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Advanced Communications Technologies Reports Second Fiscal Quarter Financial Results

Posted on: Tuesday, 22 February 2005, 09:00 CST

NEW YORK, Feb. 22 /PRNewswire-FirstCall/ -- Advanced Communications Technologies, Inc. (BULLETIN BOARD: ADVC) , a vertically integrated technology services company, reported today that consolidated revenue for the three months ended December 31, 2004 was $1,709,919, compared with no revenue in the same period last year. Net income for the three months ended December 31, 2004 was $2,719,244, compared to $450,401 during the same three months of last year. The results were impacted by the award of an $8 million judgment by the Supreme Court of California that allowed the company to discharge $2,847,000 of debt forgiveness income that was allegedly owed by the company to a former CEO and related entities. For the six months ended December 31, 2004, the company reported revenue of $3,535,103, compared with no revenue for the same period last year. Net income for the period was $2,599,236, up from $180,059 for the comparable period a year earlier.

The second quarter profit marked another record quarter of net earnings for the company resulting from forgiveness of debt income, in addition to positive performance results from the company's core operating business and from investment income.

Additional Selected Financial Results

* Cyber-Test, the company's wholly owned subsidiary and core operating business, generated $62,000 and $193,000 of net income from operations for the three- and six-month periods ended December 31, 2004, respectively.

* A strategic investment generated $170,000 and $385,000 of net income for the three and six months ended December 31, 2004, respectively.

* Total assets equaled $19.7 million, an $11.7 million increase from the fiscal year ended June 30, 2004, with net equity of $4.3 million, or $0.0022 per share.

Wayne I. Danson, the company's president and CFO, said, "We are pleased with our second quarter results, which exceeded our expectations. Revenue from operations was $1.7 million, compared with no revenue a year ago. Through our acquisition program we continue to construct a solid base of growth businesses that will provide us with the leverage to continue to profitably expand our company.

"Our highly skilled management team is dedicated to building a market- leading international enterprise through consolidation of the technology services market. We are actively pursuing the acquisition of and/or investment in technology companies with significant growth potential that complement our expansion strategy of providing an integrated 'life cycle' service for the consumer electronics industry. Earnings, through both organic and inorganic means, must be a core characteristic of each company we acquire or in which we invest."

About Advanced Communications Technologies, Inc.

Advanced Communications Technologies, Inc. is a publicly traded New York City-based vertically integrated technology and services holding company that, through its majority owned subsidiary, Pacific Magtron International Corp., is a distributor of hardware components, computer systems and software products and, through its wholly owned subsidiary and principal operating unit, Encompass Group Affiliates, Inc., is a provider of board-level repair of technical products to third-party warranty companies, OEMs, national retailers and national office equipment dealers. Service options include advance exchange, depot repair, call center support, parts and warranty management for office equipment, fax machines, printers, scanners, laptop computers, monitors and multi-function units, including high-end consumer electronics such as PDAs and digital cameras. Additionally, through its wholly owned investment subsidiary, Hudson Street Investments, Inc., Advanced Communications makes strategic minority investments in public and private companies. For more information, visit Advanced Communications' website at http://www.advancedcomtech.net/ .

A profile for investors on Advanced Communications may be found at the website http://www.hawkassociates.com/advancedcommunications/profile.htm .

An online investor kit containing Advanced Communications' press releases, SEC filings, current Level II price quotes, interactive Java stock charts and other useful information for investors can be found at http://www.hawkassociates.com/ and http://www.hawkmicrocaps.com/ . For more information, contact Frank Hawkins or Julie Marshall, Hawk Associates, Inc., at (305) 852-2383, e-mail: info@hawkassociates.com .

This release and oral statements made from time to time by the company's representatives concerning the same subject matter may contain "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects,""plans,""intends,""should,""believes,""will,""estimates,""forecasts,""projects" or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some that are known and others that are not. Known risks and uncertainties include those identified from time to time in the reports filed by the company with the Securities and Exchange Commission, which should be considered together with any forward looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements.

Advanced Communications Technologies, Inc.

CONTACT: Frank Hawkins or Julie Marshall, both of Hawk Associates, Inc.,+1-305-852-2383, or info@hawkassociates.com, for Advanced CommunicationsTechnologies, Inc.

Web site: http://www.advancedcomtech.net/http://www.hawkassociates.com/advancedcommunications/profile.htmhttp://www.hawkassociates.com/http://www.hawkmicrocaps.com/

Source: PRNewswire-FirstCall

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