Accelerize New Media, Inc. Reports Second Quarter 2013 Financial Results

Second Quarter Revenues Increased 75% Year Over Year to a Record $2,259,395, as Management Accelerates Investment in R&D and Sales Force

Marketwired

NEWPORT BEACH, CA--(Marketwired - Aug 13, 2013) - Accelerize New Media, Inc. (OTCBB: ACLZ), owner and operator of CAKE, a highly-scalable enterprise Software-as-a-Service (SaaS) platform providing business intelligence to performance-based marketers -- from acquisition to conversion, today announced financial results for its fiscal second quarter ended June 30, 2013.

"New client additions and increased usage by existing clients led to another record quarter of revenue growth," said Brian Ross, Accelerize New Media, Inc. Chairman and CEO. "Our strong reputation and commitment to R&D excellence has enabled us to attract and hire top industry talent, while we continue to evaluate strategic alternatives to maximize shareholder value. We are confident that these R&D investments and sales force additions will result in ongoing market share gains, as the advertising industry embraces online performance-based marketing."

Financial Highlights for Q2 2013 vs. Q2 2012

  • Revenues: Total revenues for the quarter increased 75% from $1,294,720 to $2,259,395 year over year, driven by a 65% increase in the average number of clients and a 6% increase in the average monthly fee per client. We expect future revenues to be driven by organic growth, international expansion, and increased sales efforts.
  • Income from Continuing Operations: Despite a 33% quarterly increase in research and development and a 114% quarterly increase in SG&A expenses due to new sales hires to support our anticipated growth, we realized a positive income from continuing operations for the period of $20,177, compared to $21,752 a year ago. We anticipate income from continuing operations to improve as these R&D and SG&A investments begin to pay off later this year.
  • Balance Sheet: Cash and cash equivalents for the quarter increased from $45,040 to $906,640 year over year, and our working capital, which is $1,357,275 as of June 30, 2013, provides us with greater flexibility to invest in research and development and expand our sales force both domestically and internationally. We strive to maintain a balanced capital structure to support consistent long-term growth.

About Accelerize New Media, Inc.

Accelerize New Media, Inc. owns and operates CAKE, an enterprise SaaS (Software-as-a-Service) platform providing business intelligence to performance-based marketers from acquisition to conversion. With an easy-to-use interface and real-time reporting, performance-based marketers can quickly setup, manage, and optimize their campaigns. Seamless integration with external services through a robust API provides clients with a single dashboard that helps increase revenues, lower operational costs, and improve the ROIs of their campaigns.

Use of Forward-looking Statements

This press release may contain forward-looking statements from Accelerize New Media, Inc. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when we say that we are evaluating strategic alternatives to maximize shareholder value and that we are confident that R&D investments and staff additions will result in ongoing market share gains and when we describe our expectations for our future growth and revenues, we are using forward-looking statements. These forward-looking statements are based on the current expectations of the management of Accelerize New Media only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; our technology may not be validated as we progress further; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; unforeseen market and technological difficulties may develop with our products and services; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Accelerize New Media to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Accelerize New Media undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Accelerize New Media, reference is made to Accelerize New Media's reports filed from time to time with the Securities and Exchange Commission.

 
ACCELERIZE NEW MEDIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
    June 30,   December 31,
ASSETS   2013   2012
    (Unaudited)   (1)
Current Assets:            
  Cash   $ 906,640   $ 231,926
  Accounts receivable, net     869,140     673,818
  Other assets     100,517     42,783
    Total current assets     1,876,297     948,527
               
  Property and equipment, net     90,876     52,297
               
  Note receivable, net     -     88,000
    Total assets   $ 1,967,173   $ 1,088,824
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current Liabilities:            
  Accounts payable and accrued expenses   $ 241,704   $ 284,526
  Deferred revenues     51,255     24,616
  Convertible notes payable and notes payable     226,063     299,325
    Total current liabilities     519,022     608,467
               
    Total stockholders' equity     1,448,151     480,357
               
    Total liabilities and stockholders' equity   $ 1,967,173   $ 1,088,824
             
(1) Derived from audited financial statements            
             
             
   
ACCELERIZE NEW MEDIA, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
                         
    Three-month periods ended    Six-month periods ended  
    June 30,     June 30,  
    2013     2012     2013     2012  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                                 
Revenues:   $ 2,259,395     $ 1,294,720     $ 4,422,802     $ 2,343,085  
                                 
Operating expenses:                                
  Cost of revenue     328,296       235,124       635,280       368,526  
  Research and development     365,075       274,975       678,698       495,879  
  Selling, general and administrative     1,532,430       717,161       2,895,053       1,586,867  
    Total operating expenses     2,225,801       1,227,260       4,209,031       2,451,272  
                                   
  Operating income (loss)     33,594       67,460       213,771       (108,187 )
                                 
Other expenses     (13,417 )     (45,708 )     (18,376 )     (99,088 )
                                 
Income (loss) from continuing operations     20,177       21,752       195,395       (207,275 )
                                 
Income (loss) from discontinued operations, net     38,611       27,444       100,361       (28,518 )
                                 
Net income (loss)     58,788       49,196       295,756       (235,793 )
                                 
Less dividends series A and B preferred stock     -       -       -       83,232  
                                 
Net income (loss) attributable to common stock   $ 58,788     $ 49,196     $ 295,756     $ (152,561 )
                                 
Earnings per share:                                
Basic                                
  Continuing operations   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
  Discontinued operations   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
  Net income (loss) per share   $ 0.00     $ 0.00     $ 0.01     $ (0.00 )
                                 
Diluted                                
  Continuing operations   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
  Discontinued operations   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
  Net income (loss) per share   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
                                 
                                 
Basic weighted average common shares outstanding     56,644,643       55,719,575       56,337,069       48,923,639  
Diluted weighted average common shares outstanding     75,346,900       61,587,751       72,369,773       48,923,639  
                                 
                                 
   
ACCELERIZE NEW MEDIA, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
             
    Six-month periods ended  
    June 30,  
    2013     2012  
    (Unaudited)     (Unaudited)  
Cash flows from operating activities:                
Net income (loss) from continuing operations   $ 195,395     $ (207,275 )
  Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:     412,477       132,539  
  Changes in operating assets and liabilities:     (277,344 )     64,778  
Net cash provided by (used in) continuing operations     330,528       (9,958 )
Net cash provided by discontinued operations     -       15,383  
Net cash provided by operating activities     330,528       5,425  
                 
Net cash provided by (used in) investing activities     13,584       (11,022 )
                 
Cash flows provided by (used in) financing activities:                
  Principal repayments on notes payable     (90,000 )     (180,000 )
  Proceeds from exercise of warrants and options     421,996       125,887  
                 
Net cash provided by (used in) financing activities     331,996       (54,113 )
                 
Effect of exchange rate changes on cash     (1,394 )     -  
                 
Net increase (decrease) in cash     674,714       (59,710 )
                 
Cash, beginning of period     231,926       104,750  
                 
Cash, end of period   $ 906,640     $ 45,040  
                 
Contact:


Brian Ross
Chairman & CEO
(310) 710-0578
Email Contact
www.accelerizenewmedia.com
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