IBSG International, Inc. (“IBSGI”) (OTC BB: IBIN), developer and marketer of BizWorld Pro©, a comprehensive, Internet-based Commerce Platform that operates as a digital service centre for any government ministry-department, announced today its adjusted guidance for year-end 2008. Based strictly on existing and previously announced business and contracts in hand, the Company anticipates full year 2008 revenue of approximately $18-22 million, and fully taxed diluted EPS between $0.50 to $0.60.
For the first six months ended June 30, 2008, the Company reported record revenue of $9,204,552, an increase of 51% as compared with $6,089,260 for the first six months of 2007. Cash Flow from Operating Activities increased to a record $5,238,116 as compared to $434,691 in the first six months of 2007. Net income was $0.24 per diluted share. The effective tax rate for the first six months of 2008 was a fully-taxed 37%. Cash balances have significantly increased in the first half of 2008. As of June 30, 2008, the Company had cash on hand of $7,376,612, a 245% increase as compared to $2,138,496 cash on hand as of 12/31/07. Total Current Assets increased to $31,288,322, a 29% increase as compared to total assets of $24,214,601as of 12/31/07. Book value at June 30, 2008 was $2.60 per diluted share.
Dr. Michael Rivers, CEO of IBSG International stated, “We expect revenues and EPS for the second half of the year, based on current projects only, to continue the strong performance we have historically experienced. A significant amount of our growth is due to our strong position in the powerhouse economies in Africa and our World Bank relationship. Combined, the powerful economic African nations have the world’s 6th largest Gross Domestic Product and are projected to be number 5 (Germany’s current position) in the next 12-15 months. However, it is important to note that the Company has been receiving strong interest for its BizWorld Pro© platform from numerous countries throughout Europe and Africa. Whereas there is no assurance that new and incremental business will close in the second half of 2008, new contracts would, in fact, have a material effect on our financial performance and likely result in a significant upward revision to our current guidance as well as longer term guidance beyond 2008.”
He concluded, “The key to our continuing rapid growth is our ability to demonstrate to governments around the world that BizWorld Pro© is a turnkey digital service center software that accelerates commercial growth inclusive of the SME markets. The platform addresses the global needs of these countries while demonstrating a business mind set. By offering a business model that generates revenues to make the project self funding over time, governments are providing the digital tools to carry forward their commercial growth strategies and ensuring the revenue to expand their various commercial initiatives. We are core to that strategy”.
About IBSG International, Inc.:
IBSG International, Inc. (http://www.ibsgi.com/), through its wholly-owned subsidiaries, is the developer and marketer of BizWorld Pro©, a unique turnkey digital service center software, that provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform. IBSGI licenses BizWorld Pro© primarily to international government agencies and ministries, State governments within the United States, as well as business associations, who typically both utilize the platform internally and make the platform available on a subscription basis to small-to-medium size enterprise businesses within their jurisdiction. For more information about the Company, please visit us on the web at www.ibsgi.com or call 321-939-6321. Investor Relations Contact: Michael Porter, President, Porter, LeVay & Rose, Inc, 212-564-4700.
Safe Harbor Forward-Looking Statements: Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
Contacts:
321-939-6321
or
Porter,
LeVay & Rose, Inc.
Michael Porter, President
212-564-4700
