06 Revenues Increase 199% Over First Quarter; Total YTD Revenue $2,742,000
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ARLINGTON, Va., Aug 15, 2006 /PRNewswire-FirstCall via COMTEX/ -- Homeland Security Capital Corp. (HMSC : homeland sec cap corp com
9:18am 08/15/2006
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HMSC0.00, +0.00, +5.0%) , a company focused on acquiring, developing and consolidating homeland security-related businesses, announced today that second quarter revenues increased 199% to $2,054,000 for the second quarter ended June 30, 2006, compared to revenue of $688,000 in the first quarter of 2006, resulting in YTD revenues of $2,742,000 through June.
The company's gross profit for the quarter increased to $887,000, versus a loss of ($77,000) in the first quarter of 2006. General and administrative expenses increased 21% to $1,274,000 in Q2 '06, compared to the first quarter, and were $2,330,000 YTD.
The company reported a net income of $474,000 in the quarter and a net loss of ($1,272,000) for the six months ended June 30, 2006. The net income for the quarter resulted primarily from a positive change of $1,195,000 in the derivative valuation related to the derivative liability, which was originally recorded by the company when it received funding from Cornell Capital in February 2006 in the form of a debenture. The discount is adjusted monthly based on market value of the company's common stock, its volatility and conversion price of the debenture. The company continues to work with Cornell Capital to restructure this debt into a more predictable form of financing.
C. Thomas McMillen, Homeland Security Capital chairman and CEO, said, "We continue to make progress at our subsidiary Nexus in revenue growth and cost restructuring, both key elements in the long-term success of the company. I am pleased with the integration process of this portfolio company into our overall strategy of building shareholder value through strategic acquisitions and partnerships with companies in homeland security-related businesses. We continue to identify undervalued companies that fit our model. We believe we have an extraordinary opportunity to build Homeland Security Capital Corp. into a meaningful player in the homeland security marketplace."
In June and July 2006, the company restructured the operating expenses of its operating subsidiary Nexus Technologies. The restructuring resulted in annualized expense reductions and eliminations of one-time transaction costs of $1,472,000 associated with the Nexus merger. If these expense reductions and eliminations were in place on the date of acquisition, Nexus would have reported a YTD net income through June of approximately $15,000 versus the actual YTD loss of ($455,000) as of June 30. The cost restructuring is intended to realign costs associated with the levels of revenues expected over the next six months.
About Homeland Security Capital Corp.
Homeland Security Capital is a consolidator in the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland. Homeland Security Capital intends to operate businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. The company will enhance the operations of these companies by helping them generate new business, grow revenues and improve cash flows. For more information, visit hscapcorp.com .
An investment profile about Homeland Security Capital may be found at hawkassociates.com .
For investor relations information regarding Homeland Security Capital, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com . An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at hawkassociates.com and americanmicrocaps.com .
Forward-looking statements: This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, which address future activities, performance, events or developments, are forward-looking statements. Although Homeland Security Capital Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.
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