ActiveCore Technologies, Inc.
OTC Bulletin Board : ATVE

April 11, 2006 07:00 ET

ActiveCore Announces Record Revenues of $7.4 Million; 104% Growth Over Prior Year; ActiveCore Targets Major Acquisition in 2006

TORONTO--(CCNMatthews - Apr 11, 2006) -

ActiveCore Technologies, Inc. (OTCBB:ATVE), a Company that operates a group of subsidiaries and divisions in the US and Canada that offer a Smart Enterprise Suite of products, is pleased to announce financial results for the year ended December 31, 2005. The Company expects to file its Annual Report on Form 10-KSB on April 12, 2006.

Record Revenues

For the year ended December 31, 2005, the Company reported record revenues of $7.4 million, which represent an increase of 104% compared to revenues of $3.6 million (1) reported during 2004. For the Company's fourth quarter ended December 31, 2005, the Company reported revenue of $2.75 million, which was consistent with previously issued guidance.

Additionally, the Company reported a net loss in accordance with U.S. Generally Accepted Accounting Principals of $116,564 during its fourth quarter. These results are consistent with the Company's previously issued fourth quarter guidance, which indicated that the Company has expected to report a net loss of between $0 and $200,000.

On an adjusted basis (2), the Company reported adjusted net income of $346,025 for its fourth quarter ended December 31, 2005. This amount was also consistent with the Company's previously issued guidance of $200,000 - $400,000, which it issued at the end of its third quarter of 2005.

AcitveCore Chairman & CEO, Peter Hamilton stated, "Our record revenue performance in 2005, coupled with our continued improvement from a profitability perspective in the fourth quarter was a result of our aggressive growth strategy. We grew the Company both organically and through strategic acquisitions to provide us with a robust revenue-generating base. It is our intention to continue aggressively growing the Company in the months and years to come."

"This represents 2 successive quarters where we have been in line with our guidance. Our new CFO Efrem Ainsley has demonstrated that he has excellent visibility of all aspects of the business and the ability to consistently and accurately provide guidance for ActiveCore shareholders" said Peter Hamilton.

Outlook for 2006

The Company also announced that it expects its revenues for 2006 to be in the range of $12 - $14 million. From a profitability perspective, the Company expects to report adjusted net income for 2006 in the range of $750,000 - $1,250,000, These numbers do not include the impact of any acquisitions which get completed during 2006. As has been previously disclosed, ActiveCore continues to work with Pathpoint Capital Partners to complete the Company's next acquisition. Any acquisition would be accretive to the Company's 2006 outlook.

2006 Acquisition

The Company has identified several suitable targets and is currently working with Pathpoint Capital Partners to acquire one of these targets. It is the Company's current strategy to complete an acquisition that would be material relative to its current size. Any acquisition is expected to be within the Company's Messaging Division. The Company would like to expand its offerings to become a major player in the North American "Unified Messaging" market place. This market sector is currently occupied by companies such as J2 Global (NASDAQ:JCOM).

Peter Hamilton stated, "ActiveCore has clearly demonstrated much improved financial performance in its third and fourth quarters of 2005. We anticipate carrying that trend forward into 2006. We have come a long way towards building our infrastructure, assembling a winning management team and putting together a great group of operating units. We are now poised to take full advantage of the opportunities being presented to us in 2006."

This press release is available on the company's official online investor relations site for investor commentary, feedback and questions. Investors are asked to visit ActiveCore IR Hub located at Alternatively, investors can e-mail AGORA Investor Relations directly at

About ActiveCore Technologies, Inc. (

ActiveCore Technologies, Inc., operates a group of subsidiaries and divisions in the U.S. and Canada that offer a Smart Enterprise Suite of products and services. We integrate, enable, and extend functions performed by current and legacy IT systems. Our products encompass web portals, enterprise middleware, mobile data access, data management and system migration applications. The Systems Integration & Modernization Division of ActiveCore operates under the trade names of CRATOS, MDI Solutions and TwinCentric. The Corporate Disclosure and Messaging Division of ActiveCore operates under the trade names C Comm Network Corporation, DisclosurePlus and ActiveCast. ActiveCore services clients in health care, financial services, government and manufacturing worldwide.

(1) All amounts disclosed in this press release are in US dollars unless otherwise noted.

(2) Use of Non-GAAP financial measures

In addition to reporting financial results in accordance with United States generally accepted accounting principals ("GAAP"), the Company provides certain non-GAAP financial measures which are not in accordance with GAAP. The Company's definition of these non-GAAP financial measures does not have a standardized meaning prescribed by GAAP and may be different from similar non-GAAP financial measures used by other companies and may differ from period to period. The Company uses the financial measure adjusted net income (or loss, as applicable) to supplement the information provided in its consolidated financial statements, which are presented in accordance with GAAP. The presentation of adjusted net income is not meant to substitute for net income presented in accordance with GAAP, but rather should be evaluated in conjunction with such GAAP measure. Adjusted net income is calculated as net income, excluding the amortization of intangibles assets, depreciation, other income (expense), and stock-based compensation. The Company's management believes that the presentation of adjusted net income provides useful information to investors because it excludes certain charges which management excludes in its period-to-period evaluation of its operating results.

The following chart provides a reconciliation (unaudited) of GAAP based financial measures to non-GAAP based financial measures referred to in this press release using the mid-point of the guidance ranges provided herein:

Reconciliation (unaudited) of GAAP based net income to adjusted net income for the three month period ended December 31, 2005:

GAAP based "net loss" ($116,564)
Depreciation and amortization of intangible assets 236,816
Other (income) expense 102,461
Stock-based compensation 123,312
Non-GAAP Based "adjusted net income" $346,025

Reconciliation (unaudited) of GAAP based net income to adjusted net income for the year ending December 31, 2006:

GAAP based "net loss" ($1,200,000)
Depreciation and amortization of intangible assets 800,000
Other income (expense) 300,000
Stock-based compensation 1,100,000
Non-GAAP Based "adjusted net income" $1,000,000

Statements contained in this news release regarding ActiveCore Technologies, Inc. formerly IVP Technology and planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond ActiveCore's control, including, but not limited to, reliance on key markets, suppliers, and products, currency fluctuations, dependence on key personnel and trade restrictions, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in ActiveCore's Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on January 4, 2005. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above.

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