SOURCE: IBSG International, Inc.

November 19, 2008 11:00 ET

IBSG International, Inc. Reports Three Month Results

Revenue Rose 27% and Working Capital Increased by 42% for the Nine-Month Period Ended September 30, 2008

CELEBRATION, FL--(Marketwire - November 19, 2008) - IBSG International, Inc. (the "Company") (OTCBB: IBIN), a developer and marketer of BizWorld Pro©, a comprehensive, Internet-based Commerce Platform that operates as a digital service centre for government ministry-departments and business enterprises, announced today its financial results for the nine and three months ending September 30, 2008.

Revenue increased approximately $2.8 million, or 27%, from approximately $10.1 million for the nine months ended September 30, 2007 to approximately $12.9 million for the same period in 2008. Net income before taxes decreased approximately $567,000, or 10%, from approximately $5.5 million for the nine months ended September 30, 2007 to approximately $5.0 million for the same period in 2008. Net income after taxes decreased approximately $246,000, or 7%, from approximately $3.4 million, or $0.43 per diluted earnings per share for the nine months ended September 30, 2007 to approximately $3.1 million or $0.29 per fully diluted earnings per share for the same period in 2008. The number of weighted average shares outstanding on a fully diluted basis, used in the calculation of earnings per share, for the nine months ended September 30, 2008 was 10,694,051 as compared to 7,740,306 for the same period of 2007. The decrease was due to taxes, an increase in professional services including any commissions and an increase in the average weighted stock number.

Net cash provided by operating activities for the nine months ended September 30, 2008 was $6.3 million as compared to net cash used in operating activities of $493,000 for the same period in 2007. This resulted in a $6.8 million increase in net cash provided by operating activities period over period. As of September 30, 2008, the Company had cash on hand of approximately $9.0 million, a 319% increase as compared to the approximately $2.1 million cash on hand as of December 31, 2007. Working capital increased approximately $7.5 million, or 42% from approximately $17.7 million as of December 31, 2007 to approximately $25.2 million at September 30, 2008.The increase coming from continued growth of existing contracts.

Revenue decreased approximately $261,000, or 7%, from approximately $4.0 million for the three months ended September 30, 2007 to approximately $3.7 million for the same period in 2008. Net income before taxes decreased approximately $375,000, or 24%, from approximately $1.5 million for the three months ended September 30, 2007 to approximately $1.2 million for the same period in 2008. Net income after taxes decreased approximately $108,000, or 13%, from approximately $820,000, or $0.10 per diluted earnings per share for the three months ended September 30, 2007 to approximately $712,000 or $0.06 per fully diluted earnings per share for the same period in 2008. The number of weighted average shares outstanding on a fully diluted basis, used in the calculation of earnings per share, for the three months ended September 30, 2008 was 11,314,750 as compared to 7,845,131 for the same period of 2007.

Commenting on the announcement, Dr. Michael Rivers, CEO of IBSG International stated, "For a company to continue to perform at these levels takes tremendous dedication and focus, especially during a worldwide economic down turn. We are experiencing an increase in demand for our platform as nations are not just focused on accelerating trade but protecting their GDP.

We are also seeing more nations negotiating in tandem with the intent of implementing simultaneously. The Company's performance has enabled us to strengthen our balance sheet beyond the Company's operational average cash needs to demonstrate to governments the added financial strength the Company has to implement multiple projects simultaneously around the world. We project, but cannot guarantee, that by the end of this year, we will have over 70,000 subscribers with a possible back log of over 3 million subscribers from current projects."

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 ENTERPRISES, 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: SGI; Mr. Stan Altschuler or Mr. Richard Cooper, 212-838-1444.

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.

- FINANCIAL TABLES TO FOLLOW -

                  IBSG International, Inc. and Subsidiaries
                         Consolidated Balance Sheets

                                                 September 30, December 31,
                                                     2008          2007
                                                 ------------- ------------
                                                  (Unaudited)   (Audited)
                  ASSETS
CURRENT ASSETS
    Cash                                         $   8,952,415 $  2,138,496
    Accounts receivable, net                        24,471,255   20,673,831
    Prepaid expenses                                 1,367,979    1,402,274
                                                 ------------- ------------

Total Current Assets                                34,791,649   24,214,601
                                                 ------------- ------------

FURNITURE, FIXTURES AND SOFTWARE, NET                  425,182      703,024
                                                 ------------- ------------

OTHER ASSETS
    Accounts receivable, net of current portion      4,995,000    6,195,000
    Note receivable                                  1,868,215    1,802,324
    Other assets                                       141,385      141,665
    Deferred consulting services                     1,457,398    2,350,375
    Deferred tax asset, net                          1,717,127      350,000
                                                 ------------- ------------

Total Other Assets                                  10,179,125   10,839,364
                                                 ------------- ------------

TOTAL ASSETS                                     $  45,395,956 $ 35,756,989
                                                 ============= ============

  LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
    Accounts payable and accrued expenses        $   1,183,588 $    878,770
    Income tax payable                               3,810,441    1,026,350
    Deferred revenue                                 3,253,192    3,711,347
    Deferred tax liability, net                      1,342,176      914,137
                                                 ------------- ------------

Total Current Liabilities                            9,589,397    6,530,604
                                                 ------------- ------------


Deferred revenue, net of current portion             4,995,000    4,995,000
                                                 ------------- ------------

TOTAL LIABILITIES                                   14,584,397   11,525,604
                                                 ------------- ------------

COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
    Common stock authorized 100,000,000 shares
     at $0.001 par value; 12,436,621 and
     9,685,052 shares issued and outstanding as
     of September 30, 2008 and December 31, 2007,
     respectively                                       12,438        9,686
    Additional paid-in capital                      23,629,185   20,160,045
    Retained earnings                                7,169,936    4,061,654
                                                 ------------- ------------

    Total Stockholders’ Equity                      30,811,559   24,231,385
                                                 ------------- ------------

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY       $  45,395,956 $ 35,756,989
                                                 ============= ============




                   IBSG International, Inc. and Subsidiaries
                     Consolidated Statements of Operations
                                    (Unaudited)

                       Three Months Ended           Nine Months Ended
                          September 30,               September 30,
                    --------------------------  --------------------------
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------
Sales               $  3,728,152  $  3,989,135  $ 12,932,704  $ 10,144,286
Cost of Sales             89,093        89,093       267,279       267,279
                    ------------  ------------  ------------  ------------

Gross Profit           3,639,059     3,900,042    12,665,425     9,877,007
General and
 Administrative        2,471,094     2,390,465     7,712,386     4,455,414
                    ------------  ------------  ------------  ------------

Income from
 Operations            1,167,965     1,509,577     4,953,039     5,421,593
Interest Income               --        32,947            --        98,838
                    ------------  ------------  ------------  ------------

Net Income Before
 Provision of
 Income Taxes          1,167,965     1,542,524     4,953,039     5,520,431
Provision for
 Income Taxes           (455,941)     (722,195)   (1,844,757)   (2,166,585)
                    ------------  ------------  ------------  ------------

Net Income          $    712,024  $    820,329  $  3,108,282  $  3,353,846
                    ============  ============  ============  ============

Net Income Per
 Share -
 Basic/Diluted      $       0.06  $       0.10  $       0.29  $       0.43
                    ============  ============  ============  ============

Weighted Average
 Number of Shares
 Outstanding During
 the Period -
  Basic/Diluted       11,314,750     7,845,131    10,694,051     7,740,306
                    ============  ============  ============  ============

Contact Information

  • Contact:
    IBSG International, Inc.
    321-939-6321
    or
    Richard Cooper
    212-838-1444
    Investor Relations
    Strategic Growth International
    Email Contact